R.T.Z. credits price rises

Press, Volume CXIV, Issue 33520, 29 April 1974, Page 17

R.T.Z. credits price rises

■XZ. Press Association— Copyright' LONDON Rio Tinto-Zinc Corporation. Ltd benefited front a significant increase in market prices for nearly all metals in which it traded, the international mining group said in its annual report.

However, .some of the benefit was offset by a decline in the value of sterling against other principal currencies.

The net profit attributable {to shareholders before extraordinary items was £69.6m in 1973 compared with £29.5m the previous year. Earnings an ordinary [share for 1973, were 31.4 p compared with the 1972 figure of 13.2 p.

! The increase to £727 in the !average copper price on the [London Metal Exchange for 1973 from £428 was the (most important single factor {affecting the groups results [for the year, the report said, i The principal exchange rate variations as far as the group was concerned were those for the Australian and South African currencies. In each case the decrease in value for the pound sterling was around 15 per cent.

The Australian dollar increased further in value against the United States

dollar and this had an adverse effect on the earnings of Hammersley Iron. Ltd, as its sales contracts are largely based on United States dollars. This loss was to some extent offset by the profit made on repayments of the United States dollar borrowing.

Bougainville Copper, Ltd, also realised significant exchange gains on United States dollar loan repayments.

Sales by Conzinc Riotinto [of Australia. Ltd. were £l6lm higher than the previous [year, and accounted for [nearly half of the total increase in group sales {revenue, which rose 58.7 per [cent to £933.2m. [ Of the increase in [C.R.A.’s sales £lo7m was attributable to Bougainville Copper.

Hamersley increased its sales by £23m or 36 per cent to £lo6m mainly due to higher sales volume with a full year’s operation of the Paraburdoo mine. The directors recommend the payment of a final ordinary dividend of 2.87 p a share on July 1.

The total ordinary dividends payable for 1973, after adding the tax credits available. will be equivalent to a gross dividend of 6.6 p a share, compared with 6.29 p a share for 1972. which is the maximum amount permissible under the British Government’s dividend restriction legislation