Peko profit not copper

Press, Volume CXIV, Issue 33675, 26 October 1974, Page 14

Peko profit not copper

(N.Z. Press Assn—Copyright) SYDNEY. Peko-Wallsend, Ltd, will maintain profits at la.st year’s levels — even if copper remains at its depressed price — if the present prices of gold, bismuth and scheelite remain at their present levels, for this is where the group’s profit potential lies, according to the chairman (Mr J. S. Proud) at the annual meeting. He said that there was no profit in copper, but if the price remained steady, the over-all profit of the group would remain steady. In the year to July 9, Peko raised its group net profit 16 per cent to $9.4m after charging abnormal items of $3.4m but excluding capital profits of sl.3m. Mr Proud said that the copper prices are back to mid-1973 levels with the very real possibility of a further decline. On the other hand, there was a good measure of firmn&ss in the prices for gold and bismuth. Scheelite, while rather more uncertain, was maintaining its price at a reasonably profitable level.

Although the last year had not been profitable for coal, demand and price on the export market had firmed, and this section was entering a period of improved trading.