Gt Boulder has another loss

Press, Volume CXV, Issue 33814, 10 April 1975, Page 10

Gt Boulder has another loss

(New Zealand Press Association —Copyright") SYDNEY. After a loss in the second half of 1973-74, Great Boulder Mines, Ltd, Australian nickel miner has incurred a $425,282 net loss in the half-year to December 31.

Great Boulder showed a net profit of $189,775 ini 1973-74, but only after earn-) ing $471,672 in rhe first six| months. Mining operations in the latest half-year were hard hit by the big surface collapse at the Scotia Mine ini Western Australia. Nickel concentrates produced and sold from the Scotia mine slumped from 2,036 tonnes to 593 tonnes after two big falls in the mine’s workings in July, and the failure of mining at an open cut section. The reduced Scotia operation was partly offset by increased output from the Carr Boyd Rocks mine, also in Western Australia. Concentrates produced and sold from Carr Boyd Rocks rose from 390 tonnes to 670 tonnes.

Until October 11, Great Boulder had a 51 per cent interest in the Scotia Mine, and a 50 per cent interest in the Carr Boyd Rocks mine, with North Kalgurli Mines, Ltd, holding the remaining interests.

Great Boulder now holds 100 per cent interests in the two mines as the result of a dispute with North Kalgurli on the joint venture arrangement. The dispute, over an alleged bad debt of $920,000, | was taken before the Kalgoorlie Warden’s Court, but settled by the two parties on mutually satisfactory terms. Besides problems with mining operations. Great Boulder’s return from nickel concentrates apparently continued to be affected by exchange rate variations, until some relief was provided in September by the 12 per cent devaluation of the Australian dollar. Great Boulder sells its concentrates to Western Mining Corporation, Ltd. Australia’s leading nickel producer. The contracts are written in Australian dollars, but based on the producer price of nickel, which is in U.S. : dollars. Benefits of the September devaluation have subsequently been reduced by the upward movements of the Australian dollar against the U.S. dollar. The net interim loss was after mine amortisation and

depreciation rose by I ,$126,790 to $356,720 and; i provision for depreciation off fixed assets increased by' $12,540 to $176,400. Provision for writing; off exploration and prospecting costs was $20,000 higher at $lOO,OOO. The directors said that no provision for tax was neces-i sary. Dividends and interest received from the company’s substantial investment portfolio were $28,750 higher at $472,134.