B.H. South incurred a loss

Press, Volume CXV, Issue 33963, 2 October 1975, Page 18

B.H. South incurred a loss

New Zealand Press Association—Copyright) MELBOURNE. B.H. South, Ltd, incurred a group net loss of SA4.ini in the year to June 30, compared with a profit of sB.2m the previous year, and as a result will not be paying a dividend.

After taking into account extraordinary items of s2m (nil last year), the net loss stood at s2m (sB.3m).

The result was after providing $302,000 more for depreciation at s3m, but sl.3m less for taxation at $117,000

and $103,000 less for freeholds and mine development at sl.6m.

Sales fell 17.7 per cent to s3sm.

The group result incorporated a net loss of s4m (s3m profit previously) for Cobar Mines Proprietary. Ltd, a fully-owned subsidiary. liie value of mine production fell 37 per cent, while the average labour cost per man shift worked was 51 per cent higher. To reduce the rate of loss at Cobar, the directors decided to reduce ore production to 500,000 tonnes a year.

Kanmantoo Mines, Ltd, a 51 per cent-owned subsidiary, incurred a loss of s2m (s3.Bm profit). The grade of ore was lower than expected and a reduced tonnage of ore was treated. The value of mine production fell by 54 per cent and the average cost per man shift worked rose 34 per cent.

The Electrolytic Refining and Smelting Company of Australia. Ltd (60 per centowned) reported a net loss of sl.4m ($643,000 profit). It was affected by industrial stoppages and production restrictions.

During the opening three months from April, Queensland Phosphate, Ltd. a fullyowned subsidiary, incurred a net loss of $791,000. The low prices received for copper and increases in operating and administration costs through higher wages, were the major factors contributing to the net Idss of the group, the directors say.