BH SOUTH INCURS FURTHER LOSSES

Press, Volume CXVI, Issue 34123, 8 April 1976, Page 20

BH SOUTH INCURS FURTHER LOSSES

I (New Zealand Press Association —Copy riff tit > SYDNEY. BH South, Ltd. sank further into deficit in the six months to< December 31, after its three main mining operations and its Port Kembla ' smelter incurred heavy losses. I

These losses will continue in the six months to .June' 30, despite the prospect of a significant gain in phosphate ; rock shipments from this month onward, the directors! say in a half-yearly report, i The 51 per cent-owned Kanmantoo copper mine in ,South Australia is to be mothballed within the next' three months; the 100 per cent owned Cobar copper mine in N.S.W. is undergoing a re-scheduling of activities involving a further cut in its work-force, but an increase in ore output. The group net trading loss_

increased sharply from sAust.2.om to ss.Bm in the six months to December 31, after a relatively minor decline of 4.2 per cent to slB.Bm in gross revenue. i There is again no diviThere is again no dividend. The last payment was a 14 per cent distribution in November 1974, after the company had earned a sB.3m IN 1973-74. The directors make no forecasts of dividend or earnings prosepcts for the full year to June 30, but point out that the benefits of the recent rise in copper

prices on the London Metal Excahnge are being dissipated by the drift in sterling. The loss was after providing $259,000 more for interest at $755,000, and $334,000, more for depreication and' amortisation at $2.4m. There was no tax provision. After deducting the share of trading losses attributable , to outside shareholders from $313,000 to $900,000). the' total net loss is reduced to $4.9m in 1974, when there was an extraordinary profit of dollars sl.9m, there was al, small over-all profit of i $477,000 ; Noneptrading revenue tell ,

sl.6m to $336,000. but the ( ■ directors point out that divi- , ■dends from the company’s j three largeset invetments , i will not be received until , I the current half-year. , The heaviest setback'; among BH South’s sub-' I sidiary companies was ■ suffered by Cobar Mines ‘ Proprietary, Ltd, which increased its net loss from , sl,6m to s2.lm. ( Kanmantoo Mines, Ltd, in- , creased its loss from Sl.lm t to sl.6m, and Electrolytic Refining and Smelting Com- , pany of Australia, Ltd. in- ( creased its loss from r $109,000 t 05328,000. s Queensland Phosphate, |, Ltd. which railed its first 1 shipment of phosphate rock J a year ago, lost sl.om in- J eluding a working loss of, s $514,000. _s

Bahrain office i The Bank of New South . Wales has received formal approval from the Bahrain Monetary Agency (Central Bank) to establish a representative office at Manama (Bahrain). The bank’s representative will be a New Zealander. Mr D. M. McConachie.: who is now a manager ini the Corporate Finance Department at Head Office in Sydney. Beef exports improve | Anderson Meat Industries. Ltd. Sydney exporters, expects E.E.C. countries to' increase their intake of Aus- 1 tralian beef later this year. The directors say in the annual report that export markets have improved in recent months, and this should continue during the remainder of the year. The United States market is still restricted and exports will be almost the same as in 1975 Useful quantities of beef were shipped to .Japan in the second half of last year.