BH Sth seeking funds

Press, 11 October 1976, Page 20

BH Sth seeking funds

NZPA Melbourne BH South, Ltd, intends to make a cash issue to raise funds for its phosphate project. Terms of the issue have not been disclosed, but the directors say that details will be announced “in the near future.” The issue-proposal comes less than a fortnight after BH South reported a sAusts.lM operating loss for

1975-76, after a SS.BM loss in the previous year. Most of the deficit came' from BH South’s copper mines in New South Wales, and South Australia. However, the phosphate project, operated by whollyowned Queensland Phosphate, Ltd, increased its net loss from $791,000 to $2.6M after an interest bill of SI.2M and provisions for amortisation of mine development and depreciation of fixed assets totalling $475,000. Production of phosphate rock in the first full year of operation was only 167,702 tonnes. Until a 68km rail link was completed between the mine and the Mount Isa-Townsville railway in April, the phosphate rock had to be trucked from the mine to a rail siding at Duchess. Output was expected to reach an annual rate of one million tonnes by July, but last month’s preliminary report revealed that the one million tonne a year capacity treatment plant is now expected to be -commisisoned this month.

This delay, together with the copper losses, would have put strain on BH South’s liquidity, but the extent of these strains will not be known until the accounts are issued in 10 days time.