C.G.F.A. recovers from loss

Press, 24 February 1978, Page 13

C.G.F.A. recovers from loss

NZPA Sydney) Consolidated Gold Fields; Australia. Ltd. expects to re-[ cover its group loss of ; sAust4.2M in the year to June 30, 1977 and earn a profit of at least S6M this year. It has resumed paying interim dividends with a payment of 6c a share to be made on April 28. The United Kingdom-con-trolled mining house recovered from a $121,000 loss to a $3,188,000 net profit in the December half-year, after

substantially better results from its tin and coal subsidiaries, and an end to its iron ore and copper losses. The directors expect that this result would be matched in the current half-year, despite the prospect of a downturn in coal profits, and a dismal outlook for mineral sands.

The biggest single factor in the recovery was a rise of 234 per cent to SB.SM in profits of the 52 per cent owned Renison, Ltd, tin mining subsidiary.

Renison’s results should continue to be good as a result of buoyant tin prices, and increased output of high-grade concentrate. But the 67 per cent-owned Bellambi Coal subsidiary — which increased its profit from SI.7M to S3M could be affected by the world steel recession in the current halfyear.

In- the last 18 months, the C.G.F.A. group has undergone a major reshuffle, which has involved the termination or reduction of loss-making copper, and iron ore activities.

The latest profit was after providing $2.4M more for income tax of $6.3M, $2.9M less for depreciation and amortisation of SB.3M.

Interest expenses fell $460,000 to $2.2M, but minority interests rose $2.4M to $4.6M. Last year C.G.F.A. passed its interim dividend, but paid a final dividend of 6c a share.