MIM profit halved

Press, 2 September 1981, Page 23

MIM profit halved

Falling metal prices and sharply increased costs were blamed for the sharp 47.7 per cent drop in the net profit of MIM Holdings. Ltd. to sAustlO6.4M in the year to I June 30. However, the managing I director (Mr Bruce Watson) i said the group was optimistic i in the long-term. I The mining industry found i it difficult to plan with the | large number of government i changes to mining regulai lions, he said.

There had been changes to regulations governing royalties. infrastructure, rail freight charges, the coal levy and sales tax.

“There's a belief about that the mining industry is there to be plucked and it's a matter of great concern to us." In the statement of results the directors said a decline in average metal prices on world markets seriously eroded revenue from copper, lead, and silver.

For the year, average prices received were: copper $1679 a tonne (down 14 per

cent), lead $573 (down 34.1 per cent): silver $409 a kg (down 21.3 per cent). Despite efforts to contain the effects of inflation, costs of sales increased 17.2 per cent to about SSIIM. Sales

revenue fell 14.8 per cent to $721.4M. | The company's diversification plans were illustrated by its SI96M capital spending for the year. Capital spending this financial year could be more than S3OOM as the diversification programme gathered pace, and Mr Watson con-

firmed that the group could approach shareholders for funds within a year.

A final dividend of 7c a share payable on November 2 gives an annual rate of 15c a share (30 per cent), compared with 27.6 c a share previously after adjustment for the 1980 bonus issue.