WMC profit falls 88 per cent

Press, 8 September 1982, Page 30

WMC profit falls 88 per cent

NZPA Melbourne Western Mining Corporation Holdings, Ltd. the big metal miner and smelter group, incurred an 88 per cent drop in profit to sAust6.9 million in the year to June 22, the directors announced in a preliminary report. The directors cut the final dividend to 1c a share from last year’s final payment of 7c a share (14 per cent). Lower nickel sales, weak metal and bullion prices, reduced dividend income, and rising trading costs were the causes of reduced profit, they said. Pre-tax earning fell 96.7

per cent to S3.IM. A' tax credit of SIO.BM saved WMC from omitting final dividend or using its reserves to pay shareholders a dividend. The annual dividend rate of 2.5 c a share (14c a share previously) will take $6.6M. The tax credit — comprised of dividend rebates. exempt gold-mining income, and investment allowances —compared with last year's credit of $23.7M. Turnover fell 12.6 per cent to $265.2M. Sales revenue from nickel and co-products fell 13.4 per cent. WMCs dividend income declined, mainly because of lower pavments bv Central

Norseman Gold Corporation. Ltd. CRA, Ltd. and Alcoa of Australia. Ltd. . On an equity accounted basis. WMCs profit fell 77.3 per cent to $17.1M reflecting the reduced returns from associated companies and depressed trading results of the group's wholly-owned activities. Increased borrowings and the higher cost of funds caused interest payments to increase $13.5M to $28.5M. Depreciation rose $9.9M io $46.5M mainly because of the start of the Windarra nickel project and the Kambalda gold activities in Westen: Australia.