North Broken Hill dividend cut

Press, 4 October 1982, Page 35

North Broken Hill dividend cut

PA .Melbourne The directors, of North Broken Hill Holdings, Ltd. slashed the final dividend to 3c a share from 10c after profit slid 47 per cent in the year- to June 30. Earnings dropped to sAustl7.3M from sAust32.4M. and the Broken Hill mining operations suffered their first annual loss since 195859.

The directors said that the mines incurred a pre-tax loss of $10.9M against a $3.9M profit of 1980-81.

However, tax credits of SSM nearly halved the loss. No royalty was paid to the New South Wales Government ($250,000 previously).

The directors attributed the loss to low lead and silver prices. They said a cost reduction programme

and an increase in the price of silver since June should produce a better operating result this financial year. Income from the company’s investments is estimated to be lower than, in the previous year but. if present trading conditions persist, the over-all result for the 1982-83 year should be comparable with that of 1981-82. they said. Investment income was halved, but equity-accounted profits were marginally higher during the year.

Total investment income and equity-accounted earnings amounted to S23M against the previous year’s S2BM.

North B.H. boosted production and increased sales of metal products in the year to June 30 but the lower prices

cut the value of mine production to $47.7M from $55. IM.

The average price North B.H. received for its lead fell to $559.22 a tonne from $617.69 a tonne in 1980-81. while the average price obtained for silver slumped to $241.12 a kg from $452.68 a kg-

Zinc prices were higher at $840.59 a tonne ($701.59 a tonne previously). The group incurred an extraordinary loss of S4.BM compared with an abnormal gain of $7.7M in the previous vear.

The annual dividend in 1980-81 was three times higher than the current annual payout of 6c a share.

Books close on November 17, and the final dividend is payable on December 10.