HIGH DIVIDENDS

Dominion, Volume 29, Issue 99, 21 January 1936, Page 12

HIGH DIVIDENDS

Progress of Bulolo REMARKABLE RESULTS Among gold-winning undertakings which have reached the production stage since the rise in the price of gold four years ago gave new and vigorous life to an apparently dead industry, Bulolo Gohl Dredging, Limited, lias already achieved remarkable results. In three years, it has paid dividends aggregating £1,050,009, exceeding payments tor the cwime period by either ot the two outstanding Western Australian companies—Lake View and Star and Wilttna. Bulolo this year headed the list of dividend payers listed on the Stock Exchange. New Guinea is now producing more gold than any Australian State, except Western Australia. Bulolo has paid two-thirds of the total dividends disbursed by companies operating in the Mandated Territory. Formed in February, 1930, with a nominal capital of -1,000,000 dollars (£1,000,000). Bulolo now is nominally capitalised at 6,000,000 dollars, and has a subscribed capital of 4,675,000 dollars divided into 935,000 shares of live dollars each. The story of Bulolo’s conquest of the natural difficulties of inhospitable New Guinea will be long remembered as a romance of modern business enterprise. Dredge units were transported by aeroplanes. Production was commenced in 1932 with one dredge. Now four dredges are in operation, and plans for the commission of two more are being executed. At the annual meeting recently it was stated that the installation of two deepdigging dredges would be proceeded with immediately. One would have a total digging depth of 120 ft., the other of 165 ft. The cost would be met by the sale of up to 60,000 Treasury shares as funds were required. With six dredges in operation earnings were expected to be materially, though not necessarily proportionately, increased. On the Bulolo Diver and about six miles from the upper end of the company’s holdings an additional area had been acquired. From it, and from several small contiguous areas being negotiated for, about 10,000,000 yards of 25-eent gravel might reasonably be expected. Iu the five mouths to November 1 since the close of the company’s financial year the company’s estimated profit is more than £350,000, calculated at £B/lu/- Australian currency a fine ounce of gold. Ihe dredging of 4,748.000 cubic yards in that period gave a yield of 54,2230 z.