MOUNT MORGAN, LTD.

Dominion, Volume 30, Issue 299, 14 September 1937, Page 14

MOUNT MORGAN, LTD.

Large Increase in Earnings

LAST YEAR’S ACCOUNTS

Mount Morgan, Ltd., reports a prolit of £143,043 for the year ended June 30, compared with £104,961 the previous year and £110,432 for 1934-35. A dividend of 4jd. per share, equivalent to 15 per cent., was paid during the year, requiring £40,333. A sum of £3025, equal to 7| per cent, of the dividend, has been allocated to the employees’ welfare fund, and £14,386 has been transferred to removal of overburden reserve account, leaving £126,793 to be "carried forward, against £41,494 brought forward. Total revenue was £515,056, against £390,821 the previous year. Year ended June JO.

No depreciation has been charged to working or profit and loss account for the year. £10,633 having been transferred to depreciation account from the premium on shares reserve. The latter Jims increased during the year to £184,356 as the result of the new issue. In addition to the transfer already mentioned from this reserve, £59,147 was used to write off expenditure on reconditioning and installing machinery, and £25,516 was used to write off expenditure on mine preparation. Tho premium reservo thus was reduced to £89,059. The oxidised ore treatment plant began its trial runs in January. Its operating costs were 6/3.84 per ton, including expenditure in trial runs and adjustments. The costs will, be reduced during the current year. The average grade of tho oxidised ore mined was 1.623dwt. gold, but as the outer portions of the dumps are removed the values are approaching the expected grade of 2.7dwt. Mining costs were 1/11.64 per ton, total costs thus being 8/3.48 per ton. Of the sulphide ore mined, 38.07 per cent, was overburden and ore from outside the reserves. The cost of mining it was 6/2.52 per ton, compared with 5/10.93 per ton on the previous year. The cost of treatment was 7/3.12 per ton, against 9/0.45 per ton the previous year. The general manager explains that the increase in mining costs is due to an award directing 52 weeks’ pay for 50 working weeks, to the increase in the basic wage, to the restriction of ordinary working hours to five days a week, and to a change from millhole working in 33 and 14 sections to face working.

Ore reserves are as follows: —Sulphide ore, 7,307,329 tons, assaying 4.26dwt. gold and 1.77 per cent, copper; oxidised ore, 1,282,000 tons, assaying 27dwt. gold. These figures do not include ore outside previous reserves, disclosed by developmental driving, but not exposed sufficiently for estimation. Paid-up capital is £293,500. Share reserve account is unchanged at £lO.OOO, and bank overdraft is £25,548. At June 30, concentrates, bullion, and precipitates on hand were valued at £64,865. Fixed deposits amounted to £lOO,OOO.

DAIRY BOARD’S LEVY

Reduction by One-half

Tlie Dairy Board has asked the Government to issue the necessary regulations reducing' the levy for the 1937-38 season by one-half. The amount collected by the Primary Products Marketing Department on account of file board will therefore be 1-100 of a penny per pound of butter, and 1-200 of a penny per pound of cheese on all produce exported, or sold on the local market as from July 1, 1937.

NEW CAPITAL FOR INDUSTRY

Investment in Australia

In opening the new' plant of Felt and Textiles of Australia, Ltd., at Alexandria last Tuesday, the Premier of New South Wales (Mr. Stevens) said that during the past five years £2,700.000 had been invested to produce commodities not made in Australia before 1932, thus giving employment to more than 5000 people, and with an output worth £3,350,000 a year. ‘‘ln the extension of established industries,” he added, “more than £11,000,000 has been invested, giving employment "to more than 23,000 people, and an output worth more than £14,000,000 a year. “At least a further £10,000,000 is to be invested in new industries iu the near future.”

Mr. Stevens said that, 75 per ceut. of the new capital was located in New South Wales, showing that industry knew not only the best location, but also that industry knew Where capital was safe. The most impressive and encouraging feature of economic development in Australia during recent years, he said, had been the expansion in comparatively undeveloped fields. During the past five years new industries had been springing up at a great rate to produce commodities formerly imported, and industries previously existing had just as rapidly been adding new lines and qualities to their output. The Premier then referred to the firm as the first to undertake the manufacture of felt piece goods in Australia and to the manufacture of woven carpets, which had hitherto been almost exclusively an imported line, drawing practically the whole of its raw material from Australia. Claude Neon (Sydney), Ltd. Claude Neon (Sydney), Ltd., reports a net profit of £30,990 for the year ended June 30, compared with £21,536 the previous year and £16,440 for 1934-35. The dividend is steady at 15 per cent., requiring £18.357, and £10,387 has been transferred to reserve, making that item £15,500. Against £5378 brought forward, £7625 is carried forward. Gross profit increased from £68,004 in 1935-36 to £80,155 in 1936-37. AUCTION DIARY to-day. Feilding Morse Sale, 11 a.m. 16 Hadfield Terrace. Kelburn.—Superior Furniture (E. Johnston and Co.). Levin Sale, 11 a.m. Woodville Sale —-170 Cattle (Abraham and Williams, Ltd.). 8 Wflleston Street, 1.30 p.m.—High-class furniture (E. Johnston and Co.). to-morrow. Claudelands Showgrounds, Hamilton.—National Jersey Show (Wright, Stephenson and Co., Ltd.). On the Farm, Hoklo Beach Road, Levin, 12 Noon.—Clearing sale, on account R. A. McDonald (N.Z. Loan and Mercantile Agency Co., Ltd.). 22 Brandon Street, 2.30 p.m.—Property, Main Road, Upper Hutt (H. H. Leighton). Johnsonville Fat Stock Sale, 1 p.m.—llo Head Cattle. 1000 Sheep (Wright, Stephenson and Co., Ltd.). Masterton Sale, 11 a.m. THURSDAY. A. aud P. Showgrounds, Palmerston North, 11 a.m.—Annual spring sale of pedigree pigs (N.Z. Loan and Mercantile Agency Co., Ltd.). At Raetlhl Saleyards, 1 p.m.—Sale of Karioi Farm, account Booth, MacDonald Co., Ltd. (Freeman R. Jackson Co., Ltd.—N.Z. Loan and Mercantile Agency Co., Ltd.). On the Site, Makaranut Railway Siding. 10.30 a.m.—Clearing sale, sawmiller's plant, account Feildlng Sash and Door Co. I Freeman R. Jackson Co., Ltd.). To Ore Ore, three miles from Masterton, 11.30 a.m.—Clearing sale, account S. i Cooper (Wright, Stephenson and Co.,

1935. 1936. 1937. Sulphide ore treated, tons 177,780 259,929 322,310 Grade— Gold, dtvt. 5.80 3.43 Copper, per cent. 0.54 0.67 0.66 Oxidised ore, tons — — 97,241 Yielding— Gold, ox — — 1,256 Silver, oz. — — ‘2,73b Concentrates, tons G.2G6 9,538 11,CIS Total production— 33,832 35,618 39,539 Copper, tons .... 844 1,513 1,806 Silver, oz. — —