SHIPPING DIVIDEND PASSED.

Evening Post, Volume CVIII, Issue 150, 21 December 1929, Page 12

SHIPPING DIVIDEND PASSED.

LONDON, 19th December.

The directors of the Elder-Dempster Co., Ltd., one of the Royal Mail Steam Fackef group of shipping companies, announce that in order to conserve the company's cash resources, it has been decided not to pay the customary half-yearly dividend of 6 per cent., and the Wz per cent, cumulative preference dividend.

MOUNT LYELL

THE CHEMICAL MERCER

Addressing shareholders of Mount Lyell Mining and .Railway Co., Ltd., at the annual meeting on 13th December, the chairman (Mr. C. Templeton) said that the company had never been in a better and stronger financial position than it was to-day. The chairman reported that the most significant mining features were the increase by 30,271 tons of ore output from the North Mount Lyell mine, and tiia resumption of ore extraction at the Lyell Comstock mine, from which 16,322 tonb was won. The Lyell-Comstock mine was now producing ore at the rate of about--1000 tons a week. The amalgamation o~chemieal works in Victoria would lead to greater efficiency, better facilities for improving methods of manufacture and management, and a lower level of production costs than previously. Shareholders could not, however, look to the merger as likely to afford them increased profits, as there was a downward tendency in fertiliser prices. Mr. Templeton said that the increase in mining expenditure for the year, £26,000, was due entirely to larger output, the mining cost a ton of ore being actually less than the previous year. Refining and realisation costs showed a satisfactory reduction. TAXES AND PROFITS. Taxes showed an increase of £22,000, due to higher profit, but it was apparent that even the large sum appropriated for the purpose would be sufficient to cover the company's liability, as the Federal Government had budgeted for an increase of 20 per cent, on the amount of tax payable. Distribution of profits this year was the largest made since 1907. Through the construction of the company's own refinery and the development of. a local market, the costs of realisation and. administration were only 20s highor during the past year than they were 22 years ago, despite heavy increased freights and other charges. The recovery of copper last year waß 6 per cent, higher than the recovery in 1907. PRICE OF COPPER. The future of the company's mining undertaking depended on the price of copper. Although the price had been on a fairly even keel for many months, the market was apparently an artificial one, the price being maintained by curtailment of production when regarded by the larger producers as necessary. Reports from South Africa indicated that there would be a large increase in production from that quarter within the next few -years. The opening up of large additional sources of supply must have an effect on the market in a few years' time, said the chairman. The demand for copper, however,' was increasing so rapidly that it was usually considered that the world would absorb the whole of the new output. Net profit for the year was £324,128. Distribution was at the rate of 20 per cent.