MOUNT LYELL

Evening Post, Volume CX, Issue 132, 2 December 1930, Page 14

MOUNT LYELL

DIVIDEND HALVED

The Mount Lyell Mining and Railway Company, Ltd., made a net profit of £131,178 for the.year to 30th September,, after allowing £58,354 for prospecting, development, and depreciation, and £16,118 for taxation. Net profit for the preceding 12 months was £324,128, when £46,048 was marked for prospecting and development, '£65,576 for depreciation, and £34,121 for taxation. Distribution for the year is 2s a share, against 4s for 1928-29. When the books closed, liquid assets, excluding shares in other companies, showed a surplus of £453,507 over liabilities. The directors state that, although earnings from superphosphate interests, particularly in Victoria, had been affected by the bad season, the interest earned on book value of the company's investments was satisfactory. The average quotation for electrolytic copper for the year was £70 15s 9d a ton, against £83 Is 4d for the preceding twelve months. During the earlier months, when the price was high, the market in the metal was exceedingly restricted, and sales could not be ,made at the official quotations. Local consumption has fallen off considerably, necessitating the exportation in the latter part of the period of larger tonnages than usual for sale abroad. The lower price received for such sales was to some extent helped by the exchange premium. •'. . The price outlook for copper is obscure, That the market position is abnormal is demonstrated by the fact that during the last 30 years the price of electrolytic has averaged £79 4s 9d a ton. The latest price is £47 15s a ton. . The work of the year in mining was distinguished by reductions in the cost of all operations. The total output from all mines was 244,535 tons, the average grade being 4.41 per cent, copper, 0.910z silver, and 0.020z gold^ This is an increase of 71,267 tons over 1928-29. The assay is lower than formerly,, but this is more than compensated for by the reduction in'costs. Ore reserves are 4,101,561 tons. In addition to these reserves, developments dur- ■ ing the past two years have demonstrated ■ '•that there are considerable, tonnages of : ore assaying from 1% per cent, to 2 per -.cent, in the Crown Lyell and Lyell Thai-sis leases, and that a large proportion is javailable for extraction by open cutting. .■The larger tonnages of low grade ores now ■J proved, are of great importance to. the ■future of the company. Assets at £3,006,372 include: Shares in «ther companies, £1,450,170; cash, £36,457; sundry debtors, £21,360; metals on hand, £222,195; deposits £45,300; mine properties, £505,042; and railways and rolling stock, £212,301. Paid capital is £1,537,----557. Reserve fund totals £746,066; insurance funds, £51,457; and sundry credi- ■ tors, £36,093.