WAIHI GRAND JUNCTION

Evening Post, Volume CXV, Issue 148, 26 June 1933, Page 12

WAIHI GRAND JUNCTION

(From "The Post's" Representative.)

LONDON, May 26.

The annual meeting of the Waihi Grand Junction Gold Co., Ltd., was held in the company's offices today, Mr. W. P. Gauvain (chairman) presiding. The chairman reported that the tonnage treated during the past year amounted to 25,475, as compared/ with 26,496 in 1931, and the net amount, received as a result of this treatment was £12,661 Is 2d, as compared with £11,396 lls 6d in the previous year. Sundry receipts, including interest, amounted to £2419 ISs 9d, bringing the total revenue up to £15,083 19s lid. The sum of £1709 lls 7d had been paid or provided for income tax irf London and New Zealand. A dividend equalisation account had been opened and credited with £3500. After making the provisions set forth above, and deducting administration and general expenses, there remained the sum of - £7001 2s 3d, to which must be added £'938 7s 8d brought forward, making an available balance of £993£T9s lid. The directors recommended the payment of a dividend of 4d per share, free of income tax, which would absorb £6906 5s 4d, leaving the sum of £3033 4s 7d to be carried forward. The capital reserve account that was the surplus on plant and stores sales had been increased by £1785 15s 7d, which represented the value of plant and stores disposed of in 1932. PREMIUM ON GOLD. During the whole of the past year they had enjoyed the benefit of the premium on gold, which had amounted to approximately £1 14s per ounce, and in consequence of this they were able to show an increased revenue, notwithstanding a. considerable reduction in mine valuation of the ore treated in 1932 as conipared with '1931. Had it not been for this premium, the results obtained would bear unfavourable comparison with those of the two previous years. At the end of the year the ore reserves showed a reduction of 7242 tons, and now stood at 15,884 tons. In addition to this reduction in tonnage, they had to record a reduction in mine valuation of these reserves, from 34s 9d to 31s 6d. To add to their difficulties, .they were this year confronted with an export tax on gold, and in consequence the general position and the future programme had necessitated their earnest consideration. Since 1926, when the agreement between the Waihi Company and their company was finalised, development had been carried out in a thorough manner. Their expectations, based on the information available at the time the agreement was negotiated, had been fully realised, but if they were to maintain the ore reserves at a satisfactory figure it was essential that further development work should be undertaken. An examination of the last .two balance-sheets would show that they had arranged their finances with that end in view. They must thoroughly explore those portions of the mine where there were indications that there might be a possibility of opening up ore of payable value. The chairman also explained what exploration work was to be undertaken, and added that it was deemed advisable to open a dividend equalisation account with/ the object of endeavouring to maintain, for as long a period as possible, the present rate of distribution during the time that further exploration work was proceeding. For the first five periods of this year, to May 13, 9519 tons of ore had been treated, resulting in a return at mine valuation of £18,325. For the corresponding period of hist year the tonnage was 10,101 for a mine valuation of £15,538. It would be noted that the mine valuation of the ore treated so far this year was in excess of the average value of the ore reserves, being 38s 6d as against 31s 6d. GOLD EXPORT TAX. "It is right," continued the chairman, "that you should know what effect theexport duty of 12s Gd per ounce on gold, recently imposed by the New Zealand Government, will have on our operations. This duty increases our working costs by approximately 4s per ton. The mine valuation' of our ore reserves has been steadily decreasing: during the past few years; the imposition of this duty automatically decreases our reserve tonnage and eliminates certain ore which cannot now be treated at a profit and must in consequence remain in the mine. ■ "It is appreciated that every section of the community must bear its. share of taxation, but it is open to doubt whether, after viewing' every aspect of the position, the imposition of this extra duty will be of any real benefit to New. Zealand. The premium on gold has undoubtedly led to increased activity in prospecting, it has* provided employment at a time when any increase in employment is of the utmost importance to the country, and it has enabled existing companies to deal with' low-grade blocks of ore which otherwise could not have been treated. There are areas in New Zealand lying dormant, but which at the present price of gold warrant investigation; this export tax must of necessity limit these investigations and tend to retard the flow of British capital to that country. New Zealand is essentially a primary producing country, and any.tax on its primary products must be of very doubtful benefit to the country 'as a whole."

After expressing the directors' thanks to the company's attorneys, the manager of the Waihi Gold. Mining Co. and his staff, and to the company's own staff in London and New Zealand, the' chairman moved that the directors' report and statement of accounts to December 31, 1932, be received and adopted, and a dividend of 4d per share, free of income tax, be now declared, and that the balance of £3033 4s 7d be carried forward.

Mr. Morewood Dowsett, who seconded the resolution, said he visited the. mine last year, and found work proceeding in a very satisfactory manner. He inspected the underground works, and was struck with the thorough manner in which investigations were being carried out.

- The report and accounts were adopted, and Mr. W. P. Gauvain, retiring director, was re-elected.