CLUTHA DREDGING

Evening Post, Volume CXXII, Issue 97, 21 October 1936, Page 14

CLUTHA DREDGING

STRONG FINANCES

(Special to the "Evening Post.") LONDON, September 30. A strong financial position was revealed at the annual meeting of the Clutha River Gold Dredging, Ltd., held in London on September 28. Apart from the deposit of £ 18,473 on account of , power, the company will have £30,000 in cash on hand when the dredge starts work some time during October. This position was revealed by Colonel Charles E. Ponsonby, M.P. (chairman), who presided. He also said that the company's administration account was most satisfactory. It showed a credit of £842, due to the company having invested its surplus funds at a time when gilt-edged securities were low. Realisation produced a net surplus of £5420.

"When we met a year ago we were expecting to hear any day of the launch of the dredge," said Colonel Ponsonby, in his address to shareholders. "It was most unfortunate for all concerned that this should have been the first year for about forty years when there was no rise in the Clutha River during the New Zealand spring or early summer." Subsequently the dredge was successfully floated. "Work on the installation' of the machinery and the completion of the dredge," the chairman continued, "has progressed favourably, although on account of the very cold weather which has prevailed in Otago this winter it has taken rather longer, than the general manager originally estimated, and it is expected that the dredge will be ready for its trial runs next month. During these trials the machinery will be 'run in' and any necessary adjustments made; also the crew will receive experience in the handling of the dredge before it is taken down the river to the spot where dredging will commence." The dredge has been designed to work to a depth of 65ft and to excavate and treat 120,000 cubic yards per month.

The results of the boring tests on the Lake Onslow option area were disappointing and the option was not exercised. The boring plant was moved to another property of some 500 acres of gold-bearing land in the neighbourhood of the Clutha River and within easy reach of Alexandra. Boring tests are in progress and, "although the results of the first bores are encouraging," said the chairman, "much more work has yet to be, undertaken before we can say that there is a likelihood of proving a sufficiently valuable area to justify our taking it up. In all their negotiations with the New Zealand Government the company has been met in a most friendly spirit and the officials of the Government and local authorities by their help in many ways have shown their interest in the company's undertaking." -'".'• The report was unanimously adopted.

The company has an option over a gold-bearing area of approximately 500 acres near Alexandra. ■ Authorised capital is £225,000 in 2s shares, the majority of which are issued. The balancersheet shows cash and debtors less creditors as £45,860. The shares are around par and have been described in London as "a fair speculation of their type."