LONDON OPINION

Evening Post, Volume CXXIII, Issue 75, 31 March 1937, Page 14

LONDON OPINION

WESTERN AUSTRALIAN MINES

What-is the matter with Western Australian gold shares? is the subject of a lengthy leading article in the ■■financial Times," which considers that so many opportunities for rapid reward in other spheres have naturally lured speculators from Western Australia. Moreover, comparatively poor development results in certain sections of established mines have affected the whole market.

"Some concerns," it says, "should never have been floated. A large number of small syndicates were formed in Australia during the past few years to exploit properties which even a superficial observer could have predicted had no hope of success. It is not surprising that disillusionment has damped the entire market. Labour troubles are another factor, an award proving costly, but greater mechanisation in production will probably offset it Fears of an increase in taxation are likely to be without foundation. Heavy capital charges due to reequipment and expansion are of more real importance. Western Australia is unlikely to turn out another Rand,, but where encouraging developments have been reported shares have responded. It is foolish to suppose with gold at its present price the better-class of Western Australian mines will be unprofitable. Those prepared to wait that day may find patience rewarded."