WAITAHU MINING COMPANY

Evening Star, Issue 22798, 5 November 1937, Page 6

WAITAHU MINING COMPANY

BETTER GROUND AHEAD LOW OPERATING EXPENSES Prospects of improved returns from new ground were reviewed at the annual meeting of the Waitahu Gold Mining Company Ltd. last night. Two disappointing features mitigated against any marked success, they being tlie low gold content of the claim and the irregularity of the water supply. Costs had been kept very low. the total working expenses averaging 2Jd a cubic yard. Mr J. R.. Fairbairn (chairman of directors) presided CHAIRMAN’S REMARKS. Moving the adoption of the annual report and balance-sheet, the- Chairman said: “The figures contained in the directors’ report make interesting reading, particularly the statement that the total working expenses, including wages and all overhead expenses, work out at 2Jd per cubic yard of material treated. It is based oh actual cash expenditure without counting depreciation or interest on capital. Such a low figure as this is ample proof that the claim is run efficiently and administered economically. In the previous year working costs were 2Jd per cubic yard, but for the period ended July 31 the rate of wages was higher than the previous year.” The storage dam on the Pahiki Flat, constructed to conserve the water supply, had been of great benefit to the company. In fact, the claim would have been closed down for part of the year but for this dam enabling the storing of water, and thus work 8 to 12 hours per day when the water supply was low. The company’s financial position showed it to be quite healthy from the point of view of finance, liquid assets exceeding trade liabilities by £1,400, although the company was not yet in a sufficiently strong position to declare even a small dividend.

There were two disappointing features bovond the control of the directors, These were: (1) The low gold content value of the claim, and (2) the irregularity of the water supply. These were both at great variance with the reports of the engineers who reported upon the value of the ground and the water supply before the company was formed. The average value recovered during the mining operations for the year was slightly under 4d a cubic yard. Recently the directors visited the daim; and while there inspected - certain ground ahead of where the company was working, and it was felt there were distinct possibilities of the ground improving in its gold content value. The; water supply was a very uncertain factor. Admittedly the shortage had been universal and others had been affected. Nevertheless, it was disappointing that the, supply was not steady and sufficient to enable the company to work 144 hours a week, as with the low value they needed steady operating time to make headway.

Mr B. H. Nees, seconding the motion, said prospects were promising. Costs were as low as possible, and if there was any change it would be upward. The yield, fromthe,last pad dock had been disappointing, causing concern, but : it was foiih’d they had passed through a temporary fault in the lead. The ground opening up showed distinct possibilities and some of the wash was the best obtained yet. and the speaker thought the new ground would prove the salvation of the company. Mr A. M'Millan asked whether the directors were working to any definite policy and had they any proof from test bores of the improved returns hoped for? Replying, the Chairman stated tho ground had been well tested, as was mentioned in the prospectus, although there was a very large discrepancy between those tests and present returns Mr Nees said the last three returns were from better ground, on which the company was now working. The speaker estimated a return of fid a yard, or 2d more than the past year’s average returns, while they might rise to TOd. The annual report and balance sheet were adopted. GENERAL. The retiring directors, Messrs B. H Nees and H. Halliday were re-elected at the same remuneration. The retiring auditor, Mr G. S. Kirby, was re-appointed. A unanimous vote of thanks was passed to Mr W. A. Mitson (secretary) and Mr P. Thomas (claim manager). Referring to the excellent services rendered by Mr Thomas, the chairman moved that a vote of appreciation be recorded, which was carried.

GOLD TAX OPPOSED SHAREHOLDERS REQUEST REMOVAL The following resolution was carried at the annual meeting of the New Hirer Gold Dredging Company Ltd. “ That this meeting of shareholders respectfully urges the Government to repeal the special gold duty tax, a tax which is purely a tax on ■ production and is paid out of the company’s capital assets, and which are, as in all mining companies, wasting assets. Further, this meeting sees no reason why the gold mining industry should from all other industries be singled out for such a form of taxation and which has become more particularly onerous owing to rising exists of production brought about directly and indirectly through the wages legislation of the present Government. Such a tax must be unfair to most companies, as it takes no consideration of the cost of production or of the value of the spoil to be worked or treated ”