AUSTRALIAN METAL SHARES

Evening Star, Issue 22975, 4 June 1938, Page 14

AUSTRALIAN METAL SHARES

HEAVY JLOSS IN PAST YEAR DROP OF OVER 50 PER GENT. INFLUENCE OF BASE METALS MARKET Most severely affected of Australian or New Zealand stocks in the market slide since the boom period of early 1937 have been Australian mining stocks. For more than 12 months the values of these shares have steadily declined, until to-day levels sire below those ruling two years ago, when the rise had commenced. These stocks are popular, in New Zealand and are widely held, so that many of the Dominion's investors are involved iu the losses. The weekly turnover on the Dunedin Exchange bears witness to the frequent transactions in Mount LyeJls, Mount Morgans, Zincs, and the two other Barrier concerns, Souths and Norths. Based on the latest prices the aggregate value of the stock of the five biggest metal producers in Australia is about £21,170,000. against, the record figure of £45,000,000 last March, and £37.000,000 at the beginning of 1930. The persistent fall in prices of base metals can be held responsible for the decline in related shares, while the weakness in the London metals market has become one of the most discussed topics iu mining and in vestment circles at the present time. While all agree that the recession in America is the main cause of the fall in metals, leaving out of accolint the aftermath of the excessive speculation iudnlged in early last year, few realise that present London prices are not only well below the average for 1937, but also are down on the average for 1936. To-day electrolytic copper is at its lowest price since 1936, tin since 1933, lead since 1935, and spelter since 1935. j The recent reductions of dividend by the directors of the Mount Lyell company and North Broken Hill accentuated the weakness in the market caused by the obscure outlook for metals. Shares in. North Broken Hill were marked down to their lowest point since the subdivision made at the oncl of 1936, and Mount Lyells receded to the levels ruling at the dose of 1935. Jt is considered that the directors of the companies are following a conservative dividend policy, but the words of Sir Colin Fraser. chairman of Broken Hill South Limited, have to be reniembered. At the last annual meeting in October he said the metal prices then ruling could still be regarded a.= remunerative, but owing to increased costs a still lower range of prices would be unfortunate. MINING INDUSTRY A' SATISFACTORY YEAR [Peb United Pkess Association.) ; ■.; - ~ HAMILTON, June 3. That the mining industry has had a satisfactory year was indicated by the Minister of Mines (Hon. P. C. Webb) in an interview at Hamilton. For the year just ended the added output of gold registered was due to the increased dredging returns. A number of large dredges, involving a ttost of £10,000,00\), were under construction, ..and should bo operating within the next few months. The coal industry also showed an increased output, nearly all the mines working to full capacity. The slack problem in the Waikato by which 1,000,000 tons of coal were destroyed annually, had been solved, and the future of the industry looked bright-.^ As the result of last season's leglislation, prospecting for oil had gone on at a rapid pace. All the areas applied for were granted. The New Zealand Petroleum Company (Taranaki) had already £70,000 worth of drilling machinery on the way to the Dominion, and drilling experts to operate it were expected within the next fortnight. The company's first hole would be drilled just out of Gishorne. Roads I and accommodation were being pro- I vided, and the contractors were working day and night in readiness for the plant. The actual drilling should be commenced within the next two months. A number of geologists were also on the way to make a survey of the Taranaki areas.