Commerce, Mining, Finance

Evening Star, Issue 23128, 30 November 1938, Page 8

Commerce, Mining, Finance

MOUNT LYELL MINING OPERATING COSTS HIGHER EFFECT OF LOWER PRICE CONCENTRATION PLANT CAPACITY RAISED The reports and accounts of Mount Lyell Mining and Railway Company Xitd. for the year ended September 30 show that the fall in profit was caused by 'the lower price of copper and an increase from £47.603 to £52.264 in the average cost of producing a ton of the metal. Net profit was £150,830, compared' with £343,852 for the previous year. The directors state that the cost of each operation was enhanced owing to the higher rates of wages and shorter working hours obtaining during the whole of the year, and the expense incurred in purchasing power, while costs of mining and concentrating, calculated a ton of copper, were further increased by the decline in the grade of the ore. In the year the company received £85,953 in dividends from investments, against £71,611 in the previous year. The following table compares leading profit and loss items in the last three years:— Year ended Sept. 30- £ £ £

There was a notable expansion in mining and concentrating operations during the year. With the benefit derived from additions to ore handling equipment in the open cuts and increased milling capacity installed during the year *he quantity of ore mined and treated exceeded 1,000,000 tons. From the ore treated more than 13,000 tons of copper were obtained, constituting a record production for the company for one year’s work. The output of blister copper was 12,766 tons, and in addition 350 tons were obtained in concentrates awaiting smelting at the end of the year. ' The large increase in tonnage was drawn from the West Lyell open cuts, output from this source amounting to 825,237 tons. Production for the last three years is compared in the follow-

The capacity of the concentration plant was raised substantially by the ' installation of new plant in the finegrinding section, bringing the daily average amount of ore treated to 3,000 tons. Ore treated was 1,032,128 tons, or 190,701 tons more than for the previous year, for a production of 53,169 tons of concentrates of an average grade of 24.83 per cent, copper. The pyritic concentrate produced was 48,779 tons, against 36,898 tons for the previous year, the sulphur content being 5p.l per cent. Output of cathode copper from the refinery was 121,407 tons. , Ore reserves at September 30 were estimated to total 11,146,000 tons, of an average assay value of 1.52 per cent, copper, O.lloz silver, and O.Olooz gold a ton. During the year negotiations were completed with the Hydro-electric Commission of Tasmania for linking up with its Tarraleah scheme with a view to securing from this source the further supplies of power which are now required. This involves the erection of a transformer section, which work has now been put in hand. The fertiliser companies in which interests are held have again reported an increase in tonnages of fertilisers sold. The volume of business taken by Metal Manufacturers Ltd., in which the company is interested, and also its subsidiary Austral Bronze Pty. Ltd., exceeded that of the previous year and called for the purchase of larger quantities of copper than in any other year. OUTPUT OF MOTOR VEHICLES DECLINE CF 48 PER CENT. The world output of automobiles in August, 1938, was 189,000 vehicles, against 265,000 in the preceding month and 502,000 in August, 1937. The total output in the first eight months of 1933 was 2,458,000 vehicles (4,688,000 vehicles in the same period last year), being a decrease of 48 per cent.

The September output is estimated at 180,000 (282,000) vehicles.

Dominion's Meat Exports Profit of Mount Lyell Company A slight recovery was recorded in New York yesterday, but even so industrials remain three points below the 150 mark. Turnover was fair. An easier trend in Australian mining issues marked operations on the Dunedin Exchange this morning, when business was better. New Zealand issues remained depressed on minor movements. The fall in net profit of the Mount Lyell Mining and Railway Company Ltd. from £343,852 to £150,830 was caused by the lower price of copper and an increase from £47.603 to £52.264 in the average cost of producing a ton of the metal. Reflecting the lateness of the season and other unfavourable factors, exports of meat from the Dominon for the first six weeks of the season are lower in ail classes except mutton and boneless beef than for the same period of last season. Stocks in store and those loaded into vessels not departed at the date of the returns are substantially higher than those of last season, and offset the decrease in shipments.

MEAT EXPORTS SIX WEEKS' FIGURES MOST GLASSES LOWER larger Stocks held in stores Exports of meat from the Dominion for the first six weeks of the season are lower in all classes except mutton and boneless beef than for the same period of last season. Stocks in store and those loaded into vessels not departed at the date of the return, however, are substantially higher than those of last season, and offset the decrease in shipments. . \ The New Zealand Meat Board’s returns give the following exports for the season from October 1 to November 15 in comparison with the corresponding figures of last season: — 1038. 1937. Chilled beef (quarters) 5,481 9,764 Frozen beef (quarters) 13,718 27,840 Mutton (carcasses) ... 218,500 218,390 Lamb (carcasses) 139,852 187,607 Pork (carcasses) 33,534 46,553 Boneless :beef (bags) 32,902 32,42-. The lateness of the season and other unfavourable factors are reflected in the sharp fall in lamb killings to date in comparison with a year ago. A reduction of ,81,931 in the number handled is due entirely to a decline in the North Island. So far only : 310 lambs have been killed at South Island worlcs, where the season has opened a little earlier than last year. Total killings from October 1 to November 15 in the last, two seasons are as follows: . ■, ■ 1938. 1937. Chilled beef (quarters) 14.078 13,463 Frozen beet (quarters) 2,757 1,994 Wethers (carcasses) 17,625 6,248 Ewes (carcasses) 2,537 738 Lamb (carcasses) 104,913 186,844 Porkers (carcasses) 19,183 31,877 Baconers (carcasses) 26,774 32,595 Boneless beef (frt. c/cs.) ... 39,901 31,205 Boneless bopby veal (freight carcasses) 49,489 63,756 Sundries (freight carcasses) ... 15,047 16,164 Unshipped stocks are materially higher in all classes of meat except porkers and baconers. IMPORTERS IN DOUBT CUSTOMS DEPARTMENT ACTIVITIES SOME EXPECT RESTRICTION Importing firms in Wellington are I manifesting considerable interest in the present activities of the Customs Department, a report having been current for some days that leave for the officers of the department throughout New Zealand had been discontinued (says the ‘ Dominion ’). When approached on Monday, the Comptroller of Customs, Mr E. D. Good, declined either to confirm or deny the report or to discuss the possibility of Government action in the direction of curtailing imports. Importers considered that the department is possibly engaged on. inventories of the types :fnd quantities of goods entering the Dominion. A number of importers of representative lines who were interviewed! said they were in the dark as to the likelihood of restriction, either by tariff or quota, and did not expect to receive any official notification, if such action were intended, till the last minute. A feeling of uncertainty was manifest, one importer having made preparations a fortnight'ago in expectation of a curtailment then of imports in his line. The general opinion was that any restriction, if imposed, would be concentrated on luxury or semi-luxury articles, and it was also felt that action might ho staved till the new year so that the effect of wool and other seasonal exports on the Dominion’s London funds might be gauged. AUSTRALIAN INVESTMENT EFFECTS OF RECENT DROUGHT Reference to the drought in Victoria was made by the chairman of the Melbourne Stock Exchange, Mr W. Forster Woods, in his address to members recently at their annual meeting. “The drought,” he said, “must affect us all, directly and indirectly. Income must suffer. Federal taxation must increase, because we must create armaments in the hope of preventing war.” Mr Woods added that Australians should not close their eyes to the effect which all the storm and stress in the world would have upon the Commonwealth.

RALLY IN STERLING

BEARS COVERING COMMITMENTS TO MEET FINAL 1938 OBLIGATIONS Press Association—By Telegraph—Copyright LONDON, November 29. (Received November 30, at 1 p.m.) The rally in sterling is due to a continuance of bears’ keenness to cover commitments owing to a large proportion of them being short of sterling due for settlement before the end of the year. The rally has momentarily diverted attention from international uncertainties. NEW YORK SHARE INDEX DOW JONES AVERAGE

PRICE OF GOLD

Press Association—By Telegraph—Copyright

LONDON, November 29

(Received November 30, at 1 p.m.) Fine gold is quoted at £7 9s 3d an ounce.

Highest price in 1938, November 26, £7 10s; lowest price in 1938, January 3, £6 19s sd. Highest price in 1937, March 6, £7 2s 7Jd; average price in 1930, £4 5s an ounce.

SHEEPSKIN SALE PRICES DOWN i 0 TO ID LARGE CATALOGUES OFFERED The Dunedin Woolbrokers’ Association reports as follows: The fortnightly ‘ sheepskin sale was held yesterday, when large catalogues were offered to a fair attendance of buyers. Competition was not nearly as been as at the last sale, and prices all round showed a drop of id to Id pet lb on last sale’s rates. Quotations. —Half-bred full-wool, to 8d; half-bred three-quarter wool, 6Jd to 7id ; half-bred half-wool, 5Jd to 6Jd ; half-bred quarter-wool, 4d to sd. Cross- . bred full-wool, to 7 3d ; cross-bred three-quarter-wool, 6|d to 73d; crossbred half-wool, 6d to 6d; cross-bred quarter-wool, 3d to 4d. Half-bred lambs, 5d to 6d; cross-bred lambs, 4d to 53a. Merino full-wool, to 6id, Fine cross-bred full-wool, to 73d; fine crossbred three-quarter-wool, 6Jd to 7£d; line cross-bred half-wool, 5Jd to 6d. Half-bred hogget, 6£d to 7Jd ; fine crossbred hogget, 6Jd to 7d; cross-bred hoggett, 6d to 7d. Half-bred dead, 6d to 7Jd; fine cross-bred dead, 5Jd to 6id; cross-bred dead, to 63d. Best pelts, to 3d; medium pelts, lid to 2d. LONDON WOOL SALES LOCAL AGENT’S REPORT The National Mortgage and Agency Company of New Zealand Ltd. (Incorporated in England), is in receipt of the following cablegram from London under date November 28 :

Wool.—The auctions are proceeding at the level of the opening day, with good competition, mainly from the Home trade. The following prices are current:—Merino, super. 13kl to average HJd to 12d; fine half-breds, super. 56/58 12(d to 13d, average 12d to 12Jd ; medium half-breds, super 50/56 lid to ayerage 103 dto lid ; coarse half-breds, super. 48/50 Hid to 11-Jd. average lid to Hid; fine cross-breds, 46/48 super, lid to lL}d, average 10|d to lid; medium cross-breds, 44/40 super. Hd to HJd, average 10Jd to Hd; coarse cross-breds. super. 40/44 Hd to H|d, average Ifljd to Hd; low cross-breds, super. 36/40 Hd to Hid, average IOJd to Hd; pieces, 8d to 83d; bellies, 7£d to 8d; locks, 5d to 5Jd.

COMPANY NEWS

SELFRIDGE’S (AUSTRALASIA)

MOSGIEL WOOLLEN AMENDMENTS TO ARTICLES APPROVED QUESTION OF DIRECTORS’ REMUNERATION TO BE DETERMINED IN GENERAL MEETING

With the exception of one alteration, the amendments to the memorandum and articles of association of the Mosgiel Woollen Factory Company Ltd. were approved at an extraordinary meeting of shareholders yesterday afternoon. The clause providing for the remuneration of directors, which had previously provided that it he determined by themselves, was amended to read that it be determined by shareholders in general meeting. Explaining the reason for the alterations, the chairman of directors (Mr J. S. Hislop) stated that the originals, issued in 1875, had not been altered since 1897, and were not altogether in conformity with the Companies Act, 1933. They also restricted their trading to practically the making of woollen or part-woollen goods. The proposed new memorandum would give the directors a more open field in which to further the interests of the company.

The adoption of the memorandum of association was moved by the Chairman, seconded by Mr A. C. Matheson, and carried. The adoption of the articles of association was moved by the chairman and seconded by Mr J. A. Roberts.

Moving an amendment, Mr J. S. Sinclair said that the directors were prompted to table the amendment because it was understood that some shareholders felt that by approving clause (35 (“the remuneration of the directors shall be determined and apportioned by themselves ”), arbitrary powers were conferred upon the directorate. Clause 65 was one of the original articles of the company, and had been there since its formation. He moved—" That in lieu of the provisions in clause 65, proposed in the amended articles of association, the following clause be substituted:— ‘ That the remuneration of the directors shall be such a sum as the company shall, in general meeting, from time to time determine, which shall be divided amongst the directors in such manner as they shall from time to time think fit.’ ” The amendment was seconded by Mr T. Coull and carried, following which the articles of association were adopted. ANNUAL MEETING. The sixty-fifth annual meeting of the company' was held yesterday afternoon, the chairman of directors (Mr J. S. Hislop) presiding. The adoption of the annual report and balance sheet was moved by the Chairman, whose remarks were published in last night’s issue of the ‘ Evening Star.’ The motion was pro forma by Mr H. if. Sykes and carried. The retiring directors, Messrs J. A. Roberts and T. C. Coull, were reelected.

The auditors, Messrs Barr, Burgess, and Stewart, were re-elected at air unchanged remuneration. On behalf of Mr Coull and himself, Mr Roberts returned thanks for their re-election, and hoped that the company could co-operate with the Government in future as regards costs. A vote of thanks to the directors, manager, and staff tvas proposed by Mr G. W. Gibson.

Replying, the Chairman paid a tribute to the services of Mr W. L. Wood, the general manager. It was intended to send Mr Wood to England in January ; where he might inspect machinery in an effort to combat the rising cost of production. Mr Wood briefly replied on behalf of the staff. ASHBURTON GAS DIVIDEND 7 PER GENT. A dividend of 7 per cent, was declared at the annual meeting of the Ashburton Gas, Coal, and Cdke Company Ltd., when the chairman (Mr W. B. W. Bell,' chairman of directors) congratulated shareholders on the satisfactory result of the year’s operations, which showed a slightly higher increase in profits than last year. The company was formed in 1878, and on behalf of the directors the Chairman extended congratulations on the attainment of its diamond jubilee.

SIX MONTHS' LOSS The directors of Sclfridge’s (Australasia) Ltd., in a circular to shareholders, state that trading for the six months ended July 31 resulted in a loss of £18,908. In addition the sum of £4,956, being the difference between the book values of the old cash registers and the tradein allowance received for them on the new cash registers, was written off, but will not recur.

At the extraordinary meeting held on July 11 a substantial loss for the half-year was forecasted.

The reconstituted board of directors, which took office on August ]5, has acquired a property at Pyrmont “ under very favourable conditions,” in which the two bulk stores and the head office will be housed with substantial economies.

The directors anticipate an improvement in the company’s trading operations.

MOSGIEL INDUSTRIAL CO-OP. SOCIETY SOUND FINANCIAL POSITION Twenty shareholders attended the seventeenth annual meeting of the Mosgiol Industrial Co-operative Society. The chairman (Mr D. Connor) congratulated shareholders on the sound financial position of the society. The profit and loss account for the half-year ended September 30 showed a profit of £372 13s sd. The directors had decided to pay Is in the £ on goods paid for during the half-year. This, with the Gd discount already paid, made Is 6d in the £. In addition interest at the rate of 4 per cent, per annum will be paid on share and loan capital. The following office-bearers were elected; • Management Committee —

Messrs H. Johnstone, F. Smeaton. and A Oliver; scrutineers, Messrs D. Thomson and J. Connor; _ auditors, Messrs Mitson and Co. ; president, Mr D. Connor ; treasurer, Mr H. Johnstone; secretary, Mr G. Gibson. The meeting closed with a vote of thanks to the manager and staff.

, Average sterling price, electro, copper 40/14/8 60/8/3' 44/17/5 JRevenue— Mine, etc. ... ... 774,710 1,032,108 ’ 846,713 •’ Dividends 70,490 71,611 85,953 Net profit 187.291 343,852 150,830 Dividends out of year’s profit 155,000 271,250 116,250 Depreciation 44,671 48,603 52,421 Prospecting and development 31,908 27,869 21,135 Taxation 26,636 73,889 19,283 Production cost a ton of copper ... 42.740 47.603 52.264

ing table:— Year ended Sept so1936. 1937. me, Ore milled, tons ... 665,423 841,427 1,032,128 Average assay value, 1.48 copper, per cent. Smelted, tons 2.13 1.75 57,454 59,092 59,186 Production— Copper, tons 12,707 12,792 12,676 Silver, oz 100,888 91,651 71,293 ! Gold, oz 7,015 6,430 7,619

Railroads. Industrials. Turnover. Nov. 29 29.06 147.07 820,000 Nov. 28 28.95 146.14 1,250,000 Nov. 26 29.89 ' 148.45 690,000 Nov. 25 30.43 150.10 810,000 Nov. 23 30.42 149.88 1,600,000 Nov. 21 30.77 150.26 940,000 Nov. 19 30.94 150.38 440,000 Nov. 18 30.80 149.93 1,420,000 Nov. 17 31.75 152.78 990,000 Nov. 16 31.20 151.54 1,790,000 Nov. 15 31.95 154.66 1,470,000 Nov. 14 32.36 155.61 1,650,000 Nov. 12 33.17 158.42 1,010,000 Nov. 10 33.17 157.48 2,180,000 Nov. 9 33.12 158.03 3,100,000 Nov. 7 32.04 154.91 1,760,000 Nov. 5 31.78 152.12 430,000 Nov. 4 31.76 152.10 1,200,000 Nov. 3 32.56 142.31 1,070,000 Nov 2 31.66 152.21 780,000 Nov. 1 31.50 151.39 1,280,000 Oct. 31 31.49 151.73 1,090,000 Oct. 29 31.89 151.35 610,000 Oct. 28 32.13 151.07 1,560,000 Oct. 27 31.94 152.09 2,000,000 Oct. 26 31.58 152.40 1,700,000 Oct. 25 32.00 154.17 1,490,000 Oct. 24 31.73 154.11 1,130,000 Oct. 22 31.59 154.41 1,130,000 Oct. 21 31.13 152.15 1,720,000 Oct. 20 30.99 151.52 1,620,000 1938. Highest 64.80 194.40 Lowest 28.01 113.64 1937. Highest 33.17 158.42 Lowest 19.00 98.95

November 28 ... ... £7 9 9i November 25 ... ... 7 9 10i November 24 ... ... 7 9 2 November 22 ... ... 7 8 9 November 21 ... ... 7 7 Hi November 14 ... ... 7 6 8 November 7 ... 7 6 14 November 1 ... 7 6 34 October 31 ... 7 6 04 October 28 ... 7 5 10J October 21 ... ... 7 6 24 October 13 ., 7 6 94 October 7... .. 7 5 0 October 3 ... . ... 7 4 84 September 1 „ ... 7 3 04 August 2 ... . ... 7 1 8 July I ... 7 t) 9June 1 ... 7 0 74 May 2 ... 6 19 64 April 1 ... 7 7 04 March 1 ... 6 19 94 February 1 ... 6 19 7 January 3 ... 6 19 5