MINES AND METALS

Evening Star, Issue 23421, 11 November 1939, Page 15

MINES AND METALS

ELECTROLYTIC ZINC CO. MARKET FOR ITS PRODUCTS Sir Colin Fraser, chairman of the Electrolytic Zinc Company of Australasia Ltd., informed shareholders at their annual meeting that there was good reason to believe that the company would find a market for all its products in ,the current year. “ It would appear,” he added, “that we could dispose of more of our highgrade zinc than we can produce, so that we would not be adversely affected by a recession in local sales, which at present call for about 40 per cent, of our output.” Demand throughout the year had been very active, and difficulty had been experienced in filling orders from overseas. These conditions continued, and the increased demands both in the United Kingdom and Australia for defence had necessitated the company’s withdrawal from the markets in India and Japan. Since the close of accounts, plant had been pushed beyond its normal rating, to increase zinc production by about 250 tons per month. Stocks of raw materials—zinc concentrate and calcine—had been increased by 31,000 tons and 5,000 tons respectively, now standing at 173,000 tons and 38,000 tons; Thus, total stocks of the primary raw material for the zinc plant were 211,000 tons, which was sufficient .with the. regular output of the west coast mine for at least two years. Referring to the contract with the British Government for the supply of . zinc for munitions, Sir Colin Fraser said that the advantage to the company was the prompt realisation of its production, irrespective of shipment, and the vagaries of the freighting and insurance markets. The British Government was securing essential supplies at a reasonable price free from fluctuations that would otherwise apply. The release from Britain of plant for the Australian Aluminium Co. Pty. Ltd. at Granville, New South Wales, ' might be delayed for some time. Sir Colin Fraser said that it was hoped that a factory for production of magnesium in Australia would be established, when experience and manufacturing technique had been obtained from the new plant recently established in England. MOUNT LYELL INCREASE IN NET PROFIT The Mount Lyell Mining and Bailway Co. Ltd. has advised the Stock Exchange Association that a final dividend of Is a share in Australian currency will be paid on December 18 out of the profits for the year ended September 30, 1939. Transfer books will . close st 4 p.m. on November 20. ■ ■ J ■ Ah interim dividend of 6d a share was paid on June 19. The distribution for the year thus totals Is 6d a •hare, or 74 per.cent., an unchanged . rate. The company reports net profit at £161,189, after writing off £91,186 for prospecting, development, and depreciation, and providing-£37,601 for taxation. < ' 'A comparison of figures for the last three years is given in the following table:—

1937. 1038. 1939. £ • £ £ Net profit 343,852 Prospecting, devel. and deprecia150,830 161,189 tion .... 76.472 73,5o6 91.186 Taxation .... 73.889 Dividend— 19,283 37.601 Per share 3/6 1/6 1/6 Amount 271,250 116,250 116,250