Finance and Investment

Evening Star, Issue 25769, 16 April 1946, Page 6

Finance and Investment

AN INVESTOR'S NOTEBOOK

THE PRICE OF GOLD POSSIBLE INCREASE RUMOURED Prospects being discussed overseas of a possible riso in the price of gold are of inoro than passing interest to ihe investor. The suggestion apparently stems from the proposal to stabilise the price, and it is expected that it' and when this is done, it will be fixed at a higher level tlhan at present operative. America holds approximately two-thirds of the world's supply of the precious metal, and she is at least not likely to allow the price to depreciate. The companies regularly quoted on the Exchango to benefit to the greatest extent- will include Placer. Bulolo, and the Fiji pair, Emperor and Lolorna. Placers iliave improved markedly within recent months, incidentally, and business yesterday at £5 Us compares with transactions at £5 last December. Bulolo is now " rehabilitating " its plant and equipment, preparatory to beginning operations on a large scale, while the Fiji concerns have been fairly steady producers throughout the war years. New Zealand concerns would also benefit from a price increase in gold, particularly the marginal producers, many of which are now experiencing difficulties and have consequently been to all intents dropped from the daily market call list. Austral'-New Zealand and Clutha, among the major companies, would be enabled to show better balance sheet figures, and thus perhaps encourage overseas capital to explore further areas in the Dominion. PHOSPHATE SHIPMENTS. Nauru and Ocean Island phosphate shipments are expected to begin in July. The output for 194647 is estimated at from 200,000 to 275,000 tons. When mechanical loading equipment is restored, output should riso to between 500,000 and 650,000 tons in 1947-48, 700,000 to 850,000 tons in 1948-49, and to 1,000,000 to 1,200,000 tons in 1949-50. Giving this information to the annual convention of the Chamber of Agriculture of Victoria this week, Mr A. H. Gaze, general manager of the British Phosphate Commission, said war damage was estimated at more than £1,000,000. Good progress was being made with reconstruction. Shipments will be shared by New Zealand and Australia. Before the war New Zealand received about a third of the total. AUSTRALIAN IRON AND STEEL. The net profit of Australian Iron and Steel Ltd., Sydney, for the year ended November 30 was £159,695, a reduction of £27,673. The profit was struck after providing £768,189 for depeciation, against £802,365 in 1944. The only appopriation is £75,000 for the 7£. per cent, preference, dividend, leaving £84,695 to increase the carry forward to £239,212. The recent strike at the Kembla works severely affected the volume of production and the year's results, states the directors' annual report. The complete stoppage of iron and steel making and colliery operations resulted, and the strike, which began on September 22, continued throughout the remainder of. the financial year and into the current year. Operations were resumed on January 7. _ The New South 'Wales iron ore quarries, which were brought into operation as a war-time measure, were closed down in the early part of the financial year. NEW CAPITAL ISSUE. An issue of 40,000 shares of £1 each is announced by the Huntly Brick and Fireclay Company Ltd., which proposes to increase its capital from £20,000 to £60,000 to install a modern punnel kiln and acquire machinery of the latest type for expansion of its works et Huntly. The company has been operating for 33 years, and during the. past 10 years has paid an average dividend of 7 per cent. Its estimated deposits of clay and fireclay-are claimed to be sufficient for a long period of years. It is also proposed to develop coal deposits on the company's property, where a field estimated at 60,000 tons is stated to exist. The present capacity of the works is 50,000 bricks weekly, which is considered inadequate in view of the requirements of the building industry. MACKY, LOGAN DIVIDEND. The directors of Macky, Logan, Caldwell Ltd. have declared a final dividend of 4J per cent., making 7£ per cent., unchanged, for the year ended February 19. This has been the rate since an increase of £ per cent., from 7 per cent., was made in 1941. The dividend will bo payable on May 1, and the shares will be ex-dividend on April 19. NEW REGISTRATION. The registration of the following private company is notified in the ' Mercantile Gazette ': — Saxon Clothing Company Ltd. Office, corner Bowling and High streets, Dunedin. Capital: £2,000 in shares of £1 each. Subscribers: Dunedin —G. W. Wilhelmseu 1,600, E. E. Wilhelmsen 400. Objects: Clothing and outfitting manufacturers and incidental. MINING NEWS. Clutha River Dredge. For the week ended on (Friday the Clutha River dredge operating at Alexandra worked 125 hours and recovered 1220 z. Martha Mine.—For the four-weekly period ended March 30 the mine operated 20 days, crushing 10,014 tons for 2,376 fine ounces of gold end 17,790 fine ounces of silver. Electrolytic Zinc—Risdon works output, four weeks to February 6, 5,928 tons; four weeks to March 6, 6,053 tons. West Coast mines: Ore treated to February 6, 9,916 tons; to March 6, 10,007 tons; lead concentrates produced to February 6, 601 tons; zinc concentrates to February 6, 2,783 tons; to March 6, 2,785 tons; copper concentrates to February 6, 222 tons; to March 6, 260 tons.