Queensland Mining Coy’s Differences

Grey River Argus, 27 September 1949, Page 8

Queensland Mining Coy’s Differences

SYDNEY, September 26. Shareholders in Mount Isa Mines Ltd., said they were hopeful that the directors would withdraw or modify their scheme for redeeming the company's debentures. Mount Isa Mines Ltd., in North Queensland, is one of Australia’s largest producers of lead, zinc and silver. The directors have called an extraordinary general meeting of shareholders to endorse their proposals for redeeming debentures. The directors propose that the American Smelting and Refining Company should get 462,128 ordinary shares at. 28s each, in exchange for £575,094 worth of debentures bearing 6 per cent, interest, which are not due to be repaid until after 1954. Yesterday’s price of Mount Isa shares was 42s Gd, so that in effect the American company would receive payment, equivalent to £982,022, when it would be entitled to only £705,094 five years or more hence. Interest being paid on these debentures amounts to £34,505 annually. Shareholders say that, if Mount Isa maintains its present rate, which is expected to total 25 per cent, for the current year, the American company holding the proposed shares would also receive £115,532 in dividends. Shareholders also criticised the plan for giving an English mining trust the option to redeem a quarter of the debentures at present held, which bear interest at 8 per cent.