THE WAIHI COMPANY.

New Zealand Herald, Volume LXIII, Issue 19349, 9 June 1926, Page 17

THE WAIHI COMPANY.

OPERATIONS AT THE MINE. DIRECTORS' ANNUAL REPORT. REDUCTION OF THE PROFITS. [from our own correspondent. ] LONDON, May 4. Tile annual meeting of the Waihi Gold Mining Company, Limited, will be held on May 13. In the report the directors state that during the year ended December 31, 1925, the tonnage treated was 215,418 {of 20C0!b. dry weight). The gold and silver sold realised £368,717. Sundry receipts, including interest, amounted to £19,351. The value of the power supplied by the Government of New. Zealand in pursuance of the terms of purchase of the Horahora undertaking and included in the power costs of the different departments, was £10,625. These three items totalled £398,694, compared with a total of £419,252 last year. The expenditure in New Zealand and London, including development work at the mine, but excluding taxes of all kinds, amounted to £300,299, leaving a gross profit of £98,394. The sum of £18,991 has been paid or reserved for income tax and corporation profits, tax fn London,, and New Zealand. The sum of £9905 has been written off for depreciation of plant and machinery, and £15,000 has been transferred to the mine development account. Dividend Recommended. After the above appropriations the balance remaining to the credit of revenue account at December 31 was £54,498, to which has to be added £17,815 brought forward from last year, after deducting the dividend paid to May 13, 1925. After deducting the interim dividend of Is a share paid on November 2, there remains a balance of £47,519, out of which the directors recommend a dividend of Is a share, free of income tax, payable on May 18, absorbing £24,795 and leaving £22,723 to be carried forward. A sum of £4250 has been expended on capital account. Sales of cottages to workmen realised £214, and sales of old plant £3980. Although 1901 tons ore more than in 1924 were treated, and the assay value was Is 5d higher and the extraction was 1 per cent, better, the profits were £33,623 less. The reduction in the premium on gold and the lower price of silver were the principal causes of this. Since April 10, 56,367 tons have been treated, yielding bullion worth approximately £94,793.. The annual report of the superintendent shows that during the year 204,965 tons of ore were developed; the reserves at December 31, 1925, were 416,771 tons (wet weight), in general account, of an average assay value of 34.795.; and 194,209 tons in suspense account of an average assay yalue of 35.065. Ore to the extent of 26,943 tons included in last year's estimates was written off the general account, and 44,307 tons off the suspense account as either too. difficult for profitable extraction or unpayable having regard to the high rate of wages. Prospects For Future. The directors call attention to the manager's remarks that any important reduction in the yearly tonnage would almost certainly result in an increase in the working cost per ton and with the present small margin of profit this increase of cost would render unprofitable even more of the ore shown above, unless expenses can be reduced so as to enable a lower grade of ore to be treated.. Every effort is being made to find new blocks of payable ore, and a moderate amount of success has attended the efforts up to the present.

Development and deadwork footage amounted to 13,894^ft., .of which 5992£ ft. were in connection with the extraction, of arches and pillars in suspense ore, as compared with 12, ft. and 4487ift. last year. A small prospecting diamond drill purchased during the year to facilitate testing the ground has proved very useful. It is mentioned that some satisfactory finds, though small, have been made in the sth, 6th and 7th levels.

The petition to the Court to approve the- resolution for the reduction of capital, by returning 5s per share was presented last October, but owing to affidavits and information required from New Zealand it was not heard till . March 2.-, A circular was issued on March 9, and warrants were ready for the payment of the 5s on April.