MINING OF GOLD

New Zealand Herald, Volume LXIX, Issue 21377, 29 December 1932, Page 3

MINING OF GOLD

HIGH PREMIUM ON SALE COMPANIES' BETTER FORTUNES YEAR OF GREAT ACTIVITY The mining market during 1931 offered a -sharp contrast to the general conditions in the investment market and the rapid change in the fortunes of many gold mining companies was the outstanding feature of tho Stock Exchange year. In continuation of the movement which began in 1930, the appreciation in the price of gold, which rose to tho record level of £6 10s 8d an ounce, brought all classes of gold mining scrip to the forefront. In addition to the premium on the salo of gold, ranging from £2 to £2 10s an ounce, companies continued to receive the advantage of the exchange premium on tho transfer of tho realisation funds to the Dominion, and in consequcnco of these factors those which had been merely paying their way began to earn handsome profits, while others consolidated already sound positions. Interest was immediately stimulated and turnover during the period registered a large increase. Dealing in the shares of the more outstanding companies at enhanced prices was accompanied by the promotion of many new companies, a number of which were approved and listed by the Stock Exchange. Gold Prices in London The year opened with gold worth £6' Is 4d an ounce in London. At March 31 the value had declined to £5 8s lid, but there was a rise at the end of the next quarter to £5 14s 7d, with a further appreciation to £5 19s 5d at September 30, followed by the record high level of £6 10s Bd,' which was reached on November 30. At present the value has eased to £6 3s 6id. One of the most spectacular examples of the effects of these movements was afforded by Blackwater Mines, Ltd., an old-established English company operating near Reefton. For some years this company had been earning a nominal profit with a production of around 2000 ounces a month. The whole of the premium on this.output went to swell the company's net earnings, with the result that the directors announced a dividend of approximately 30 per cent for 1931 and have already paid approximately 20 per cent as an interim distribution in the current year. In response to this the shares appreciated considerably in value, rising from 4s to 22s in the course of 12 months.

Similar conditions were enjoyed by Alexander Mines, Ltd., also at Reefton, a company which commenced operations within the last four or five years. Dividend payments were commenced in January last • and since then shareholders have been paid £22,500 in six dividends on a paid capital of £60,000. During the same period the shares have appreciated from 9ii to 225. Okarito Beach Dredging (South Westland) and, recently, King Solomon (near Gore) are other new companies on the dividend list and |heir prospects are considered encouraging. The Waihi Company Tho Waihi Company, the principal goldproducing company in tho North Island, has naturally benefited considerably on its large output. Reserves had had to bo raided to maintain the usual rate of dividend in 1931, but the increase in the value of gold is enabling this leeway to be recovered. In .addition, ore which was unprofitable to work at the lower price has become attractive for development and, under present conditions, is yielding a payable return. Considerable London buying of Waihi scrip set in in Novem- 1 ber, when the shares advanced to 19s lid on the Auckland market. The movements in the market of leading goldmining shares during the year is compared in the following table:— Dec., 1931 Dec,, 1932 £bd £ s d Alexander, 13a 6d pd. 0 9 0 1 2 0 Blackwater . , .. 043 116 Waihi . . ~ 0 16 2. 0 19 0 Waihi Junction .. 0 3 7- 0 3 3 Golden Dawn .. 0 7 2} 0 410 Okarito . . . . 011 0 0 8 7 King Solomon .. 0 1 11} 0 2 B Three Years' Dividends During the last three years the following amounts have been distributed by the companies in dividends to shareholders:— . . ■ 1930 1931 1932 £ £ £ Alexander . " ~ Blackwater .. Golden Dawn .. King Solomon .. —• . • 3,250 Okarito . . . . Waihi . . . 99.181 99,181 49,590t Waihi Junction . 6,906 6,906 6,906 1 Interim distribution only. Apart from the improved finances of producing companies increased prospecting and fossicking on the auriferous areas brought about a general revival in tho industry. Tremendous activity developed iti the South Island, where mining is practically confined to dredging, sluicing or tho working of conglomerate deposits. These operations offer more at-' traction than the reefs of tho North Island, chiefly because of the enso with which thoy can bo measured up and production estimated. Nevertheless, considerable prospecting is being done in the Coromatidel district, in which some encouraging finds have been made. . In the South Island, Westland and Central Otago have been the chief centres. In tho latter area the Nokomai dredge is expected to commence operations on a big scale early in January, while in March work is to be commenced at Wetherstones, another important field. The Gillespie's Beach. Company, which is to dredge in South Westland, also expects to 'commence dredging early, There has been some interest in the Auckland market in Australian companies, which for similar icasons have enjoyed improved fortunes. Tho chief interest, however, lies in the Now Guinea fields, whore several big concerns have commenced dredging on a large scale with satisfactory results. OVERSEA APPLES AUSTRALIAN RESTRICTIONS "RESENTMENT IN CANADA" "Everywhere I went, Australia seemed to be the odd man out and to be treading on the corns of others," said Mr. J. B. Mills, who attended the Ottawa Conference in an advisory capacity. Mr. Mills represented the , Victorian fruitgrowers, and he spoke at a meeting of the executive of tho Victorian Fruit Marketing Association recently. There was no doubt, Mr. Mills said, that resentment had beon caused in Canada by the restrictions placed on the importation of Canadian apples into Australia. The reason given for these restrictions was that Australians feared that apple trees would' be affected by fireblight, which was prevalent in some parts of Canada. Canadians doubted the genuineness of this objection as they had been sending apples to for many years without causing any infection to English trees. Until Australia relaxed her restrictions on Canadian apples, Canada would not bo prepared to consider the imposition of duties on apples from the United States. Australia had also offended New Zealand by her restrictions on apples from that, country.