GOLD COMPANY'S YEAR

New Zealand Herald, Volume LXXI, Issue 21845, 6 July 1934, Page 7

GOLD COMPANY'S YEAR

WAIHI GRAND JUNCTION WORKING OF EXPORT TAX SCHEME TO BE PREPARED [from our own correspondent] LONDON, May 31 "The results of the year's working ' are satisfactory, and, in spite of a reduction in the value of ore treated, wo have shown an increased revenue, due to the greater tonnage treated and the increase in the geld premium,", said Mr. W. P. Gauvain, chairman of directors, at the annual meeting of the Waihi Grand Junction Gold Company, Limited. The accounts for the year ended December 31 were published in the Herald on May 18, and details of the ore treatment and reserves on July 2. Mr. Gauvain said that at the end of the year the ore reserves a reduction of 1115 tons tot' 14,769" tons, and there was also a reduction in tho value from 3ls 6d to 27s 5d a ton. In addition, there were 3055 tons of ore in the suspense account, valued at 23s Gd a ton, but it was not possible, for mining reasons, to deal with this ore in the immediate future. With the gradual reduction in the value of the ore treated, thoro would be a reduction in tho totifej amount received from treatment. \ - Referring to operations in 1934, Mr. \ Gauvain said that up to May 12 a \ total of 8526 tons of ore had been treated, resulting in a return at mine valuation of £10,564. Fpr the corresponding period of 1933, the tonnage treated was 9519, for a mine valuation of £18,325. The position was not as unfavourable as the figures indicated. The average value of the first five returns for 1933 was above that of the reserve ore, while tho position in 1934 was reversed. For some time past thero had been a gradual reduction in tho mine valuation of ore reserves. In some measure this was due to the fact that advantage was being taken of the premium on gold by including in the reserves ore of a lower mine valuation than was formerly the practice. Investment in Puket Tin Dredging, Limited, now amounted to £7600 and was limited to £IO,OOO. The construction of the dredge on the property was proceeding and it was anticipated that the plant would be ready to start work within the next six months. "The export tax on gold tends to cancel the opportunity for increased employment of labour offered by tho rise in the price of gold," said tho chairman. "It stifles development, at a time when development should be encouraged, and eliminates tho possibility of mining large tonnages of lowgrade ore which could otherwise be treated at a small profit. The company i has spent large sums in New Zealand in developing its property with but inadequate returns, and now, when gold is at a premium and it should be possible to obtain some compensation, we are handicapped by the tax to such ail extent that the outlook is far from hopeful." In reply- to a suggestion that a statement should be prepared showing how a more equitable tax could be imposed, Mr. Gauvain said he would draw up , a scheme and send his suggestions to' the company's attorney in New Zealand.

The report and balance-sheet were adopted, and Mr. J. M. Dowsett was re-elected a director.

LAND TRANSACTIONS MORE BUSINESS IN MAY MORTGAGES SHOW INCREASE Figures issued by the Government Statistician show that mortgage and land transfer business in the Dominion was definitely higher in May than in any month for over 12 months past. Transfers of land registered in May totalled 1665, the consideration amounting to £1,113,914. The number of transfers was the highest since August, 1931, while the amount involved has not been exceeded in any month since July, 1932. The lowest level recorded in recent years was reached in January, 1933, when the consideration was only £391,715 in respect of 741 transfers. In January, 1934, another particularly poor month, the number of transfers was 876 and tho consideration £506,662.

Mortgages registered during. May totalled 1279, the amount involved being £993,486. The number of registrations was greater than in any month since September, 1932, while the total amount involved has not been exceeded since October, 1932. The lowest monthly total recorded in recent years was in April, 1933, when 694 mortgages were registered, the amount involved being £396,085.

BUTTER MARKET QUIET PRICES REMAIN LOW The London butter market shows no improvement and conditions _ are extremely quiet. New Zealand is quoted at 71s* to 74s per cwt., compared with 74s on the previous day. Continental supplies remain heavy. The cheese market is slow and prices are a shade easier. Merchants have received the following cablegrams, dated July 4, from their London principals:— New Zealand Loan and Mercantile Agency Company, _ Limited. —Butter: 745. The market is extremely quiet, Continental being heavy at the moment. Cheese: White, 46s 6d to 475; coloured, 455. The market is slow. A. H. Turnbull and Company, Limited, from W. Weddel and Company, Limited. —Danish butter, 80s; New Zealand, salted, 71s to 735; Australian, 06s to 695. New Zealand cheese: White, 46s 6d to 475; coloured, 44s to 45s 6d. Both markets are quiet.