TIN MINING FINANCE

New Zealand Herald, Volume LXXV, Issue 23130, 31 August 1938, Page 9

TIN MINING FINANCE

PRICES AND PROFITS

ATTITUDE OF INVESTORS HIGH OPERATING COSTS The great deal of misunderstanding among investors in tinmining shares about the relation between profits and the price of the metal was referred to by Mr. H. A. Coates," chairman of Hawang Tin Fields, Limited, at tlio annual meeting in Kuala Lumpur, Malaya, recently. "Advocates of a lower market price from that established by the Internationa! Tin Committee are included to assume that the net profit earned by the mining company is the difference between the published figures of working costs per ton of tin ore. and the market price of tin metal," said Mr. Coates.

"This is an obvious fallacy, because, in the first place, the sum realised for the sale of ore, after deducting Government royalty, smelting, and transport charges, is approximately 63 per cent of the ruling market tin price. As an example, it is stated in the general manager's report that the net price obtained by the company for the sale of its ore averaged £143 2a lOd a ton, against a corresponding market price of £223 10s 4d. "In addition, published operating costs of mining companies do not, as a rule, include the annual charge for depreciation, which is a very heavy item Modern high-capacity deep-digging dredges, such as are being installed 011 various properties in Malaya at the present time, cost anything up to £220,000, and provision has to be made for writing this sum off during their useful life. "An allowance also has to be made for the fact that a mining property is a wasting asset, and whether it is the policy of the directors to make provision lor amortisation in the accounts, or to leave this* matter for shareholders to take caro of themselves, whatever profits are earned represent, in part, tho capital value of property Used up in tho process of mining. "Taking theso various factors together, it can be readily appreciated that, although mining companies in Mai ava generally can, when working ground of an average of, say, 70/.. a cubic yard, record an operating profit with the tin price considerably lower than that ,at present ruling, there would be little actual yield to shareholders in tho shape of income 011 capital invested." BUILDING IN STRAW AUSTRALIAN EXPERIMENT FORMATION OF COMPANY CANTERBURY SITE SUGGESTED [HV TELEGRAPH' —OWN CORRESPONDENT] DUNEDIX, Tuesday Some remarkable buildings have been constructed of straw at a cost half that of a similar dwelling, built of wood, and a third that of brick, at Port Pirie, South Australia. A home warm in winter and cool in summer has been constructed of plastered sheets of compressed straw, and so successful have these first homes been that it is now proposed to form a company in Now Zealand for tho manufacture of tho material.

Mr. W. G. Thompson, of Middlemarch, who has recently returned from a visit to Australia, says that one remarkable fact about the sheets of straw is that when subjected to the concentrated heat of a flame thrower they resist fire. They have also passed severe tests imposed by fire boards and insu ra nee com pa 11 ies.

Canterbury has been suggested as a suitable place for the building of a factory, as abundant supplies of straw are close at hand. This will be compressed by machinery into sheets 6ft. wide and 2jin. to 3in. thick, bound together with wire. For a shed or outbuilding, these straw sheets will be all that is required apart from a frame of wood. In the case of a dwelling, however, tho sheets are plastered outside and inside, the building having the appearance and all the advantages of a brick and piaster home. Quotations were called in Australia for tho construction of a dwelling house in brick, stone, wood, or straw and plaster. The price quoted for a brick or stone building was £2OOO, for the same house in wood £I3OO, and in straw with plaster only £750. The completed building, through which Mr Thompson had been shown, had the appearance and finish of one of tho most up-to-date homes. QUOTATIONS FOR WHEAT LONDON AND LIVERPOOL FUTURES IN CHICAGO - LONDON, August 29 Wheat. —Cargoes are steadier and parcels are firmer. Futures. —London: August. 2/s 9d a quarter; November, 2-ls 3}d. Liverpool: October: 5s 3£d a cental; December, 5s lid; March, 4s llid. CHICAGO, August 29 Wheat. —September, 64 cents a bushel; December, 65j cents; May, 67J cents. GOLD AND SILVER QUOTATIONS IN LONDON LONDON, August 20 Fine gold is quoted to-day at £7 2s BJd an 0/>., compared with £7 2s 8d on Saturday. Silver is quoted at 19 3-16 d ail. OZ. spot, and 19(1 forward, compared with 19 5-16 d and 19Jd on Saturday. Tho quotation for silver at per fine m. is 20 11-16 d, compared with 20 13-16 d on August, 26. British Wireless RUGBY, August *29 Gold to the value of £1,398.000 was sold to-day at £7 2s BJd an oz. The following is a summary of the fluctuations in the price per ounce of fino gold this year:' — £ s d Highest. price, August 13 .. 7 2 0 Lowest price. January 3 .. 019 5 August 23 .. .. ..72 <»'/ a August 21 7 2 O August 2."> . . - . . . if- *>/] August 211 . . . . ..727 August 27 . . . . ..7 2 8 August 211 • • .... 72 S'/a PRICES OF METALS ALL-ROUND DECLINES LONDON, August 29 Following are to-day's quotations on £he London metal market, compared with those of August 26: Aug. 20 Aug.-26 Per ton Per ton ■t s (1 £ .s • d Copper, stan., spot -10 O 7Vi Jo l(j 10% Copper, stan., 3 nios. 40 5 7'/ a 41 l 10% Copper, electrolytic 4<5 30 O 40 0 o tO' to -10 10 0 47 O 0 Copper, elect., wiro

bars . . . . Hi 10 O 47 O O Lead, soft, spot.. II (i 10'/, 11 12 (i Lead, soft, forward 11 s :iit li 4'/ 3 Spelter, spot . . 18 3 0 13 3 0 Spelter, forward . . IS 0 10!4 13 8 lVi Tin, stan., spot . . 190 12 '6 103 5 O Tin, stan., 3 mos. 181 12 6 194 2 0