MOLYNEUX DREDGE

New Zealand Herald, Volume LXXV, Issue 23191, 10 November 1938, Page 7

MOLYNEUX DREDGE

DIS APPOINTING 1 YEAR STATEMENT BY CHAIRMAN HOPE FOR BETTER RESULTS [FBOM OUIt OWX COItRKSI'ONDENT] LONDON, Oct. 20 A loss of £7642 during the past year and a loan of £IO,OOO at 5 per cent from the New Zealand Government, were reported by Mr. H. Collier, chairman of the Molyneux Gold Dredging Company, Limited, at the annual meeting. Some dissatisfaction was shown by shareholders present, and the annual report and balance-sheet were not adopted unanimously. Mr. R. Ellerton Binns, a director, gave a reminder that the dredge was working in a comparatively shallow area, not the most suitable for the deposition of fine and that previous companies had worked the same spot. It had been impossible to obtain a previous estimate of gold likely to bo recovered by boring. It was hoped, however, that the dredgo would shortly move into a rocky area, similar to that in which the Clutha Company had been securing better returns. Once the dredgo reached this point, it was hoped that results would be good. Mr. Collier, reading the report of the directors, said that in 11 months 1881ozs. of gold were recovered, realising £11.829. After adding London charges," £2219, and allowing for depreciation, £5149, there was a loss of £7642 to be carried forward. Directors' fees had been reduced by £275, and in consideration of the company's financial position, the directors had decided to waive all fees for the JanuaryMarch quarter. No fees had been drawn for the current year. Machinery and plant stood at £73,903, stores at £3600 and deposit with the power board at £8294. Cash in London and New Zealand as at March 31 was £2061. A reserve had been introduced to cover tho cost of future dredge renewals, built up by charging a fixed sum each month against dredge operations. If it had not been for this reserve tho cost of production in New Zealand would have been almost covered by the proceeds from tho sales of gold. The cash position of the company had caused the directors considerable concern. The Government had been approached for financial assistance, and £IO,OOO had been granted readilyto be drawn as required, and secured on the assets of the company. "We should have sufficient funds availablo to carry on to success, and the directors, while disappointed with the results, are by no means despondent as to the future," Mr. Collier said.

MINES TO REOPEN WESTLAND GOLD AND COAL FINANCE FROM AUCKLAND "PLENTY FOR SOUTH ISLAND" r lIV TK r.KG It A I'll- —OWN CORRESPONDENT] CHRISTCHURCH, Wednesday Two West Coast mines—gold and coal —are to be opened again, after being flooded for many years. Capital has been raised in Auckland to finance the reopening of the mines, in which work will be given for about 100 men. "In spite of the oft-repeated statement that most New Zealand momjy is going to Australia, wc have secured sufficient; capital in the North Island to put tvo South Island mines, owned by companies of which I am managingdirector, into operation again," said Mr. E. T. Cox. a former Mayor of Duncdin, yesterday. The gold mine was at Rcefton, and was owned bv Murray Creek Consolidated Gold. It was closed in 1920 because of the high cost of labour and the low price of gold. For 17 years the mine had been flooded. Since dewatering by the company a thorough survey of the levels had been made. A shaft of 150 ft. would be sunk, and two drives would be made to new bodies of ore.

The coal mine, owned by United Brunner Coal Mines, Limited, was situated on the Grey River, six miles from Grcyniouth. It had been closed for many years. Mr. Cox said that, recent survevs had reported a. field of approximately 6,000.000 tons of bituminous coal and deposits of fire clay. "Financial interests in Auckland responded freely to meet our requirements. and I was assured that Auckland has plenty of money available for legitimate South Island industries." said Mr. Cox.

COMPETITION FOR WOOL FIRM SYDNEY MARKET SEASON'S HIGHEST PRICE (Received November 9, 10 p.m.) SYDNEY, Nov. 9 Spirited competition was maintained at the wool sales to-day, with moderate support from Japan. Satisfactory clearances were effected. In a firm market greasy Merino made to 213 d per lb., which is the highest price of the season. A* total of 12,067 bales was offered and 11,080 were sold, also 1586 privately.

FIJIAN GOLD MINES EMPEROR AND LOLOMA PAST YEAR'S EARNINGS Emperor Gold Mining Company, Limited, the operating company in Fiji for Emperor Mines, Limited, reports a net profit of £63.592 (Fijian), equal to £71,541 (Australian) for the year ended June 15. Profit is struck after providing £23.029 for depreciation, £22,838 for development and prospecting, and £3BOO for income tax, all Fijian currency. The operating company paid the first interim dividend amounting to £101,250 (Australian) on September 15, enabling Emperor Mines, Limited, to declare its first dividend of Is a share, payable to-dny. > The bank overdraft of the operating company, which had been reduced to £28,639 (Fijian) at the balance date, lias since been extinguished by the surplus from gold proceeds. In the year 128,008 tons of ore were treated for 38,591 fine ounces of gold. A net profit of £83,793 (Australian) is reported by Loloma (Fiji) Gold Mines, N.L-, for the year ended July 31.

Productive operations began in September, 1937. Net profit was struck after charging £24,427 for mine development, including £10,998 prior to commencement of treatment. £9877 for depreciation of plant, buildings, and stores, and £4500* provision for income tax, and adding £376 interest and transfer foes. During tho * year two dividends of Is, amounting to £82,500. were declared, leaving n balance of £1293 in tho appropriation account at July 31.

From the end of September, 1937, to July 13, 1938, 18,036 tons were treated for a yield of 22,074 fine oz. of gold and 5589 fine oz. of Bilver^