WAIHI GRAND JUNCTION

New Zealand Times, Volume XLVIII, Issue 11045, 31 October 1921, Page 10

WAIHI GRAND JUNCTION

ANNUAL MEETING. At the annual meeting of the Waihi Grand Junction Gold Company, Mr Stanlake Lee presided, other directors present being Major G. H. Earle, Messrs H. J. Rothwell, T. H. Hamer and F. Gates. The balance-sheet showed that the working oosts, including mines development redemption £14,362, depreciation of plant, machinery and buildings £11,599, and administration expenses, London and New Zealand £13,945, amounted to .3130,463, showing a loss of .£16,778. The provision of £4238 for income tax, London and New Zealand, resulted in a debit to profit and loss of £21,016. which, with the debit balance of .£10,550 from last year, left a loss of £31,566 to be carried forward. THE YEAR'S OPERATIONS. The chairman, in proposing the adoption of the report ana balance-sheet, said it was a matter of very great disappointment that the year's operations showed a loss. They had hoped that at least the deficit would not have been greater than that of the previous year, but owing-, to exceptional circumstances this expectation had not been realised. There were two items which showed a larger proportionate increase in cost of production than in previous years. Mining charges were £51,929, as against £46,821 for a considerably greater tonnage in 1919, the increased rate being almost entirely due to higher wages. The second item was the administration expenses in New Zealand, which were large in consequence of the interest paid on the bank overdraft. They had had continued difficulties with labour during the year under review, and it was only in the early part of the present year that they were able to effect a settlement with the miners on a fixed basis of wage for a period of twelve months. The directors believed that the mining cost per ton would now tend to fall owing to a considerable influx of miners from Australia and elsewhere. Latest advices clearly pointed to a reduction in costs from this cause. CONFIDENCE IN THE FUTURE. In spite of the labour handicap the reserves of ore developed compared well with those of the previous year, a position which had been arrived at principally through the development of the Waihi Extended property; The balancesheet certainly displayed poor figures, but, looking carefully upon the work per* formed during the year, they found that notwithstanding the stoppage of work for one-third of the year owing to labour difficulties, the ore reserves increased from 90,450 to 125,100 tons, and during the past few months further developments had yielded consistently favourable results. This 'showed what could be done in a full year’s working under better labour conditions, and with the additional men now being obtained it might be assumed with confidence that the present year's working should show a very substantial proportionate increase in reserves. Taking 1 the present position generally, it was with entire confidence they now regarded the future of the company. The reporc was adopted.