CAPITALISATION OF MINING COMPANIES

Otago Daily Times, Issue 21988, 24 June 1933, Page 12

CAPITALISATION OF MINING COMPANIES

TO THE EDITOR. Sir, —In your issue of<i,this morning a letter, over the signature of “A Wellwisher,” draws attention to the risks attendant on the gold mining industry, and specifically refers to three companies, viz., Okarito, Waitahu, and Gillespie's Beach. There is no doubt these shares are highly appraised, and probably with very good reason. The directors of the Gillespie’s Beach Company have studiously avoided booming the shares by undue publicity of details. Up to date they have d not been notified of any results of the “check boring mentioned by your correspondent, which was recently commenced. This practice of check boring each 10-acre block is likely to be carried out in all future ■ operations, and is designed to check gold returns against boring yalues so that any loss of values can be traced to the proper source and rectified. Shareholders who pay even 100 per cent, premium for Gillespie’s Beach shares are favourably situated, for if dredging results show an average of lOd per yard shareholders’ capital will, be returned in about a year and a-half, and, with the enormous area of payable ground, equal to 30 years’ work with one dredge, shareholders can form their own estimate of the value of their holdings. Any shareholders can get first-hand information from the secretary or chairman of all works being conducted by the company, but the directors cannot be expected to reply to criticisms of correspondents writing under a norrt de plume. —for the directors, I am, etc., F. R. Thompson, Secretary, Gillespie’s Beach Gold Dredging Company, Ltd. Dunedin, June 23.