WAIHI GOLD MINING COMPANY

Otago Daily Times, Issue 22005, 14 July 1933, Page 12

WAIHI GOLD MINING COMPANY

ANNUAL MEETING NEW GOLD DUTY A SERIOUS HANDICAP. (From Odr Own Correspondent.) LONDON, May 12. Mr A. M. Mitchison (chairman) pre; sided at the annual meeting of the VVaihi Gold Mining Company on May 4. In addressing the shareholders he first referring to the death of Mr Charles Rhodes, who had represented the company in New Zealand for over 32 years. During 1932, continued the chairman, considerably greater advantage had been derived from the gold premium. Under the gold standard fine gold was worth nearly £4 ss, and this was approximately what they used to get, but during 1932, according to the bullion brokers, gold on the average had been worth £5 18s, and they had obtained about Is more —£5 19s—as compared with £4 ss, or an increase of £1 14s per ounce. The number of fine ounces of gold sold during the year was roughly 73,600 (excluding the special clean-up) so that they were indebted to the premium for £1 14s per ounce on this figure or over £125,000, and shareholders could realise how the accounts looked without that figure. It was obvious that in the circumstances every effort should be used to mine and mill as much ore as possible and to bring to London as much bullion as they could get here. • In pursuance of this policy, 231,841 tons of ore were treated during 1932 as against 223,376 tons during 1931, which was an increase of 8464 tons, though it was,becoming increasingly difficult to supply the tonnage. They had also in the accounts a sum of £40,030 obtained by reduction of bullion in process of treatment, so that the gold and silver this year gave them £530,872 as against £413,899 last year. This was a very satisfactory figure, but it must be regarded as exceptional. In the first place they had the gold premium. In the second place they had the special amount of £40.300 taken from the refinery. In the third place they had to remember that the most strenuous efforts had been used, and that it was only reasonable to expecfsome falling off in the future results as it was becoming more and more difficult to supply headings of the value of those they had been treating. Everyone had done his best to take the fullest possible advantage of the premium on gold. Everything had been worked at top speed, but it was becoming harder to keep up the pace. Notwithstanding this, the company’s policy remained just as it was, and they would continue to strain every nerve to keep up their output and at the same time to explore every possible avenue from which they could hope to develop new ore. ORE RESERVES. The chairman summarised the ore reserves at December 31, 1932, as follows:Summary:— GENERAL ACCOUNT. 17.498 tons at 22s to 255. 31,239 tons at 25s to 295. 102,343 tons at over 295. 151,080 tons, average 31s 0.90 d, SUSPENSE ACCOUNT. 12.499 tons at 49s 0.395 d. 92.249 tons at 31s 0.556 d. 66,312 tons at 36s 0.274 d. 171,060 tons, average 34s 0,689 d. Combined. General account, 151.080 tons at 31s lid. Suspense account, 171,060 tons at 34s Bd. 322,140 tons at average 33s 0.381 d. The company’s representatives in New Zealand had displayed great zeal and ability in their search for ore duringNthe year, and their efforts had been rewarded with considerable success, but there had been no new development of any great magnitude. Mr Mitchison then referred to exploratory work of the Martha lode westward at No. 3 level and of the crosscut to the north at No. 6 level. He also referred to other exploratory work in the Junction Eastern Area. It had been decided, he said, to test the Royal lode by a southeast prospecting crosscut at the Jimction Company’s No. 6 level (Waihi No. 10 level), and preparations were in hand for starting this crosscut, which would be through a part of the Junction area practically unexplored. The bullion return for the period ended April 15 showed that 16,893 tons had been crushed, and the approximate market yield would be £34,000. NEW GOLD DUTY. “ I come to the very serious question of the imposts which the company has to bear,” continued Mr Mitchison; “J. spoke about income tax last year, but while the new gold duty of 12s fid per ounce is in force our burdens will be terribly increased. Our output of gold last year was over 73,592 ounces, and . if our output should be 73,000 ounces for any year while this duty is in force we would have to pay no less than £45,625 in addition to the heavy income taxes which the company is liable for in New Zealand and London. The gold duty also, of course, has the effect -of tending to shorten the life of the mine by making it unprofitable to work some ot the blocks of ore which have been rendered payable by the gold premium. “ I do not think that the New Zealand Government fully realises what the effect of this export duty.will.be, for not only will it tend to take away part of the addition to the life of the Waihi which the premium is giving us, but it j.will be even more damaging to _ other mines which are struggling for existence in the Dominion, and it will be very bad for the individual miners and prospectors. In short, the gold premium has given a little impetus to the mining industry and was beginning to attract British capital to larger operationsTn the Dominion, and I trust the New Zealand Government will not continue to discourage these tendencies by confiscating 12s fid per ounce.” . . _ ... Before leaving the subject of the Waihi mine, the chairman paid tribute to the zeal and loyalty of the staff at the mine and mill. The company was also extremely well served in London by' the very efficient and zealous secretary, Mr Hastie, and the staff. . PUKET TIN ENTERPRISE. Turning to the Puket Tin enterprise, he was glad to say that at length, after most tedious efforts, the , whole of the lease of the property had been transferred to Puket Tin Dredging, Ltd. Shipments of the dredge were begun in March, and they looked forward to-starting work in 1934, though probably late in the year. Great delay had been mainly caused by difficulties with which the vendor had to contend, and the obstacles had only been overcome by the ability, tact, and firmness which had been exercised by Mr Rich, the able and experienced manager for Trench Mines, Ltd., in the East, who had acted on behalf of the Puket Tin Dredging, Ltd. . . The present price of tin was not 60 high as it was when the enterprise was first undertaken, but it was a good deal better than it was some time ago —though he did not wish to be too sanguine and optimistic —he did not think they would do badly out of the undertaking. He concluded by moving the adoption of the report, and the payment of a final dividend for the year (No. 135) of Is per share, free of income tax; the balance of £53,767 to be carried forward. Shareholders expressed the hope that everything possible was being done to persuade the New Zealand Government to reconsider the 12s fid gold export duty The directors would have the full support of the shareholders in their efforts to have this serious obstacle to trade ameliorated. The chairman explained that everything possible had been done. The Prime Minister and other members of the Cabinet had been interviewed. They expressed sympathy.— (Laughter.) In answer to another question, the chairman said that the company had always kept in mind the possibility of transferring their activities to new localities, and every place where gold was reported had been examined. But it was no use trying to get gold if it was not there. The report and accounts were adopted, and Mr R. H. Muir was re-elected to the board. PRESS COMMENT. Commenting on the gold tax after the meeting the Mining World says:— One of the main features of the meeting was the disquietude of directors and shareholders regarding the unfortunate action of the New Zealand Govvernment in imposing a tax of 12s fid per ounce on all gold exported. In these difficult days it is understandable why some governments impose limitations on money leaving the country, but to tax the producer of this new money