GOLD RECORD

Otago Daily Times, Issue 22397, 19 October 1934, Page 13

GOLD RECORD

IMPETUS TO MINING COMPANY BOOM IN AUSTRALIA (Fkom Cue Own Coruesi'ONueni.) SYDNEY, October 12. The high price that has ruled for gold this year has given a great impetus to gold mining in Australia, but, more particularly, to the formation of gold mining companies. The gold mining revival in Australia really dates back three years, and it is probable that there are 300 more gold mining companies in Australia to-day that there were before the boom period started. Many of these companies have made absolutely no return, and the calls on the shareholders have been regular

enough. It is estimated that each mouth the various companies ' in all the States make calls totalling nearly £200.000. In Victoria alone there are nearly 200 new companies, and, accord-, ing'to the, latest figures, only 18 of the gold- milling companies in that State can be classed as regular dividend payers. No new field has yet been located, and the results cannot be regarded as anything but distinctly unsatisfactory. The greatest activity has been apparent oh the Bendigo field, but labour troubles have arisen there within the last fortnight, and work is now practically at a/ standstill. .The-best results are still being obtained in Western - Australia. Reductions in costs effected by greater efficiency in metallurgical practice and improvement and extension of plants to cope with larger tonnages, have enabled the managements of the old mines to lake full advantage of the higher price for gold. Several of the newly-floated

companies in •‘Western Australia are nearing production, and the results are being awaited with the greatest interest. In New Guinea science has triumphed over the natural difficulties of the area, and well managed companies there have been able to earn satisfactory profits. The New Guinea group, in which so much Australian- capital has been invested in. recent years, includes four dividend payers. In Queensland there are only two outstanding mines—Mount Morgan and Gold Plateau. It has been reported that Mount Coolon is nearing the end of it's short life. In well-informed circles it is considered that the highly remunerative price of gold is likely to continue, and, because of this, almost any concern designated a gold mining company receives the attention of speculators. The floating of new companies is almost a daily occurrence, and the promoters have, little difficulty in finding people who are willing to engage in a little gamble

in gold. Gambling is the inevitable accompaniment of genuine speculation when, the • prize is so rich, blit* it would not be surprising if the various Governments find it necessary to take some legislative action that will 'put a stop to some of the methods, that have been employed of late. It is safe to say that the market has' become overburdened with the mushroom growth of new companies, and it is. feared that many of the shareholders will never see their money again.,