COMMERCE AND FINANCE

Otago Daily Times, Issue 23631, 15 October 1938, Page 9

COMMERCE AND FINANCE

MINING NEWS NEMONA RETURN (Peb United Press Association) GkEYMOUTH, Oct. 14. The Nemona dredge return was 320 z lor 80 hours (9200 yards). ELECTROLYTIC ZINC REPORT The Electorlytic Zinc Company of Australasia, Ltd., has submitted the following production statement for the four weeks ended August 24, the figures for the four weeks ended September 21 being given in parentheses:— Zinc, tons, 5352 (5399), of which used at the works, 90 (90); silver lead product for shipment to Port Pirie for realisation—Lead, tons, 255 (220); silver, ounces, 37,400 (31,150). WEST COAST DEPARTMENT Ore treated, tons, 12,840 (12,853); lead concentrates produced, tons, 110 l (960); zinc concentrates produced, tons, 4465 (4065); assay values—ore treated: land, per cent., 6.7 (5.8): zinc per cent., 21.4 (19.3); silver, ounces, 6.8 (6,3); gold, dwts., 2.0 (2.04). Lead concentrates: Lead, per cent., 54,8 (54.8); zinc, tier cent.. 14.2 (15.1); silver, ounces, 43.2 (45.1); gold, dwts.. 9.8 (12.1). Zinc concentrates: Lead, per cent., 3.3 (3./), zinc, per cent.. 54 8 (54.4); silver, ounces, 5.8 (5.8); gold, dwts.. 1.5 (1.5) STERLING FORCED DOWN (United Press Association) (By Electric Telegraph—Copyright) NEW YORK, Oct. 13. (Received Oct. 14, at 10 p.m.) Heavy selling, which was largely speculative, forced down sterling to 4.73fd. Most European exchanges were similarly affected, but German freemarks rose one and a-half points. The sterling decline is due to a feeling that England is in the early stages of a business decline. BROKEN HILL SOUTH REDUCED , MINE PROFIT The net profit of Broken Hill South. Limited, fell from £768,316 for 193687 to £402.501 for the year ended Juno SO This decline has been reported in a preliminary statement. The annual accounts show that it occurred in spite of an improvement in gross revenue from dividends and interest of £22,416. Production was larger than in 193b--37, but the net profit from the mining section was less than half, and at £276,159 showed a decline of £388,644, Dividends totalling 80 per cent, required £640,000, leaving £272,741 to be carried forward. In 1937 the distribution was equal to 70 per cent. The assets, exclusive of mine and plant and shares in other companies, show a surplus over liabilities of £719 491. The tonnage of ore treated was larger and both assay values and recoveries of lead, silver, and zinc showed improvement. The details are as follows*—™ Ore Lead. Silver Zinc tons. tons. oz. tons. 1934- 366,660 56,048 2,537,401 47,713 1935- 386,100 52,995 2,130,445 43,390 1936- 939,790 51,092 1,897,481 41.088 ,1937-38 382,465 55,605 2,279,616 46,668 The ore reserves are stated at 2,900,000 tons, excluding ore disclosed by diamond drilling only or by limited development work, and all ore below the 1480 ft level. The directors state that the company has agreed to contribute £25,000 toward the cost of a new general hospital at Broken Hill, and £12,500 was provided for this purpose from the year’s profits. The New South Wales Government has renewed the leases covering the company’s productive blocks, numbers 7 and 8. The renewals are for 20 years from January 1, 1945. and royalty on net profits will be paid at an enhanced rate. The new rates will be 4 per cent, on the first £200,000 or part thereof of annual profits, the rate increasing v by 2 per cent, on each additional £200,000 or part thereof. The royalty under the current leases is 3 per cent, on the first £IOO,OOO of profits, with an additional 1 per cent, on each additional £IOO.OOO or part thereof. DRUG HOUSES OF AUSTRALIA Drug Houses of Australia, Ltd., recorded a profit of £159,331 for the ' year ended June 30. after providing £2OOO for taxation. Earnings compare with £174,520 in the preceding year. The dividend for the year of 6i per cent. 1 is unchanged, and requires £158,594. The company holds shares totalling £2,458,778 in subsidiary trading companies. Aggregate trading profits of the subsidiary companies for the year were £208,178. against £226.903 in the previous year.

LOCAL AND OVERSEAS MARKETS

AUSTRALIAN STOCK EXCHANGES (United Press Association) (By Electric Telegraph-Copyright) SYDNEY, Oct. 14. (Received Oct. 14, at 10 p.m.) The investment market was lethargic to-day, prices remaining steady. Base metal prices were much firmer, owing to the firmer trend overseas. THE MORNING SALES

MELBOURNE, Oct 14. The Stock Exchange t<>day was characterised by good buying for all Commonwealth loan issues, and a further marking up of leading investments and Barrier stocks. There was little change in gold shares. Mount Morgans were well supported, but oil

NEW ZEALAND GUARANTEE

CORPORATION

SMALL INCREASE IN PROFIT

The directors of the New Zealand Guarantee Corporation, Ltd., in their report for the 12 months ended August 31 1938, to be presented at the fifteenth annual general meeting at Wellington on October 26. state that during the year business has been satisfactory, but it was deemed advisable to adopt a conservative policy, with the result that the advances during the year have been on a cautious basis. The property account has disappeared from the assets side of the balance sheet, and the directors are pleased to report that the property referred to, which had been held by the corporation for several years, has been sold at a satisfactory figure. The net profit for the year, after providing for income tax and making full provision for losses on doubtful securities, amounts to £11,269 8s 3d. An interim dividend at the rate of lsd a share was paid for the half-year ended February 28 last, this accounting for the sum of £4424 16s, and the directors now recommend the payment of a dividend of 2d a share. This will absorb £5899 2s, and the balance to be carried forward will amount to £7382 0s 7d.

£ s. d. Commonwealth bonds— 4 p.c., 1938 101 8 9 4 p.c., 1941 102 7 6 4 p.c., 1957 103 7 6 Tooheys 1 10 6 Tooths 2 14 9 Anthony Hordern .. .. 0 16 6 British Tobacco 2 8 0 Broken Hill Proprietary 2 18 3 Electrolytic Zinc (pref.) .. 2 7 3 ADDITIONAL SALES Commercial Bank of Aust. 0 17 0 Commercial Bank of Syd. 20 5 0 Union Bank 8 10 0 Huddart, Parker 2 7 6 Australian Gas A (old) 3 15 0 (new) 7 3 0 Tooth's 2 14 6 Toohey’s 1 10 6 Australian Glass . ■ • • 4 13 6 Dunlop Perdriau .. .. i 0 6 (pref.) i 17 6 Anthony Hordern .. .. 0 16 6 Stedman’s 0 13 6 Kandos 1 6 1 Mort’s Dock 0 12 1 Paul and Gray 1 1 3 Australasian Paper .. .. 1 10 3 W. Adams 0 14 5 Newbold Brick 1 11 0 Mark Foy 1 0 6 Victoria Nyanza 0 15 6 Morris Hedstrom .. .. 1 5 0 Electrolytic Zinc .. .. 2 4 9 Mt. Morgan (N.Z. delivery) 0 11 3 Mount Lyell 1 10 0 Broken Hill Proprietary .. 2 18 0 Zinc Corporation .. .. 5 1 0 Kuala Kampar 0 18 6 Rawang Tin .. .... 0 8 11 Taranaki Oil (N.Z. delivery) 0 14 4 Oil Search 0 9 1

prospecting shares were dull. £ s. d. Union Bank 8 10 0 Howard Smith .. .. 0 19 6 Carlton Brewery 3 0 0 Dunlop Ferdriau 1 0 6 Goldsbrough, Mort 1 9 0 Henry Jones 2 4 6 Hume Pipe 0 19 3 Imperial Chemicals (pref.) 1 2 0 Mount Morgan .. .. 0 11 3 Mount Lyell .. .. 1 10 0 Broken Hill Proprietary 2 18 0 North Broken Hill 2 10 6 Broken Hill South 1 13 6 Emperor 0 13 3 Loloma 1 4 6 Wellington Alluvials 0 5 0