GOLD PRODUCTION

Otago Daily Times, Issue 26353, 7 January 1947, Page 7

GOLD PRODUCTION

NEED FOR MAINTENANCE OF OUTPUT Gold was still as great an economic necessity as ever and was needed in everincreasing quantities to provide the necessary backing for the increasing industrial and commercial activities of the world, said Mr E. G. Theodore, managing director of Emperor Mines, Ltd., at the annual meeting in Melbourne. Its continued production was important to the national welfare, but it was certain that production would decline if the price of gold did not increase proportionately with increased A serious setback in world output of gold could take place during the next few years, he said, because of the vanishing margin of profit. The diminished production applied as much to South Africa and the United States as it did' to Australia and Fiji. An increased price was as much sought in those countries as it was in Australia. The British Empire, the United States and Russia were all interested in maintaining and increasing the price of gold, and that, he thought, assured producers not only of the maintenance of the present price, but, he believed, an increased price in the near future. Mr Theodore pointed out Jhat the value of fine gold produced at' the Emperor mine in 1937-38 was £8 13s lOd an ounce, and total costs, including royalty and taxes, £5 Bs, leaving a net profit of £3 5s lOd an ounce. The respective figures in 1945-46 were £lO 13s sd, £8 18s 2d, and £1 15s 3d.