MINING

Otago Daily Times, Issue 27092, 28 May 1949, Page 3

MINING

GREY RIVER PROFITS FALL Through a loss in revenue of £2 6s 9d an ounce on gold, brought about by the reduction in the exchange rate and the compulsory sale of all gold produced to the Reserve Bank at a fixed price, net profit of the Grey River Dredging Company, Ltd., Westland, states the directors, fell by £72,537 to £2078 in 1948. No depreciation was written off the dredge, assets, mining rights or properties. The dredge worked 6i46 hours during the year, of 82.1 per cent, of the possible dredging time. It treated 3,495,647 cubic yards, recovered 7588 ounces of bullion of a realising value of £65,443, an average recovery of 4.49 d a yard. Operating costs, including export tax on gold and income tax (£1764) were equal to 4.38 d a yard. The" company’s last dividend was paid in June, 1948. amounting to 4d a share, against Is 6d a share in 1947. The directors state that the Government’s policy is certain to prove “ seriously detrimental ” to the company. Mining companies through their association, are still endeavouring to obtain Government' aid to compensate for the financial loss suffered by the industry.