ROUND HILL MINING COMPANY.

Otago Witness, Issue 2671, 24 May 1905, Page 29

ROUND HILL MINING COMPANY.

TEe following report of the Round Hill Mm- \ ing Company for the year ended Jrdy 31 was ! presented* to ultareholders at the twelfth annual meeting, held at Liverpool recently: — " The yeild 01 gold for the year amounted to £7308, which is slightly under the amount for tbe previous year. The working expenses for the year have, by reason of the matters referred to Jbelow, been' considerably in excess of those for "last year, and the net profit for the .year, after charging the expenses of -the Liverpool office and the income tax payable in England, consequently -only amounts to £211 Ids 3d. shown as. follows: — Balance brought forward - from last account, £1292 0s 3d ; less dividend at 3 per cent.-, £847 7s ; less directors' fees, 1902-3, £100; profit on year's working, £211 19s, 3d; balance, per profit and loss account (including depreciation), £556 12s 6d. It will, however, be seen that a sum of £762 133 3d is charged to profit and loss account "in respect of the Winding creelt mine (hereinafter referred to), and but for this the profit from the Round Hill mme -proper would have been increased by that amount. It will be observed that a further sum of £552 18s 8d lias this year been transferred to the depreciation account, bringing the amount of this account up to £10,019 8s 9d, which has been applied as to £7400 8s 4d in writing off the item which, has appeared in former balance sheets for expenditure .under the agreement of purchase by the company from the late syndicate, and as to the balance ■in depreciating -other assets as shown By the balance sheet. In January, 1904, one of your directors (Mr 'John Hugjhes) visited New Zealand for purposes connected with his own business, and "he fortunately had time to visit the Round Hill mine, -which he examined thoroughly. -He also 1 examined the pipe line, -water Sain, and" ■water races. Mr Hughes' "has reported to the. directors tihat ie was' very' well -satisfied with. ] the ' appearance, management, and workings' at fbe mine; but he was not satisfied with the pipe line, nearly the whole of the pipes being in a, bad condition. He /was also dissatisfied with the construction of the water dam. Amd pointed out defects, which are being remedied. Mr Hughes had several opportunities of discussing the affairs of the company ■witn, Mr White, our then -managing director in New Zealand. Some short time before Mr Hughes arrived in New Zealand Mr White lad purchased a mine situate »t Winding Creek, neiar 'Wflikaia, Otago (about 70 miles from Round Hill), which was then in liquidation, together with the plant ; and Mr Hughes, after seeing the mine, came to the conclusion that it would be to the advantage of this company to acquire this property, and he obtained an option for the company to take over Mr "White's purchase at the sum of £1000, the amount paid by Mr 'White fou it, the pipes alone being worth, double the amount paid, and "being suitable for us© at Round Hill, and this option has been exercised by the directors. ' The pipes were practically new, and 9, portion of them, v to the value of «s>6oo, has been transferred to Round Hijl, where they were badly needed, without interfering with the practical ■working of Winding' Creek mine. A very large amount of money tad been spent on the mine and plant by a company wiwi a capital of £30,000, but after working for a year or two" the company was obliged to liquidate. Mr Ramsay, a late manager of tlie Round Hill mine, who resigned after a successful period of management, had been engaged ~by Mr "White to manage the Windings Creek mine, and. Mr Hughes arranged that Mr Ramsay should continue to manage for the Round Hill Company. As stated, » portion of the ■Winding Creek plant haa been" removed to Sound .Hill. The 'remaining plant has been rearranged, and Mr Ramsay has got the Winding Creek mine in order, and has stripped a block of land, and is working for gold when water is available. The mine can only be fully worked during about eight months of the year, as the water supply is very small during the summer months ; but although returns were not expected to be made before ■March, th-e directors are pleased to learn that £650 worth of gold has been recovered from this- mine between September last and the end of Jantiaiy- Shortly after Mr Hughes left New Zealand Mr White died. This is, of course, a very serious thing for the company ; but the directors are pleased to state that satisfactory arrangements have been made foT the present for .the local management of the company's affairs. No change in the mine management at Round Hill has taken place, but the returns for tihe working year have not been so good as expected. The moving of the pipe line and the substitution of a large number, of new pipes have delayed the recovery of gold and caused a- considerable addition to the ordinary working expenses, which have aiow, however, been reduced to their normal condition, and it is expected that the returns ■will b* increased, as -the reports from the mine have lately .been satisfactory, and state thai good ground is now being. worked. The, returns from Bound Hill since the 31st Jury (the end of the .working year) are as follow : • — 1904— August £500, September-October £630, November £1000, December £675; 1905 — January .£1100; returns from Winding Creek, MBBs6;— tot»l for six months, £4555. Mr Hughes lias bean kind enough to make no charge •gainst the company for the expenses incurred |>y him. in New Zealand, when engaged on the company's business, nor for his loss of time. Apart from the amount paid for the Winding Creek property and plaint, the capital expenditure during the year has been very small, and it ds the board's intention to incur no further capital expenditure which is not absolutely

necessary. The directors regret that they are not able to recommend .the payment of a dividend for the year 1903-4, but if the returns are p.p to expectations it is hoped that an interim dividend may be declared m the course of tha present financial year. The directors do not. ask for any remuneration for the past y&a-r."