MOUNT LYELL OUTPUT

Southland Times, Issue 23180, 22 April 1937, Page 3

MOUNT LYELL OUTPUT

RETURNS FOR SIX MONTHS LARGER PROFIT IN VIEW Recent events have diverted a large volume of the funds of New Zealand investors to Australian metal shares and the stock of the Mount Lyell Mining and Railway Company, Ltd., Melbourne, is very widely held in New Zealand. The Company is chiefly interested in the production of copper, the out-look for which has greatly improved ovei the past 12 months. Accordin, to The Argus, Melbourne, in a recent review of the company’s prospects, when the preliminary statement of profit is issued about November shareholders can expect a substantial increase on that of the year ended September 30 last. The profit last year of £187,291 was the best since 1929, when £324,130 was earned. In the company’s last financial year the London average price of electrolytic copper was £4O 14s 8d a ton, compared with £B3 Is 4d in 1929. The development of the extensive low-grade ore deposits on the Mount Lyell property at Queenstown, Tasmania, states the Argus, should be reflected in the current year’s results in view of the substantial increase in the price of electrolytic copper, which is now quoted at about £6B to £7O a ton. At the close of last year two-thirds of the total output was being derived from the open-cuts, with a consequent considerable reduction in mining costs. The average lower grade of the ore from the open-cuts is offset by the reduction in mining costs. From the following table, comparing production for the first six months in. the last two years and the London average price of electrolytic copper, it will be seen that the output of copper has increased considerably and that there has been a substantial increase in the price of copper:— 6mts. ended 6mts. ended Mar. 31, ’36 Mar. 31, ’37 Tons Tons Ore treated by mill 306,736 411,529 Total ore, etc., smelted 23,977 27,865 Blister copper produced 5,275 6,087 Contents— Copper, tons 5,236 6,046 Silver, oz 43,600 45,509 Gold, oz 3,027 3,283 Copper cathode produced, tons 6.509 6,715 Av. price electrolytic copper £39 14/3 £55 13/11 Provided that production figures and the average price of the metal are maintained, the year ended September 30 is likely to bring increased dividend distributions to shareholders. Out of last year’s profits 2/- a share was paid (6d interim and 1/6 final), requiring £155,000, and in the previous year 6d a share was distributed. BRITISH EXCHEQUER RETURNS BUDGET OPTIMISM BORNE OUT British Official Wireless (Received April 21, 6.30 p.m.) RUGBY, April 20. The optimistic lorecast of the year’s revenue in the Budget statement is supported by the Exchequer returns, which show that the total ordinary revenue amounts to £37,179,660, compared with £31,145,641 at the corresponding date last year. The revenue from income tax is over £1,000,000 higher, at £8,164,000, and the yield of Customs has jumped from £8,596,000 last year to £11,123,000. The total ordinary expenditure is £43,175,039, compared with £46,931,196 at the corresponding date in 1936.