RENOWN COLLIERIES

Sun (Auckland), Volume IV, Issue 1074, 11 September 1930, Page 7

RENOWN COLLIERIES

INCREASE IN SALES fifth annual report “After making the usual liberal • llowance for depreciation, the net profit for the year amounted to £7,465 12s 10d, which must be ronsidered highly satisfactory,” „id Mr. H. R. Mackenzie, chairman of directors of the Renown Collieries, in moving the adoption nf the annual report and balance°heet, published in THE SUN of September 2, at the annual meeting of the company, held last evening. "At the last annual meeting I predicted that this year we would pay a dividend on preferential shares provided that our anticipations in regard to Arapuni were correct,” said Mr. Mackenzie. "At this time it was expected that the erosion then occurring would be dealt with immediately, and that the Auckland Electric-Power Board would be using both slack and run-of-mine coal through the year. "However, the Public Works l.)enartment decided to run Arapuni and our orders were cut off at a day's notice, thus greatly reducing the output from the mine. Over 40,000 tons of slack from the four associated mines was dumped, over 10,000 tons of which was lost altogether. Further, railwav orders commenced much later Ilian usual, which also affected the output of the mine. With this explanation shareholders will understand why tho profits were not jjreater.” Mr. Mackenzie said that in July the directors made an offer to the Government to take over the McDonald State mine on the basis of Is a ton royalty, and also to supply the*Auckland Electric-Power Board’s requirements. This offer was not entertained and the mine had now been leased to another company on a basis of 8d a ton royalty. The company also tendered last month for the railway order, but was unsuccessful. However, losing these orders would not, in his opinion, greatly affect the company, as the prices were cut to a very line margin, and if it had obtained this contract it would have mean; neglecting its customers. While every other mine in the Waikato had a decreased output, the company's sales increased from 37,000 to 76,283 tons, an increase of about 40 per cent., largely due to good selling organisation and superior coal. The roading of the Renown village reserve was completed during the year, and already 14 sections hadbeen sold to the employees of the company, who have built homes. The retiring directors. Mr. W. P Endean and Mr. W. F. Brooke Taylor, were re-elected.

Votes of thanks were passed to the directors, the mine manager and the start.