RECORD PROFIT

Wanganui Chronicle, Volume 80, Issue 244, 14 October 1937, Page 11

RECORD PROFIT

ELECTROLYTIC ZINC EARNINGS TOTAL £536,613 MORE FOR TAXATION A record net' profit of £536,613 is announced by the Electrolytic Zinc Company of Australasia, Limited, in a preliminary statement for the year ended June 30 . The profit is struck after providing £145,000 for amortisation and depreciation and £130,534 for taxation. The year’s earnings compare with £322,864 in 1936. The best year the company had previously experienced was in 1926 when the net profit was £120,699. The taxation provision in that year was only £49,551. A final dividend of 9 per cent, and a bonus of 6d a share, equal to 2a per cent, on ordinary and cumulative participating preference shares was paid by the company on September 10. The bonus and final dividend raised the aggregate payment for the year ended June 30 to 17i per cent., which is the largest distribution evei made by the company. The year’s payment required £445,000 against £260.000 on a 10 per cent, basis in 1936. Net profits, depreciation and taxation provisions in the last three years compare as follow: —

The improvement in the company’s earnings is partly due to the higher average prices ruling for dependent metals during the year. The average price of metals produced by the company in the last three financial years compares as follows: —

Since February, 1936, when the company reopened its West Coast mines at Rosebery (Tasmania), which are now treating 12,000 tons of ore a month, the company has had an additional source of revenue from which it derives the fifll benefit of metal prices. _

1935. 1936. 1937. i £ £ Net profit 256,020 322,864 536,613 To amortisation and depreciation ... 145,000 145,000 145,000 Taxation 55,923 75,403 130,534

£ Year ending June 30. 1935. s d 1930. 1937. £ s d £ s d Zinc, a ton ... 12 16 7 15 3 11 20 2 6 Lead, a ton. ... 11 6 0 16 4 6 23 2 6 Silver, an oz. 2: s 3.9d 2s 2.4d Is 93 d