BROKEN HILL SOUTH

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

BROKEN HILL SOUTH

HIGHER PROFIT ON LESS OUTPUT Net profiit of Broken Hill South. Ltd., published in an advance statement on August 31, increased bv £282,119 to £768,316 for the year ended June 30. The profit of £664, 803 from the mining section (an increase of £276,056) was reached after providing £33,000 for depreciation (the same amount as for 1935-36), £153,000 for taxation (against £92,000 for 1935-36), and x’31,000 for royalty (against £26,000 for 1935-36). The increase in profit from mining, the directors state, was due to the higher prices for lead and zinc, the respective average prices in London being, lead £23 2s 8d a ton, against £l6 4s 5d for 1935-36, and zinc £2O 2s Id a ton, against £l5 3s lid. Profit from the investment section at £103,513, showed an increase of £5063. Dividends equal to 70 per cent, require £560,000, and £510,240 is carried forward.

jubilee bonue o£ 12J per cent. Assets at June 30, exclusive of mine and plant, and of shares held in other companies, total £1,388,778, a surplus of £1,003,395 over liabilities. The quantity of ore treated was moderately lower, and production of lead, zinc and silver was the smallest for recent years.

Ore reserves, not including ore below the 1480 ft. level, or any ore indiacted solely by diamond drilling, are stated at 3,000,000 tons, a fall of 250,000 on the year. Mining development and treatment costs were 31s 2.9 d per ton, an increase of 4s 7.9 d. The reduction in the quantity of ore mined and treated contributed parti; to the increase, the directors point out, but the chief factor was the effect of the concessions granted under the current labour agreement.

The report mentions that the Commonwealth Aircraft Corporation, Ltd., in which the company holds 50,000 shares of £1 each, paid to 5s 9d at June 30, will soon take in hand the first order of 40 aeroplanes from the Commonwealth Government.

Year ended June 30. £ £ £ 1935. 1936. 1937. Net profits • 342,510 486,197 768,31G Div., p.c. . .. 30 62i* 70 Div., amount .. 240,000 500,000 560,000 New plant and development . 20.000 — — Forward .. .. 307,328 301,924 510,240 Mine production 901,939 1,172,431 1,653,261 LIABILITIES— Capital 800,000 800,000 800,000 Special Reserve 258,320 55,340 55,340 Other reserves 1,614,968 1,915,548 2,051,866 Plant and developcment appropriation .. .. 15,000 — — Sundry creditors 56,189 71,457 139,626 ASSETS— Mine account . 83,693 89,693 83,693 Plant account 1,249,868 1,256,470 1,262,661 Investments (at cost) .... 840,350 930,007 1,099,280 Stores 12,359 52,804 44,537 Metals and concentrates . . 291,354 2S1.680 413,458 Sundry debtors 30,544 11,891 14,675 Deposits . . . 517,075 511,975 619,475 Cash 26,562 15,679 19,291

Ore. Lead. Silver. Zinc. Tons. Tons. oz. Tons. 1934-35 366,660 56,048 2,537,401 47,713 1935-36 386,100 52,995 2,130,445 43,390 1936-37 369,790 51,092 1,897,481 41,088