WAIHI INVESTMENTS

Waihi Daily Telegraph, Volume XXXVII, Issue 9319, 31 December 1938, Page 3

WAIHI INVESTMENTS

THIRD ANNUAL MEETING HELD

CHAIRMAN'S ADDRESS

PUKET TIN DREDGING LTD

LONDON, November 12

The third annual general meeting of the members of Waihi Investments and Exploration Ltd. was held at

Lloyd's Avenue, London, on November 10.

Mr G. R. Mitchison, chairman of the company, who presided, said: Both the balance sheet and the profit and loss account show only small dif-

ferences from the corresponding accounts last year. Indeed, the differences are so small that we thought it unnecessary on this occasion to reproduce last year's figures for comparison. On the assets side of the balance sheet we have increased our holding in Puket Tin Dredging Ltd to the round number of 600,000 shares by a small purchase for the purpose. The market value of our investments again exceeds the figure at which they stand in the balance sheet. On the capital and liabilities &ide we have written off the capital reserve account £690 6s 4d expenditure on investigation of properties. The property in question was that to which I referred last year as then under investigation. It was a promising property on the surface, but its prospects in depth were not sufficiently good to justify our taking it up We have added to the capital reserve account a small sum received from the liquidator of an exploration company, some shares of which we took over from the old Waihi Company. PROFIT AND LOSS In the profit and loss account the interest and dividends of 5 per cent., less income tax, from Puket Tin Dredging Ltd. The balance of profit carried to the balance sheet after payment of all expenses amounts to £11,176 19s 2d, which is about £IOOO less than last year. The difference is mainly due to an increase in taxation by way of National Defence Contribution and of income tax deducted. A small increase in the net cost of administration is due to our having received rather less in fees from other companies, which are credited to that account. If you accept our recommendation for a dividend for the year of 6 per cent., less income tax, wo shall increase our carry forward by about £4OO to the sum of £2447 9s 4d. You will notice from the report of the Puket Company that 380 tons of tin ore were produced in the first nine months of this year. The figure compares with 404 tons in the first nine months of 1937.

LOW PRICE OF TIN

The difference is the result of some interruption of work for repairs to the dredge during the early months of this year. The mine profit on the 404 tons was estimated at £37,144, while on this year's 380 tons it is estimated at £16,527. The difference is mainly due to the lower price of tin during the nine months in question. We regard out interest in the Puket company as a sound and profitable investment. Its dredging operations are proceeding satisfactorily. It continues to show due caution and prudence in its financial administration. The administration account, to which I referred last year and which represents expenditure in early stages, then stood at £20,000. Before declaring the 5 per cent, dividend in respect of profits for 1937, £7500 was written off that administration account and the usual allowances were made for depreciation of plant and property.

NEW PROPOSITIONS

We have again considered numerous mining propositions that have been submitted to us in the course of the year. I find that this year 18 of them have been before the board, while there were others which did not even reach that stage. With the possible exception of one or two, which may merit further consideration, none of them appeared to us to offer that reasonable chance of success, which would alone justify us in embarking your funds in a venture. New propositions require and receive most careful consideration. Looking back on the year, I feel that we have exercised no more than due caution in rejecting so many of them. We have by no means given up hope of finding a suitable enterprise or enterprises, which in conjunction with our interest in the Puket company, will meet the purpose for which this company wps primarily formed.

USE OF FUNDS

We have also considered the alternative of investments, as implied in our double name of an investments and exploration company. The difficulty of course is that, if we take our funds out of gilt edged securities, and i»vest them in t hares or the like, lo that extent we make it impracticablo to take up any suitable mining proposition that may he offered to us and for the development of which considerable sums may be required, often at rather short notke. In fact it is not possible to use funds for investments, except in a readily available form as gilt edged securities, and to have the same funds available for the development of mining propositions. We appreciate, however, that shareholders may not wish us to hold indefinitely so large a reserve of gilt edged securities and we have in mind the possibility that, unless a suitable mining venture is offered us within a reasonable time, we may have to direct our attention to investment rather than to exploration. We have also in mind the more limited possibility that some at any rate of the funds of the company might be directed to the former purpose. I mention these matters, so as to show you that wo are watching our opportunities in the one field as in the other and are by

no means wedded to an indefinite continuance of the present state of affairs. In the event of our coming to the conclusion that some change is necessary and that such a change would substantially alter the present position of the company as primarily an exploration company, we should wish to submit our proposals to you and we might have to consider some minor alterations in the articles of the company.

You will, I am sure, not misunderstand what I have said nor regard it as necessarily foreshadowing any change. lam merely giving you the full information, to which you are entitled, as regards possibilities we have in mind. In conclusion, I should like to take the opportunity of again thanking our office staff, and particularly Mr Hastie and Mr Hayward, as well as Mr Gauvin, whose judgment and experience has been invaluable in the examination of properties submitted.

I have now to move the resolution: That the directors' report and statement of accounts for the year ended September 30, 1938, as submitted to this meeting be received and adopted; that a dividend of G per cent., less income tax, be paid on November 11, and that the balance of revenue amounting to £2447 9s 4d be carried forward.

Lieutenant-Colonel E. H. L. Beddington, C.M.G., D. 5.0., M.C., seconded the resolution and the chairman having replied to questions it was put to the meeting and carried. The proceedings terminated with a vote of thanks to the chairman and board.