Page 3 Advertisements Column 3

Dominion, Volume 6, Issue 1599, 16 November 1912, Page 3

COMPANY'S POSSfBILTIES. j The following statement shows at a glance tho possibilities of Tikorangi:— . - ■' £ - , £ | By Sale of 60,000 tons of cement at 60a., net (present minimum N.Z. price is ' 655.) ... ' , 180,000 To Cost of production. (including- manage - • ment, depreciation, on plant, buildings an 4 machinery and contingen- '• I cies).26s, on 60,060 tons .78,000 To Freight (average) Bs. 6d. per toil on ■60,000 tons ' 25,500 To Balance of profit ... ... ...- 76,500 .£IBO,OOO ,£IBO,OOO £76,500 oquals 45 per cent, on £170,000 capital. COMPARISON OF PROFITS. Wilson's Portland Cement Co.,' Ltd., 'the largest and most prosperous Company in New Zealand, is working a. class of ! stone similar "to the Tikorangi deposit. In its published ac- : counts for the year 1911 this Company shows, after providing fully for all expenses, including bad debts and debiting for repairs, renewals and maintenance, no less a sum than £1.1,598 IG$. 7d. (compared with *£5,670 ' 2s. 6d. in 1910), a pit profit of -420,102 10s. 0d„ representing a net return', of oyer 20 per cent, on a capital of JBIQO.OOO. With the additional profit which would accrue from the advantage. of hydro-electric power this Company would make a total net profit of from 35 per cent, to 10 per cent. In the above Company 15,000 fully paid- shares wire distributed gratis to the shareholders pro rata, raising the capital from 85,000 + o 100,000 shares, Sales of these shares during -October (ult.) were reported at 86s. 3d. . ' MANAGEMENT. ;TKe Directors, realising that the success of the Company ,ia largely dependent upon ( .its management, have been fortu--nate in • obtaining the services of probably .the: most experi< enced and successful cement manufacturer in the Dominion in the person of Mr. W. i. Wilson, Mr. Wilson has since its inception teen connected with the Wilson's Portland Cement • Company, the largest and most successful cement works in New Zealand—founded and carried on by his father, Mr. Nathaniel Wilson (who -has accepted a seat on the Board of the proposed Company) and other members of the Wilson family! Mr. W. J. Wilson. has, since 1554, held the position of works manager in tho Wilson's Portland Cement Co., and on four/Occasions has visited Great Britain,. tJnited States and Canada for the purpose of acquainting himself, on behalf of his Company, with all the latest developments in. cement manufacture'aid improvements in machinery. • Neither of these gentlemen is'receiving'any consideration whatever for identifying their interests with those of the Company. ! "" V- ' THE MARKETS. It is well known that the existing cement mills cannot supply the local demand, and large shipments, of European cement aro still imported into the Dominion, Owing to the gradual depletion of the timber, reserves and ; the greater attention being given to the-., erection of buildings and other works,in reinforced concrete, the demand for. cement is rapidly increasing. The minimum price in New Zealand is 655. per ton. In Australia the cement mills, - producing ■ approximately the same quantity of cement as is produced in,. New Zealand, ■ are quite inadequate to- satisfy the Commonwealth demand, and although the imports of cement are heavy, considerable inconvenience is experienced by a constant shortage of cement supplies. A. Sydney cable, dated 20th of September, reported sales of cement up- to .£6 6s. per ton on the spot and £5 lis. for consignments to arrive. , During the month of October large contracts were let in Melbourne for .the supply of cement at 765. 6d. per ton. l " ' -It -is. estimated that this Company could deliver cement Sydney wharf at'34s. per ton, and with duty (205.) paid. r at 51s,_ This -shows a. profit of over 20s. per ton. In connection with the above it should be borne in mind that tho. Company's output could be,doubled by an additional es- . penditnre of approximately £35,000. U.S. CEMENT OUTPUT. As an indication of the increasing demand for Portland Cement, the following figures are given, showing the increased output in thti United States Year. Number of Barrels. 1860 ... 42,000 1885 ... . ... ... 150,000 ... ... .... '. 385,000 • 1895 ... ...' ... ... 990,324 1900 ...... ... ..C 8,482,020 1905 ~. «. ... .... ... „. '35,246,812 , • 1910 ... ... im 76,549,951 HYDRAULIC LIME. The ce/ment fock at Tikorangi, just as Quarried, burnt, and ground, will produce a high-grade natural cement (hydraulic lime), for which there is a profitable market. EXTRACTS FROM REPORTS, An eminent Wellington engineer, whose original report may be seen at the office of the Secretary, and copies at the offices before mentioned or at any branch of the Bank of New South Wales, says"l am satisfied that practically the whole of i what is known as 'Limestone Hill' ■ consists of cement-rock (argillaceous limestone) suitable for the manufacture of highgrade Portland Cement. The magnitude, of the limestone deposit considerably impressed me, consisting as it does of some hundreds Of millions of tons-of suitable material easily mined, and with but little overbttrthen. The property is in every way eminently suitable for the establi&htnent of cement manufacture, and the natural material is capable of being manufactured into a cement of a quality quite equal to that which is manufactured on 'Limestone Island.' Nearly- all modern plants for the manufacture of Portland Cement provide for all mechanical work required in crushing, grinding, etc., being done by electrical power. In this respect a Company- operating would be extremely fortunate in obtaining the necessary power from the hydro-electric station proposed to be constructed in the harnessing of the river at Wairua Fails. The necessary authority to utilise the power has, I understand,.been granted to the Whangarei Borough - Council by the Government, and the Borough has agreed to supply the Company to be formed with power -sufficient for. its requirements at a cost which is not ■ likely .to exceed <£') per h.p. per annum. This will mean a considerable saving in capital cost of machinery and buildings, and in reduction of about 60 per cent, (about 10s. per ton of dement) for power as compared with the cost of generating electricity by steam. I am of opinion that the total cost of production of a first-quality Portland Cement manufactured under the latest and most approved methods with power supplied from the Wairua Falls hydro-electric scheme will not exceed 265. per ton, inclusive of cost of bagging and allowing a fair Mini for depreciation Of, all building's and machinery and contingencies. In determining the magnitude of the proposed works,, or their total output, it it necessary to consider th* markets which can b« supplied. I am of opinion that with the low cost of production all countries south of the Line could be supplied. In. New Zealand I anticipate that 'in the near future the use .'of cement concrete for huilding purposes will be generally adopted owing to the gradual depletion of the timber reserves, and greater attention being given to the erection of buildings in reinforced concrete. In Australia the quantity of cement imported is considerable, and there are but few manufactories. The cement which ean be manufactured ; at Tikorangi may be considered quite equal to any English cement. I am of opinion that the proposal to erect works capable of producing 60,000 tous of cement per annum is sound. The present price of New Zealand cement in Wellington i. l ? £3 ss. per ton. Assuming the cost of production at 265. per ton :is estimated, it will be seen thai a considerable margin exists capable of yielding'large profits." I