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WAIHI GOLD MINES

\ DIRECTORS' ANNUAL REPORT. By Telegraph—Press Association. Auckland, May 10. • Cabled advico rcgnrding the annual report aud balance-sheet of the Wailii Gold ■ Mining Company has been received to the i following effect:—The carry forward of . £52,953 for 1918 aud the surplus from operations during 1919 enabled ths directors to i pay the samo dividend as for some yearspast, viz., £99,181, and incomo tax has absorbed £47,600, a total of, say. £147,000. The directors propose to provide for the , depreciation of mining assets £15,000, and for the fund to equalise dividends in futuro £50,000, leaving to be carried forward £29,000. Tho report Btates that the ore reserves at Decembor 31 show a veduotion i of 159,932 tons, and the grades of the iemaming oro reserves have decreased by ss. 6d. per ton, with a further falliug-olf in average value to bo 'oipectcd as the development of the lower grade of oro proceeds during tho current year. Further, owing to the increased l cost of wages and material, it is estimated that the cost of production of bullion wiU bo about ss. per ton higher during 1920, and ob a result lo,rge quantities of ore, previoui-ly considered payable, are now'unpayable at pre-war prices. In 1919 higher rrices for gold and silver compensated f<.r tiie increased cost of production, but any re- - (Suction of priccß obtainiil for, gold and silver cannot fail to affect seriously the operations of tlm company under the conditions of a lower range of Monthly itturns and increased costs of mining and milling, which must- be expected. The recent strike settlement and tho increase of wages immediately prior to the Btrjko increased wages by 3s. 3d. por t..u, Tho miners now also Insist upon new cenditionK, largely limiting work to iiay shifts, which means that tho tonnage output is necessarily reduced, thereby greatly adding to raining difficulties. The o;e crushed for the first four periods of 1920 amount tj 42,837 tons for a return of approximately £100,600. Tha directors hope to ship -from England at the end of June a pumping plant, which hns been greatly delayed by British labour troubles. The absenco of this plant and tho great'shortage of coai and labour have prevented tho development of tho mines' low levels. In view of the present position and prospocto, and to aßolet in maintaining dividends, tho directora have initiated n fund of £50,000 to equalise dividends. The sale of the Horahora- hydro-olectrio installation greatly strengthened the already strong nancial position, and the capital resources now oxceed requirements for the primary and essential purposeß of exhaustive exploration of the company's propfcrtieß. Tho directors, therefore, contemplate a reduction of capital, returning 10s. per share to Bhareholderß. In vtov, however, of the phenomenally low price of British Government securities, which would liavo to be sold to provide the money for necessary distribution, the directors recommend that no immediate steps be taken to carry out their proposal. The annual meeting of shareholders ia fixed, for May 20 in London.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19200511.2.91.6

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 13, Issue 193, 11 May 1920, Page 10

Word count
Tapeke kupu
499

WAIHI GOLD MINES Dominion, Volume 13, Issue 193, 11 May 1920, Page 10

WAIHI GOLD MINES Dominion, Volume 13, Issue 193, 11 May 1920, Page 10

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