WAIHI INVESTMENTS

Evening Post, Volume CXXVI, Issue 137, 7 December 1938, Page 16

WAIHI INVESTMENTS

CRITICAL SHAREHOLDERS

(By Air Mail, from "The Post's" London Representative.),

LONDON, November 10. Although a profit of £11,176 (£IOOO less than last year) and a dividend of 6 per cent, was announced at the annual meeting of the Waihi Investments and Exploration, Ltd., three shareholders expressed themselves as being disappointed with the results of the market price of the company's shares. They suggested liquidation. Mr. G. R. Mitchison, the chairman, said that while he felt sympathetic with shareholders, he was satisfied that their interests were being adequately safeguarded by the directors." Unless a suitable mining venture was offered within a reasonable time, attention of the company might be directed to investment rather than to exploration. Satisfaction was expressed by other shareholders present with the company's position. Although there was opposition, the report was approved. Mr. Mitchison said the company had increased its holding in Puket Tin Dredging, Limited, to 600,000 shares. The market value of investments again exceeded the balance-sheet figures. On the capital and liabilities side there had been written off the capital reserve account £69,0 6s 4d expenditure on investigation of properties. There had been added to the capital reserve account a small sum received from the liquidator of an exploration company, some shares of which were taken over from the. old Waihi Company. The balance of profit carried to the balance-sheet after payment of all expenses amounted to £11,176* about £1000 less than last year, the difference being mainly due to increased taxation.

The company's interest in Puket was sound and profitable. Dredging operations were proceeding satisfactorily, snd the company continued to show due caution and prudence in its financial administration.

Numerous mining propositions had been submitted to directors in • the course of the year, 18 being before the board. With the possible exception of one or, two, none appeared to offer a reasonable chance of success. No more than due caution had been exercised in rejecting so many. Hope had not been given up of finding a suitable enterprise or enterprises, which, in conjunction with interest in the Puket company, would meet the purpose for which the company was primarily formed. . Consideration had also, been given to the alternative of investments. The difficulty was that if funds were taken out of gilt-edged securities, and invested in shares or the like, to that extent it was impracticable to take up any suitable mining proposition that might be offered, and for the development of which considerable sums might be required, often at rather short notice.

Directors appreciated, however, that shareholders might not wish so large a reserve of gilt-edged securities to be held indefinitely. They had in mind, therefore, the possibility that,' unless a suitable mining venture was offered within a reasonable time, attention might be directed to investment rather than to exploration. The directors were by no means wedded to an indefinite continuance of the present state of affairs.