OKARITO DREDGING

Evening Star, Issue 23375, 19 September 1939, Page 6

OKARITO DREDGING

INCREASED GOLD PRODUCTION EXPECTED LIFE OF CLAIM “ I am confident that shareholders can still look forward to several years of profitable dredging,” said Mr J. E. Wheeler, chairman of directors of the Okarito Five Mile Beach Gold Dredging Company Ltd., at the eleventh annual meeting last night. Actual production during the year had improved, its share of the £I,BOO increase in the net profit being approximately £l,lOO. while the increased price of_gold had resulted in an additional £7OO. The year had been eventful, said the Chairman, moving the adoption of the annual report and balance sheet. At the time of the last meeting the dredge had been working northwards on a wide cut on the lagoon side of the claim, and during the past year had continued in the same direction. Towards the north end of the claim the distance between the sea and the lagoon narrowed considerably, and as a result of this the dredge had now reached a point where the cut extended almost across the whole width of the claim from the edge of the beach to the edge of the lagoon. There appeared to be good values in more than one section of the face, and it looked as if these better values would be maintained. It was no exaggeration to say that the dredge had never been in better running order than it was now. The ground, of course,, was very easy at present and contained no heavy stones and very little sunken timber. So far as could be judged, ground of this nature extended ahead of the dredge for a considerable distance, and he thought they could look forward to many months of easy dredging conditions. Shareholders would he pleased to see that the net profit for the year was higher than it had been for some time and that this had enabled the company once again to pay a dividend of 6d a"share after having paid several dividends of 4d. The increased profit was not entirely due to the increase in the price of gold, as actual production had increased to 1,2790 z, as compared with 1,1260 z for the previous year. In round figures, the increase of £I,BOO in the net profit was due to having won £l,lOO worth more gold and to the gold having realised an additional £7OO through the increase in price. Since the end of the financial year the price of gold had risen still higher, and if the present figure of £8 8s sterling a fine ounce was maintained, and provided the gold tax was not increased because of the higher price, the coTnpany should realise during thd current year approximately £9 5s an ounce. The profit and loss

account showed that the total expenses wore slightly less than for the previous year, and it was very satisfactory that ithe cost of treating the ground was as low as 4d a cubic yard. “ I do not think I am being overoptimistic in stating that it will take at least two years to dredge to the northern extremity of the claim. This narrow strip of ground is being dredged in one cut. but it will be possible for the dredge to return south by floating up the lagoon until the point is reached where payable ground was left on the lagoon sitle of the previous northward cut. This remaining ground will then be dredged out until the point is reached at the south end of the claim where the dredge turned round some three years ago. There will then be a large area at the south end of the claim, and although this was difficult ground and rather heavy for the dredge in the state that it was in at that time, there is no doubt _ that the dredge, equipped as it now is with east steel buckets and shaking tables, will he able to handle this ground without difficulty.” . “ Our greatest difficulty is the impossibility of obtaining a decent road from Okarito to the dredge.” said Mr B. H. Nees. seconding the motion. “ No mining company in New Zealand is working under more difficult transport difficulties than ours, but it is a difficulty we recognised at the outset.” The retiring director, Mr D. A. Mitchell, was re-elected. The directors’ remuneration was fixed unchanged at £275 per annum.