THE WAIHI MINE

Hokitika Guardian, 15 May 1920, Page 1

THE WAIHI MINE

COMPANY’S ANNUAL REPORT

AUCKLAND, May 10.

.Cabled advice regarding the annual! report and balance-sheet of the Waihi Gold Mining Company has been re- ' ceived to the following effect. The carry forward -of £52,953 for ;191S, and the .surplus .from operations during 1919, Enabled the directors to pay the same dividend as for some years past, ■viz., £99,181, and income tax has absorbed £47,800, a total.of say, £147,0.00. ■ The directors propose to provide for depreciation of mining assets £15,000, and .a fund to equalise dividends in future £5Q,000, leaving to he carried forward £29,000. The report states' 'that the ore reserves at December 31st show a 'reduction of :109,932 tons, and the grade of the .remaining ore reserves-, lias decreased ,by 5s fid per ton, with a. further falling off in average value to< bo expected as .the development of a. lower grade of ore -proceeds during .the; current .year. (Further, owing to the. increased cost of wages and material itis estimated the cost .of (production of, bullion wifi be about 5s per ton higher during 1920, and as a result.large quantities of.ore previously considered payable .are' now unpayable at pre-war-prices. .In 1919 the higher .prices for gold and silver compensated for the increased cost of ,production, but any, reduction of prices obtained for gold, and silver cannot,fail to seriously affect, the operations of -the company under the conditions of a lower range ol monthly returns anl increased costs of mining and milling, which .must be ex-, pected. The recent strike settlement, and an increase of wages (immediately; prior to the strike have increased wages, by 3s 9d per .ton. The miners now also, insist .upon • new conditions, -largely, limiting work to day shifts, which, means thatithe tonnage output is neccs- : sarily reduced, thereby greatly adding to tile mining.' difficulties. The ore crushed for the first four periods of, 1920 amounts to .42,837 tons for a .re-, ’turn of. approximately £100,600. The. directors hope to ship from England ah the end of June a pumping plant, which has been greatly delayed by British labour troubles. The absence of this plant and the great shortage of coal

and labour have prevented the developments of the mine’s low levels. In view of tlie present position and prospects, and to assist in maintaining dividends, the directors have initiated a fund of £50,000 to equalise dividends. The sale oi the Horahpra hydro-electric installation has greatly strengthened the already strong financial position, and the capital resources now exceed requirements for the primary and essential purposes of an exhaustive exploration of the company’s properties. The directors therefore contemplate a reduction of the capital by returning 10s per share to shareholders. In view, however, of the phenomenally low price of British Government securities, which would have to be sold to provide mpney for necessary distribution, the directors recommend that no’immediate steps be taken to carry out their proposal. The annual meeting of shareholders is fixed for May '2oth, in London.