COMMERCE AND FINANCE

Otago Daily Times, Issue 24411, 24 September 1940, Page 3

COMMERCE AND FINANCE

GOLD DREDGING GILLESPIE'S BEACH CLAIM COMPANY'S ANNUAL MEETING The eighth annual meeting of shareholders in the Gillespie's Beach Gold Dredging Company was held last night. The chairman ' of directors (Mr J. M. Stewart) presided. Chairman's Address Moving the adoption of the annual report and balance sheet, the chairman said that shareholders would recollect that at the annual meeting last year prominence had been given to the amou.it it had been found necessary to expend on maintenance and general expenditure and in particular auxiliary pontoons The last-named addition had caused the directors much anxiety, and it gave him much pleasure to advise shareholders that this addition had resulted in increased buoyancy and improved stability, with an advantage to general dredging operations. The cost of this item alone had .mounted to about £950 Four weeks' dredging had been lost on that account, which had had its effect in 500 hours' less dredging time than would otherwise have been the case. This, however, was expected to be compensated for by increased yardage and lesser delays as the years passed on On resuming dredging operations it had been confidently expected that improved values would be secured immediately ahead, but this anticipation had failed to eventuate, and for several months the average values had maintained a very low standard Only by keeping the dredge digging at its maximum had it been possible to secure returns very little above average working expenses. Actually, the average gold recovery over the 712,071 cubic yards treated during the year hart amounted to only 1.93 d per cubic yard, on the basis of gold valued at £4 per ounce, which automatically increased to 5.05 d per cubic yard for value received, but the increased value actually received had been offset by the increased cost of materials and increased taxation, and to earn a working profit on such low average values had been commendable to all concerned. Since the end of the financial year values had improved very considerably, and they were now looking forward to a continuation of these better values.

To make sure that the dredge was at present taking all that was payable, the chairman said, a bore had been sunk to .twice the depth to which the dredge was capable of digging, with negative results below present limitations Three bores had also been sunk on the seaward side of the present cut, showing poor values, but it was known that thin seams of concentrated values existed along the beaches, and it was expected that these, although not located, would result in payable values being secured on the average. On the present, cut southward enhanced values in parts existed along the seaward fringe, but they were not convenient to dredge on this cut. These would be dredged when working northward The speaker outlined the areas to be dredged, and said that from present indications this would take six or seven years to cover. The dredge was being maintained in good working order. The company's consulting engineer, Mr E. Fletcher Roberts, had recently inspected it, and in consultation with the dredgemaster, Mr C. Jensen, had gone carefully into all requirements for the near future. These comprised nothing beyond ordinary fair wear and tear replacements.

Mr M. Sullivan, who has an intimate knowledge of the locality being dredged, seconded the motion. He gave some details of the work being carried out and to be carried out, and said that the new dredgemaster was proving most efficient. .In answer to a question by a shareholder why a dividend had not been paid out of the company's reserve, the chairman explained that it had always been the policy of the directors to keep £2500 in hand to meet any unforseen happening. The motion was carried. Directors The retiring directors, Messrs J. M. Stewart and D. A. Mitchell, were re-elec-ted. The remuneration of the directors was fixed at the same amount as last year—namely, £275. Messrs W. E. Reid and Co. were reappointed auditors. CLUTHA RIVER DREDGE Return of 280 Ounces For the week ended September 20 the dredge of Clutha, River Gold Dredging, Ltd., operating at Alexandra, worked 115 hours and recovered 280 ounces of gold. VALUES OF WOOL SPECIAL WAR-TIME FACTORS AUSTRALIA'S GOOD POSITION The probable trend in values of wool not controlled by the British Government is difficult to judge, states Winchcombs Carson, Ltd., Sydney. Prices in the United States, which were receding earlier, have latterly shown slight recovery, chiefly because of the greater confidence produced by Great Britain's resistance to enemy attack. The placing of army orders for fabrics with the American mills has also been a contributing factor. The absence of uncertainty of the price of wool in Australia must be regarded with satisfaction. Because of seasonal conditions and the variation of the weight of the fleece shorn per sheep, earnings fluctuate to some degree. Stock values vary for the same reason, but the position would cause much concern if wool prices were precarious, because of their dependence on world conditions. The whole clip of New South Wales will be less than a year ago, when the sheep generally cut exceptionally heavy weights. During recent years the smallest weight of wool cut from the sheep and lambs of the State was in 1933-34, when 56,878,000 head were shorn, giving an average of 7Jlb Figures for last season are not complete, but they were a record, exceeding the B.Blb cut in 1926-27 and 1928-29. With a total of 1,750,000 bales, about 54 per cent, of the clip, to be appraised in Australia before the end of the year, the Commonwealth is assured of a prompt return for its staple product. PROPERTY SALES Park, Reynolds, Ltd., report having submitted to auction yesterday, on behalf of the Perpetual Trustees Company, Ltd., as executors of the will of Mr J. D. Calder, lot 2, Forbury road, St. Clair, containing 38.69 poles, with a nine-roomed double-storey brick dwelling. This is one of the oldest buildings in this locality, having been built over 80 years ago. The property was sold for £BSO.