ONAKAKA IRON AND STEEL COMPANY, LIMITED

Sun (Auckland), Volume II, Issue 340, 28 April 1928, Page 12

ONAKAKA IRON AND STEEL COMPANY, LIMITED

8 PER CENT. FIRST MORTGAGE DEBENTURES

This company is at present manufacturing pig iron from its huge iron ore deposits at Onakaka, Nelson, and is now in a position to sell the New Zealand requirements profitably to local consumers in competition with imported iron. The industry is of national importance, and in view of the fact that it is working the onlycommercial deposit in New Zealand the company must enjoy a monopoly. The ore deposits are recognised as being one of the finest in the world, and their extent is almost unlimited. With a reasonably increased output, iron should be made at Onakaka as cheaply as, if not more cheaply than, anywhere else in the world. The company has already exported small shipments to Australian consumers who desire the New Zealand iron, despite the fact that by importing it they have to pay £ 3 per ton duty. The present issue of first mortgage debentures is being offered to the shareholders and to me public to enable the plant to be enlarged, and so increase production by the manufacture of cast iron pipes and steel castings. With an increased turnover, overhead charges will be reduced, and the cost of production will be low r ered to such an extent that the prospects of the company are particularly attractive from an investor’s point of view. Every investor should investigate these prospective figures, as in addition to being an assured 8 per cent, investment on first mortgage, there is the option to convert at a later date into shares at par. At present, there is practically no use being made of by-products, but these will be turned to advantage in the immediate future, and will materially increase the company’s profits.

Prospectuses and full particulars may be obtained from the secretary. Mr. D. G. Johnston, of Watkins, Hull, Hunt and Wheeler, public accountants, Wellington, or at the firm’s branch office, third floor, National Bank Building, Fort Street, Auckland, where applications will be received: also from members of the Stock Exchange. Call or write to-day for your prospectus. 8.