THE WAIMATE ADVERTISER. SATURDAY, MARCH 1, 1902. GOLD AND COAL.
Two very interesting Goveni meet -returns have just heel published (l)showing the numb® of gold dtedges at work'in Maroli 1001, the hands and power eici pioyed, the quantity of gold prc« dacetl during the year 11)00, au| the approximate value of macbi| nery and plant ; (1) showing much the same particulars as ri coal mines. Coal seems, aftll all, to be a belter investment oi the average than gold, when v|| look at the figures in respect i| each of the products. Here all those for gold-dredging : 1
Total number of dredges ... l|j Total bands employed ftj Cost of labour ... ' ,v. JGOS,2!| Coal, plant and repairs ... 151.03 Management ... ... 13.6? Expenditure ... ... £2"2,8| Total value of gold won ... £273,n Capital invested ... ... £af>3,l|
Thua leaving a mat gin of £41),0S of profit over expenditure, B; then, the value of machinery aij plant employed is £453,091', ad something must be , allowed i\ interest on that. Money spent flj plant and machinery that is beid constantly depreciated must can] a high rate of interest. Eva allowing only S per cent, it wocl mean a sum amounting to aboj £36,060, which would leave £ls| to be divided among the spec! Mors on the year’s legitiiM profit. This seem's a pretty po| return on the average for t| risk, but of course there is a g£| deal of the lottery about matter. Soma dredges Mvo' turned enormous profitsotlii have been dead losses. .people are content to take 6 chances of the gamble, and aft lucky ones gat the big pri* while the mass of,investors dft blanks. At least,; it has W
umch that way in the past, must, however, be eaid tlu.t 1 dredging business is now rapi* settling •down into a much w ( systematic industry. Tho w« places are being, or Have be
found out, and although 1 im’toher of companies is * much less than it was, the wed ppd monthly tetania of gold * Oh' the toote than H \A . V ,* r < lr ? s w i U *• ' r > $ Ml
•'On the average some 12,0000 z. : a w eek come from' the Otago dredges. Bat coal seems better. Here • are the figures : N.mber of coal mines ••• ™ Number of hands employed. _ 24b0 Wn"C3 pdcl ... ••• ••• ' Total coal mined tons ... 1-03-5.990 ' Total cost of production ... -kobo.lbi ’ Total value of output , ... io-10, iIV ■ Approximate value ofmachi- ■ nery and plant £3H,093 Several private mines worked by.j owners for their own requirements are not included in these !; , r .. re t,. 'We have, then, a profit i; vidua of output over cost of o-oduction amounting t0£174,991, or nearly 50 per cent. Take 8 r,er cent on value at machinery all ,l plant as before, and we get ?2;i,7dl nearly. Deduct this from Poe'profit, and wo have left a‘l In 231. Now, this shows a * /3r v handsome return indeed, though two facts must be mentioned which help to lessen somewhat the apparent profitableness of coal-mining. In the first place, --very ton of coal sold is so muc!i of the value of the property gone. T!m assets of a coal-mining companT are continually decreasing. Secondly, the official returns, unfortunately, do not gi\o tiuainount of capital invested, on •which, of course, interest would have to be allowed. But roughly P may be estimated at between one and two millions ; £2,000,000 would be a fairly liberal estimate. r'iv 1 nor cent on £2,000,000 is t‘ 100.000, so that the average return on capital invested m coal would seem to bo something like 71- or 8 per cent. Another fact to be considered also is that tin{luvernmont is opening 'one or two mines. They may put coal on the market by and bye, and as they may be expected to have no desire for largo profits, the effect of their action may be to lower the price of coal, and thus possibly lessen the profits of the coal-miner. We imagine, howover, that if the Government mines result in supplying cheap coal to the people throughout the colony the unfortunate companies will not he oveiwhelrned with sympathy. For various reasons large mercantile companies are ‘s.-ldom greatly beloved of the pWalcce.
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Waimate Daily Advertiser, Volume IV, Issue 172, 1 March 1902, Page 2
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691THE WAIMATE ADVERTISER. SATURDAY, MARCH 1, 1902. GOLD AND COAL. Waimate Daily Advertiser, Volume IV, Issue 172, 1 March 1902, Page 2
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