C.—2

The total sales of State coal from the Liverpool Mine for the year amounted to 124,324 tons, value £172,639,* as compared with 139,376 tons, value £189,569,* for last year —a decrease of 15,052 tons, with a decrease in value of £16,930. The average price realized by the mine on the total sales for the year was £l 7s. 9-3 d., an increase of 6-9 d. on last year's average. The total sales of State coal from the James Mine for the year amounted to 41,161 tons, value £50,359,* as compared with 43,410 tons, value £55,609,* for last year —a decrease of 2,249 tons, with a decrease in value of £5,250. The average price realized by the mine on the total sales for the year was £l 4s. 5-6 d. per ton, a decrease of Is. l'Bd. on last year's average. The sales of coal, &c., through the medium of the depots totalled 133,220 tons, value £246,870, as against 144,100 tons, value £271,269, for last year. The Macdonald Colliery, which was leased as from 11th July, 1930, shows a loss on the working up to 31st March of £2,146, but this is due to the fact that, before any coal could be won, the lessees had to carry out a considerable amount of development work occupying some six months, and consequently the royalty was payable for a period of only a little over two months. It is anticipated that a profit will be made in the future. Through irregularity and variation of orders and stoppages the Liverpool Colliery worked fifteen days less than during the previous year, resulting in a reduced output and increased costs causing a financial loss. Notwithstanding this, however, and as the year was a difficult one from a trading point of view, the financial results obtained from the State coal business may be regarded as satisfactory, there being a net profit of £7,995 after allowing for payment of interest and depreciation. Of that amount there was credited to the Sinking Fund the sum of £7,632. Items from Balance-sheet. The following items taken from the balance-sheet, which has been audited, will prove of interest as indicating the more important items of expenditure and for reference in respect of the position of Capital Account, reserve funds, and other accounts shown therein :— £ The payments for interest totalled .. .. .. .. 6,179 The cost of sea carriage of coal amounted to .. . . . . 57, 883 The cost of railway haulage amounted to . . . . 43,233 The total wages paid for coal-winning were . . . . . . 103, 882 The amount paid for management and office salaries (Head Office and mines) totalled . . . . . . . . . . . . 4,144 The gross capital expenditure on the whole undertaking to the 31st March last was .. .. .. .. .. 666,165 The total depreciation written off to date (equal to 62-64 per cent, of the gross capital expenditure) amounts to . . . . . . 417, 314 The amount written off for depreciation for the year was . . . . 12,915 The present book value of permanent or fixed assets is . . . . 248, 851 The loan capital stands at . . . . . . . . . . 149,383 The net profits of the State Coal-mines Account from inception to 31st March, 1931, are .. . . . . . . . . 187,169 The net profit for the year ended 31st March, 1931, was .. . . 7,995 The Sinking Fund is in credit . . .. .. . . . . 7,739 The amount taken out of the Sinking Fund during the year and applied in reduction of loan capital was . . . . . . . . 7,900 General Reserve stands at . . . . . . .. 190,675 The amount at credit of Profit and Loss is . . . . . . 363 The cash in hand and in the Public Account as at 31st March, 1931, was (last year £8,257) . . . . . . . . .. 1,503

* These values include sales made e. and f. and f.o.b. as well as f.o.r.

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