Holdings
pp. 38-39 · Read in the full issue
Guinea Gold N.L.
Huge Increase in Value of Holdings
ANOTHER Adelaide company of the same group, and with substantially the same directorate, Guinea Gold, N.L., also held its annual meeting on May 17.
It holds shares in the Bulolo and allied concerns; and it, also, is a very rich and profitable company.
Its accounts show that during the year, from its share holdings, it received £8527; and this, with sundry earnings, and £6071 brought forward, made £14,246 available for distribution. The holders of each £1 worth of shares (the total issued capital is £50,000 in 2/shares) received a dividend of 5/6, which is equal to 27½ per cent.
In the balance-sheet shares in other companies are shown at £420,424. Total assets, valued at £443,223, include also cash £20,733, and balance receivable for the sale of the Guinea Gold North leases £1759. Capital is £50,000 (now in 2/shares), and general reserve £392,210.
The most startling item in this com pany’s annual accounts is “shares in other companies,” the value of which in
twelve months has increased from £177,583 to £420,424 —an increase of £242,284. This is the result of the growth in the market value of this company’s share holdings in other companies, and is the direct outcome of the recent gold boom. Stated in plain language, this means that if the company sold out its holdings at current market values, every holder of 10 shares, worth nominally £1, would receive about £8—more than half of which has been created by the gold boom of recent months. “Guinea Gold” was a happy title!
The Company also undertakes consid erable investigation work, and its pros pecting expeditions are constantly at work. At present, it has an expedition under Mr. P. Nason-Jones out on the upper waters of one of the tributaries of the Lakekamu (near Mt. Lawson, on the border of New Guinea and Papua), where some thousands of acres have been peg ged and where there are very attractive indications of payable gold.
Mr. Nason-Jones anticipates shortly pegging additional claims, possibly suit able for dredging. A map and prelimin ary report will come forward by the next mail, and Mr. Nason-Jones is returning to the claims shortly to investigate the north-west of the area previously recon noitred. He states he is confident richer areas can be secured there. With the programme now on hand he affiirms that work is only at the beginning, and there fore he is unable to visit Adelaide for some time. In view of this information the directors have decided not to await the report by mail, but to secure as soon as possible the services of the best avail able mining engineers to inspect the areas and submit a full and independent report.