Bulolo

The Wealth Of

Three Years’ Dividends Exceed One Million Pounds

4MONG gold-winning undertakings which have reached the production stage since the rise in the price of gold, four years ago, gave new and vigorous life to an apparently dead industry, Bulolo Gold Dredging Limited has already achieved remarkable results (said “Mel bourne Herald” of December 30).

In three years it has paid dividends aggregating £1,050,000, exceeding payments for the same period by either of the two outstanding Western Australian companies —Lake View and Star and Wiluna. Bulolo this year headed the list of dividend-payers listed on the Stock Exchange.

New Guinea is now producing more gold than any Australian State except Western Australia. Bulolo has paid two-thirds of the total dividends disbursed by companies operating in the Mandated Territory.

Formed in February. 1930, with a nomi nal capital of a million dollars (£800,000), Bulolo now is nominally capitalised at six million dollars, and has a subscribed capital of 4,675,000 dollars divided into 935,000 shares of five dollars each.

The story of Bulolo’s conquest of the natural difficulties of inhospitable New Guinea will be long remembered as a romance of modern business enterprise.

Dredge units were transported by aero planes.

Production was commenced in 1932 with one dredge. Now four dredges are in operation, and plans for the commission of two more are being executed.

Six Dredges Soon

At the annual meeting recently it was stated that the installation of two deep digging dredges would be proceeded with immediately. One would have a total digging depth of 120 ft., the other of 165 ft.

The cost would be met by the sale of up to 60,000 Treasury shares as funds were required. With six dredges in operation earnings were expected to be materially, though not necessarily proportionately, in creased.

On the Bulolo River and about six miles from the upper end of the company’s hold ings an additional area had been acquired.

From it and from several small contiguous areas being negotiated for, about 10 million yards of 25-cent gravel might reasonably be expected.

Bulolo was already assured of ranking with the world’s greatest gold-dredging companies when deep-boring on portion of

its original areas proved that what had been thought to be bedrock (mostly about 22ft.) was really a false bottom.

Below it were depths of payable ground varying between 60ft. and 180 ft. This dis covery, coupled with the rise in the price of gold and the acquisition of new areas by the company, added an unknown num ber of years to the prospectus-estimated life of I*2 years for the undertaking.

In the five months (to November 1) since the close of the company’s last financial year, the company’s estimated profit is more than £350,000, calculated at £B/15/- (Australian currency) a fine ounce of gold.

The dredging of 4,748,000 cubic yards in that period gave a yield of 54,2230 z.

The latest London quotation for the shares is £7/1/3 (about £B/16/3 Australian currency). On Melbourne ’Change before the holidays they were quoted at £B/7/3 (ex dividend 6/9).

Mr. W. M. Middleton, who has con siderable planting interests in New Guinea, paid a visit to Australia in January.