Pass Dividend

N.G. Goldfields Ltd. to Pass Dividend Plan to Conserve Cash Resources

THE directors of New Guinea Goldfields Ltd., do not propose to pay a divi dend for the financial year ended Sep tember 30, according to the annual re port prepared for the general meeting on February 27.

The capital of the company, in March, 1935, was written down by 75 per cent, to £1,118,083; and a new programme of de velopment was commenced.

During the year, a profit of £152,020 was recorded; but the whole of this, and over £20,000 in addition (£174,904 alto gether) was expended on what is de scribed as capital account. The capital expenditure is stated to have been; Electric power transmission line; Re-treatment plant at Golden Ridges Mill; New mill at Edie Creek; Additional power-driven drilling equip ment.

It is stated that “further expenditure is advisable on the drilling and develop ment programme.”

The directors therefore consider it ad visable to conserve the cash resources of the Company, and carry forward a credit of £211,393 in the profit and loss account.

The Company during the year, obtained £92,901 of gold from alluvial production (bullion, £76,099; tribute receipts, £16,802) and £196,972 from the Golden Ridges mill —a total of £289,874. Operat ing expenditure is given at £111,842 (alluvial, £16,626; Golden Ridges, £64,006; management and overhead, £31,210).

There should be added to this, a variety of overhead expenses, such as directors’ fees, travelling, etc., totalling £15,298; and depreciation, £14,990, making a total expenditure of £142,131, The Company, since it was established in 1929, has recovered about £1,000,000 worth of gold, and has paid two dividends —totalling about £330,000.

An interim dividend of 6 per cent, was paid in February by Rabaul Electricity out of profits for the half-year ended December 31 last.