Better Outlook For N.G.
pp. 21-23 · Read in the full issue
Goldfields Ltd.
What Annual Accounts Show
A REPORT more encouraging than any seen for some years was issued by New Guinea Goldfields Ltd. for the year ended September 30, 1937, and was sub mitted to shareholders at the annual meeting on December 8. It set out the position of the enterprise with some exactitude, and provided a dividend of 5 per cent.
This was in sharp contrast to the regime that ended with the resignation of Mr. J. P. Blaikie Webster from the managing-directorship in June last. Then, the annual accounts were not disclosed for three or four months after the close of the financial year; the report was mostly calamity-howling and pessimism: and, although large profits were shown, there was nothing for shareholders. The new board, under Mr. J. Kruttschnitt, gives a different and more favourable impression.
The report shows that the year’s operations resulted thus:
This represents a gross profit of £117,000. It was brought down to a net profit of £88,742 by writing off £16,780
to general depreciation, and by the general overhead costs. Moreover, in cluded in the expenditure Qharged against the various branches of opera tion, there is £23,383 written off ore development accounts (included as a capital item in previous years).
The issued capital of this Co. is £1,118,083, and, with the net profit for 1936-7 added, there is an accumulation of no less than £413,338 in the profit and loss account. A good deal of this has been used on capital expenditure during the past two years; but, on September 30, there was £222,000 cash and £56,131 ow
Expenditure Sale of Bullion £ f Holden Ridpres 75,416 107.311 Edie Creek 103,875 131,632 Alluvial s 23,802 64.357 Tributers .— 8.763 Other Receipts -— 7,937 Totals 203,183 320,000
ing by sundry debtors —ample to pay a dividend, and carry on.
The prospects of the Co. are outlined in interesting fashion in the annual re port of the consulting engineers (which is dated London, November 10, and issued in Sydney on November 24!). They may be summarised thus; No. 5 vein (branching off Edie vein No. 2 on No, 3 level) indicates “a sub stantial addition to tonnage” of “better than average grade ore.”
Little is said about the future of Edie Creek mine and mill. Over 41,000 tons of ore was taken from the veins, as follows:—No. 2, 27,291 tons; No. 1, 6,314; No. 5, 4,764; Karuka, 2,834.
The Golden Ridges mill is being recon structed. It will take the remaining 5000 tons of ore at Lower Ridges; ore, probably, from Golden Peaks, which is now being investigated; and ore from Upper Ridges, where investigations have added about 20.000 tons to the Upper Ridges reserves. The apparently improved outlook for Golden Ridges induced the directors to buy the Day Dawn slime plant (at Edie Creek) and this is to be transported to Golden Ridges and incor porated in the mill, where provision is being made for the separate treatment of sands and slimes.
The Keystone drill investigation in the Koranga-Wau alluvial area, under Mr.
E. A. Lang, showed 6.300,000 cyds., worth 12.56 pence per yard, on an “ultra conservative” estimate. Other engineers made it 9,591,000 yards, worth 12.47 pence. The best method of profitably working those deposits are now being studied.
It is indicated that, during the next two or three years. N.G.G. will (a) carry on the Edie Creek mill, on ore taken, comparatively cheaply, from above No. 1 level of No. 1 shaft, and above the Karuka crosscut level on the Karuka vein—and this will allow profitable oper ations for two years; tb) carrv on the reconstructed Golden Ridges mill, in the manner described; (cl develop the Knransra-Wau alluvials. as indicated.
It will be surprising; if this Co., under the new management and the new condi tions does not become a steady payer of a dividend in the neighbourhood of 10 per c°nt. per annum.
The Annual Meeting
Although there was a very large atteu danee of curious shareholders at the an nual meeting on December 8. and al though the replies of the chairman ''Mr.
Krnttschnitt) to numerous ouestions were so tempered by caution and res traint as to give verv little additional information the meeting was in good temper. The shareholders thanked the directors, expressed the opinion that the enterprise is now in very competent hands, and were confident that they now wi l ! receive regular dividends.
One shareholder accused the directors of issuing a report that was altogether too pessimistic, in view of the directors’ own admissions: but the chairman re fused to be drawn. One gathered that activities are proceeding satisfactorily— and the meeting left it at that.