Story of Misima Enterprise
p. 74 · Read in the full issue
G.M.O.P. Disappointment
IN April, 1937, the 5 - shares of Gold Mines of Papua Ltd. (formerly Misi ma Options Ltd., on Misima Island Eastern Papua, now controlled by the Pratten Group) were quoted at over 17/-.
To-day, the market says they are worth around 4/-.
The story of “a bitter disappointment” is told, without frills, in the Go’s an nual report, just issued. The mine was to be on the same lode as Cuthbert's famous money-spinner, and treatment was designed accordingly.
But the plant at the beginning was seriously wrong—the ore carried an un expectedly large proportion of silver and it had to be re-arranged. That was the first knock-back.
Then the plant > designed to handle 3,000 tons per month, came into opera tion on February 1, 1938. The report states the position frankly: “It will be seen that the grade of ore sent to the mill, as determined by the recovery, is much below the figure estimated from the assay of the ore in situ. The grade of ore milled since the close of the fin ancial year has shown some improve ment, but is still disappointing”.
Finally, there has been an acute short age of efficient labour—due in part to the demands of the oil companies—and the labour that was obtained was af fected by epidemics and discontent.
The loss for the operating period, February 1 to June 30, was £8,345.
The general manager, R. A. Ruther ford. concludes his report: “In regard to future prospects, it can be confidently stated that these are bright, notwith standing the earlier disappointing re sults. With an increased tonnage and low working costs, the disadvantage of lower grade ore than anticipated can be largely offset. There is also, as indica ted elsewhere in this report, the likely possibility of proving better grade ore in the near future”.
The directors say that working costs now are down to 22/- per ton of ore. and the mine should treat 3,000 tons monthly. That suggests a possible pro fit of £20,000 p.a. on a subscribed capital of £135,000.
Rev. and Mrs. H. P. K. Gordon, 8.A., L.Th., of Victoria, recently joined the staff of the Methodist Mission and will enter the George Brown College for missionary training.