Prospects of N.G. Million

Pounds Co.

Annual Report and Effect on Wau

QUITE a large amount of earnest cal culation, plus local knowledge, is needed to ascertain the prospects of New Guinea Goldfields Ltd. from the annual report, just issued.

Itjs shown that the profit made was £50,486 (which is £38,000 less than the previous year), but no large payments on capital account are proposed out of profits, as in previous years, so another dividend of 5 per cent, is provided on the issued capital of £1,118,083.

It has not been a good year, from the production viewpoint. There has been a great deal of managerial and underground reorganisation at Edie Creek (deep level mining); an almost complete reconstruction at the Golden Ridges mill; and a good deal of inter ruption to the important alluvial opera tions, near Wau.

The coming year should get the bene fit of the managerial reorganisation, the reconstruction of Golden Ridges mill to treat ore from Lower Ridges, and a new arrangement made in regard to alluvials The directors refer to the latter as fol lows: “A mutually satisfactory agreement was negotiated with the Koranga Gold Sluicing Ltd. for working this Company’s deep alluvials adjoining those of the K.G.S. Co. In order to meet our un dertaking to Koranga Gold Sluicing Ltd. m regard to water for exploiting this ground, a deal was consummated with Bulolo Gold Deposits Ltd., where by all of that Co.’s assets, including valuable water rights, were purchased for the sum of £21,500. The Board feels that this acquisition, taken in connec tion with the Koranga Gold Sluicing agreement, effectively provides the best and most economical means of bringing into production this important item of the Co.’s alluvial holdings”.

Neither the directors, nor the Mining Trust Ltd. (consulting engineers) say specifically what they think of the pros pects of N.G.G.; but an examination of the data suggests that the prospects are good. There should be at least £BO,OOO per annum profit in the enterprise, now; and, if the Wau interests really do suc ceed in getting cheap road transport, values should be increased and the life of the Co. extended.