Bulolo Gold

Great Financial Strenath Available for Resumption of Operations

THE remarkable financial strength of Bulolo Gold Dredging, Ltd. (which operated eight dredges in the Bulolo Valley, New Guinea, until the Jap in vasion caused cessation in January, 1942) was disclosed in the accounts presented at the annual general meaning, held in Vancouver on March 29. The accounts were for the year ended Mav 31, 1942.

Operations up to January, 1942. returned a nrofit of $2,354,644. which, with $2,053,680 brought forward, left $4,408 324 in nrnfit and loss account. The directors distributed $1,500,000 among holders of the $5,000,000 of issued shares (eaual to 30 ner cent.) and out $2,000,000 away in a War Contingencies reserve.

This company holds the following assets: — Current assets (being mostly bank balances and stocks) $2,426,417 Fixed assets (being approx, value of land, machinery, equipment, etc.) 16,685,739 The gold-bearing property is, of course, a dwindling asset, so the company has created against it an Amortisation Fund of $2,915,800, which is in cash and invest ments; and various kinds of reserves (including War Contingencies Reserve) of no less than $12,006,110.

Details are lacking, but it is reported that the company’s New Guinea properties have been severely damaged by war con ditions. Accordingly, the company has lodged with the Australian War Damage Commission preliminary claims amount ing to $993,273 on account of lost stock. $901,985 on account of damage to fixed assets.

This brief glance at its accounts sug gests, that this company will show the same efficiency and sureness in resuming operations in a recaptured New Guinea, as it did in planning its vast enterprise, and putting its plans so successfully into operation in the decade before the war.