Preparations by BGD
p. 51 · Read in the full issue
New Guinea Goldfields
Healthy Movement of Shares rjIHERE has been a steady rise in the I quoted value of the ordinary shares of New Guinea Goldfields, Ltd., in recent months.
One explanation is the fact that, amid all the confusion and uncertainties of the post-war world, there is no suggestion that gold is going to lose its value as a medium of international exchange. NGG have a valuable and (in 1941) a well equipped property in New Guinea, in cluding a great deal of country carrying considerable deposits which has not even been touched yet.
Another reason for the rise may be seen in the speech of the chairman at the recent annual meeting in Sydney.
The company is in a position to resume operations on a big scale without finan cial embarrassment iust as soon as Mr.
Eddie Ward allows the miners to return.
The company not only has £146,000 avail able in cash and bohds—it alsy expects to receive, at an early date, a very sub stantial sum in War Damage compensa tion. It has been engaged for months in elaborating its claim before the War Damage Commission and the total amount of War Damage insurance, after making provision for depreciation is not less than £250,000. This means that share holders will not have to bear much of the heavy cost of repairing war damage.
The capital of the company was written down, by 75 per cent., several years ago, so that the ordinary £1 shares, of which some five millions had been issued, were given a nominal value of 5/-. For some years, the quoted value of the shares was under 2/-. Under the stimulus of regu lar dividends, they improved in value.
Lately, they have been moving along.
They are well past 3/-; and there are some students of Morobe goldfield condi tions who think they may go to par (5/-).
Preparations by BGD
ADDRESSING the annual meeting of Bulolo Gold Dredging, Ltd., in Van couver, on November 30, the chair man (Mr. H. A. Gould) said that everything possible was being done to reinstate the industry in New Guinea (closed down on January 22, 1942). Con siderable orders for plant and material had been placed, and some equipment had been shipped. Their most pressing need on the field was hydro-electric power (the two power stations having been destroyed). A temporary hydro electric generator, of about 250 h.p., had already been installed, allowing the dredges’ motors to be operated and the dredges to be overhauled. The shipment of equipment was causing difficulties, owing to lack of shipping services be tween Australia and New Guinea. They were trying to get release of their key men from the Australian Armed Services, and the construction of houses, stores, workshops, etc., at Bulolo and Lae, would be gone on with as soon as conditions permitted. •‘lt is contemplated that equipment will be transported by road from Lae to Bulolo,” said the chairman. “Air trans port may be used for personnel and the rapid delivery of small parts and perish able goods.”
The accounts showed that BGD (whose issued capital is 5,000,000 dollars), has the following cash available, or nearly liquid:—
Dollars Cash in hand 944,846 Stores and supplies 141,907 Investments 809,142 Amortisation Fund (in Govern ment bonds) 3,106,980 The company is in the happy position that it can either resume operations (which it is doing) or return, in cash, nearly the whole of its subscribed capital. .