Slow Recovery Of Ng Gold

Ltd.

IN the year ended September 30, 1948, New Guinea Goldfields, Ltd. (a com pany with a capital of IXA1 X A million, operating in New Guinea) had an income of £13,600 from the sale of gold pro duced, and £43,800 from dividends and interest received from about £320,000 of cash and investments.

Before the war this was one of the two really big companies operating on the New Guinea goldfields; but whereas BGD, Ltd., under efficient management and with American capital, quickly be came a highly profitable gold producer, NGG, Ltd. fumbled and stumbled around for many years, and wrote off about £3,000,000 of capital; and it was just getting into efficient and profitable pro duction when the war came and the Japs chased us out of New Guinea.

Since 1945, the story has been sub stantially the same —BGD, Ltd. has re turned quickly to profitable production, but NGG, Ltd., is making heavy weather of rehabilitation.

When the war came, the Company was operating in three different kinds of mining operations—deep mining up in the Edie Creek area, crushing operations half-way down, and sluicing down in the Bulolo Valley, near the junction of the rich creeks with the Bulolo River. In addition, the Company was sitting solidly upon an area of what is believed to be good gold-bearing country.

All the Co’s, valuable installations were severely damaged or completely destroyed; as against that, the Co. was generously treated by the Australian War Damage Commission and got at least £500,000 in cash. Financially, it seems to be well

equipped to gd ahead with the task of rehabilitation, but it is heavily handi capped by the problems of transport and native labour and does not seem to be solving them as readily as BGD, Ltd.

The Co’s, ordinary 5/- shares have been quoted at between 2/6 and 3/- for a long time. The potentialities are there; but there does seem to be an extraordinary drag upon developments.