High Costs Embarrass Ng

Gold Co.

Gold & Power, Ltd., A Com

pany formed in Sydney about 1938 to operate in New Guinea, made a profit on goldmining on its Upper Watut property in the year ended September 30, 1950, and a loss of £2.917 on its sawmilling operations in the Bulolo area. In the subsequent nine months, the company recovered gold worth £20,300; but ever-rising costs are steadily cutting away most of the profits to be expected from in creased revenues. In order to bring more ground into use, and to allow the sawmill to take advantage of

new opportunities created by road building. and the Territories’ de mand for timber, the company re cently went to its bank for another **,ooo for capital expenditure, The chairman (Mr. H. G. Hyde), however, in his annual summary, took a somewhat pessimistic view of the outlook, pointing out that the cost of labour has grown enorm while rice to feed the labourers now’ costs £BB per ton at Lae > which meant £ll7 at the Upper Watut.

However, the company hopes to derive substantial benefits from the construction of an all-weather road into the Watut, and from a change over from rice to its own farm grown foodstuffs for its natives. The

company has about £140,000 in vested in its gold properties, and. some £lO,OOO in its sawmills.