Carpenters’ Purchase

Correction

Carpenters’ Purchase of Woolworth Shares

IT was stated in the PIM in .Decem ber that the chairman of Messrs.

W. R. Carpenter Holdings Ltd. (Mr.

R. B. Carpenter) had informed the annual general meeting of the cor poration, on November 23, that the corporation had arranged to purchase the shares held by Rockman interests in the Woolworth chain-store com pany; that the purchase would be financed by a new issue of shares in Carpenter Holdings Ltd.; and that this latter transaction would bring the total issued capital of Carpenters Holdings Ltd. to over £2O million.

There were two serious errors there.

The statement was not made by the chairman, although it was attributed to him by at least one Sydney news paper of November 25. In his address to shareholders, on November 23, Mr.

R. B. Carpenter made no reference whatever to the pending Woolworth purchase. He dealt only with events and conditions in the year under re view.

The issue of new shares will not raise the corporation’s issued capital to “over £2O millions”. That was a grotesque miscalculation. As was shown elsewhere on that page, the issued capital of the corporation on September 30 was £3,933,093, and the estimated value of the group’s assets was £19,039,888. The effect of the Woolworth purchase is to raise the issued capital to about £5 millions,

and the value of the group’s assets to something over £2O millions.

We regret the errors.

Fiji Cement Co. Over

Its Teething Troubles

Fiji Industries Ltd. incurred a loss of £F2,669 during its first two-months pro duction period to June 30, said the chair man, Mr. H. Maurice Scott, at the annual meeting in Suva on December 1.

Cement production was originally scheduled to commence late 1961, but this was not achieved until May 7 last. Sales had exceeded £FB,OOO by June 30. The short period of operation in this financial year resulted in production costs being higher than anticipated.

Delay in completing the plant was caused mainly by difficulties arising from continuous wet weather and late com pletion of the electrical and other vital contracts.

The period of running-in the plant has now been completed, and teething troubles associated with the new industry have been successfully overcome, said Mr. Scott.

The cement, marketed under the name of “Pacific Portland Cement”, conforms to the standard specification approved by the Fiji Government. This specification also conforms to that set down by many other countries, including USA, Canada, India.

Japan, etc. (Over)

Preliminary analyses of local raw material indicated that cement could be manufactured to British Standard Specifications, but when manufacture com menced it was found the cement had a slightly higher magnesia content than that specified in the British Standard.

Exhaustive tests resulted in the Fiji Gov ernment approving the new cement as suitable in every way for all ordinary uses.

Protective duties in Fiji on imported cement went into effect on September 1, but the delays associated with the estab lishment of the cement quality and the imposition of revised import duties allowed stocks of imported cement to become greater than anticipated. However, “Pacific” cement is now being used ex tensively in Fiji, and the company reports that sales are increasing.

Bali Plantations 7 Profit

Lifted Slightly

New Guinea copra and cocoa planta tion owners, Bali Plantations Limited lifted profit by £1,506 or 3.4 per cent, to £48,290 for the year to August 31 last.

Taxation was £8,921 higher at £10,725, and depreciation took £7,625 more at £ 18,571.

The company paid final four per cent dividend, making an unchanged eight per cent, for the year. The full year’s divi dend took £30,400.

Gross operating profit was £lB 057 more at £80,085.

New Discoveries /7 0f Major

Importance 77 for Emperor GM

“New discoveries on No. 16 level of Emperor goldmine, Fiji, were of major importance to its long-range life expecta tions.’ the chairman of Emperor Gold Mining Ltd. (Mr. J. F. Wren) said at the annual meeting in Melbourne on December 7.

The operating profit of Emperor Mines £td - carries out mining operations Q^ h 4 0 dI H, n companyl increased by £123,940 to £317,089 in the year ended a U rPf 3 °H T f hG higher profit ' together with Po?t f] 0 « £49 ’ 535 Previously paid for Port and Customs Service Tax up to £ n g e old l9^° re than offset the cessa tion riLfi ld subsidy re ceipts. Expenditure on development was £263,798. After pr0£43,440 £43,440 for depreciation and £l(,/95 for royalty and income tax, the net profit for 1961-62 was £4l 591 fnv £? UC 4 ion for the year was’a record for the Emperor mine, and was achieved gram U mt ° f i & expansion pro

pla"ned t 0 overcome rising costs

!l nd financed out of current revenue nnrfl her expansion Was planned for both ?he de i g e r x 0 t Un t d wo a ?e d ars OPen - CUt ™ by UC ?he CaP aL a icia^ en Tavu r a e Power Pty. Ltd.) and the necessarv in. crease in stores inventory involved in the been n ab o s n orhp°/ ram H me ' available funds had

Loloma's Profit Down,

But Assets Value Soars

r °no ~L L ° loma fFi J‘i l Gold Mines NL feP £2 - 377 t 0 £114,393 for the year Pr ° m - WaS after £l7 -093 inri mmmg and exploration and tax £1,245 (up £1,004) £?O3, ld 2 e 5 d ’ StCady at 2/6 a share ’ required h Q^ la c: rket value of investments at Novem £2 / £2-7 million - compared with £2 - 5 ” ldllon °n June 30, said Mr M I Cody (chairman) at the’ annual merting

early in December. Original cost was £1.6 million.

The company is examining tin mining areas in North Queensland with a view to operating them on a company basis.

Bulolo Gold Dredging Has

Another Good Year

Profit of Bulolo Gold Dredging Ltd., New Guinea, for the year ended May 31, 1962, was $415,722 Canadian (equal to 41»/2 cents per share), Mr. J. W. Austin, chairman and managing director, told shareholders at the annual meeting held in Vancouver (Canada) on December 12.

This result did not include $133,981 received from a dredge insurance claim previously written off. Thus the total credit to earned surplus actually was $549,703.

Dividends of 50 cents a share absorbed $500,000.

Profit in 1960-61 was $495,314.

Gravel reserves at May 31 were estimated at 17 million cubic yards of which more than half was estimated to average 12.2 cents a cubic yard. The remainder should average about 10 7 cents. Only one dredge (No. 5) now is operating.

The take-over offer from Placer Develop ment Ltd. has not yet been finalised and the time has been extended to May 31. The annual meeting gave the Board authority, for a further 12 months, to continue negotiations.

Steady 10% Dividend For

Commonwealth-NG Timbers Ltd.

Commonwealth-New Guinea Timbers Ltd. (in which Bulolo Gold Dredging Ltd. holds a half interest) earned a profit of £171,631 in the year to June 30, 1962.

Profit was after making provision for Special Reserve, £29,604 (for claims lodged with the Commonwealth Govern ment as subsidy in respect of duty paid on plywood imported into Australia dur ing the year—making a total of £235,728 in Special Reserve), income tax £56,000, depreciation £117,357 and directors’ fees £2,500.

The factory sold 33 million square feet of 3/16 inch ply during the year but because of the slack Australian the larger portion was sold in Dividend, unchanged at 10 per cent., absorbed £150,000: and £122,226 is carried forward.

CSR Expects Quarter

Million Tons of Fiji Sugar

Reporting to shareholders on December m his half-yearly report, Mr. G. T.

Vernon (general manager) said that, during the 1962 crushing season, har vesting and milling proceeded smoothly and the quality of the cane was the highest for some years. It is expected that about 250,000 tons of sugar will be made, the second best output on record.

Conditions and relations in the in factory h&Ve been settled and satis- Although drought conditions prevailed during August and September, indica tions are that a similar tonnage of sugar is likely to be attained in 1963. -if® British Commonwealth Sugar £f_ r f l ement has been extended for a further year until 1970. Negotiated £46/0 Ao sL 963 ha . s been S “ 5 7 7 n P r . Stg - per ton ’ an increase of ted nrL ° l Ver 1962 - Tha negotia apphes t 0 315 ' 000 tons of fSfnnn ♦ r£ T su^ar exports and 126,000 tons of Fiji’s exports.