The recent history of golcimining development in Australia is not such as to inspire much enthusiasm. Too many doubtful propositions have been financed through the London market and it is already pretty clear that a good deal of money has been permanently lost. The contrast presented by new enterprises in this field which are fulfilling expectations is therefore the more striking. Among them Gold Mines of Kalgoorlie, floated three years ago under good auspices, seems to me to offer chances for the speculative investor. The mine started production in September, 4935, and a -first dividend of 31 per cent. has. just been paid _in respect of the year ended March 31st, 1937. This may seem very inadequate in relation to the current price of 7s. for the los. shares, the yield being a mere 5i per cent. The essential point, however, is that so far the mine has undertaken purely preliminary operations. Only 19,000 tons were treated at an old milling plant which had been reconditioned to enable small profits to be earned while the mine was being prepared for increased output.
This second stage has now been reached and with pew plant ready for operation at the end of this year and pie reserves already equal to three years' supply at the itew crushing rate of 8,000 tons a month, the prospects for 1938 look decidedly promising. The holding, at March 31st last; of £265,543 of cash and Australian Government securities implies ample means of financing the current expansion programme, and the ,bigger output should be reflected in a fall in production costs. As a lock-up speculation Gold Mines of Kalgoorlie are worth considering for their capital appreciation and [Readers' enquiries, or requests for advice regarding particular shares, will be answered periodically as space permits. Correspon- dents who do not desire their names to appear should appena initials or a pseudonym to their questions.'