COMPANY MEETING
RAND MINES, LIMITED
(Incorporated in the Union of South Africa)
MEETING HELD IN JOHANNESBURG, MAY 22nd
MR. W. H. A. LAWRENCE presided at the Annual Meeting of Rand Mines, Limited in Johannesburg on May 22nd. In moving the adoption of the report and accounts the Chairman said it would be agreed that the position
disclosed was satisfactory. Profit carded had been £965,357, a decrease of
£92,359 compared with the figures for 1940 ; that profit had been derived exc,usively from dividends, interest and sundry revenue. Although the Investment Reserve accounts had been reduced by a net amount of £67,447 nevertheless at the end of the year it had stood at the substantial total of £3,437,033. The balance of the appropriation account had increased by £193,649 to £1,375,908, represented by cash and cash assets after allowing for all liabilities except those of a contingent nature. The company's contingent and option liabilities to subscribe for shares in and
to finance certain undertakings had been further reduced during the year and ample cash resources were available to meet all such commitments as and when they matured. Investments in shares and debentures had been brought into account at a book value of £3,955,284, which was a decrease of £56,740 compared with a total at the end of 1940. All investments for which share market quotations were available appeared in the books at or under cost but in no case above the market price at December 31st, 1941. Unquoted securities had been entered in accordance with conserva- tive values placed upon them by the Board and in no instance at a valuation exceeding cost. The market value of the gold-mining interests of the company at the end of the year had represented 77.4 per cent. of the market value of all investments and of those gold-mining investments 94.4 per cent. had been dividend-producing.
The gold-mining industry had maintained steady progress of recent years despite the difficulties of the times and since the Company's last annual meeting two new mines had been brought to the producing stage while a third, Blyvooruitzicht, had commenced to mill development rock and to recover gold therefrom. The output of gold by the mines of the Witwatersrand area and extensions together with miscellaneous produc- tion had been 14,039,912 ounces fine, an increase of 356,494 ounces, but as a result of the general increase in working costs the working profit earned had fallen by £1,680,144 to £45,845,043. As from January 1st, 1941, the special war contribution, which was based on taxable income before reduction of redemption allowance and any tax loss brought forward from a previous year had been increased from 11 per cent. to 16 per cent. Since January 1st, 1942, that contribution had been further increased to 20 per cent. The taxation of the gold mines in the Transvaal, including the share of profits paid to Government by leased mines, had amounted to approximately £27,000,000 in respect of 1941. The Government has referred repeatedly to the importance of the gold-mining industry to the national economy and has laid stress on the part which the mines are playing in the Union's war effort, both by the maintenance of gold production and the manufacture of munitions. Furthermore, at December 31st last some 6,000 employees were absent on full time military service and approximately 6,000 other employees had volunteered for part time service in the Mines Engineering Brigade, the National Volunteer Brigade and other units.
One of the most difficult problems which has to be faced is that of the supply of essential materials from overseas. Every effort is being made by the industry to effect economies in the use of such materials and to conserve existing stocks to the greatest possible extent. With this object in view development programmes generally have been curtailed since the beginning of the year. Furthermore a system has been introduced of pooling stocks of materials such as steel, rubber and non-ferrous metals which are held by the mines. These pooling arrangements may be extended from time to time to include other essential supplies. In order to effect a very necessary economy in the use of paper it had been decided not to circulate to shareholders the reports of the proceedings at the annual general meetings. Shareholders could, however, obtain copies of the reports of the proceedings at that meeting on application to the Corner House or to the London Secretaries of the company, Messrs. A. Moir and Company. The tonnage of ore milled by the Witwatersrand Mines of the group during 1941 had been 21,068,500, an increase of 453,200 tons compared with 1940 and a fresh record. The average yield of gold per ton milled at 3.690 dwt. had been a further reduction of 0.132 dwt. or 3.45 per cent. There had been a fall of £122,268 in the total working profit of ki1,088,828. The total amount distributed as dividends had been £4,709,713 which had been £572,776 less than in 1940. The amount provided for the payment of direct taxation to the Government had decreased by £212,246 to £5,760,924.
At the Blyvooruitzicht mine sinking of No. t Shaft had been stopped at a depth of 5,042 feet and reef development had commenced, the footage accomplished during the year amounting to 7,970 feet. In the restricted area covered by that development high values had been disclosed and as a result it had been decided to erect a small crushing plant capable of treating 8,0oo tons of development rock per month. It was not intended that the revenue derived from that source should be utilised for dividend purposes but that it should provide a portion of the finances required (Continued at foot of col. 2.)
(Continued from col. t.)
to meet the heavy expenditure on development which must be inc before the mine could go to production on a normal milling scale. average number of Europeans employed by the eleven Witwate mines of the group during the year had been 14,695 including those active service. The average number of Non-European employees been 114,274, which had been an increase of 3,683 compared with At April 30th last the total number of Non-Europeans employed by eleven mines had been 112,967. The health record of native emPlo had continued to show very satisfactory results. The mortality rate f phthisis had fallen from o.cri per thousand to 0.06, while deaths f mining accidents had fallen from 1.75 per thousand to a new low r of 1.67 per thousand. Compared with 1940 the shifts lost per per annum from disease and accidents had risen slightly from 4.78 to The present valuation of the outstanding phthisis liability of the of the group was £5,848,830, an increase of £667,172. The eleven affected had provided, with accrued interest up to the end of 194 sum of £3,372,213 towards meeting that. liability.
The report and accounts were adopted.
Previous page
