FINANCIAL NOTES
ROAN ANTELOPE RESULTS
THE first of the preliminary results of the big Rhodesian copper mining groups-that of Rhokana Corporation-was discussed here a 'fortnight ago. It showed a remarkable capacity to maintain a high rate of earning in spite of an unhelpful copper market. The two other major groups in this field, Roan Antelope Copper Mines and Mufulira Copper Mines now show similar results. Roan Antelope's estimated net profit for the year ended June 30th was £1,574,000 as compared with £1,790,000 in the previous year. The result is arrived at after charging £200,000 against £175,000 for replacement and obsolescence reserve, but there is no charge for debenture service now as against £72,638 in the previous accounts.
The final dividend announcement is not due until a month hence, and comparison is complicated by the fact that a 200 per cent. share bonus was declared last year and the larger capital now ranks. After the capital bonus the interim dividend was reduced from 3o per cent. to 10 per cent., which in effect meant no change in the sum distributed. If the final dividend were to be treated in the same proportion it would be approxi- mately 17 per cent., and one sees no reason why the distribution should not be of that order, for the total earnings before allow- ing for taxation are about 3I per cent. on the present capital.
MUFLTLIRA COPPER MINES
Mufulira Copper Mines, a private company whose capital is held as to 64 per cent. by Rhodesian Selection Trust, as to 32 per cent. by Rhokana Corporation and the small balance by the British South Africa Company, has done apparently even better. The estimated profit for the year ended June 30th was substantially higher than in the previous year, amounting to £968,000 after charging £115,00o for replacements, as against £65o,00o in the previous year when only £8o,000 was charged for replacements. Here again comparison is vitiated by the fact that the debenture stock whose service was last year charged at £80,909 before arriving at the net profit, has now been eliminated. Only £18,5oo is chargeable for debenture interest this year, but an additional £1,900,00o of ordinary capital ranks for its share of the net profit.
After making due allowance for these changes the profit must still be regarded as a very remarkable achievement. The period of the accounts does not of course include the effects of the recent curtailment of copper production from 105 per cent. to 95 per cent. of basic quotas, but it does include the worst period of the market recession, indeed for the last 3 months of the year the average price was only £37 os. 8d. per ton. Mufulira, too, is still some time off its final dividend, due to be announced towards the end of September. All that can be said at the moment is that earnings subject to taxation and reserves are equivalent to more than last year's 15 per cent. on the larger capital of £4,888,874 now ranking.
CINEMA INDUSTRY'S DEVELOPMENT
Mr. John Maxwell's review to the shareholders of Associated British Picture Corporation contained the interesting reflection that the Corporation has probably completed its period of most rapid growth. While he did not suggest that there would be no further progress, he did claim that the growth had at least kept pace with ;.he expansion of the trade generally, that the immediate objectives of the Board had been achieved, and that future policy would be largely directed towards consolidation. After some slackening in business last spring, he reported a substantial recovery and expressed the view that the improvement would be fully maintained during the coming autumn and winter. Unless some unforeseen happening should occur, he anticipates another record result for the
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