GOLD PRICE POLICY
Consolidated Gold Fields of South Africa has presented some remarkably good results for the year ended June 3oth. Net profits, after tax, have fallen by only £12o,000 to £557,866, and the dividend is 16f per cent. against -20 per cent. If one thinks back to the dull condition of the stock markets throughout the year, which must have virtually eliminated share dealing profits, these figures look encourag- ing. They emphasise the strength of the investment income position based on the company's large portfolio of gold mining shares. At the annual meeting Mr. H. C. Porter, the chairman, intimated that the working profit of the pro- ducing mines increased by over i500p00 to ‘5,000,000, and he also held out high hopes of the possibilities of the group's interests in the Far Western Rand.
Like other mining finance chairmen, however, Mr. Porter was severely critical of the Union Government's decision to appropriate the whole of the proceeds of the sale of gold over z sos. an ounce. This, he pointed out, was a radical departure from the previous policy of the Government and accentuated the difficulties of obtaining fresh finance for the developing undertakings. Whether these criticisms will bear fruit only time will show, but the industry has the official assurance that the position will be reconsidered in the light of any substantial rise in working costs. In the meantime, even the 15os. price gives the established producing mines a haridsome margin of profit. At £21 Consolidated Gold Fields LI shares yield 7i per cent. That is a generous return in the light of the company's strong finances.
* * * *_
Previous page
