WANKIE COLLIERY POSITION
Shareholders in the Wankie Colliery Company, the South African gold-mining undertaking, will welcome their chair- man's explanation of last year's surprising fall in profits. Sir John Chancellor explained that the fall in earnings had taken place despite a substantial improvement in coal sales. These had, in fact, risen from 929,947 tons to the new record figure of 973,083 tons, but the revenue received reflected long-term contracts entered into at reduced prices. It appears that the company was compelled to offer these long- term contracts to the Northern Rhodesian copper companies, who were seriously considering the installation of hydro- electric energy in substitution for coal unless reduced prices were forthcoming. Obviously, earnings estimates must now take into account the effect of these price reductions, but shareholders will draw some encouragement from the chair- man's intimation that war conditions will provide a basis for increased output and a consequent reduction in overhead
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