COMPANY MEETING
GENERAL MINING AND FINANCE CORPORATION, LIMITED
STRONG RESERVE POSITION Tam annual general meeting of the General Mining and Finance Corporation, Limited, was held in Johannesburg on June 7th.
Sir George W. Albu, Bart. (the Chairman), in dealing with the report and accounts for 1937, said that the period under review had been one of difficulty and uncertainty with a decidedly downward trend in the market value of investments, but that the revenue earning capacity of the corporation had not been appreciably affected thereby. The fact that the proportion of revenue from investments was steadily rising indicated that that was the main source from which their dividends were paid. The net profit at £527,599 was, therefore, within £14,000 of the record profit for the previous year. Two dividends totalling 25 per cent. for the year had been paid, while £200,000 had been placed to general reserve and £132,149 was carried forward. The general reserve now stood at £800,000 and, together with the amount carried forward, represented about 74 per cent. of the issued capital of the corporation.
The Chairman stated that investments in stocks and shares, British, South African and other Government and municipal securities, including Participations, appeared in the balance-sheet at £2,630,048, an increase of £735,322 during the twelve months. This increase was in the main invested in sound dividend paying gold mining shares with a leavening of other interests at present in the course of development. He again directed shareholders' attention to the fact that the whole of the stocks and shares stood in the balance- sheet at or under the market prices ruling at the end of the financial year. Consequently, he was pleased again to inform them that on the basis of present market quotations, the surplus over the figure at which they stood in the balance-sheet was very substantial.
The ore reserve of the West Rand Consolidated Mine as re-calculated at December 31st, 1937, showed a fully developed tonnage of 10,630,000 with an average value of 4.4 dwts. over 44 in., this being an increase over the preceding year of 224,000 tons, the value and stoping width remaining the same. Good progress had been made with the sinking of the south sub-incline shaft to develop the area below the plane of the 36th level. Since the year-end a start had been made with the sinking of the deep vertical shaft and good progress had also been made with the extension to the south reduction plant, which would bring the crushing capacity of the mine to an ultimate figure of 220,000 tons per month. Provided there were no undue delays in the delivery of machinery, this plant should be completed in accordance with their estimates early in 1939.
The report and accounts were unanimously adopted.
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