TWO GOLD MINING INVESTMENTS
I see that at the Rand Mines meeting Mr. John Martin has confirmed my suspicion that the proceeds of the issue of reserve shares made last year were devoted to the pur- chase of a large shareholding in West Rand Consolidated
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FINANCE AND INVESTMENT
(Continued from page 736) Mines. If one can assume that the purchase was of the whole of the 126,366 shares shown in Rand Mines' list of investments at December 31st, it seems fair to guess that the shares were bought at roughly 34s. each, a reasonable price in relation to their dividends and prospects. Mr. Martin also disclosed that the 25,000 Rand Mines reserve shares issued at £8 6s. rd. each, had been sold to the General Mining and Finance Corporation from whom the West Rand shares had been bought. Thus, the link between the Central Mining-Rand Mines group and the General Min- ing, already a close one, is now financial. I have always been impressed by the Rand Mines balance-sheet, with its published reserve of £3,763,915, against an issued capital of less than one-seventh of this amount, apart from the hidden reserve in the substantial excess of the market value over the book value of investments. The 5s. shares, yield- ing roughly 5 per cent. at 170s. on the 16o per cent. divi- dend, are a first-class mining investment.
For a higher yield—here we are dealing with a single producing mine, not an investment trust—the investor who is not afraid of gold might look at Crown Mines' los. shares at £15. The return here, without allowing for amortisation, is over 6 per cent. which is reasonable enough in relation to the company's record and the prospects of the property. This company has a very long record as a payer of high dividends and Mr. John Martin's review at the meeting seems to promise that the good work is to go on. He indi- cated that as the workings approach the operating limits of depth further important tonnages of ore could be brought within the workable zone by air-cooling The compre- hensive programme of main vertical shaft sinking has now been completed and the opening up of reef at greater depths was being accomplished by additional incline shafts.
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