MUFULIRA PROFITS AND TAXES
Among the Rhodesian copper producers, all of which end their financial years on June 3oth, much the most (Continued on page 632)
FINANCE AND INVESTMENT
(Continued from page 63o)
successful last year was Mufulira Copper Mines. This is a rapidly developing company and its quota arrangements enabled it to make up for lower prices by increased produc- tion. Thus Mufulira alone among the Rhodesian producers earned an increased profit. After making an allowance of £130,000, against £115,000, for replacements reserve, net profit increased by L73,252 to i1,041,431. Mufulira is a private company, 64 per cent. of whose capital is held by Rhodesian Selection Trust and 32 per cent. by Rhokana Corporation, but the partners were not able to participate in its progress, for Mufulira had to provide £459,x, against £270,000, for taxation and is paying the same divi- dend as a year ago. Nevertheless, the directors of Rhodesian Selection Trust are sufficiently confident of the Mufulira company's continued progress to draw upon the holding company's undivided profits in order to raise the dividend from 15 per cent. to 161 per cent.
From the chairman's statement it appears that since the outbreak of war Mufulira has raised its rate of production from 5,051 tons of copper a month to 5,500 tons. These figures have grown in the same proportion as those of Roan Antelope Copper Mines, which were recently announced, and they strengthen the impression that the copper mines have at some time since the outbreak of war raised their production from 105 per cent. to 115 per cent. But the statement which Mr. A. Chester Beatty circulates in place of his usual address to the shareholders of Rhodesian Selec- tion Trust shows that as matters now stand both companies are very badly placed in relation of Excess Profits Tax. Mufulira Copper Mines had not reached full production during the basis years, and there is at present no provision which would relieve Rhodesian Selection Trust from paying Excess Profits Tax again on earnings which have already been taxed in the operating company.
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