Show analytical OPERATING REVIEW OF AND affiliations copper would appear assured of a large earning power in 1928 due to the materially improved copper market today prevailing as compared with the average price recorded for the metal in 1927 moreover copper trade conditions are now sound from the economic standpoint and this favorable position promises to be maintained throughout 1928 says the boston financial news analytical review department of recent issue in 1927 earned net after depreciation and taxes but before depletion equal to a share on the shares of stock outstanding at the close of the year in 1926 net was or a share and in 1925 there was reported net of or a share earning in 1927 substantially in excess of those reported in either of the two preceding years represented a sizable accomplishment for this large producer especially as average price for copper in 1927 was so much lower than in 1926 average price received by the company in 1927 was 1328 cents a pound compared with 1414 cents a pound in 1926 nevertheless earnings 6 last year increased more than over those of the preceding year in 1927 the organization produced pounds of copper substantially in excess of production for either 1926 of 1925 the figure does not include the equity in production of nevada consolidated which last year was pounds of copper or in that of mother lode which was vas close to pounds of copper in 1927 utah copper nevada con As nevada consolidated is now about 43 owned y utah ta copper and the latter company is in turn owned practically 1070 by it is readily apparent that Kenne cotts equity in the output of nevada consolidated represents presents a substantial amount including proportionate equity city in in production of these two subsidiaries could be credited with nearly pounds of copper reduction production last year such an amount is equal to nearly arly one fifth of total world output at the present time ind and to about gait one third of united states production but it nevertheless is far under tinder capacity of in in 1927 established a new low record in operating cost producing its metal for approximately 7 cents a pound comparing with eight cents a pound in 1926 and with cents a pound in 1925 these cost results are arrived at after allowance for depreciation taxes and all operating expenses even with an avera average e price for its output of 1328 cents a pound in 1927 is shown to have obtained a profit of near six cents a pound copper market appears firmly established at W cents a pound or practically a cent and a half a pound higher than average for 1927 the organization is now producing very nearly pounds of copper for each share of outstanding stock so that on the basis of its 1927 production and assuming no further reduction in the cost basis stands to earn more per share this year than last all units operating at high efficiency all main units within the organization are operating at a high degree b of efficiency in fact costs throughout the organization 6 were ne never ver in firmer control than at present remarkable as was the achievement of utah copper in 1927 with output of pounds of copper and earnings of a share it promises to better this showing in 1928 the first quarter of this year showed operating t cost of 76 cents a pound comparing with 79 cents for the initial quarter of 1927 moreover 1 net income in the three months ended march marc h 31 last increased 22 over the same period of 1927 the braden unit in south america last year produced pounds of copper nearly as much as utah all construction work in connection with the increase in capacity of this unit to well over pounds of copper annum has been completed at the close of 1927 braden showed ore reserves of tons of average grade 7 0 this is roughly only half of utah reserves tons but on the other hand braden reserves of copper against show an a n average grade average ti grade only 11 7 0 bradeis Br adens costs are understood to be even lower than utah I 1 s or a flat rate of about seven cents a pound I 1 in braden and utah alone possesses ore reserves of tons this does not include nevada which at the close of 1927 reported tons of reserve averaging per cent copper shares are currently selling at about 90 compared with the years high to date 95 and the low the issue receives dividends at the annual rate of 5 a share so that yield at present price is exactly 5 financial and operating conditions are alike excellent should be prominent in a continuation of the upward movement of copper shares |