Salt Lake Tribune | 1918-05-26 | Page 42 | Nevada Consolidated Report Shows Decrease in Profits

Nevada Consolidated Report Shows Decrease in Profits Produced 17,435,164 Pounds of Copper in First Quarter at Cost of 17.42 Cents; Yearly Profit $3.20 Per Share. Report of Nevada Consolidated for the quarter ended March ol shows production of 17,486,16 i pounds or' copper, compared wtrli 3168,168 In previous quarter. Profits were $470. 809, compared with J I, S 29, 165 I In the December 31 quarter, says the Fiooton News Bureau. Profits for first quarter of 1 HIS were at rate of 92 cents a shar- per annum. In I the December quarter profits were at an annual rate of $3.20 a share. We compare income account herewith: weather. In addition to the above, 63,-3H 63,-3H dry tons of the Consolidated Copper -mlnea company oro were milled during the quarter. The cost of copper produced, including Steptoe plant depreciation and all charges, and after crediting miscellaneous earnings', earn-ings', was 10.64 cents per pound, as compared com-pared with 12.73 cents per pound for the previous quarter. Excluding the item of depreciation, the cost was 14.72 cents, as compared with 11 .il cents for the previous pre-vious quarter. The increased cost for this quarter, compared with the previous March 31. De;'. 31. Sept. 30. Juna 3D. Net earnings t 470,803 1,822,165 $ 1,888,323 $ 3,546,751 Dividends ' 1,959,457 1,999,457 z2,:99.375 '1.999. 457 Balance def. 1,528.617 def. 177.291 def. 311.051 1,517,294 Depreciation 160.739 1S3,S44 172.144 173,417 Ore extinb' 65,217 61.001 62,334 Surplus def. 1. 689. 387 def. 426,353 def. 544,196 1,311,542 Copper production in pounds compares as follows: First month 6,378,332 6,862,933 7,253,337 6,727,192 Second month 4,999,323 6,693,196 6,439,934 7.239,978 Third month 6,057.509 cS.597.029 6.524,352 6.850,186 Totals 17.435.164 22,153,158 20.217,673 30,817,356 One-half "capital distribution." zKed Cross dividend of $299,918 and one-half the remainder "capital distribution." distri-bution." . cDeeember tifrure Includes In addition to production for that month an adjustment adjust-ment of the year's production based on a revised annual inventory of concentrates on hand. Report says In part: During the quarter 942761 dry tons of Nevada Consolidated ore, averaging 1.47 per cent copper, were milled, as compared with 1.087,158 dry tons, averaging 1 ,46 per cent copper, for the previous quarter quar-ter Of the tonnage milled, 71 per cent was supplied from the pits and 29 per cent from the underground workings of the Ruth mine. The smaller tonnage milled during this quarter, as compared with the previous quarter, was due to interruption to operations at tho pits on account of labor conditions, arid to severe quarter, is clue to smaller production. Increased In-creased cost of material and supplies, advance ad-vance in wage scale, and also an Increase in amount estimated for excess profits tax. The costs for the quarter include $270,000 set aside to cover accrued county, coun-ty, state, state bullion and federal taxes. Beginning with this quarter the practice prac-tice of setting up the ore extinguishment charge currently has been discontinued, and hereafter reserves for this purpose will be set up annually in accordance with existing taxation laws, and the latest rulings of tho treasury department. There, was shown a deficit for the quarter quar-ter of $1,528,647 after payment on March 31 of a distribution of $1 per share, amounting to SI. 099, 457. There was set aside $160,739 for plant and equipment depreciation, leaving a not debit to earned surplus for the quarter of $C-6S9.3S7. $C-6S9.3S7. The cost of copper for the quarter was 15.6-1 cents per pound as stated above. All sales of copper reported for the quarter quar-ter were made at the government price of 23' cents. Due to the fact, however, that this price has only been flxed until June 1 and that therefore no sales can be recorded at any definite price beyond that date, the earnings stated are by no means equivalent to tho amount 'that would be arrived at by the difference between be-tween the cost and the present selling price applied to production. The reported report-ed sales for the quarter were liot equal to production, the reverse having boen true for the preceding quarter, and accordingly ac-cordingly there was a substantia increase in-crease in the amount of copper inventoried inven-toried as unsold and carried at 13, cents per pound, although a large quantity of the metal so carried had actually been specified for delivery on government or-i or-i ders, with no price designated.