Salt Lake Tribune | 1919-05-22 | Page 16 | Cost of Copper Production Drops

COST OF COPPER " PRODUCTION DROPS Gloomy Outlook of Big Companies Has Some Sunshine. Words could no better describe tb& utter stagnation of the American copper market mar-ket during the first quarter of this year than do the figures contained in the reports re-ports of the four Jackting porphyries Utah, Chh.o, Ray and Nevada Consolidated, Consoli-dated, says the Boston News Bureau. But an infinitesimal percentage of their production pro-duction was sold and each company cut into surplus account in order to pay ifs dividend. The same situation, orly in lesser degree, de-gree, obtained during the last quarter of 19IS. With tho signing of the armistice armis-tice came an abrupt halt to sales. This resulted in each of tho four coripanlos showing" a final deficit after dividends, Nevada Consolidated dipping into its surplus sur-plus to the extent of almost. $1.5'0.VV). In the three months ended .Sept. 30 last Utah and Chlno had a surplus left after dividends, Lut Ray and Nevada Coriooli -dated were at tho peak of abnormal operating op-erating expenses; their per-pound-costs bei ng over 20 cents each. After dividends divi-dends they showed losses of $!)9,j35 and $tS39.i!39, respectively. Tim quartette, however, lias been able to reduce materially costs of production since the third quarter of last year. 'Jhey ;re advantageously situated as regards labor. Theirs is primarily a mechanical process and no great disruption of organization or-ganization was feared when It wns peen that the only move, with no copper bung: sold, way to reduco wot king forces and wages. Notwithstanding output, has been cut 50 per cent, costs have ta Uen a decided slump compared with the war levels. Utah has reduced its per-yoand figure nearly three cents over the Dee. 31 quarter; quar-ter; Ohino cut its cost about a cent and compared wiib the third quarter shaved it down over four per cent; Ray and Nevada Consolidated each reduced costs, the former for-mer five cents and the latter four cents, compared to the third quaiier of '1318. The extent to which surplus accounts have been tapped together with comparison compari-son of cosls for the last three quarters iy seen in the following; March 31, Dec. 31, Sept. 30, Deficit after dtvs 19J 191 S ISrlS Utah Copper. .$1,055. 410 $729,49t;$1.24S,7S6 Ohino SL'o.926 S03.179 1 65,769 Ray Con. iK0.SN7 774,770 299.535 New Con. ... K'-0,r-r5 1.4S9.403 639,299 Total . ...... 4,553,173 3,796,848 574,721 Surplus. The net deficit after dividends for the four companies in the nine months was $7,S0G,M5. A most gratifying development, all the rr.ore surprising in view of the normal increase In unit costs as production declines, de-clines, is that the cost per pound has shown some remarkable decreases, as note the following: March 31, Dec. SI, Sept. 30, Cost per pound. 1910 1918 1918 Utah Copper 13.7c 16.4c 16.8c Chino 15.0 15.S 19.0 Ray Cons 15.1 19.3 20.2 Nevada Cons ... 16. S 19.0 20.7 It needs no stretch of the imagination to see that unless tho present quarter witnesses a marked Increase in motal sales, stockholders' chances of getting dividends div-idends at the present rates are none too rosy.