OCR Text |
Show 1 ii . COPPER GOMPAfJY This Great Company Has Spent Over $30,000,000. In Equip, ment And Development Acd . Has Paid Stockholders Over $25,000,000. It was just one decade Ago in April of last year that the Utah Copper ooinpany started up Us Coppertoa plant, which was the beginning of a, new era In mining, the bringing; iu of . the porphyry or low grade coppers to t a commercial value. Since that time the Utah Copper company has' spent In the neighborhood of $30,000,000 la equipment and, development and In return has given stockholders something some-thing over 125,000,000. It has estab-llshed estab-llshed that In Utah Is the greatest mine of its kind in the world and that Bingham is today the greatest camp -of Its kind to be found anywhere. What this company may attain has -only begun, Is the Idea of one authority. author-ity. During the early part of the year when the company was Just beginning to reach a normal gait, there was every Indication that a production of 150,000,000 pounds of copper would be reached before the end of the year. . t . the war, which caused all the 'larg copper producers to curtail their out- - put ' . , Dvring this' year the company did away with underground mining, which greatly lowered costs. Extejslve ex periments were carried out and are still being carried out for the leaching leach-ing of the company's ores, more espe- cially the 40,000,000 tons of carbonate ore that the company has which will not quite reach 1 per cent copper contents. con-tents. Although these experiments have pot been completed, it is probable proba-ble that at some time la the future a plant will be erected which w ill care for these ores. Another move on the part of the company which adds to Its value is the retiring of bonds of the Bingham & .GarHeld railroad. On Dec. 31 of last year there were $2,13,000 first mortgage, 6 per cent bonds outstanding out-standing cf an issue of $2,500,000. Of these 1337,000 were retired early in the , year . through the sinking fund. The uonds were convertible Into Utah Copper stock per share on or befoie July 1 of this year. For that reason nearly all the .bonds were converted t into stouk during the year which . . . , greatly added to the earnings of the company. The stockholders in the Utah Copper Cop-per company now number in excess of (ConMniiPd on Pjkg Two.) , The Utah Copper (Continued fram Page One.) 3,009. During the year one list that was publiBhed showed that there wore 3,914 stockholders In the company. There were less than 200 perrons holding 1,000 shares or more, ' According to the 1913 report of th company there Were in excess of 340,- 000. 000 tons of ore: developed or partially, par-tially, developed in the company's ground and one authority has itgured out that the company has a per-ahare value, frr its ore alone amounting to $241.14 ret (without amortization) for each of che 1,625,000 shares of stock issued. This figure is computed on 14-cent -opper metal, a 1.4 per cent ore grade and 61 per cent net smelter recovery, 17 pounds per ton, and 7 ; cents rrr pound cost of production on 100,001,0)0 tons of ore, and 7-cent cost on 240,000,000 tons. As h the ore-grade taken, namely, 1.4 prT cent, the figure actually given ifor tlia ore reserves in the last, an; nual n port was 1.47 per cent. ' f he averr); net emelter recovery" Jn, the past 'i iir years has been C3.4 per j cent, ' 1th 61 per cent as a minimum. A. 61 j ar cent recovery on 1.4 per cent ore n ts 17.08 pounds copper per ton, or, f f 17 pounds. Co ts during the second quarter of 1914 were reduced to around 8 cents per vound. Now that the Bingham ft Garfield railay bonds are practically oat of the -way, all the net earnings of this railway subsidiary become available as a credit against the cost of operation at Utah Copper. The Actual cost of ateam-ahovel mining min-ing (Including, taxes, administration, etc., but exclusive of stripping charge and exportation) is 21 cents per ton; net transportation cost for carrying ore td mlll( trader 18, cents: milling 27 cents; against which a gold-silver gold-silver credit of 13 cents per ton, leaving leav-ing a net mining-milling cost ot 60 cents per ton, or 3.53 cent pei- pound of copper produced, to which should be added some t csot per pouad for smutting, refining and selling. Thus the physical cost of producing copper Is 6.6 cents per pound, but stripping, exploration, depreciation and Interest charges bring the actual cost of production pro-duction up to 7Vi cents. The ftgurs of 7 cents for the first 100.000,000 ton is therefore a liberal one. After that, the stripping charge ol 7 cents per ton mined is expected to terminate, and. with the carriage of all ores over the Bingham ft Garfield railway (Instead of about one-third over the Rio Grande, as at present, tfcf-re will be an additional saving cf over 6 cents per ton in costs. This i should bring 'the cost of ' production jutllmatPlv down tor 6Vi cents per pound. Hence the figure 7 cents operating oper-ating costs per pound, on the ensuing Lto.ubU.vuO tons of ore blocked out Is also considered a rather liberal one. With 14-cent copper metal, the indicated in-dicated profits amount, to 91.06K Pur ton on iMUMMt.imo tons, and $1.19 per .ton on 240,000,000 tons,. or $.191,850,000 m ail. Divided among the approximately. approxi-mately. 1.625,000 shares outstanding since the conversion of the Bingham & Garfield railway bonds July 1, the Mocked out ore reserves toot up to. a VRli-e of $241.14 per share. Nor does this value-of $241.14 per Hhiire allow a penuy for the 1,000,500 !"tres of Nevada Consolidated Copper company stock ownd by t'tah Cop- per; nor the $2,500,010 capital stock or ! the Bingham & GartialcL railway, constructed con-structed and equipped at a cost ot I over Ifi.'dO.'ifo to dute; nor the $10,-6'J,103 $10,-6'J,103 of undivided profits as of Jan. 1. 1014; nor the vain' of the mammoth Maiyia and Arthur mills, having a capacity ca-pacity o: ?.V0 ton of ore per day. Piirln1! tie year t'.n company ha pu'd $4,838.1 S5 in dWd'endB. the greatest great-est amount any cccvpony in th state has produced. In t.ie nmount ot ore j treated this year tiie company wilt 'have ifken rare of something over ! ti.Oi'OXOO tons. aEihut:sh since August of th! year the company bas - been ' handling only atitrt 50 per cent of U capacity. Yet at the same time the company has Iwen doing about the umal amount of development work, .'(oiiHlBting of drilling and the removal of capping. A comparison of the pro-drctlon pro-drctlon record which this year exceeded ex-ceeded all others, as compared with other years f as follows: ISMt 1913 1!1 2 Jan. 10.tU9.0:i8 7,."ti0.52l 8.1.fi,6l2 Feb. 7.S1 9.900 8,612.729 Mar. 12,7f.200 8,504.046 8,160,000 (Apr. i:i.l33.770 9.K34.S94 9,009,237 I May i;t.61 6,903 10,312.605 10.068.3Ps6 June 13.268,106 11,637,949 9.234,465 July 13.76.9.".8 9.S49.043 11,160,034 Aug.' $.24.,.'20 10.620.981 11,811,014 Sept 6,672.194 11,817.428 6,965.144 Oct. 6.76.".,96 10,236.575 2.128,792 Nov. 6.536.:U '11.121.073 5,802.451 (J. Janney is mill manager for the company, and Mr. Jackllng has beeu ably assisted by R. C. Gemmell, general gen-eral manager of the company. John M. Hayes Is assistant secretary and cashier of the company and J. J). Shilling Shil-ling is the superintendent of the mining min-ing operations. C. F. Jennings is the assistant purchasing agent and !!. C Goodrich is the 'chief engineer. Upsides the mlnernl holding of th company amounting to 1,586 acres In ItJugham canyon, it owns 3.377 acres if ground in the vicinity of Oarfi,-ld where tho mills are built, and 6S3 acres ii'vir Pelican Point In t'tah county. Tit's tatter land was acquired r'ro'n the old Boston Con-ni'ldated property prop-erty which wa taken ov-r sovcai v" .n'f a?o. Dec. 6,874,921 10,624,790 5,975,246 Tol 121.727,417 110,090,767 95,015,391 Kstlmated. Utah Copicr's dividends startel six years ago and s nce then JlS a bhar I has been paid as follows: 11914 3.00 1 1913 - 3-00 1912 3.00 3.00 1910 "no 1909 2.00 11908 ' 1.00 j Chief iimotig the men who hav j brought about the Utah Copper are D. if.. Jackllng, vice president and man-'sjing man-'sjing dirt'cwr; Charles M. MacNelll, ; pn'.-idnt of the company; Spencer reiirj.-c, secretary and treasurer,. 1', |