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Show WHY k DEE KIT IN NEVADA CON. Sn W Ecclos, president of tho Ne-ada Ne-ada ConsoliUated company, has Issued Is-sued a report to stockholders for the second quarter of 1911, a review of which has been given In these columns. col-umns. The following Is this report In full, showing'clearly the cause of the deficit of the pe.rio I which bad not been fully understood by stockholders: stock-holders: I beg to submit, herewith statement of the affairs of vour company for the quarter ended June 30 1911. The production of copper amounted to 15,-077,005 15,-077,005 pounds, which compares with the two preceding quarters, as shown below: October 1,980.30(5 Novombpr ,.5,201," December .5,51" 93C 15.G9S.595 January ';... 5.?GS 954 Februnry . . .' 4 .992 533 Jlarch 5,G32,?5 15.S93743 April .5,298.032 May 5.277,355 June B,101.07S 15,677 0C5 an average for the first nine months of tho fiscal year of 5.252.15C pounds per month For this quartor. the ore treated averaged 1.59 per cent, the lowest grade mllle 1 for anv quarter Blnce tho beginning of operations There was a large tonnage, of very low srade material which It was known wou'd have to be remQyed In order to ar-. range for permanent tracks Into tho J , Eureka pit along the east side. As it. i wns.jtQo high a grade to waste as J stripping, it wis consequently sent to , the concenirator for treatment, and this has determined that a verv low grade of ore can be treated profitably It was the treatment of this very low grade material which brought the quarterly average down to 1.59 per cent. Deficit Explained ' At tho beginning of this quartor, your board of directors decided that" In vfijw of tho murkct price for refined re-fined copper, ft was conservative to write down the figure at which the Etocks of copper on hand and in transit tran-sit were belni irrled. To accomplish accom-plish this the credit balance In the metal price reserve account of $4G,-G29 $4G,-G29 41 was utilized, and an additional deduction of $23,82G.1G mado from the quarterly earnings The copper stocks are now carried on a basl3 of 12 1-2 cents por pound, which Is less than th,e price now beln? received These adjustments resulted In the lnslgnl-noaht lnslgnl-noaht deficit of $112 87 shown in tho profit and loss Btalement, after payment pay-ment of tho soventh quarterly dividend divi-dend and charging off $13G,990.59 for depreciation The work In connection with tho Liberty Pit is progressing satisfactorily satisfac-torily The only ore used during th quarter from this pit, however, is such as must bo mined In tho stripping operations, and amounted to 1G.593 tons During Juno all operating reverb-oratories reverb-oratories were running under oil ex cept one which is still fired with oil and coal combined Tho results have fully Justified tho action of Installing oil as a fuel In place of coal at the Steptoc plant. Tho first basic llnd converter will go into commission August 1 The general auditor's statement o earnings, assets and liabilities Is attached at-tached hereto Profit and Loss For quarter ended Tune 30, 1911 Earnings from mine Investments Invest-ments and miscellaneous miscellan-eous $SSG,26G 17 Dividend No. 7 719.388.75 Net surplus for quarter. .?13&,S77.72 Less depreciation for Step-toe Step-toe plant 13G.990 59 Net charge to undivided profits H2S7 Pounds copper produced during the quarter, 15.077,065 Aseets Statomcnts of assets and liabilities, Juno 30, 1911 - Prorertv $5,479,025.27 Development and equipment equip-ment 7S1.406 60 Deferred charges 1.7089.9G5 G8 IneBtments 10,900,000.00 Materials and supplies.. 206,521.15 Accounts collectible...... 342,002 43 Metals en hand and In transit 2,405.49107 Cash 260,517 50 Total .'$22,083,932 70 Liabilities Capital stock Issued.... $ 9.991.S50 00 Bonds outstanding 500 00 Accounts payable 505,369.70 Unpaid treatment on motals 370.750 4S Surplus 9.05G,lo2.Sl Unlivlded profits 2.159.309 il ToUil $22,033,932 70 |
