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Show percentage of Utah's stock On actual dividends paid during the year 1923, Kennescott's income on its Utah holdings amounted to almost $5,000,000. With productive capacity of 200 pounds of copper for each share of stock, with ore reserves at or higher than the figure of 1916 with no capital liabilities other than its shares, with no liquid debt and with net current assets estimated at $17,000,000 one need not travel for for the reason why this, a copper stock, sells on an income basis of only 5.8 per cent. I tjtah Copper Output Large The Utah Copper Company finished 1923 witn greater production pro-duction and profits than in any calendar period since ltflS. Copper Cop-per output amounted to 196,528, 802 pounds, an increase of 1U8, 495,449 pounds over 1922. Utahs record breaking year was in '17 when production totaled 204,855, 118 pounds. On its production last year, Utah made a profit of almost 6 cents a pound, or $11,526,544. This was equivalent to $7.09 a share on the 1,624,490 shares out standing before charges for depletion de-pletion and taxes. The company nowever, in its reports for the third and fourth quarters of '23 charged to depreciation a total of $613,717. These per share profits, therefore, are after a naif-year's depreciation charges. In the year just closed Utah mined and concentrated 11,167, 800 tons of ore of an average of 1 1-4 per cent copper. While the tonnage fell short of the big war year of 1917, when 12,546,000 tons were treated, in the last 3 months of the period Utah produced pro-duced and milled 3,426,000 tons of ore. According to its last quarterly report, combined capacity ca-pacity of its Arthur and Magna plants is 40,000 tons of ore daily, This is at the rate of almost 15, 000.000 tons a year. Had the Utah Copper company any kind of a normal copper market, in the last quarter of 1923, it would have shown substantial sub-stantial profits. While increased increas-ed production somewhat reduced average grade of , ore, cost was only a little over 9 cents, before depreciation and depletion- The low average selling price of copper cop-per (12.80 cents per pound) did cause a reduction in per share earnings of $1 a share compared compar-ed with the preceding quarter. To pay dividends of $4 annually, an-nually, Utah Copper needs to earn a profit on its current output out-put of slightly more than three cents per pound. That this is not a difficult feat is apparent when it is seen that on an' average aver-age copper price of 14 5-8 cents in 1923, the company earned operating profits of over 5 cetns per pound of production, or a margin over current dividend requirements re-quirements of almost 80 per cent. Out of last year's profits of Utah Copper of $11,526,544 the , Kennescott Copper corporation has an interest in 76 per cent or $8,760,172 the later owning that |
