Show 5 i 5 i M t K K i mi K M V a IA X tjay jp SILVER KING ICING coalitions rutur KC BRIGHT BItI GlIT GREAT ORE PRESENT operating OrE RATING COSTS EARNED 1 reports read at the annual meeting of stockholders 0 too the sliver silver king coalition I 1 mines company monday afternoon carried the assurance that the c company 0 in pany Is in a position to weather I 1 low 0 w metal prices while they are likely to c continue and be in the forefront fore front ot of the procession when industry revives directors and officers wel e reelected elected re the president david keith in his annual review said in part owan owing to the low metal prices duling I 1 the past year and the worldwide world wide depres I 1 1 slon particularly in the mining industry lit it became evident that the earnings ot of I 1 your company at prevailing metal prices and at normal production could not meet dividend requirements after paying op aerating expenses three questions ot of im confronted your directors i namely Y I 1 first drawing upon treasury surplus tor for all or part ot of dividend requirements I 1 second the depletion depiction ot of valuable abl nigh grade ore bodies in the property and disposing ot of the metal content ot of same at the unusual low metal prices prevailing and thereby jeopardizing tu fu 1 ture production and profits I 1 third to temporarily discontinue the I 1 payment ot of future dividends your directors decided to adopt the latter course namely temporarily dis 1 1 continuing the payment ot of dividends alth etli the expectation of improved conditions t in the mining industry and anticipating ci Cl better metal prices in the tu fu ture also to restrict the extraction and sale bale of bics 01 cs to meet actual operating ex 1 crucs only ahlich practically has been acon done while it became necessary essaiy to reduce salaries and wages all regular employed emp loyes of the company were furnis furnished hed with s teady steady employment throughout the year your property is in condition to start maximum production immediately should better metal prices prevail this resulting in fix an increased operating profit it Is with much pleasure that I 1 express my gratitude for the hearty cooperation of all officers and employed emp loyes it la Is due to their efforts that we are arc enabled to submit the attached reports indicating as they do no material loss in operating results also the healthy physical condition of your property operations at the mine and mill during the year were summarized as follows by the general manager M 3 dalley dailey general managers report for your consideration I 1 submit herewith the annual report and statement of continued on page pour four J mining matters j F kiil 2 1111 2 gig I 1 4 0 continued from page one operations of your company tor for the year ended december 31 1931 early in the bear ear due to low metal prices prevailing the directors of your company alter after considering conditions decided that it would be to the best interests of your company to discontinue the payment ot of dividends and curtail extraction of ore thus depleting ore reserves to the extent only of attempting to meet the actual operating expenses including an aggressive campaign of development and exploration work at the property throughout the year especial effort has been made to retain and provide work tor for all employed emp loyes at toe the property prop eity the expenses have been reduced to a level consistent with the operating efel efficiency wages and salaries of all em aloyes and officials were reduced economies economics in the use of supplies ex explosives P losice and timbers were effected wherever r possible the collapse of all metal prices made I 1 it unprofitable to operate and extract I 1 ores irom from some of the lower grade slopes in the property which if operated at present metal prices would show an operating loss all the lower grade that are temporarily abandoned have been carefully timbered and all necessary precautions pre cautions taken to avoid loss of ore by caving slid and these slopes are in a condition to start the extraction of ore when metal prices will justify profitable operations the underground dundei ground pumping unit was operated continuously throughout the year no water having been allowed to accumulate in the mine all openings necessary passageways eways and equipment are in condition to resume operations erat ions and are prepared tor for immediate maximum production i plenty or of ores ahead during the year there has been completed feet of of f development and exploration work at a cost of the exploration work extended into virgin territory teril terii tory conclusively demonstrating the continuity and metallic lc values of the ore bearing zone and also maintaining and blocking out ore reserves far in fit advance of c I 1 ore extraction operation development t work done during the year in the ore bearing horizon and on mineralized ze d fissures contributed materially to ore production thereby conserving the known vr ore reserves already blocked out mining operations produced in round figures tons of first class or shipping ard second class or milling ore I 1 krom corn the milling or second class ore there was produced tons of lead concentrates and tons of zinc concentrates I 1 cen making a total of tons I 1 ol of marketable first class ore and concentrates cen shipped to the smelter after deduct deductions lons tor for smelter and freight charges the company received 4 front from ore ora sales interest rentals and income from all other sources amounting to makes a total income tor for the year ol of ex j benses for mining ral ning milling administration and all other costs including taxes of amounted to 2 leaving a net operating profit of 26 56 front this there was deducted to cover depreciation showing a 1 reduction in surplus tor for the year of sio llie mill operated dur ing the year 1 r it at a reduced capacity treating 1127 0 4 tons ol of ore in this unit no changes or improvements of any importance were necessary A reduced operating cost has been effected low cost of supplies and labor contributing materially to same better operating results la in the kep separation of the lead and zinc product together with a higher grade concentrate both lead and zinc was produced indicating increased economic efficiency in the mill operations during the period metal prices received tor for the year 1931 were as follows tol lows the average price received lor for lead was 4 cents the lowest in 18 years the average pride price received tor for all silver v or was cents tor for zinc 3 ce cents n ts silver and zinc both g the lowest level in history copper although a negligible product of your company was sold at a new low price before deduction ot of freight and smelter charges your company received 1 from the sale ol of first class CIBES or ore a and d concentrates of 01 this amount silver content in the ore contributed 24 per cent lead 52 per cent zinc 20 per cent gold 3 per cent and copper 1 2 per cent A large percentage of your companas comp anys holdings remain undeveloped the ore already blocked out and in reserve insure steady normal production tor for some time to come the physical condition of the mine and equipment has been maintained at a high stardard and Is in the best possible condition metal prices will entirely govern future profits W mont ferry vice los president and m managing director in his report stated that the operations during 1931 were not carried on tor for profit but to furnish as much employment as possible consistent with protecting the interests of 0 the stock holders to that end approximately men were kept steadily at work prodoc 1 ing about enough ore to meet current expenses and prospecting and developing new areas so that ample ore reserves will be available when normal metal prices prevail MINES blines YOUR I 1 mining stocks are probably as low at the present time as they ever will be says western mineral survey the potential possibilities ot of the properties they represent are probably as good as they ever were there may be a tendency on the part of many to misinterpret thes them meaning of these exceptionally low quo nations tat lons ions on first thought these prices may suggest an element of doubt and I dainty but a closer examination and ana analysis of the situation can but lead 0 one logical conclusion namely that now is the time to purchase mining stocks As we emerge from this depression metals with other commodities will ad j 1 vance in price as the demand increases this will mesa mean a col coi responding corresponding advance in the price of 0 stocks there Is no class of investment that offers the possibilities for manifold increase as do our mining stocks at the present time there are wonderful prospects in the process of d development ey elop ment prospects coming into production and producers with ore reserves ready to resume operations on an increased scale first hand information regarding the various properties in these respective classes can be obtained from reliable brokers thereby eliminating much of the hazard encountered in i ous b buying I 1 I 1 j copper 0 puy ereg p prices races are low but the great organizations that have made possible production ot of copper from low grade deposits at low production costs have proven themselves too big and far too capable to permit this industry to languish indefinitely there Is an ever in ini i i creasing interest in the stabilization and of silver it Is probably premature to predict at this t time I 1 me what the result ot of this interest will be but eliminating the possibility of stabilization iza and there Is a future I 1 1 tor for silver irom from strictly a commodity standpoint and the movement in this i direction will be in keeping with wheat and other world staples practically all of the other metals will advance with the general commodity movement capital invested now in a careful selection ot of mining stocks from the penny class on up Is going to bring greater returns than Is possible in other lines of business or industry i i WHY I 1 SHOULD MINING NOT BE recognized says the salt lake tribune mining leaders in salt lake friday urging that the mining industry ot of the state Is just as badly in need ot of federal financial aid to keep mines mills and contingent plants running as the livestock industry took initial steps in a proposal to seek loans through the huge reconstruction finance corporation unemployment it was urged would be substantially decreased in utah which claims mining as its basic and largest industry it if financial help in longtime long time loans could be obtained to take the place ot of individual assessments with the idea ot of bringing such a movement to the attention 0 of federal officials telegrams were dispatched friday to president 6 1 d ent hoover and to the lour four bemb members e rs ot I 1 delegation at the national ca caal p I 1 tol by harry S joseph local mining engineer and a member of the executive committee of the mayors make work committee and H B cole president of the salt lake stock exchange will call a meeting at which the proposal and platis plans to bring it to completion will be the principal subject discussed mr josephs telegram to the president asked what provisions II if any will be made by the federal government to afford financial aid to mining industry through the reconstruction finance corporation po ration it appears to me and others he ie continued that necessary financial assistance would serve to solve some soine of our ur employment problem he also sent telegrams tole grains to senators teed reed smoot and william H king and to congressmen don B colton and fred crick lck C loofborow urging each of them to take the matter up with the president preside nt and officials of the financial corporation to see what federal aid might be obtained mr cole declared a prominent mining man mail ta ba selected to discuss the subject at a meeting of members of the 1 salt lake stock exchange he advocated the settling up of an auxiliary committee of the finance corporation zoning the intermountain region and loaning the money to substantial mining companies in order that they may put men back to work thus putting into operation an industry that Is of utmost importance to the financial welfare of the state A zoning board which would participate in the funds of the finance corporation po ration in the same way that livestock agriculture and banks are participating in n them might very possibly be organized he said 1 I only wonder why some i such euch reconstruction program lor for mining i has not yet been set up CROSSCUTS because ot of a slight betterment in the price of silver the past week some of the local stocks stiffened up a bit silver king coalition again passing the sa 00 mark but there la is nothing dependable in the metal market silver sneaks up a quarter of a cent and slips back a halt half cent and so it will continue until something Is done in the way of stabilization in his unceasing efforts for the stabilization ot of silver W mont perry president of the american silver producers association and vice president and I 1 manag ng ing director of the silver king coalition mines company lett left tuesday afternoon for new york city mr ferry will attend the meeting be has called of the national association for february at new york city mr perry ferry will go to washington D C in the interest of silver producers before returning to salt lake gen general ral manager M J dalley of the silver ting king coalition was in the park yesterday visiting the property and attending tending to other business matters STOCK SALES FOR WEEK no call friday Lincol ns birthday Y SATURDAY new quincy S 2 and ac park city con 1000 ac silver king coalition 60 MONDAY new quincy 3 and ac park premier ac park utah paik city con loc anew TUESDAY new Q ulicy 1800 1900 silver king coalition Q and WEDNESDAY new quincy 3 and sync park utah THURSDAY park city con 1500 1500 10 ac new quincy ac park utah 0 silver king coalition 0 and SHIPMENTS silver king coalition park utah consolidated total |