FINANCIAL NOTES
MINING FINANCE PROFITS.
AFTER a year of disastrous declines in the price of gold- mining shares, and of unnecessary misgivings about the future price of gold, the reports of the leading mining finance houses and of their chief operating companies make a very creditable showing. There has been no general deterioration in the earnings of the mining companies. The finance houses, which draw their revenues from market operations in the shares as well as from dividends, have been exposed to unusual risks and in general have come through the ordeal with flying colours. In addition to the accounts of the Union Corporation discussed by " Cu.stos' " there have been published in the last few days those of the Anglo-American Corporation of South Africa, the African and European Investment Trust, and the Rand Mines group.
The results of the Anglo-American Corporation are excep- tionally favourable ; the 1937 profit of £1,638,678 shows an increase of £477,040. In addition, a sum of £750,000, against £1,5oo,000, was brought into account from share premiums. The contribution to general reserve is £x,000,000 compared with L1,800,000, and the dividend has been raised from 3o per cent. to 4o per cent. with 900,00o more los. ordinary shares ranking than in the previous year. Good results are shown by many of the units in this group. In particular Brakpan, Daggafontein and Springs -Mines all milled record tonnages and Anglo-American Investment Trust showed net profit of £577,823 compared with £263,424 and paid a dividend of 4s. per share compared with Is. per share.
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