FINANCIAL NOTES
COPPER OUTLOOK THE speech of Sir Auckland Geddes to the shareholders of Rhokana Corporation last week established two essential features of the copper situation : that the trend of world con- sumption, at all events outside the U.S.A., is steadily upwards, and that the potential production of Rhokana, which is possibly typical of the low-cost Rhodesian mines, is very much greater under unrestricted production than it has been under the 95 per cent. quota. World consumption outside the U.S.A. has risen from 85,600 short tons per month in 1936 to 121,623 short tons per month in the first nine months of 1938. In the U.S.A. there was a sharp break in the latter part of 1937, but there has since been a gradual recovery until consumption in September, 1938, amounted to 53,637 short tons, against 18,66o short tons in December, 1937. Consumption is still (Continued on page 792.) FINANCIAL NOTES (Continued from page 79o.)
velow the average of 1937 which was 66,925 short tons per month. World stocks of 457,454 short tons at the end of September amounted to less than three months' consumption at this year's average rate.
Rhokana Corporation has received an additional allowance of 952 short tons of copper per month on the basis of zoo per cent. quotas subject to the same percentage changes as the monthly quota of 6,336 tons, so that presumably with the recent 95 per cent. quota the authorised production of Rhokatia must have been 6,924 tons. Sir Auckland's estimate of the capacity of the plant is that as a result of recent extensions it largely exceeds the I0,000 tons monthly which was originally planned.
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RHODESIAN ANGLO-AMERICAN Since Rhokana Corporation has maintained its 624 per cent. dividend it follows that Rhodesian Anglo-American, which holds just over 5o per cent. of the Rhokana capital, should also have maintained its revenue. There was, in fact, a small increase, gross revenue amounting to £874,860 against £867,899. After charging Debenture interest and administrative expenses there was a net profit subject to taxation of £826,401 against £817,278. This, as already announced, suffices to maintain the dividend at 15 per cent. for the year on a capital which has been substantially increased by the exercising of most of the options. The balance to be carried forward amounts to £332,079 against £329,442. Sums of £183,991 arising from share premiums and £422,024 surplus on the placing of Loangwa Concessions (Northern Rhodesia) into voluntary liquidation have been carried to reserve, which now stands at £2,206,015. In the previous year £400,00o from share premiums was added to reserve.
The exercising of further options since the close of the financial year increases the amount of capital ranking for dividend in the coming year, but there are no further options now outstanding. The Company holds 1,340,288 Rhokana shares standing in the market at about £72 12s. 6d. per share, 997,914 Nchanga shares standing at £z 13s. 14d. per share, £733,242 of cash assets and numerous smaller investments. Apart from the minor holdings, the total value of these assets is £19,307,173. From this amount there has to be deducted a debenture capital of £600,000 and dividend appropriations and other indebtedness of £506,243, leaving net assets of £18,200,930. Divided amongst holders of 11,513,218 ordinary los. shares, this would give a break up value of 31s. 71cI. per share ex dividend, which compares very favourably with the market price of 26s. 74d.
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MITCHELLS AND BUTLERS
The general run of brewing profits this year is lower than last, not on account of any curtailment of consumption, but because the companies have been unable wholly to recoup themselves for the increased costs of raw materials and larger outgoings for taxation. Mitchtlls and Butlers, the Birmingham brewers, are no exception to this trend. The final dividend has been re iuced from 15 per cent. to 13 per cent., making 21 per cent. for the year ended September 30th, as against 23 per cent. in the previous year. The year's profit, after meeting taxation and Debenture interest, was £645,178-a reduction of £77,103 on the previous year, out of which sums of £50;000 have again been allocated to both the property and general
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