The copper era., 1905-06-29
Walker on Old Dominion and Greene.

Old Dominion's copper is under stood to be costing more than Il cents per pound at present. This is due, however, to the fact that the | old system of mining is being em- ployed and the old hoist is still in | service, while abnormal underground i development work charged as an operating cost and the profit per pound on copper coming from custom ores is of course much smaller than on that coming from the company's own mines. Of the 3,1OO,O00 pounds of copper produced in May, about 2,000,000 pounds came from the Old Dominion and United Globe mines and was made at a much lower cost. The remainder came from custom and sulphide ores from other prop critics. The companv's new -cOncen- trator is not yet ready for opera tions. When it is completed the new shaft and hoist will come into use, and mining costs will be greatly re- duced. Mining costs are at present. almost S1.5O per ton lower than the average of the year 1902, and smell ting, which in that year averaged S4.27 per ton, is now costing only S2. .65 per ton. From 1000 to 3,000 tons of old slag is now being smelted weekly. This slag yields an average of about 40 pounds of copper to the ton, and at this rate the supply on the property will last for years. The management believes that it's copper cost will soon be reduced below 10 cents per pound. As it's present pro- duction is being made from raw ore with three furnaces, 1t is to be ex- pected that it will be considerably increased when its fourth furnace, now under construction, is completed, and when a supply of high grade con- centrates are coming to the smelter from the new mill. The consolidated company has floating debt of about S40O,OOO, which is offset by supplies and other quick assets. The con- pany is expected to close the present year with all of it's construction completed and paid for and surplus to its credit.
 Greene Consolidated's big decline last week is said to have resulted from the liquidation of the holdings of two directors who were forced to sell because of losses in other stocks. The selling was quite generally be- lieved to reflect a coming reduction in the company's dividends, which have been for some time 40 cents per share every two months. Greene's dividend record is against it at time like this, however, payments having been begun and discontinued by the company two or three times in the past. It is known that the ex- penses of the company have been considerably heavier than had been expected, since dividend payments began the last time: but it is never theless believed that the dividends have been more than earned. The company has been marketing nearly 6.000,000 pounds of copper monthly for some time past and has probably secured profit of three to five cents per pound, resulting in net earnings of S165, ,000 to $275,000 per month, or at the rate of between S2,0O0,O00 and $3,30O,OOO annually. dated position is found in the fact that its dividends on a very large share capitalization are made up of d relatively small margin of profit on a very big production. A decline of one cent per pound in the market price of copper would reduce the company's net annual profits 80 cents per share, as it is producing about so pounds of copper annually for each share of stock outstanding. It has been claimed that the company had reduced its cost of making cop per to nine and an eighth cents per pound. If such a low average cost as this can be maintained the com pany can earn nearly $5 per share on a l5-cent copper market, and it could continue to $40 per share on 13 cent copper market. A reduction of one cent per pound in costs does the company as much good as the loss of one cent in market price does it harm. If Greene can continue in- definitely to pay present dividends, it's stock is worth $35 per share, If it is decided to change to quarterly dividends of 50 cents, it should still sell considerably higher than it has in this weeks decline. It must be remembered that the Greene owns great property, which is now quite fully developed, that it is one of the big copper mines of the world, and that it undoubtedly has very pros porous future before it. At around S20 per share, I think the stock can