Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1906-12-15
UUPPEK DIVIDENDO
WILL BE LARGER

a slowly rising production which,
by the way, is less than had been
estimated earlier in the year, indi-
cate that copper mining dividends
will be larger than heretofore. Many
mines that were opened while the
copper boom was on a few years
ago are rapidly reaching the divi-
dend-paying stage, and the older
properties by more economical work.
ing are able to squeeze out an extra
dividend occasionally. 1t requires
greater managerial talent to meet
the exigencies of a low grade copper
mine, Notwithstanding the current
prices, to guarantee an equitable re-
turn on the capital invested. To
say that nearly one-half of the mar
ket price Of copper today is profit is
nonsense, and as a rule it sounds
like the twaddle Of an inexperienced
person, one, for instance, whose
livelihood depends upon the flotation
of mining stocks Oh glittering gener-
alities. Some of the better paying
of the larger working mines cannot
honestly boast of producing copper
at less than II or IL cents per
pound, and not a few must pay 10
cents and more. In remote cases.
however, it may be possible to find
an exceptionally well managed mine
that can produce copper at 10 cents
or a fraction less per pound, but
speaking generally the cost is near
er IL cents. A factor that partly
explains the higher cost of produc-
ing copper today is labor; miners in
Montana for instance, who formerly
received $3.50 per day, now demand
81. Higher wages also rule in Ari-
ona and other prominent mining
states. This coupled with more ex-
pensive supplies has made it neces-
sary to raise the charges for pro-
ducing D 1t should also be re-
membered that as the output in
creases and the ore deposit which
may have been worked for years
gradually becomes exhausted, new
explorations must be made or more
land purchased, which, of course,
means additional costs on the cop
per output. Even so great a mine as
the Calumet & Hecla, which has al
ready paid dividends of nearly
100000 900, and has sufficient cop
p~er-bearing rock in it's old property
to continue the sharing of profits for
some time to come, has found it eX-
pedient to increase its land holdings
by new purchases. 1t is a fact not
to be disputed that the life of even
a copper mine is limited. At a time
like the present all copper mining
operations are at a top speed, the
desire being to reap the harvest of
nigh market prices.
The probability is that production
in 1906 will show a fairly large in
crease over 1905, when the total of
402,637 tons (57.4 per cent of the
worlds production) was about II
per cen greater than 1904. The
statistican of The Mining World cal
culates that the 1906 output will be
not far from 100000 tons, the high
record. Consumption, however,
shows a longer stride; last year it
was 268,500 tons, or 2O.5 per cent
more than 1904, and in 1906 will
probably total about $4,000 tons,
the record. An increasing proper
ton CT the domestic consumption is
being supplied by imports from Mex
leo and Canada. Exports this year
show a marked falling off, but when
the extraordinary demand from
China in 1905 is wiped off the led
ger the total shipments in 1906
look more favorable. In fact, some
of the more important European
countries show an increased consum-
ption this year.
Copper prices average about 5
cents per pound better than 1905,
and in the 18th month of 1906 iuc-
tuated between % and 22h cents
per pound for Lake copper, f. o. b.
New York, 21h and 22.30 cents for
e%lectrolytic, 21A and 21B cents
for casting; while standard copper
sold at London at f97 to f1O1 ISIS
Cd per ton (21.05 to 22.11 cents
per pound) THE Mining World.
WISE ADVICE.