Bisbee daily review., 1906-11-16
lKER'S WEEKLY
 COPPER LETTER

tue COmiuR quarter. cuOuiu luc SbOsh decline after the dividend is an nounced it should be bought.
 Shannon interests are talking earn ings of s per share on the company's stock next year. They point to the fact that Consulting Engineer Watson stated in his report that a body or smelting ore showing a length of fSG feet and a width of 80 feet and assay ing from Al per cent to 7.3 per cent had been developed and was ready Tor extraction, and also that other con siderable bodies of smelting ere and extensive deposits of a better grade of concentrating ore than that now worked have bn put in sight. They also believe that the changes in the mill. which are being made along the lines indicated by Dr. L. D. Ricketts, will increase the saving of copper by about 9 pounds to the ton of ore. They also look for better recoveries ln smelting as result of the adequate supply of iron sulphide ores which will be available hereafter.
 It is anticipated that the combina- ton of better savings and higher grade ores will result in an average yield next year of at least 55 pounds Of copper per ton of ore treated. As the capacity Of the mill is to be in creased 40 per cent and that of the furnaces in the smelter 55 per cent, it would seem safe to figure on a treat ment of 300,000 tons of ore, and if the average yield is 55 pouns per ton. the company's production will amount to lG,500000 pounds of fine copper. This larger volume of production will help i to reduce operating costs proportion ately. and il is believed that Shannon ores will be handled hereafter at all average expense of SC per ton, making the cost of its copper slightly less than II cents per pound. If it's prod uct is sold at an average of 20 cents per pound, therefore, it will result iE | a profit of s per ton of ore handled. i or s1.500.00o on an annual output of 3cO,O00tons of ore. equivalent to g [ per share net on Shanncr's 600 0U) shares of stock.
 The current selling price of Shan non stock represents very low capi- | talization for its present and prospec- | tive copper production. A price of $1e.50 per share gives it's properties
 
 bonds included, of $5,310,000. This is equivalent 10 Accent per pound cap italization of l3.000, 900 pounds of cop per, the rate at which the company is now producing from its own ores, and ! only about g cents per pound on the $500 GOO pounds which the company is likely to produce next year.
 These figures would seem to make it very plainly apparent that Shannon stock is still selling much too low, as its production is entitled to a capital ization of approximately co cents per pound. which would mean a value of go per share for shannon stock, pro- vided, of course, that its ability to l mine and treat 300,000 tons of ore annually, which will yield 55 pounds of copper to the ton, at a grcG5 cost of $6 per ton, is demonstrated. Arizona Commercials mine manage m ent is about to undergo 6 change. Superintendent Sultan, who is mayor of the City of Globe, has resigned. He is 10 be succeeded by II. V. Shell, ! who has been one of the underground | engineers at the Old Dominion and United Globe mines for some time past. MT. Shell is young man Of unusual intelligence and ability, and il is believed that his selection is a very fortunate one for the Arizona | Commercial company.
 ! Greene Consolidated stock advance
 on the announcement that President
 Greene, with corps Of engineers em-
 ployed by the company, was in Butce, the guest of John D. Ryan, managing director of the Amalgamated Cop | company Later if was announced
 that Thos. F. Cole was also in Butte
 and that the entire party was about to
 leave for Cananea. Mexico. IL seems
 that the errand of President Greene
 and his engineers to Butte was to in.
 spect the mining. milling. and smeit
 ing systems employed by the several Amalgamated companies with a view to making further improvements in equipment and introducing new econ.
 omies at the Greene Consolidated pror, lerty.
 It is Tot known that any nesoda
 lions are pending or likely to be opened immediately for the acquire
 ment of a large interest in Greene
 Consolidated stock by Amalgamated
 Cole or other leading copper interests:
 but there can be no doubt that Greene
 ConsoaidatedS operations are being watched closely and its value and flu : ture possibilities carefully weighed and measured
 2 The largest copper irit,-,lfs aa3 now very well satisfied that coppel production .s entitled to capitaIiza
 capitalization of 50 cents to $I De,
 pound, the exact amount depending up on the necessary cost of production ] and the available ore resources ! Greene Is producing at the rate O,
 about 60,00o,600 pounds of copper an lnually. and $zT for its stock gives thi. lproduction capitalization Of s5 ceats
 per oound.l's orc deposits arc suffi