Daily Arizona silver belt., 1907-06-28
REAL CAUSE OF
 DECLINE 0F ]. ).
Not Because of Unfavorablo Results in
 Opcrations-With Fifth Furnace in
 Commission Company Can Decrease Cost of Production to Great Extent.

| George l.. Walker in his last copper letter regarding Old Dominion says: Old Dominion g recent decline does not reflect unfavorable results or dis appointment in development or explora- tory work at the mine. The stock went down in sympathy with the rest of the
 market. About two-thirds of the new
 stock issued recently was taken by stockholders and underwriters get 4,000 shares at $50 a share. It is possible
 that considerable portion of this new
 stock has been sold and that its sale
 helped to precipitate the decline
 It is understood that Old Dominion
 has recently earned as high as $250, 900
 net profit in single month. It's aver
 age for four months past, however, has
 been between $l50,000 and $200,000, or
 at the rate of $6 to s7 per share annu-
 ely on its stock. It is said that the
 plan to resume dividend payments on
 the stock has not been abandoned, but
 that payments of $l per share quarterly
 will be made, beginning month or two
 henee '
 It is still costing Old Dominion con
 siderably more than it should to pro-
 duce oopper-about 1872 cents per pound. This is due in large measure
 to the fact that extensive underground
 development is under way, while two
 shafts are being sunk and many sur
 face improvements are under way. The
 Old Dominion portion of thu property
 alone has 800 men on it's rayrolls.
 Another factor contributing to high
 costs is the necessity of doing all the
 work and pumping an immense flow of
 water from the west end of the mine
 through one shaft. The two new shafts
 are not yet deep enough ty be available.
 The one in the west end of the mine,
 on the 10th level of which it is planned
 to install pumping plant of sufficient
 capacity to keep the workings free of water, is now down to the 9th level
 The west end of the mine is Atill flood ed, and the immense body of self Aux. ing ore developed a year ago, which
 carries from l5 to 20 per cent copper
 IS not supplying any portion of the
 company's present production.
 Old Dominion continues to get a very large portion of its sulphur from Naco- zari concentrates. These do not carry
 as much sulphur as could be desired
 and their extreme fneuess causes them to choke up the blast furnace and great ly reduce the company s smelting capac ity. They are very rich in copper. Of late the Old Dominion has been getting an Increased portion of the required sulphide ores from Its own mines and . others in the same district
 The small pyrites vein cut two years . ago on the 10th level near the shaft has been drifted on for distance of ! 300 feet. It has furnished consider able quantity of concentrating ore. The entire width of the drift is at present
 in s per cent ore carrying a good excess of sulphur. The vein will be developed on other levels of the mine. It prom l, ises to become a valuable source of pro duction. As a result of the treatment of ore from this vein and the new ere
 body on the l4th level and elsewhere the concentrate from the Old Domin ion s own milling ores has recently been running about 30 per cent sulphur.
 When the rich ores in the west end of the mine are again available and tho supply of sulphide ores comes chiefly from its own mines, the treatment of 5 the Nacozari concentrates will be dis continued. By that time the company
 will be In n position to produce $500, 900 to 3,000,000 pounds of copper from it's own mines, and the cost of it's copper } should drop below 10 cents per pound } After it's fifth furnace of 400 tons daily capacity goes into commission. and it is now nearly completed, Old Dominion should be able to earn on a 15-cent
 copper market more than it is at pres ent with copper at 25 cents.
 The bonanza ores developed in the ' Old Dominion mine are of even greater importance than is generally supposed , Their significance Is that the company will have constant supply of very high grade ore to mix with those of ordinary grade for great many years
 to come. When 1t has secured an ade- : quate supply of suiphide ores In Its
 own mine, as it undoubtedly will at l slightly greater depth, the company will ) be able to produce very large amount , of copper at cost which will compare favorably with that of other important , producing mines.
 The total capital stock of the Old
 Dominion company is now 100000 , shares. A price of $40 for this stock , means total valuation of $l2,o00,O00 This is market capitalization of about 50 cents per pound for the company $ present annual production, A profit of 10 dents per pound, therefore. means : net earnings of 20 per cent on the com } pany's capital stock.
 Old Dominion s property Is selling In ! the market for about the same amount
 as osceola s or Quincy's. It will soon be producing from its own ore consid.
 erably more copper than either of them, and within year should make the low
 est cost copper of the three. I believe that the time has com to buy Old Do minion for investment. This stock rep
 resents very large property which
 contains some extensive ore bodies of
 very high grade ore. It is equipped
 with complete up-to-date mill and smelt-