The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-05-21
ANACONDA REPORT.
Past Seasons Earnings Were the Most
Favorable Known to Company.

EdVOTdUl6 huO"u w SVluPdiAJ.
The report of the Anaconda Copper
company for the year ended Dec. 81,
1906, bears out the contention Of Anal
gamated Copper interests that the pro-
duction of their mines last year showed
little il any decrease, notwithstanding
the extraordinary demand for the metal
in this country as well as abroad, says
the Wall Street Journal. The showing
Of the Anaconda, however, from the
standpoint of earnings, is the most fav-
orable the company has ever issued, re-
year. Although the company produced
nearly 100000 pounds less copper in
1906 than in 1905, it's earnings in
creased S3, 123,S41, or 54,6 per cent. 1t
is figured that tho corporation received
less than 10 cents pound for its cop
per last year, and in view OF the fact
that electrolvtic copper is now selling
this year will be much better.
The production of Anaconda in 1906
aggregated 81 4,963,s9S pounds of cop
per, and its net earnings were SS,S42,-
669. The ratio of earnings per pound
Of copper produced was 9,34 cents
pound. The cost of production per
pound is estimated at 10 cents pound.
1t would seem that the company Sc
cured around 10 cents a pound for its
culations are made on the total net
earnings of the company, including in
terest amounting to $25S,500, as com
pared with S13f LOG last year; profits
on gold and silver produced, which
We're large, and from other sources.
In 1905 the Anaconda Copper company
produced 95,443,730 pounds, and profits
aggregated $5,71S,S23, or at the rate
of $50 cents per pound Of copper pro-
duced.
In the current calendar year the
cost of production will be close to 1880
cents per pound, and in the event of
the company's securing an average of
"a cents pound for its product there
should remain profit of 1880 cents a
pound, which would apparently make
the earnings for the year on an esti-
mated l00,Oo0,000 pounds of copper,
Sl3,500,O0O, figure equivalent to is
per cent on the outstanding capital
stock of S30,000,000. The net earnings
of the Anaconda last year were at the
rate of 29.4T per cent on the capital
stock, and payments to shareholders
aggregated 25 per cent. In other words,
the surplus remaining was equivalent
TO 6.41 per cent. Based on payments
of $l.75 share, quarterly. the Ana
the rate of sS,400,000 a year, or 28 per
cent to stockholders. Earnings last
year were 1,47 per cent in excess of
present dividend requirements of 2S per
cent a year. The prospective earnings
Tor the current year are II per cent
IN excess OF the present dividend rate.
The Anaconda Copper company, based
on estimated earnings of S13,50O,OOO.
could pay So share this year and have
remaining a surplus of 100000, a
mngure equal TO 10 per cent on the stock.
The total surplus of the Anaconda Cop.
per company is now $9,lS3,241, n yery
satisfactory showing, when the fact IS
taken into consideration that several
years ago, heavy amounts written off
Tor depreciation, resulted in an entry in
the tn g ledger IN red ink, of more than
S2,OO0,OOO. Based on the Anaconda g
report, the earnings of the Amalpamat,
ed copper company for the calendar
year l9oo,, were very close to 500. 600
ouo, provided there was no material in
crease IN the production of all mines
Earnings OF $22, 100000 would be eou;v.
alent TO l4.3 per cent on the AmaIgs.
mated copper company's outstanding
STOCK OF Sl23 ,SS0,000. However, tho
ANA a9ai gamated Copper company s wear
ended on April so last, and deliveries
Oh copper, IN January, February, March
auG Aprll were made on a very much
GGlgher range of prices than in 1905
Consequently, the earnings of the Anal.
samatcd copper company, including on.
~ the equity to which it is entitIed in
anaconda Copper, will be considcrabI,,
larger Tor the fiscal year than for he
calendar year 1906 VIZ