Bisbee daily review., 1908-08-13
BOND ISSUE
OF 100000
TO IMPROVE
Property Of the Arizona Com
mercial company-MilIion
Dollars Has Been Expended
in Development Work.

BOSTON. Aug 12.-In offering
stockholders of the Arizona CONNER
cial Copper company $500, zoe of 6
per cent convertible bonds at par,
President y. l.. Amstef says In part
IN a special letter accompanying the
offer.
This issue mas betn decided upon
oIsly after a thorough consideration
of the reports on the recent develop
ments Of the property, the directors
deemed it highly advisable to immedi-
ately provide the company with suffi-
Gent working capital to complete the
Developments now ia progress and to
pay for the erection of B smelling
plant Il is the opinion of the man
agement that the money received
from tae bonds will be more than sui
ficient 10 pay for all the contemplated
developments. pay for the installation
Of the smelling plant and put the
property on a diyidend-earnin basis
The company has been engaged for
several years in carrying on the ex-
tensiye development of its property,
and in this development and the build
ing of its railroad. it has expended up
wards Of $1,000, goo, in cash in addi-
ton 10 the original purchase price Of
the property.
This development has disclosed
large and valuable ore bodies The
company has from time TO time
shipped some ore TO smelters, which
has yielded about 100000 net. after
deducting heavy treatment charges.
These shipments, while they yielded
the company profit, by no means,
returned the profits which the compa-
ny should have made. The charges
for smelling at the local plant have
been about IS to $3.50 per ton. The
actual cost of such smelling should
not exceed 50 so to 81 per ton. Some
of the ore has been shipped to the
smelters outside of Globe, where the
smelling charges were lower and the
ore yielded a better profit, but the
freight rates of from $3.50 to SO per
ton of ore operated heavily against
the company. The freight item alone
of $3.50 TO SO per ton on a daily ship
ment OF zoe tons would be equal to
So per share per annum on the entire
capital stock of the company. These
extra expenses will be done away
with as soon as the company has its
own plant
Plans and specifications are now be-
II
a capacity of 300 tons per day, and il
viii be so constructed that with very
little additional outlay il can be in
creased to 500 tons per day. Later
when the mine developments are fur
Their advanced, it may be increased to
1000 tons per day with no very large
additional cost.
There should he no difficulty in sup
plying a 300-ton plant for several years
from the ore already developed and
with the 500 and 700-foot levels
opened up, the ore supply should be
doubled or trebled. The 9th level
should be reached by September Is
and the 700-foot level by NoyembeI
Is.
In figuring the cost of producing
copper at our own plant, our manager
states that assuming the ore carries
only per cent or per cent copper.
and with the metal at u IL cents per
pound. the company could make a
net profit of to 4 IL cents per pound
of copper produced He figures that
crediting the silver and gold values
TO the operating cost, the company
can produce copper at total cost OF
s cents yer pound, delivered in New
York. refined and sold.
/ believe that the past six months
development has done more to i'm
prove and demonstrate the intrin
sic value of your property, than the
three preceding years. Never in tbs
history of the company did the prop
erty look so well or had so bright q
future as at this writing. I believe
that with the smslter in operationtht
company should be in a position &c
earn So or "a per. share per annum OF
its capital stock, with copper at tbs
present price Should the ore in
crease in richness with depth as
believe il will, and with the smeltin;
canacity increased. the net earnings 0
the company should be much greater