Weekly Arizona journal-miner., 1908-03-04
oUooENHEIMs IN THE COPPER
FIELD.
Crrom wednesday. Daily,


nation in the stock markets, only 302,.
200 shares changing hands in New
York, and a very much smaller number
in Boston. The copper situation re.
mains practically unchanged, about the
only thing Of Importance being the in.
PRODUCTION OF n new interest which has
brought three new factors into the cop.
per producing world, namely. the Gug.
gcnhcims, their associates and friends
and the Utah Copper, Nevada Consoh.
dated and Cumberland Ely properties,
in all three OF which they own a con.
siderable interest.
That the Guggenhcims have been
heavily selling American Smelling, es.
pecially tne common, is well known, and
that the money thus acquired is to be
be used in purchasing bonds being is.
sued by Utah Copper and Nevada Con.
sohdated is almost equally as well
known. There is a reason TO believe,
also, that these interests have been In.
ercasing their holdings Of stock Of all
three companies named, at the low
prices that have prevailed the past few
months. The Guggenheims feel posi-.
tive that they have secured what will
eventually prove three of the greatest
copper mines in the world, and they are
laying their plans for the future in
accordance with this idea.
These three mines differ radically
from those Of the other great copper
producing districts Of the world. They
are unlike the Butte, Lake Superior,
Arizona, Tennessee, British Columbia
Cananca, Mexico, mines. Their ores
are great beds or blanket deposits in
granite porpbyry rock, and owe tneir
commercial value TO ages Of corrosion,
teaching and secondary enrichment.
Roughly speaking, the ore deposits
are scores, it might be said. hundreds
of acres in extent. They lie only so
to $50 feet below the surface, and vary
in thickness from 200 TO 400 fees. The
ore deposits are not counted in millions,
but in tens of millions of tons. The ore
is extremely low grade, mostly TO 2%
per cent but in one exceptional case IL
ran as high as 8 per cent.
On n l4-cent copper market the gross
value of the greater portion Of this ore
varies from 1915 TO $4.60 a ton. Min.
ing and concentrating costs will be ex
ceedingly low, however One Of the
companies, now operating, mas demon
stratcd an ability TO handle its ore, re.
fine and sell its product, mt a gross cost
of little more than ~ per ton Of ore.
IL is probable that the cost Of treating
the ore, which has n value Of $500,
will be well under $500 a ton.
At the present time one Of these
companies is producing more than g..
100000 pounds of copper monthly. by
July il Is expected that all three will
be producing and that they will send
80, 100000 pounds Of copper to market
during the last half of 1908. In 1909
they should produce at least 10000.
900 pounds Of copper, or nalf as much
as the entire Lake Superior district,
and equal to about 80 per cent of the
Butte district. Only few mines in
the world make copper at lower cost
than 8 cents a pound.
The capital stock of these companies
have a present gross market value Of
s4O,O0O,0O0. This means capitaliza'
ton Of only 81 cents n pound for the
copper they should produce next year.
Yesterday Utah was quoted at s37
"A share, Nevada Consolidated at s9.12,
and Cumberland at $7.37. II the Gug-
genheims have the right "dope," the
writer expects TO see every man who
purchases these stocks at present prices
and holds them until January I, 1909,
treble his money several times over.
These are not the only copper stocks
that present bargain inducements at
this time. Every copper stock Is cheap,
and none more 80 than Amalgamstcd
at $49.l2, yesterdays quotation. The
fact that this stock is declining at pres.
emit, with the rest Of the market, does
not signify that when the turn comes,
Amalgamatcd will not lead the ad-
vance.
Briefly, Amalgamated is wortn twice
it's present selling price. Since its or.
ganzation the company's average div
dends have exceeded 81 per snare an
nually, or nearly ~ per cent on the
present price ~ the stocks. Though
il has Hoated no new securities, II has
been able to expend more than $780,
100000 on new construction during the
past eight years, has accumulated al.
most 30 per cent of the gross market