The copper era. (Clifton, Graham County, Ariz.) 1899-1911, 1908-08-20
Bond I'sue OF $4,000 To Improve
Property Of The Arizona CONNER.
ciaI COMPANY.

CIdI company.
In offering stockholders of the Ari-
IONA Commercial Copper company
100000 of 6 per cent. convertible
bonds at par, President N. L. Amster
says in part in a special letter &C
companying the offer:
This issue has been decided upon
only after a thorough consideration
of the reports on the recent develop
ments of the property, the directors
deemed it highly advisable to i'm
mediately provide the company with
sufficient working capital to complete
the developments now in progress and
to pay for the erection of a smelling
plant. 1t is the opinion of the man
agement that the money received
from the bonds will be more than suf-
ficient to pay for all the contemplated
developments, pay for the installation
of the smelling plant and put the
property on a dividend-earning basis
The company has been engaged for
several years in carrying on the ex-
tensive development of its property,
and in this development and the
building of its railroads, it has ex-
pended upwards of 81, OO0, 900 in cash
in addition to the original purchase
price of the property.
This development has disclosed
large and valuable ore bodies. he
company has from time to time
shipped some ore to smelters, which
has yielded about $500, 900 net, after
deducting heavy treatment charges.
These shipments, while they yielded
the company a profit, by no means
returned the profits which the COM
pany 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 $3.50 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 81. so to So per
ton of ore opened heavily against the
company. The freight item alone of
$3.50 to So per ton on daily shipment
of 300 tons would be equal to So per
share per annum on the entire cap
ital 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-
ing drawn for d plant which will have
capacity of 300 tons per day, and it
will be so constructed that with very
little additional outlay 1t can be in
creased to 500 tons per day. Later
when the mine developments are fur
ther advanced, it may be increased to
1000 tons per day with no very large
additional cost.
There should be no difficulty in sup
plying 300-ton plant for several years
from the ore already developed and
with the 900 and 7OO-foot levels opened
up, the ore supply should be doubled
or trebled. The 9Th level should be
reached by September 10 and the 700
foot leyel by November 10.
In figuring the cost of producing
copper at our own plant, our manager
states that assuming the ore carries
only 5 per cent or per cent copper,
and with the metal at u l-2 cents per
pound, the company could make a net
profit of to 1-2 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 d total cost of
cents per pound, delivered in New
York, refined and sold.
1 believe that the past six months
development has done more to i'm
prove and demonstrate the intrinsic
value of your property than the three
preceding years. Never in the his
tory of the company did the property
look so well or had so bright future
as at this writing. l believe that
with the smelter in operation the
company should be in a position to
earn So or 81 per share per annum on
its capital stock with copper at the
present price. Should the ore in
crease in richness with depth as |
believe it will, and with the smelling
Ca pacity increased, the net earnings
of the company should be much
greater.