The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-06-08
DON'T LIKE truth
ABOUT OUR COPPERS
Eastern Journal Refuses to
Accept Plain Figures of Ac-
tuaI Performances.

Severe criticism was recently visited
upon Hayden, stone a CO. by The Engi-
neering * Mining Journal. on account
01 extravaganza claims alleged to have
been made by them OF loW-COst prOduc-
ton and large tonnage OF the pOrphyry
copper mines. The journal pointed out
that such claims were hurtrul to the
"Oid-line" producers, which is no doubt
true. That only facts were dealt in
by Hayden Stone x co. is made known
with considerable emphasis. however.
in the current weekly market letter
OF that house. 1t says, in part:
In the matter OF Miami and Utah
Copper costs, which are cited as espe-
cial examples, 1t is quite true that
cents a pound is the public estimate
that Mr.. Charming has made Of Mi
amis costs. but fl should be noted that
this is practically the maximum cost
OF operating. IL the Miami were to
obtain cost of or Z cents pound,
il would not impair MIR. Channing's
standing as an engineer one whit, be-
cause he had previously made an esti-
mate OF cents, but rather strengthen
it, because Of his conservatism. Mr..
Claiming, however, has made the state
ment that Miami should recover 40
and cost of "a cents a pound allow
for a cost of 50 per ton of ore. 1t
would indeed be strange IL the Miami
were not able 10 handle It's ore, IN
GLIDING every expense, for 50 per ton.
Last year Utah Copper handled its
ore for less than 81. and the only diff
ami, favorable to Utah Copper, is in
the cost Of mining, and here there is
surely not a difference OF 81 per ton.
Utah's Present Costs.
"As to Utah Copper. our statement Of
costs has to do with what they are;
not with what they were. 1t is quite
true that the cost of this company,
as the Journal states, in 1903 was S.4S7
cents, and even in the first quarter OF
1910 was S.43. The month of March
however, was the first month in which
this company showed its true ability
under present conditions. The output
increased, in round figures, from 6,000,-
900 pounds in February, to 100000
pounds in March. the actual cost OF
production in the latter month, includ-
ing every item, was 7-9S cents.
Finally, to sum up the whole thing.
our position in the matter may be
stated in the old adage. that the proof
OF the pudding is in the eating. Our
predictions. made years ago. before a
single pound of copper was put out.
regarding the two present producers
in this group, Utah Copper and Nevada
Consolidated. has been more than borne
out in every respect. In a letter issued
over our name, for instance, September
1905, regarding the Nevada COnsOli-
dated, Mr.. Claiming was quoted as fol-
lows. L therefore am Of the opinion
that one may safely figure on a daily
production Of 1000 tons Of ore for a
great many years to come, and there
is a strong possibility that this pro-
duction might even be increased to
$500 or 5000 per day, without mate
rally affecting the ore reserves And
again: From the above IL will be seen
that the net cost of copper per pound
in New York. deducting the value OF
the gold and silver produced. will be
7.03 cents per pound, which is a very
good figure compared with other cop
per producers Today, Nevada is treat
ing better than 5000 tons or ore daily
and it's cost per pound for the year
ended Sept. 30, 1909. when only a por-
ton of its plant was in operation. was
TAI, and in different quarters IL has
shown cost of less than z cents
pound.
How Dividends Compare.
'In letter that we issued in 1907,
regarding Utah Copper, we said that
with the entire plant operating. the
product Of this company should be in
the neighborhood OF 55,0O0.OOO pounds
Of copper per annum.' and, further. we
to produce at cents at the present
time as extremely satisfactory, and in
it's complete success in pro-
ducing at as low a cost as cents a
pound as time goes by
Looking at the matter in the broad
est way, the fact is that Utah Copper
and Nevada Consolidated have a COM
bined output Of over $50. 900. 900 pounds
of copper per annum, and are paying
13-Cent metal market Of over S6.000.000
per annum. This is just about equal
to the dividends paid in 1909 by all the
copper mining companies in the Lake
Superior district OF Michigan, though
their combined annual output is about
loo. 900. 900 pounds greater than that of
Utah Copper and Nevada Consolidated"