The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-03-14
RAY CON- s GREAT
FUTURE ASSURED
Copper Expert Gives Figures of
Certain Output of
Big Mine.

Ray Consolidated is about to increase
its working force and put the mine in
condition to supply ore for it's new con-
contractor, which is expected to go into
commission by the end of this year. The
concentration now being built Will have
capacity to treat 5000 tons of ore daily,
and it is quite possible that it may be en-
larged to 10000 tons daily capacity within
year or two" says George l.. Walker,
in the Boston Commercial.
1T is now certain that Ray Consolidated
will make one of the largest producing
mines in the United States. A total of
45,OOO,OOO tons of ore which viii average
IA per cent copper has been definitely
proved by churn drilling operations so
far, and surface indications give every
reason for belief that at least 100000
tons more ore of similar grade will be
developed in the property.
Il figure that Ray Consolidated ore Will
be mined and treated at a gross cost of
s.. % ton, the expense made up as fol-
lows: Mining (underground), 80 cents;
transportation, 20 cents; milling, 40 cents;
crude Ore), 40 cents; refining and selling,
60 cents; management and incidental eX-
penses, 10 cents. Concentrating tests so
far made indicate that slightly more than
20 per cent OF the gross copper contents
of the ore will be recovered, which means
between 30 and % pounds of refined copper
per ton Of ore treated. Figuring on this
basis it would appear that Ray COnsOli-
udt6G copper Will cost an average OF BOD
cents per pound.
Figures Probable Earnings.
1.-The concentration now being erected is
expected to treat approximately 10000
tons of ore annually. This should mean
production of 6O,O00,UeO pounds of cop
per- If this amount is produced al a cost
of eight and a half cents and sold at
lS cents, it will result in profit of four
and a half cents per pound, or $40 per
or {
capital stock. If sold at 10 cents. it should
result IN earnings of $3.50 per share. After
the capacity of the cOncentraIor has been
increased to 10000 tons daily the COM
tons and produce between 80, coo, 600 and
lOO,00,OOO pounds of copper annually. Such
an output will result in earnings of 81
per share on 13-cent, and over SO a share
on 15-cent copper market.
If It's ore were extracted at the rate of
10000 tons daily, the life of the Ray Con-
solidated property would probably not
greatly exceed twenty-five years While
the ultimate investment value of the stock
would depend on the average price re-
ceived for its copper, l feel that it is safe
and conservative to assume that it will
be at least IA cents throughout the COM
ing 25-year period, and that this will
practically guarantee average net earn
ings of s. a share on Ray Consolidated
stock, assuming an output of 10000 tons
of ore daily.
Is Attractive investment.
IF the purchaser of the stock at present
prices sets aside and invests 81 per share
annually for twenty-five years, it will
accumulate between $40 and $50 per share,
! thus considerably more than wipng out
| the original investment. In addition to
| this he should receive an average of 81
| per share annually, equivalent to per
! cent on market value of $50 per share
! for Ray Consolidated stock
| In foregoing ] have not taken into con-
| sideration the fact that possibly 10O,00(
/ or 100000 shares more stock may have to
/ be issued to raise the money necessary to
! increase the cOmpanys reduction capacity
/ to 10000 tons daily. This would make a
| slight change in the figures; but, in my
| opinion, savings in costs at various points
made possible by the greater volume OF
| operations, will fully offset this increase
| in capitalization.
THE Ray Consolidated company is fully
! financed so far as its present plans fol
| development and equipment are concerned
| II has built railroad spurs to it's mine
and smelter Though a maximum cost
| of 20 cents per ton for ore haulage Is
assumed, the management believes this
can be reduced to Is cents. The company
is building not only its own concentration
| but its smelter also, the latter being 10
Gated about 200 feet from the mill Re
YerberatOry smelling tests on the concen
trates have been made recently with very
satisfactory results"