The Calumet news., 1911-01-24
eoLDFlELo CONSOLIDATED.


Coincident with the receipt by the
directors of the proof sheets of the
annual report of the Goldheld Consol-
idatCd for the fiscal and calendar year
OF 1870 there came a sharp raid on
the stock which broke from above Z
10 5Ia. with the subsequeE, recovery
the same day to 6is. II appears that
this selling was based upon the state
ment made therein by the general
manager 10 the effect that he has no
reason 10 believe that the mine cannot
produce from the ore now exposed
tonunge equal 10 about twice that OF
the year just closed. This statement
is undoubtedly true, but the pubica-
ton of # should have been followed by
tine balance of the managers remarks
To- the effect that the above statement
does not measure the possibilities Of
the property. for the prospect for fur
ther development g. good, and there IS
yet no logical ground for fixing any
term for the probable life OF the mine.
AS Mr. Finlay very properly says, il is
exceedingly difficult TO measure ore
reserves IN a property where the num-
her Of tons of ore is less important
than the value per ton and where the
irregularity of the shape and richness
Of the ore bodies is so great that the
va'ue cannot be determined except by |
the actual extraction of the ore.
These conditions being facts. there |
is nothing for the management To do
but TO extract the ore as economically |
and rapidly as possible that the values
I'm the property may be paid TO the
shareholders at the earliest possible
moment What proportion Of these
annual disbursements must be con-
sidered as a return of principal. and
what proportion as income, is some
thing that can never be determined
until the ultimate reaching of the linn
its Of the ore-5earing portion Of the
companys property
We believe that the manage ment Of
the Goldaeld Consolidated is intelli
gently opening up It's ground and econ
cmlcally extracting its o.e, and that
the executive officers are pursuing the ]
proper dividend policy and keeping the ,
company In strong financial condition. ,
Il is the ucertain regarding the life ,
Of the mine, which uncertainty must {
continue to exist, that makes the ratio
of selling value 10 annual dividends 50
small. N
Now. to refer to the results Of the \
past year. The report shows the COM ,
lr = Of n
value Of approximately $1l, 100000, the I
ore averaging a little i'm excess of $40 n
per ton. The total operating expenses +
NJ all kinds amounted 10 50 a ton, or @
g.. 100 coo. giving a net operating profit
Tor the year Of $7,3i769l, which Is
little I'm excess Of s. per share on the \
outstanding capital of 3,j59.14S shares. o.
The company had. at the end of the IL
year a cash balance Of $1.549. .OO00, al 4
so 5ullion in transit and by-products q
settlement of the value of S494.O44. %
md no debts a
Reference is made i'm the. report TO
he fire last April which temporarily
.urtailed production and led 10 the V
ubsequent enlargement of the refin- a
.rv and increase I'm the daily capacity d
If the mill from $50 10 $50 tons. in
While the report Of the general man 81
,ger for the month of December does
rot show any new ore developments,
here is nothing unusual regarding r,
hat and we believe that very full, "a
reports which are made ii
Cd the directors regularly will show a
rCurrence OF discoveries Of new ore
,odies with depth, but the extent and Il
.alue Of the same can only be deter
mined by their actual uncovering.-
Iaydon, stone q Co. II