The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-11-02
CONCERNING GRANNY.
Earnings Nearer $40 Than $iS-Hid-
den Creek Property undeVeloped

den Creek property OnoeNeioPeo
The statement yesterday that the
earnings of the CRANKY company for
the Scptember month were approx
mately $4,000 upon which this morn
ine's buying is based. has given rise TO
conclusions which are grossly mis-
leading. Estimates OF earnings have
been made on this basis, taking twelve
times this amount. $4,000, which
gives yearly earnings OF s2,l60,0Oo or
M the rate of close TO SIS per share
upon the company's 10000 shares.
As matter OF fact. Granby's nor
NAL earnings arc in the neighhorhood
of Sig5.0OO to $4,000 per month o.
at the rate of about $l.250.000 per yea
at the most on It's present production.
This Is equivalent TO approximately
$40 per share which may be accept
cd as Granby's earning basis for az
least twelve months TO come. accord
ing 10 director OF the company.
The abnormally high earnings for
September are accounted for by the
record production through the treat
mcnt Of a large quantity OF ore. carry
ing high precious metal values in or
der 10 take advantage of the present
high price of silver. During the month
yield of 5.29l ounces of gold. new
high record and of silver 349o2
ounces was obtained, Precious metal
recoveries for September We're APP
proximately St2S.0Oo as compared with
100000 for August, an increase of
some nearly $4,000 in this item alone.
II is not expected that this output of
gold and silver can be continued, as
the run of the mine does not carry as
high precious values as the high |
grade ore treated last month.
In reviewing the situation. there |
fore. we find that the unusually hieh !
earnings for the month We're caused
by the treatment of an eXtraordinar- /
ny high grade of ore for the purpose /
of taking advantage Of the high rUl- !
ing prices for silver and copper to- /
cether with the increase in produc- /
ton caused by having in operation |
the full battery of eight furnaces. This /
record cannot be kept up month in
and month out for many reasons, the /
most important of which is, perhaps /
the inability 10 procure the necessary
highs grade ore i'm the Phoenix prop
crty. Another reason. and one which
is quite as important is that it is
almost impossible to keep eight fur
naces operating steadily. as there are
always repairs 20 be made which nee
essitate shutdowns from time 10 time
Another consideration which shout
not be overlooked iu tho CRANKY 7iJ
,ati1n is that NJ least S1.25o GOO is -
tc spent ON the Hidden Creek prop.
crty. as yet. out Of earnings. This is
an amount equivalent % On entiy"
Years net profits from present opera
lions and VIII 'enecu-allv preclude any
possibility 81 dividends Tor at least
twelve months to come
1t would seem quite proper for
these reasons. to utter vorG Of car-
tion I'm regard to CRANKY. Tipsters are
,vcrywhcre predicting SlcO for tho
stock m the strength or SIS earning,
and the future Of tho Hidden Cree.
when the facts Of the case
are that Grauby's earnings are nearer
30 per share than Sl5. an5 for the
newt year they will bc entirely alb
sorbod bv the development expense Doe
The hidden Creek property Then too.
while tho hidden Creek property is
mqursticnably am asset If great
worth It rs ms vet nd"ycicpcd. and