The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1913-08-12
BUTTE q SUPERIOR.
President Maekelvie Pleased With
Conditions at Property.


President y. Bruce MacKelyie of
very well satisfied with conditions af>
fecting the property. lie is particular
~ well pleased with the advance in
the price of the spelter inasmpch as
each cent increase in the price OF
spelter means an addition Of approx
mately Sl,0o0000 To the oompany's
net earnings ON it's present basis of
production. In an interview with the
Boston Financial News ne says:
The second section of the mill is
now i'm operation and the last reports
from the property stated that an aver
age OF better than Loco tons per day
was being handled This was not for
single day alone, but for the last six
days in July. The total production of
zine in concentrates for July was close
10 100000 pounds. and earnings
should aggregate better than 100000
for the month, comparing with $4,000
for June
Butte q Superior is now i'm "A posi-
ton TO take fun advantage of the high
price of spelter, which is selling at
slightly better than 5ia cents per
pound, East ST Louis. While we do
not sell our spelter direct we have a
very favorable contract with the
American Metal Company which, as
sures us Of the benefit of each increase
In the price of the metal our concen-
trates are shipped TO the American
-
made on the basis of zinc contained
therein on the ruling price of spelter.
The proposed changes in the tariff
on spelter will work no harm with
prices at these levels as it is estimated
that spelter cannot be landed i'm H. st.
Louis at much under 5.Si cents per
pound. Indeed, do not anticipate
any trouble through the tariff and be-
lieve that within the next few years
We shall see the United States an cX-
porter rather than an importer, with
prices Of course, on a higher basis.
Were we to figure our costs on a
per pound basis, instead of per ton
Of concentrates produced, we should
show cost per pound of about cents.
With an ultimate production of 1900
tons of ore per day averaging 20 per
cent zine and allowing price of
cents per pound for spelter, Butte a
Superior should earn close to IS peE
share. Present earnings should be
close 10 50 per share.
As To the Minerals Separation Com
IL
as yet in a court of last resort by any
means, and an appeal has been taken
10 the higher court, a decision in favor
Of the Minerals Separation would en-
tail royalty payment Of not more
than 100000 per annum. our rights
To the Hyde process were acquired for
a certain stated amount and of course
this sum would have to be charged up
To profit and loss i'm the event of an
adverse decision. We DO not regard
this suit as of great Importance as ar
fecting our company,
There is still the apex suit with
Senator Clark and the Elm Orlu pend
ing hut we expect that an adjustment
Of this dispute will be reached in the
near future.
Altogether Butte n Supcrior's pros
poets are very bright. We shall con-
tinue to increase our production until
il reaches l,200 tons per day and pos
sibly the mill may he able to treat
above that tonnage. This with an add
vanced price for spelter which author
tiles on the metal anticipate, should
result in further increase i'm earnings,
as each one cent increase means ST.
100000 more per annum to Butte d
Superior's net earnings, an amount
equal To better than SO per share.
There is some litigation, the Minerals
Separation suit and the Elm Orlu dis
putc both of relatively slight import
ance yet to be settled. and after that
all is clear sailing. Dividends will bC
inaugurated the moment we have ac-
cumulated a sufficiently large working
capital and an ample surplus"