White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1916-07-23

fee of Mr.. Jos. b. Cotton, general
counsel of the company, is signif-
icant: The financing now proposed
is merely preliminary to contemplat-
ed financial arrangements under
which it is proposed, eventually, to
pay off all existing floating indebt-
edness, and to provide for treatment
plants and mining operations on a
reasonably large scale"
With $4,000 900 tons of ore in
sight, and a process devised where
by this ore can be made commercial,
il would seem as though Consolidated
| Coppermines should have no difficult
ty In financing the erection of a very
substantial plant.
As a speculative issue anywhere
under three dollars, with apparently
a reasonable assurance of active OPP
erations, we recommend Coppermines
stock.
BIG FOUR EXPLORATION: The
following letter written by Morris P.
Kirk, president of the company, has
been sent to the stockholders:
Shortly after the organization OF
the company, the directors consider
ed that the company's actual and
prospective earnings justified the
payment of dividends at the rate of
five cents t5c) per share per month
The price of zinc was hight to 90
cents per pound-thereby insuring
the profitable operation of all the
company's properties. At that time
we fully expected to have our new
mill at Atkinson in operation by June
LIST. and the operation of this plant
alone tat zinc prices. Their obtained)
would have yielded enormous profits.
There have, however, been serious
delays in securing equipment and ma
ehinery for our new plant, postpon-
ing its completion about two months
eve expect to have it running sue
cessfully by August 1st), and in the
meantime, the price of zinc had
steadily declined. reducing the earn
ings at our other properties.
I'm view of these facts and for the
purpose of establishing the company
on a sound and conservative basis
and at the request OF eastern stock
holders, we have decided to make
dividends payable quarterly. While
We expect the new mill at Atkinson
on the present price of zinc tShc
per pound) TO show earnings far In
excess of five cents per share per
month, on the present issued capital
stock, we desire to build up a good
surplus, fortify the company against
misfortune and insure the payment
OF regular dividends without inter-
ruption for a long time to come. BY
following this policy a substantial
surplus will be created, permitting
us to take advantage of new oppor-
tunlties, extend our operations ana
become a real factor in the mining
and smelling world.
For your benefit, we will state
that u engineers figure that the
tailings deposit at Atkinson alone
will return In net profits Chased on
the average price of metals for the
past twenty years.. which was as fol-
lows: Silver soc an ounce; lead
$500 a pound; zinc $40 per hun
dred, approximately s1S0.000 per
year, or As per cent per annum on
the par value of the stock"
While in the above letter Mr.. Kirk
has given possible profits with metals
at an average price OF the past twen-
ty years, you must consider that at
present prices. this company is in a
position to earn a great deal more
money. Zinc is the principal pro-
duct from their Park City operations,
and zinc is today selling at 9hc. One
of the largest zinc buyers in the east
offered to contract for the balance OF
the year for the entire zinc output
of the Big Four at SC a pound. The
offer was refused. The management
is confident that the drop in zinc Is
only temporary and that 1t viii
again sell at higher figures.
A careful and conservative esti
mate of the Park City holdings show
that with zinc at &c a pound, they
have over $1,000,000 net in sight
On a capitalization of 100000 shares
this would mean $500 a share al
this point alone, and with a low
price upon their products. You must
take into consideration the numerous
other holdings of the Big Four, any
one of which might easily be worth
the present price or the stock on any
improved condition.