The Washington herald., 1916-04-01
.KENNECOTT HAS
UNUSUAL rise
Copper Concern Controls the
Greatest Supply of This
Commodity in World.
PAYS BIG DIVIDEND
corporation S Interests Represent About
$3O.0OO.00O in Cash and Out
put of Its Mines.

Inc rapid rise during the past wear
OF hennecott to one of the foremost
copper producers of the world. has
peen one of the most important de-
veiopments of the present copper mar
ket' From comparatively small bu,
fich producer prior to 1914, Rennecott
through the increased output from It's
own, mines. the acquisition of the
braden property in South America
ana a large interest in Utah Copper
company. has brought its production
at the present time up to 2l6,0OO OOC
pounds per annum, based on the pro-
| portionate ownership in the respective
companies. or about one-eleventh OF
the worlds normal output of the
metal. With the increased capacity
now being provided at its South
America property. 1t will have a pro-
uuctlYe capacity of over 300 900 oOC
pounds. making 1t the worlds great
est copper producer.
kennecott Copper Corporation owns
| stock of various other corporations
In addition to its ownership of its
Alaska properties. the Kennecott and
the Beatson mines. It owns all of the
stock and bonds of the Copper River
and Northwestern Railway, over 50
per cent OF the stock of the Alaska
Steamship Company. practically the
entire issue of the Brsden Copper
Mines Company and 404.504 shares OF
the Utah Copper Company.
In its Braden property, the COM
pany has one of the largest low grade
copper mines in the world, while In
its Alaska properties. 1t has not only
the richest known ore deposit, but its
mine holds the distinction of being the
| lowest cost copper producer The
ownership of these two properties
high grade proposition capable OF
great flexibility in earning power, and
low grade mine with large tonnage
assuring a long life with great in
trtnsic value-together with the &C.
QUESTION of its large holdings in Utah
Copper and other companies. make
kennecott proposition of grea,
| potentialities.
Has Large Holdings.
Kennecott based on the present pro-
duction of its mines in Alaska and South
America and allowing for its equity in
Utah Copper and other holdings, at 81
cents copper is earning at the rate of
over s43,ooo,ooo per annum. or $3.50 per
share on its 2,7so.o9s shares outstanding
Kennecott's holdings comprise inter-
ests in some of the worlds largest low
grade copper properties. Utah Copper
based on the last estimate of ore reserves
or 342,SoO,ooo tons, has a proven life of
thirty-four years: Braden with its
| ll3. $50 tons. life of thirty-two years
on the enlarged capacity Of its plant,
while at the Alaska properties where the
ores occur in vein formation and It is
not practicable to block out a great
number of years supply ahead, there is
five years tonnage indicated.
Computations based on the total ore
reserves of the various mines Indicate
total value to be won from these
properties at IA cents copper, Of over
$5n.Oo,0oo. Allowing for amortization
and redemption Of capital with Z per
cent return on the investment, assuming
profits Of but five years for the Alaska
properties. railroad and steamship COM
pany indicates a total present value of
s2l3 100000, or SIC per share on Kenne-
colt stock.
1t Is estimated that. taking into consid-
GRAFTON its proportionate ownership In
Utah and Braden. the Kennecott Copper
Corporations interest yesterday repre-
sented in cash and copper on hand an
proximately s3o.OC0,OO0. The COMPANY
has paid its first dividend of 81 per share
for the quarter ending March 81, amount
ing to s2,sO00Oo.