Arizona republican., 1916-04-23
Inspiration

Inspiration
 Inspirations fourth annual report for the year 1915 and the first report by Inspiration as a producing, dividend paying company is a remarkable docu ment.
 In the first year of operation-and operations are not yet normal. even now, in the second quarter of 19l6- results far outstripped the manage ment's promises. It was predicted that costs per pound would be Sc; they were S.136c. It was predicted that mining costs would be 90c to 95c per ton. They were 6Sc, which includes 20c q ton fixed charge for past, present and fu- ture development work Milling costs, which nobody dreamed would be under soc per ton, including royalties. were under 49c It cost s1.22 to mine, trans port and mill ton of ore and prepare it for smelling. in 1915. to which were added costs of 3.455c per pound of cop per produced, to cover smelting, refin- ing, marketing. etc. It is expected that when the plant is further attuned. per ton costs will drop to between s1 and $1.15 and possibly below.
 : The ore milled in 1915 averaged l.702 ! per cent copper of which O.226 per cent was oxidized. Recoveries of sulphide copper averaged SS.56 per cent and 1885 per cent for total copper in the ore or 26.4 pounds per ton.
 The average ore treated. L102 per cent copper. compares with 2.0l per cent average highgrade sulphide ore in the mines, or 1.6S per cent ore including lAowgrade sulphide The management plans to treat lower grade ore. which will greatly inGTease available ton mage and total profits and simplify mining operations, though this may re- suit in further dilution of ore grade be- low the average. The report shows that under fair conditions, even low grade ore yielding but 20 pounds copper per ton can be handled at production cost of Size per pound.
 Actual production in 1915 in siY months, with mill but partly completed was 20,445.670 pounds. The selling price during this time averaged l9,449c
 costs S132c per pound. Of the tota
 6.134,3 ,355 pounds was delivered in tn
 hands of buyers and showed profits O s600,062. The balance of over 14,000, 00C in process or in transit at the end o the year was inventoried on the book at cost, s1,101 39S.S0.
 The actual quick assets at the year
 end were 14,311.315 pounds of copper
 $33S,7 ,703 in receivables and $70,6J0 i 6 cash. The total is s3.271, ,619, conserva
 lively figuring the copper at 20c, al T though the company itself figures tn
 copper at cost Payables and accrue . interest on bonds aggregated s1,S7S,9S on December 31, leaving s1,392, ,636 sur plus quick assets. Additional profits
 May 1, 1916, are estimated unofficial at $5,S50,000. based on 32, 800, 900 pound il production in the first four months ( l. 1916, at sac cost, and 26hc averag if selling price, Indicated quick assets az 4 gregate $7,72S,9S3 as of May 1, 191
 when Inspiration pays it's initial div . dend of s1.25 per share. There wei $ 1,159,471 shares outstanding April , 1916, with only s5S2, 100 unconverte n bonds out of total issues of S10,500,00 if With all bonds converted. Inspiratio n will have 1,1S2,755 shares issued. ,- Production of the Inspiration Consol - dated Copper Co. in March was sul L., stantially above February, when $500 k 900 lbs were turned out, and the be d estimates are that the total for la ,e month will be approximately 9,0000 is lbs. While such an output will be abo Ig 100000 lbs, under what is general et figured as the capacity of the cotnpany
 prperties, an official states that on SC
 eral days during the month more tn;
 1,400 tons of ore were treated, thus i is dicating that if it had been decided IS push operations, the total producti' 10 for the month would have exceed re 10000, 900 lbs.
 Id It is stated that operations duri re the month moved along smoothly a tn that April can be expected to show .a. increase over the March total. The of are eighteen sections of the mill in o SC eration and no interference of any Xxi
 was experienced during March
 weather conditions were entirely sat
 factory.
 O. Inspirations earnings are runni 24 large at present as it's entire output O0 some months has been sold at the pi
 vailing market price in copper met es It is pointed out that the company K addition to earning the $1.25 quarte IT, dividends, started on the stock ten da in ago is accommodating substantial ca
 balance, and that the financial positi
 of the company is highly satisfacto
 Those familiar with the affairs of ty, Inspiration say that with the contir ,er ance of the high copper prices the rt is enues for this year will be beyond 'ge previous expectations.
 Lake Superior & Arizona
 Directors of the Lake Superior 8 poo Arizona have ratified the plan 8 est agreement arrived at with the Mag LI1 1 nnn1lln in nj izn q cnnnanN q.