Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-03-10
ENGELS COPPER
ANNUAL REPORT
IS EXCEPTIONAL
improvements win Triple Out
put and Cut Costs by More
i Than One Third

Copies OF the annual report OF
Engels Copper have been received
from the mainland and tell TO the
stockholders an interesting story of
what has been accomplished during
the year and what will be done in the
coming year.
No more Interesting feature OF the
report can be found than the last item
OF cost OF production as embodied In
the report OF Manager r. f. Paxton.
Total operating costs we're $51S.524.S0
and the cost per pound delivered to
the Western Pacific Railroad was
10.3i cents 10 which had TO be added
freight, smelter and refining charges
OF 4.53 cents or In all 14.53 cents.
The above figures should be re-
duced rader new operating conditions
about as follows:
For rail transportation. per pound
OF copper ...........s..s.... &c
For reduction In overhead and
other expenses, by reason of
larger mill operations and more
efficient work. ........... &c
These reductions would make the
cost 9.S4c per pound under the pres
ent high cost OF supplies. When cop
per Is reduced to normal price, say
15c per pound, II Is needless to say
that all supplies will likewise be re-
duced. which would effect a further
saving OF at least &c per pound. l..
therefore, feel safe in saying that
with the railroad and the first unit
OF the new mill in operation, the cost
OF production will not exceed 9isc,
and with the prices Of commodities on
normal basis will not exceed Sc per
pound. against the sellig price OF cleo
trolytic copper In New York.
With the first unit OF the new mill
IN operation the output should be from
$500 10 1000 tons OF concentrates per
pound, against the selling price of cleo.
per.
Last year the company shipped H.
Sl2.4Os pounds Of copper and the prod
uction with the new facilities will be
almost three times that amount. A
saving Of cents q pound would thus
be $4,000 month or 100000 in
year. meaning an addition of that
amount to the ordinary. profits. With
copper at 10 cents, less than half the
present price. II you'd give the COM
pany a profit eof s1,200,000 a year.
Every cent a pound on the average
would mean an added $4,000 a year.
The issued stock OF the company
Is now 81 $4,000 and there is in the
treasury $4,000 shares at 81 par
value. The capital expenditures for
1917 are estimated at S425, 900 of
which $4,000 was provided by the
sale OF capital stock some months
ago and there Is a balance of $4,000
20 be provided. This could readily be
provided by the issuance of part OF
the stock now in the treasury. Total
earnings last year were 1851, 56S.63 or
more than SO per cent on the issued
capital With copper at the same
figure. IN eoutput tripled and cost
Of production cut one-third a years
earnings would be s2.132,65s.I4, or
Jos per cent on the present authorized
capitalization.
During the year the assets of the
company have increased $3.50, 999.03
TO s2.65s.5s3.20. Seven new claims
have been located making the present
number 12S and comprising $3.50 acres.
The company purchased the Stark
ranch. containing $40 acres of timber
land, which is to be used eventually
for the deposit OF tailings from the
mill. II has purchased 1921. 900 of
the par value Of the Indian Valley
railroad stock. The road bed OF the
railroad was practically finished
January 1. The rails are now laid to
within seven miles Of the mine an.
the report says that It was expected
they would be completed in four weeks
which would bring the date March 20.
The line will be opened for general
passenger and freight service May !.