The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-05-31
CALLAHAN COMPANY
QUARTERLY REPORT
MUCH DEVELOPMENT
In Strong Financial Condition
Decline in Metal Unexpect-
ed and Disappointing

- A'ACNAA OAACh kSCNA-
ed and Disappointing
IT HE REPORT of operations of the
Callahan Zinc-Lead company for
the quarter ending March 81 by
John Borg, of New York, presi-
dent OF the company has been receiv-
ed In addition to maintaining regu-
lar production, the company is doing
much development work with the ex-
pectation of finding new ore bodies
and an extensive program of develop
ment is also being carried out at the
Galena. owned by the Callahan. As
pointed out by Mr. Borg, the expense
of these operations is charged TO gen
eral production costs and materially
affect the net profit for the period,
which was $4S.S39.SO. The report fol-
lows:
Shipments and Profits.
I'VE submit herewith, report of OPP
erations of the Callahan Zinc-Lead
company for the first quarter of the
year 1928
Net value of shipments -$3l7,4S5.5S
Miscellaneous income -.-....... 15.672.SS
Total income .......-....-.-.-.. $S6s.lO796
Production costs, expenses,
development, etc. ----.... SO9,9l5.6S
Operating profits ..-..---..--.--...S 5S,192.SO
Imps. q new equipment - lS5S.OS
Surplus for the period .--....-.S 4S,SS9.SO
"The principal features of the min
ing and milling operations during the
quarter were as follows:
Tonnage mined, 56,76S; tons Of mine
ore milled, 42.S59.
Average contents of ore milled:
Zinc, lilo per cent; lead G.57 per
cent silver PIG ounces.
Shipments.
Lead concentrates, dry tons, 1921;
zinc assay, 1886 per cent; pounds of
zinc. $685. 1857; lead assay $40 per
cent; pounds of lead, S,7O92S7
Zinc concentrates, dry tons, 5745;
zinc assay 5116 per cent; pounds Of
zinc, 5.S7S,616; lead assay, t39 per
cent; pounds of lead, 5O4,946.
Total shipments, dry tons, 1876
pounds of zinc, 6,77A3SS; pounds Of
lead 4,214,18S.
Mill recovery of zinc. 71.O1 per cent.
Ounces of silver in lead concentrates
50. sos.
Cost of mining. crushing and sorting
per ton mined, SS54S.
Cost of milling and Gotation royal
ties, per ton milled S1,762.
Adverse Conditions.
During the first quarter of 1923 our
shipments of zinc and lead-silver con-
centrates were 652 dry tons less than
the third quarter in 1920, just prior to
our two-year shut down, although A.
359 tons of ore were milled in the for
mer period compared with 36,441 tons
in the latter period. The falling off in
shipments is due primarily to lower
mill recOveres, caused by insufficient
supplies of water during the severe
winter months Zinc recoveries dur
ing the period just ended averaged II
per cent as against average recoveries
of IS per cent in 1920 period. Anoth-
er important contributing factor was
the lowering of the average zinc con-
tent of our mill feed from 1919 per
cent in the year 1920 to Ill per cent
in the 1928 quarter.
"Our total income of 1868. 1O7 SO COM
pares with SS21,92547 for the 1920
quarter, while production costs were
SSO9.915.6S compared with 1899, S1O79
in 1920. Net earnings for the quarter
just ended were $4S,339.3O, which com
pares with a deficit of $28,371S1 for
the third quarter in 1920. The average
price obtained for zinc during the
quarter was 7.47 cents per pound, and
1856 cents per pound for lead
Important Development.
1.-THE program for the extensive de
velopment of the Callahan and Ca
lena properties recently adopted by
your management is proceeding as fast
as operating conditions will permit
The expense attendant thereto is be-
ing charged to general production costs
and affects net earnings for the period
to a considerable extent
The recent decline in metal prices
has been unexpected as well as dis
appointing. Despite the fact that sur
plus stocks of zinc in the hands of the
shelters have been progressively re-
duced from SLIPS to 1915 tons during
the past year, the market price for
this metal has declined from an aver
age selling price of TAI cents per
pound during the first quarter to
present low price of $50 per pound
Lead, also in a strong statistical posi-
ton, has declined from an average
selling price of 796 during the quarter
ly period to a present low of 7.25 cents
per pound.
| "Your companv is in excellent finan-