What the diggers are doing
Media
Part of The American Chamber of Commerce Journal
- Title
- What the diggers are doing
- Language
- English
- Source
- The American Chamber of Commerce Journal Volume XVIII (No. 11) November 1938
- Year
- 1938
- Rights
-
- Fulltext
- November, 1938 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 20 What the Diggers Are Doing RALSTON: A. W. Ralston, long time president of the Manila Machin ery and Supply Company, and active head of Demonstration Gold Mines, and of Benguet Exploration, return ed early this month from the United States. Mr. Ralston was gone for five and 1/2 months, during which time he travelled over the northern United States and southern Canada. He made a visit to his home town, Omaha, his first in 30 years. BENGUET EXPLORATION: turned in a slight lower production figure last month than for Septem ber—P21,441.96 against P22,323.80. Demonstration’s P144,365.72 was slightly higher, although tonnage milled was appreciably lower than for September, indicating higher mill-heads than Demonstration has enjoyed of recent months. Demonstration has undertaken an extensive development* program this year with two objectives on its own property, it is extending its known vein systems below the 600 level, and it is understood that re cent development on the 700 level has indicated the existence of some higher grade oxide ores. The company is also developing the Ben guet Exploration claims which are now producing in a small way, and which are said to show great poten tialities. SORIANO: Three gold producers of the Soriano interests earned a to tal of Pl,400,000 during the three months ending September 30th. The figures are exclusive of depreciation and ore depletion. Antamok earned P519,927.16, or P0.0189 per share. Masbate Con solidated turned in P447,022.44, or P0.00894 per share, while I. X. L. earned P428,133.35 during the period, or P0.0285 per share. During the first nine months of this year, I. X. L. has made a total “cash” profit per share of 8.45 cen tavos. *Assuming that the profit for the fourth quarter will be as large as that for the third—and there is reason to believe that it will be larger—the “cash” profit for 1938 should be 11.30 per share—compar ing with 7.55 centavos in 1937. Masbate’s nine-month profit amounts to 1.894 centavos per share, which compares with the full-year 1937 profit of 1.67 centavos. MasbaHess & Zeillin REDUCING THE RISK The word corporate security is a misnomer. It should be corporate risk. Every investment is a risk which is constantly exposed not only to the effects of social, economic and mo netary changes, few of which can be forseen, but also to inter-company operations and activities. No in vestor can ever protect himself against all risks inherent to the ownership of securities. But it is possible, even in these uncertain times, to minimize the risk by following a flexible investment plan adopted to your individual objectives. Reducing the risks can be accomplished by basing each original investment decision on complete, accurate and up to the minute information. This principle must not be confined only to original purchases but should be used periodcally in making “realistic reappraisals” of your portfolio. Merely to keep abreast of events and individual company operations, to separate rumors from facts and to arrive at intrinsic values in the present markets is more than a full-time job. To separate those secur ities which have discounted future possibilities from those which have the greatest opportunity for sound appreciation is beyond the capacity of the individual investor. To minimize successfully one’s investment risks means monthly, daily and even hourly reappraisal of in vestment values. This is a job that Hess & Zeitlin, me. is equipped for and that it is now doing for many individual and corporate investors. How can we be of service to you? It is impossible to tell unless we have the opportunity of examining your holdings and studying them in the light of your individual requirements. We welcome the opportunity to be of service to you—your inquiry will be held in strict confidence and will involve no obligation. HESS “SPECIALISTS IN PHILIPPINE SECURITIES” IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 30 THE AMERICAN CHAMBER OF COMMERCE JOURNAL November. 1938 THE MINING INDUSTRY AT A GLANCE Authorized „ _ . , - — ..... , „ Average 1938 Capital in „ Par „ . Capital Daily Tons Milled Oct. 1938 value Production 1000 pesos Valuc Pa“* 1° Date Capacity in Oct. 1938 Gold Production per ton to date Started MINE Milling 1932 Antamok .......... 1930 Baguio Gold ... 1927 Balatoc ............ ... 3,000 0.10 2,750.000 750 24.803 ... 2.000 0.10 1.300.000 250 9.752 ... 6,000 1.00 6,000.000 1,200 37.553 1’ 365.533.16 14.74 I’ 3,857.102 Pl.320.550 July ^g P0 02 fo.04 155.925.70 15.99 1,405,118 117.222 june -jg 0 01 0 01 1.062.506.56 28.29 10,602,747 2.192.410 june '3g 0.30 0.90 J Cash M.IO IStock 100% J Cash 1.35 1913 Benguet Cons. . .... 6.000 1.00 6,000.000 1,000 33.008 959.067.44 29.06 9.317.341 4.965,954 June ’38 0.30 0.90 ] Stock 50% 1.00 21.97 17.17 0.28 0.10 500,000 J.10 777,104 Benguet Cons. ).10 1,500,000 Benguet Expl. . Big Wedge .......... Cal Horr ............ Coco Grove ........ 1934 Demonstration 193G East Mindanao . 1934 Mindanao Mining 1934 Ipo Gold .............. 1925 Ilogon .............. . .. 1931 IXL Mining .... 1937 1937 1938 Paracale Gumaus 1936 Royal Paracale . 1936 San Mauricio ... 1938 Santa Rosa ........ 1938 Surigao Cons. ... 1934 Suyoc Cons........... 1929 Tambis Gold . . 1938 1938 1937 1935 1938 1938 Twin Rivers .... Masbate Gold . .. Tinago Cons. ... United Paracale Mapaso Goldfields Nabago Gold & Si Total 141.36.1 249,358 June '38 0.01 0.02 0.04 0.10 0.10 0.10 2.000 0.10 496,000 643.800 800.000 1,000.000 984.934 1,250.000 390,850 300 1.000 1.500 1,000 1,300 600 683,550 1.350.000 500.000 1.100.000 1.100,000 30.000 48,309.36 18.674.00 103,519.98 371.043.56 266.005.26 165.622.04 424.435.00 57,335.74 25.247.64 14.93 395.751 0.59 80,969 16.42 775,657 11.42 3,485,415 21.63 2.586,855 17.63 3.092.414 9.33 197,638 47.17 3,042.458 14.92 699,875 349,491 21.16 1,387,947 0.32 136.762 6.672 ------ _ ----- Jan. ’36 0,0075 28.256 Mar. 38 0.006 0.011 gtock 3% 929,433 July ’37 0.0075 0.015 443,560 July ’38 0.04 0.07 st^k 50%5 810.330 740,231 Dec. ’36 0.04 364.75> July ’38 0.01 0.01 0.01 309.506 Jan. ’38 sO.0175 sO.0175 ----- Dec. ’36 0.03 — 388,807 Sept. ’38 0.02 0.03 Gold Production for September 1938 1’5.447,796.36 Gold Production For Sept. 1937 F4.535,318.86 te has made substantial improvement in earning power this year, the pro fit for the last three months exceed ing that for the first six months. Masbate’s production last month was some P20.000 under that of the spectacular Sep tember figure, but still was substantially higher than Masbate has been used to, OVEJERO & HALL STOCK, COMMODITY & EXCHANGE BROKERS MEMBERS MANILA STOCK EXCHANGE NATIONAL PRODUCE EXCHANGE NEW YORK COFFEE & SUGAR EXCHANGE 6th Floor, Wilson Building Juan Luna, Manila Tel. 2-10-51 Cable Address OVERALL, Manila and it is reasonable to expect that the fourth quarter cash profit will exceed that for the third quarter. Antamok, on the other hand, will pro bably not equal in 1938 its per-share pro fit for 1937 of 10.94 centavos. However, Antamok has been a great favorite on the stock exchange in recent weeks, on re ports that efforts to locate higher-grade ore at lower levels have been successful. An tamok’s “cash” profit for the first nine months of the year amounts to 6.19 cen tavos per share. MARSMAN: San Mauricio, which has boomed spectacularly on the stock exchange recently, established another new high in gold production in October, for the second consecutive month. The mine turned out P440,168.51 from 9,332 tons of ore treated —beating September by more than P60,000. United Paracale’s P227.362 was about P2,000 better than its previous record. To tal output of the four lode and one placer operation of the Marsman interests was Pl ,302,605.75. Coco grove again approached P100.000, as the two dredges approached high-value ground. HAUSSERMANN: Benguet Consoli dated and its three allied gold producers again increased production last month. Total tonnage treated was 83,531, worth P2,239,551.52—about P100.000 more than for the month of September. It was announced that both the Benguet and Balatoc plants are now well on their contemplated program of expansion to a 2000-ton daily capacity. Balatoc, in fact, is now treating 1,325 tons of rock a day. While the increased production will pro bably not materially increase the earning power of either company, it will enable them to mill lower grade ore at a profit, and thus greatly prolong the life of both mines. Judge Haussermann stated in a speech before the Mining Congress in Los Ang eles on October 25th, that he entertains high hopes that the Masinloc chromite desposits of Consolidated Mines, which Benguet is operating on contract, will eventually prove to be commercially useful. He stated that recently a method has been devised for utilizing the ore in the manufacture of metallurgical products, hence, “we look for ward to an expansion of our business into other fields of chromite consumption at an early date”. The Masinloc deposit is the largestknown deposit of chromite ore. Through diamond drilling and underground work ings, 9,000,000 tons of ore has been shown, in a single body. In addition to this huge deposit, there is at least 1,000,000 tons of talus and float ore around the base of the hill referred to. Shipments of the ore were suspended last year, due to its low-grade characteristic, which restricted its use to (Please turn to page 32) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 32 THE AMERICAN CH AM HER OF COMMERCE JOURNAL November, 1938 What the Diggers. . . (Continued from page 30) the manufacture of refractories. If Masin loc chromite can enter the metallurgical field, profits to both Benguet and Con solidated Mines will be enormous. NIELSON: Three properties operated by Nielson and Company, Inc., had a gross operating revenue of P221,020.28 last month. This production is approximately PIG,000 greater than that of the previous month. Paracale-Gumaus established a new alltime high monthly record, with ?57,335.74 worth of gold bullion and concentrate from 3,253 tons of ore treated. The record was P9.000 over that of September. Southwestern Engineering Company of P.I., Inc. DESIGN AND CONSTRUCTION OF MINE MILL AND POWER PLANTS LABORATORY ORE TESTING AND CUSTOMS ASSAYING SPECIALISTS IN METALLURGICAL ENGINEERING WORK IN PROCESS ON FIVE ORE MILLS IN THE PHILIPPINES 506-508 Calle Aviles Telephone: 2-35-96 Lepanto’s 1 105,164 worth of copper con centrates was also some P9.000 over that of September. Lepanto has some good long term contracts for the disposal of its out put, and these contracts assure the com pany of a good profit on its copper. Clyde A. DeWitt is active in the management of Lepanto’s affairs. ATOK-IJIG WEDGE: According to Hess & Zeitlin’s market letter of October 29th, sometime last month the net profit of the Big Wedge-Atok contract began to be divided 50-50. This means that, some time during October, Atok’s investment in the Big Wedge project was fully repaid out of 60'/) of the profits of the mine, and Atok’s interest in the profits was decreased by 10% and Big Wedge’s interest increased by a corresponding amount. This same source states that, for some time now, Big Wedge has held on hand P132,195, representing an amount now in litigation over the purchase price of cer tain claims. H & Z state that it is under stood that negotiations are now under way looking toward an out of court settlement, and that if the settlement is concluded, Big Wedge will be able to transfer a sub stantial amount to cash, and may be able to double its December dividend to 2 cen tavos. However, it is pointed out that any speculation on this matter must bear in mind “the impending ‘escrow’ stock set tlement”. PAN-PHILIPPINES; TREASURE IS LAND: The new mill completed on the property of the Treasure Island Mining Company by Pan-Philippines Corporation operators, commenced turning over on October 8th. The mill is of interest to mill men and metallurgists, since it uses what is known as the ‘Vandercook process” of extraction. C. A. Vandercook was himself on hand at the inauguration of operations, having arrived via Clipper from the States a few days before. The mill is said to be one of the finest of its kind, precision-built in an effort to anticipate every difficulty and future need. Every piece of machinery is new and of the most modern design. The electrical equipment, most of which was ordered from Western Equipment and Supply Com pany, is all of the very latest and most expensive type. Among other features is incorporated a system of electrical control whereby motor circuits are not only brought to a central switchboard, but are controlled at each piece of equipment. Construction work was supervised by Gary Wells, ex pert millwright brought over from the States. E. Friedman, who has had several years’ experience with the Vandercook process, is in charge of the mill as fore man. It was thought that extra money spent on the plant at this time would pay divi dends in lower-than-average payrolls. The mill is operated by relatively few men, it was stated. Regarding production, the mine operators announced that the mill exceeded its rated capacity during the first month of oper ation, and treated 120 tons of ore a day. Exact production figures for this first month were not available as we went to press. Positive and probable ore at the 250-level on what is known as the A-vein approach P4,000,000, of high-grade ore and it is stated that this estimate does not take into account known ore bodies in other sections of the property, on which little development work has been attempted. Mr. Orlando McCraney, chief engineer in charge of all Pan-Philippines operations, is in complete charge of the work at Trea sure Island. The claims are located on the island of Lahuy, off the coast of Camarines Sur. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL