Document KR4eBVBjgOmV73y20e24joYZ6

1*03 3.6. J0O f V.- ' l*' .yc>L^ _ ?.0.42. ...A..u..s. tra..l..i.a..n B' lue Asbestos Limited XIBHIM *OCTl TmC COLONIAL SvCA* HCflWlNO COMPANY LIMITCO *i OCMIU %t,, 11City. AM***MU --l,tV Tie Managing Director, SYDK'ST.N.S.'.Y. PSaTH. 26th Larch, 1946. Dear Sir, fLeaANXaIAGGSaPa*'S iJO.0I1T1TTH2LLY S5P0 AT (Your P.iio. TP) 'Alien I was O in Sydn ey it was' agreeu to forward,-a `report to you v.nich wo * give a clear picture of tfhte result of operations during the J particular period under review. This r'eport was to o based 1.L"-' LJJ' .J-!1 oona ffTilbjrpe imtiiinn^erdi eanndd trna*llliTeedd , out to date we have rained and rail. 1" " flbr9` lining has been carried on under some difficulties .1*1 and at a slightly reduced rrte, out only rocra has been remov oy not lifting the ore body we cc-nnot causure tne length of fibre, nor can we give any figures, other than estimates, relative to yield, recovery or cost per ton of fibre mined o milled. U We can give tonneges of rock rained and costs, but those irsy be sis!ending because the rock reroved from above ore requires approximately four times the number of holes wh are necessary to lift the ore oody for a given edvsnce, and the proportiozs of barran rock ;.nd ore are in the approximate r'ltio of 10:5.5* ^nsecuently the cost par ton of barren r: removed beers no direct relation to the cost per ton of fi'or recovered, end it would be necessary to consider the area cL and then rssuue e yield snd u cost of Hinting the ore before ' figure could be given for the cost ter ton of fibre. The recent costs per ton of rock have oeee hlgner then those pri'. to the breakdown due primarily to poor steel snarpenlng, lac. of power for the scrapers md poor labour, out c nlgher yiel due to the system of mining being adopted should offset this The cost- per ton of rock rain 3d during four weeks ended 5th Lerch was 23/-, ell charges, but the cost o; lt.tt the or* body should not exceed 6/- per ton, which would give average cost of 17/- par ton of rock end yroor.bly 22 3 to "L'<L y-r ton fibre. These cost? Include the semewh'-.t hs!vy ^ *~Vo\onrnrx "or the `lor.r mil" drive T.d henry The iiensprlnc Director, SYDKg. Wrir.3 tr.s four weeks prior to toe above period costs were higher because of the cn*-nge over to the'present system of mining ?rd to the lower tonnage mined. I regret that no figures have been forwarded, but l wished to ovoid sending any figures which could not be compered with those submitted when we are amain In full opert and vileri the complete report can be compiled. Until the mill Is egaln operating a modified fortnS report will 'oe submitted giving totil costs and as such Infor rcation as is possible elong the lines discussed wnfist in Sydney. Three reports covering the six weeks ended 19th Inst will be forwarded as soon as further details are to hand. ACCOuKTIftG - Half Yearly Accounts. We enclose the /following returns for tae half year endec }lst Dececber. We / very much regret the lateness In forwarding these out this we caused by a set of circumstances wnich is not likely to occuz / again. (!) Street charges (?) Indirect Charges (3) Mining Account (l) Milling account (5) Store Trading Account (6) Labour Expenses (7) Summery of Sales (.*'} Perth Office .Expenses (9) Depreciation reserve Account (10) Trading and Profit x Loss Account {11} Balance Sheet (12) Sales Expenses (13) Generel charges (14) Fibre Stocks These accounts have been drawn up in accordvnce wit the instructions given &Ld model accounts enclosed with your comment must be made on the Store Trading.Account which for toe first tine shows & loss amounting to 333* 9. 3 I An examination of goods paid for snows that 240 of purchases 'I should properly have been chergeaole to the half year ended ,7'i` 30th June 1945, being e payment for beer oougnt in Way/June t t not paid for until August. Deducting tnis acount from the lo ' shown it still rnives a loss of 493. 9. 3. and a full investig r.t ion snail be made at the Mine to discover the reason why tt profits of previous half years have disappeared. The ttnnagixs Director, SYDNEY. 3. y.No.L2 compered with the book figure, :.nd this amount has oeen deb: to Trading account. Tot el costs show e downward trend, end dir id ing the overall expenditure, including th"-t for i.lne Development, br tonnage of fibre produced gives cost per Ion* ton of 112. 12.4.71. Seles ^roenses which ts debited with both recovert end non-recoverpole expenses showed a debit balance of 19<r9. 3.10 at 31st December. This bulvnce included the cot of cartage on fibre from Wittenoom. to Pt. Samson, but from 1st January 1946 such cartage will ce debited to Fibre Caret account. For the half year ended 31st Decet.oer we estimator [ the cost of this cartage as 946 -;nd snowed It as s sepsratt ! item in our Direct Expenses list, we now find tr."t tae sett \ expenditure was 1127. *. S. and tae difference will oe \ adjusted during the current period. .Recoverable expenses ure, of course, deterrir.ee by the selling terms, as f.o.b. r't. c*rason raenns a good proportion is recovered, whilst f.c.b. Fremantle means v/e bear the wcole expense charged to this account. With reference to tae method of accounting it is suggested that in future all reference to "ore" be omitted the costs be calculated on "tons of rock" mined and ''tons o fibre" oaaged. The "rock mined" figure is much more secure* . then "ore'sent to mill" end is the basis of all our mining , economics. The "rock mined" from cny section of the mine c: be re-checked at any time from inform'-tLon on record, v/nere the "ore to mill" depends on correct taLlying of the trucks ?t time of mining, or by tae correct measurement of tiiickne. of ore body taken to the mill so ta*>t it may oe calculated. From the milling viewpoint tne ratio_of..fibre to < ans little sign if ion-nce ns it depends on the hnouii't of "bs'r'r rock sent to the mill, end this cannot be controlled within very fine Units. The mein considerations are the cost of mining e ton of rock and the number of tons mined for each ton of fi With these two figures available the true position could be more readily and more cccurttely computed and the figures w oe of more vlue in-compering the merits of raining >'t dlffe heights. The managing Director, SYDNEY. i. ?.1<0.L2 be that entering the crusher end will oe considerably less per ton of fibre then in tne pest, consequently it is suggested that the change be made in tne accounts covering current half year. Rails, in the past ar.y rails, points end sleepers underground (other than ne section in main drives wnan the change wss itade from 18" to 24" g*uge) have oeen charged against operating in the form of stores. As these items haa long life and may be considered as part of tne plant the as trucks and locomotives, it is suggested that in future purchase cost ex store Perth be placed to an asset account "Ralls, Points and Steel Sleepers" end be depreciated in thi usual manner. *11 freights and all labour in connection w laying the track would be charged against "Operating". Whilst advancing prior to reaching the pillar robbing.stage the cost of rails, points and steel sleepers (purchase cost only) Is approximately 21/- per ton of fibre Please lt us know If 70U approve of this. Yours very truly, for .-.uSTR.'il.Ol oLJ3 ASdShTOS LTD. Ksnsger.