Document bOOjj9eV8pNa9rLwe7koK08g6

FILE NAME Cape Asbestos CAPE DATE 1930 DOC CAPE105 DOCUMENT DESCRIPTION 42nd Annual Report De Beers Consolidated Mines Ltd. Legal - Tibbs Case Exhibit 3 OTIS & CO STATISTICAL LIBRARY De Beers Consolidated ELCTRONIALY ~ = el al ll lla allan lan ln oe FEB 17-1991 17-1991 ant > Ee LIMITED LIMITED LIMITED Incorporated in the Union of South Africa | FILED - 2023 AUTHORIZED CAPITAL - 4,750,000 Oct ISSUED CAPITAL - - - 4,726,285 18 10:18 Head Office AM - Kimberley Griqualand West South Africa { { | For the year ending 30th June 1930 SIR ERNEST Directors : OPPENHEIMER KT M.P. Chairman RT HON THE EARL OF BESSBOROUGH C.M.G. Deputy Chairman L. BREITMEYER A. G. W. COMPTON M.C. COLONEL SIR DAVID HARRIS K.C.M.G. V.D. | F. HIRSCHHORN SIR FRANK MEYER BART R. PHILIPSON PICKERING W.PICKERING PICKERING D.S.O. D.S.O. J.P. H. P. RUDD S. B. JOEL J.P. | | A. VIALLATE General Manager ALPHEUS F. WILLIAMS Assistant General Manager : Secretary : I. R. GRIMMER { Consulting Mechanical & Electrical Engineer { J. HARBOTTLE A. V. DRAKE Assistant Secretary : H. LARDNER BURKE D.S.O M.C. V.D. Mechanical Engineer T. W. HOLLAND Chief Recountant : W. MILLER Electrical Engineer R. W. SMITH Assistant Accountant : H. E. SECCULL Geologist Diamond Valuator and Broker : { A. DU TOIT D.Sc. F.G.S. W. CHAPMAN { London Transfer Office -15 ST SWITHIN'S LANE E.C. 4 { Condon Secretary J. A. STEVENS Assist a A. MCPHERSON RIC-HLAND i } COMON | PLEAS - ; 203CP41759 } , { : BOARDS 084.241 084.241 084.241 084.241 DE---1 DE---1 Solicitors : HAARHOFF AND HERTOG KIMBERLEY COWARD CHANCE AND CO LONDON Auditors HOWARD PIM AND HARDY KIMBERLEY AND SALISBURY BEATON AND RAYNHAM JOHANNESBURG KIMBERLEY Bankers : THE STANDARD BANK OF THE NATIONAL SOUTH AFRICA LIMITED KIMBERLEY AND PROVINCIAL BANK LIMITED LONDON LONDON D.F A. LTD PRINTERS KIMBERLEY 4044 a ELCTRONIAY FILED - 2023 Oct 18 10:18 AM - RIC-HLAND COMON PLEAS - CASE#203P41759 ELECTRONICALLY ELCTRONIAY FILED 7-32 - 7-32 2023 JUN Oct 18 e fee 10:18 AM - De Beers Consolidated Mines Limited RIC-HLAND COMONPLEAS SECOND ANnual RePORT - For the Year ending 30th June 1930 203CP41759 TABLE OF CONTENTS 2023CP401759 DIRECTORS REPORT ANNUAL ACCOUNTS STATISTICS GENERAL MANAGER'S REPORT PROCEEDINGS OF GENERAL MEETING 15th DECEMBER 1930 and of EXTRAORDINARY GENERAL MEETINGS 15th and 30th DECEMBER 1930 es ELCTRONIALY FILED - 2023 Oct 18 10:18 AM - RIC-HLAND COMON PLEAS - CASE#203P41759 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY REPORT OF DIRECTORS ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY OF FILED FILED FILED FILED De Beers Consolidated Mines Limited 2023 2023 2023 2023 For the Twelve Months ended 30th June 1930 Oct Oct 18 To be submitted to Shareholders at the Second Ordinary General Meeting 10:18 10:18 to be held on Monday 15th December 1930 AM AM RICHLAND TO THE SHAREHOLDERS RICHLAND RICHLAND RICHLAND RICHLAND Gentlemen RICHLAND RICHLAND Your Directors beg to submit their Second Annual Report Balance Sheet at COMMON 30th June 1930 Profit and Loss Account for the year ended 30th June 1930 and COMMON COMMON Appropriation Account 30th June 1930 COMMON COMMON The unappropriated balance at 30th June 1929 COMMON PLEAS was | .. 650,029 12 8 PLEAS Deduct Final Deferred Dividend in in respect to year PLEAS PLEAS PLEAS ended 30th June 1929 we Le wee 272,628 100 100 - ass 377,401 2 8 CASE During the year the Diamond Account amounted to 3,262,665 18 1 CCAASSEE CASE Add to this the followi: ng # 2023CP4001759 Interest and Dividends on Investments ... 503,168 0 10 2023CP4001759 2023CP4001759 Profits realised on sale of Investments ... 18,482 16 5 22002233CCPP44000011775599 Income from other sources ve va 14,160 6 9 22002233CCPP44000011775599 ee 535,811 4 0 2023CP4001759 2023CP40 1759 2023CP4001759 4,175,878 49 49 2023CP4001759 2023CP4001759 Deduct Expenditure as follo:ws ~- Mining Expenditure tee ... Expenditure Farms and Landed Property Le Donations and Relief ... ve . Allowances retired Employees amounts paid 1,140,371 17 59,537 11 13,579 18 during annual leave and Provident Fund Le contributions to _ Lee vee Directors Fees we we Le Lee Salaries Office . Le General Kimberley and London _ Interest on Debentures and on Capital of Leased Companies ... we Sinking Fund for repayment of Debentures vee 104,500 18 21,708 6 30,901 10 57,996 2 133,191 2 109,784 12 4 109,784 1,671,572 1 0 with follows Leaving a balance of . Which has been dealt as Union of South Africa Income Tax ... Dividends : Preference Shareholders we Le 302,588 11 0 800,000 _ - 800,000 00 00 2,504,306 39 39 1.102,588 11 0 Balance unappropriated 1,401,717 12 9 ELCTRONIALY The Stock of Blue Ground and Lumps on the Floors at 30th June 1930 was as follows - FILED 48,396 - De Beers Mine loads ... wee : Le oe _ oe 2023 Wesselton Mine i wae ve we Le . 337,304 " Bultfontein Mine ee Les i Le we ves 377,788 " Oct Dutoitspan Mine vee bes _ Le : _ 914,348 " 18 10:18 Total a .. 1.677,836 loads AM - The usual dividend of 20s Od per share was paid to Preference Shareholders RICHLAND during the year under review and as was foreshadowed in last year's report a final divi- dend of 5s per share in respect to the year ended 30th June 1929 has been paid to - Deferred Shareholders No dividend has been paid to Deferred Shareholders in respect to the financial year covered by this report On the 1st January 1930 the De Beers 4 per cent South African Exploration COMON Debentures fell due for redemption and have since that date been redeemed out of the PLEAS investments representing the Debenture Redemption Fund which had been specially accumulated for the purpose The Reserve of 1,635,495 representing the amount - appropriated out of past profits has now been deducted from the book value of Claims Other Mining Interests Estates and Farms 203CP41759 Throughout the period under review the diamond trade in common with all other trades and industries has felt the and in consequence the accounts disclose influence of the no improvement existing world depression in diamond sales in comparison with those of the previous year which had been adversely affected by production from 2023CP401759 other sources The depressed condition of the trade was seriously aggravated by the crisis in the United States of America in October last and any marked improvement can only be contingent upon a revival of general prosperity coupled with the judicious control of output and sales In February and March last representatives of the four Conference Producers and the Diamond Syndicate attended a Conference convened by the Honourable the Minis- ter of Mines and Industries at Capetown with the object of concluding a new Inter- Producers Agreement and Sales Agreements with the Syndicate in place of those expiring on the 31st December next As the outcome of Minister of Finance was able to announce in the the Conference the Honourable the House of Assembly on the 26th March that the basis producers and of agreement had been reached both for the allocation of quotas to the big for the sale of Union and South Africa diamonds the Government likewise undertaking to limit its sales of diamonds in accordance with the volume of trade ments Negotiations are now proceeding in connection with the conclusion of the agree- The Diamond Corporation Limited in which this Conference Producers are interested together to the extent on the 18th February last with a Capital of 2,500,000 Company and some of the other of 50 per cent was registered One of the principal objects ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY 3 FILED FILED of this flotation was to overcome the difficulty which had arisen through past produc- FILED FILED tion by taking over accumulated stocks of diamonds and spreading their resale over a 2023 2023 period of years in order to ensure a reasonable share of the current trade to the Conference 2023 2023 Producers Oct Oct During the year African Explosives and Industries Limited declared a dividend 18 10:18 of 10 per cent the amount paid to this Company in respect respect to its holding in that Com- 10:18 pany being 137,500 AM AM Your Directors beg to report that in December last Sir Ernest Oppenheimer RICHLAND M.P. one of the Directors of the Company was appointed Chairman RICHLAND RICHLAND RICHLAND Your Directors very much regret to record the death on the 13th March last of RICHLAND RICHLAND their valued friend and colleague Mr. L. Breitmeyer who had been a Director of the RICHLAND Company for the past 18 years Since the close of the year Sir Basil Blackett K.C.B. COMMON COMMON , K.C.S.I. has been appointed a Director of the Company to fill the vacancy COMMON COMMON COMMON In terms of Clause 82 c of the Company's Articles of Association three Directors COMMON PLEAS retire namely - PLEAS PLEAS PLEAS Mr. S. B. Joel PLEAS Sir Ernest Oppenheimer and CASE CASE CASE Sir Basil Blackett CASE # 2023CP4001759 but being eligible they offer themselves for election 22002233CCPP44000011775599 2023CP4001759 2023CP4001759 A report by the General Manager on the Company's operations during the year 22002233CCPP44000011775599 will be submitted at the Meeting 2023CP4001759 2023CP40 1759 2023CP4001759 2023CP4001759 2023CP4001759 E. OPPENHEIMER Chairman A. G. W. COMPTON D. HARRIS R. PHILIPSON Directors W. PICKERING Kimberley 13th October 1930 H. P. RUDD ELCTRONIALY DE BEERS CONSOLIDATED FILED - 2023 BALANCE SHEET Oct 10:18 CAPITAL AUTHORISED : 18 800,000 Preference Shares @ 2 10s Od each ... Le ... 2,000,000 0 0 1,100,000 Deferred Shares @ 2 10s Od each . . ... 2,750,000 0 0 4,750,000 0 U AM CAPITAL Issued - RICHLAND 800,000 Preference Shares @ 10s Od each ... vee ... 2,000,000 0 0 1,090,514 Deferred Shares @ 10s Od each ... wee .. 2,726,285 0 0 .--= 4,726,285 00 00 APPROPRIATION FOR STABILIMENT OF THE DIAMOND TRADE Invested in The Diamond Corporation Ltd. Other Diamond Mining - COM ON Companies and Kindred As at 30th June 1929 Add amount transferred Interests a . from Reserves Fund RESERVES per Contra 2,573,841 16 0 __.... 820,744 10 8 + --- 3,394,586 68 68 General Fund as at 30th June 1929 ... ... 3,028,823 6 2 Add Adjustment of Blue Ground Stocks and Sundries we i . ves wee 16,435 19 3 PLEAS - 3,045,259 5 5 Less Amount transferred to Appropriation for Stabiliment of the Diamond Trade ... 820,744 10 8 2.224,514 14 9 203CP41759 Blue Ground Stocks 30th June 1930 at cost 257,301 18 2 Redemption Fund South African Explora- tion Debentures bee ... 1,635,495 0 0 Less transferred to Property per Contra 1.635,495 0 0 eT We 2,481,816 12 11 : 2023CP401759 CURRENT LIABILITIES 621,389 19 9 Loans and Open Accounts wee a Unclaimed Dividends and Sundries vee bee vee Le 64,792 4 2 . Commissioner for Inland Revenue Union of South Africa 302,588 11 0 Britain Commissioners of Inland Revenue Great wee 3,688 15 9 857 11 0 Commissioner of Taxes Southern Rhodesia bes 400,000 0 0 Le _ Preference Shareholders we wee we _ - -- - 1,3_ 93,317 1 00 BALANCE transferred from Appropriation Account ... 1,401,717 12 9 CONTINGENT LIABILITY The Company has guaranteed the repayment of and interest First Mortgage Debenture on 984,100 Stock being of 5 per cent the unredeemed portion at 30th June 1930 of an issue of 1,250,000 made by the Cape Explosives Works Limited Somerset West Cape Province Imperial Chemical Industries Ltd. have indemnified De Beers Consolidated Mines Limited to the extent of half this contingent liability 13,397,722 14 0 _ AUDITORS TO THE SHAREHOLDERS OF DE BEERS CONSOLIDATED MINES LIMITED tion view We have examined the above Balance Sheet with the books and records of the Company and explanations we have required Proper books and records have been kept and in of the state of the Company's affairs at 30th June 1930 according to the best of our Kimberley 13th October 1930 MINES LIMITED ELCTRONIAY FILED 30th JUNE 1930 - 2023 PROPERTY : Oct Claims and other Mining Interests -.. Le we vee .. 3,161,121 5 3 . Estates and Farms ... .. 1,842,961 11 3 18 5,004,082 16 8 10:18 . Less Redemption Fund South African Exploration Deben- AM per Contra 1,635,495 tures ... we we bee we hee .. 0 0 - 3,368,587 16 6 RICHLAND Investments in The Diamond Corporation Limited Other Diamond Mining Companies and Kindred Interests ... 4,044,690 14 5 Machinery Permanent Works Buildings and Stores ... fee 100 - 7,413,279 10 11 INVESTMENTS IN STOCKS AND SHARES LIVE STOCK COMON 624,207 6 7 80,471 19 4 PLEAS RESERVE INVESTMENTS per Contra: Investments representing General Fund at Market Prices - 30th June 1930 or under . Le we te we ... 2,224,514 14 9 Blue Ground on Floors 1.677,836 loads at cost deposited on Floors a 257,301 18 2 2,481,816 12 11 203CP41759 DEBTORS SPECIAL INVESTMENTS AND CASH - Open Accounts and Loans to Affiliated Companies os 916,158 14 2 Short Loans we we we we wee a - a 191,000 0 , Fixed Deposits with Interest accrued to date .. . 735,308 5 Special Investments at Market Prices 30th June 1930 or under . bee we Le 903,882 1 4 Cash at Bankers and in Hand a . a . 51,597 4 4 2,797,946 4 3 DIAMONDS ON HAND 100 100 100 13,397,722 14 0 REPORT E. OPPENHEIMER Chairman W. PICKERING Directors } including the audited returns returns of the London Transfer Office and have obtained all the informaour opinion the above Balance Sheet is properly drawn up so as to exhibit a true and correct information and the explanations explanations given to us and as shown by the books of the Company HOWARD PIM & HARDY SALISBURY BEATON AND RAYNHAM } Auditors DE BEERS CONSOLIDATED ELCTRONIALY Dr. PROFIT AND LOSS ACCOUNT FOR THE FILED - MINING EXPENDITURE TO vee _ we bee wee ves " EXPENDITURE ON FARMS LANDED PROPERTY AND KIMBERLEY- ALEXANDERSFONTEIN ELECTRIC RAILWAY wee oa we " CHARGES : 2023 1,140,371 17 6 Oct 18 7 10:18 59,537 11 AM Salaries & Head Office _ a vee we 30,901 10 1 - General Charges . we wee ve Lee : we 36,557 17 11 RICHLAND Legal Expenses . we vee . . we we 860 U ^ Donations and Relief a . ve we 13,579 18 11 - Compensation ... vee vee we ve we Le Le 3,587 19 COM ON Auditors Fees . Directors Fees ... Le _ be be ve Le Le Les te bee om wee oa wee 1,700 0 0 21,708 11 Employees Provident Fund Company's Contribution ... 29,141 19 1 PLEAS - London Transfer Office Expenses ... wee wes ve 15,290 5 4 Allowances to Retired Employees ... vee . we we 53,933 0 5 203CP41759 Amount paid to Employees during Annual Leave INTEREST ON CAPITAL OF LEASED COMPANIES ' INTEREST ON DEBENTURES ... Lee 21.425 IS 10 wos 228,686 16 to 96.392 10 0 36.798 12 9 2023CP401759 SINKING FUND FOR REPAYMENT OF DEBENTURES ... Le we 109,784 12 . BALANCE CARRIED TO APPROPRIATION ACCOUNT wee wee cee 2,126,905 1 1 3,798,477 2 1 MINES LIMITED YEAR ENDING 30th JUNE 1930 BY DIAMOND ACCOUNT INTEREST AND DIVIDENDS ON INVESTMENTS after Adjustment of Reserve and Special Investments to Market Prices or under at 30th June 1930 SUNDRY RECEIPTS TRANSFER FEES PROFITS REALISED ON INVESTMENTS ELECTRONICALLY EFLCITRLONIEADY FILED Tr - 2023 Oct 18 10:18 AM - 10 RIC-HLAND 5 COMON PLEAS - 203CP417592023CP401759 1 ELECTRONICALLY ELCTRONIALY DE BEERS CONSOLIDATED FILED FILED Dr. APPROPRIATION ACCOUNT - 2023 Oct To UNION OF SOUTH AFRICA INCOME TAX 18 Normal Tax 302,588 11 0 10:18 AM PREFERENCE DIVIDEND : ACCOUNT - RICHLAND 10 per share on 800,000 shares payable to Shareholders registered at 31st December 1929 declared 24th December - 1929 . ee ae . 400,000 0 0 10 - per share on 800,000 shares payable to Shareholders COMON PLEAS registered at 30th June 1930 declared 20th June 1930 ... 400,000 0 0 PLEAS - _ --- 800,000 0 0 - BALANCE carried to Balance Sheet 1,401,717 12 9 203CP417592023CP401759 Kimberley 13th October 1930 2,504,306 3 9 MINES LIMITED 30th JUNE 1930 BY BALANCE unappropriated 30th June 1929 Less DEFERRED DIVIDEND ACCOUNT Final Dividend of 5 - per share on 1,090,514 shares in respect to year ended 30th June 1929 payable to shareholders registered at 31st December 1929 declared 24th December 1929 BALANCE transferred from Profit and Loss Account t ELECTRONICALLY ELCTRONIAY FILED Cr - 2023 Oct 650,029 12 8 18 10:18 AM - RIC-HLAND 377,401 2 8 COMON 2,126,905 1 1 PLEAS - 203CP417592023CP401759 2,504,306 3 9 A. V. DRAKE Secretary W. M. MILLER Chief Accountant ELCTRONIALY FILED - 2023 Oct 18 10:18 AM - RIC-HLAND COMON PLEAS - CASE#203P41 759 e O _ ELCTRONIAY FILED - 2023 Oct 18 . 42nd ANNUAL REPORT 10:18 AM - RICHLAND STATISTICS - OF - COMON De Beers Consolidated Mines Limited PLEAS - Since its formation 1st April 1888 203CP41759 Table No. DE BEERS AND KIMBERLEY MINES COMBINED 2023CP401759 " " DE BEERS MINE " " WESSELTON MINE BULTFONTEIN MINE DUTOITSPAN MINE " " TAILINGS " " KIMBERLEY MIXED GROUND 12 TABLE No. 1 DE BEERS AND KIMBERLEY MINES YEAR ENDING March 31st 1889 Prior to Consolidation March 31st 1890 March 31st 1891 * June 30th 1892 June 30th 1893 June 30th 1894 June 30th 1895 June 30th 1896 June 30th 1897 June 30th 1898 June 30th 1899 June 30th 1900 June 30th 1901 June 30th 1902 June 30th 1903 June 30th 1904 June 30th 1905 June 30th 1906 June 30th 1907 June 30th 1908 June 30th 1909 June 30th 1910 June 30th 1911 June 30th 1912 June 30th 1913 June 30th 1914 HoisoftHoeistedd Ground Washed | Diamonds found | per CaratsLoads Cost of Production per \ 944,706 ) 2,192,226 1,978,153 3,338,553 3,090,183 2,999,431 2,525,717 2,698,109 2,515,889 3,332,688 3,504,899 1,673,664 2,120,397 2,062,459 2,370,503 2,440,895 2,447,850 2,253,988 2,103,853 1,208,974 490,112 431,339 445,169 323,621 351,347 351,347 - 712,263 1,251,245 2,029,588 3,239,134 2,108,626 2,577,460 2,854,817 2,597,026 3,011,288 3,259,692 3,311,773 1,522,108 2,616,873 1,961,858 2,561,940 2,401,099 2,418,158 2,119,363 1,467,456 1,130,673 1,402,894 1,808,734 1,230,491 378,614 419,881 75,815 938,363 938,363 1,489,075 2,074,099 3,115,982 2,288,939 2,369,684 2,500,132 2,426,116 2,842,867 2,672,288 2,407,667 1,027,509 2,053,548 1,539,060 1,615,937 1,338,095 1,138,390 883,857 558,173 425,104 604,932 711,874 359,962 122,169 123,710 28,671 132 132 8 10.5 9 10.5 119 102 96 109 92 16 93 2 82 0 10 10 10 10 56 47 22 00 00 3 3 2 23 23 37 8 10 8 8 7 4.3 6 116 6 68 6 10.8 7 0.1 7 4.3 6 7.4 6 7.7 7 6.2 8 5 00 5.6 7 3.1 4.7 7 7.93 82.91 82.91 9 0.82 6 8.2 69.87 69.87 85.29 85.29 8 7.67 13 6.78 11 0.67 67:34 67:34 These figures are for a period of fifteen months ELECTRONICALLY ELCTRONIALY FILED FILED - 2023 Oct 18 10:18 AM - RIC-HLAND COMON PLEAS - 203CP417592023CP401759 1 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALY 13 ELECTRONICALY ELECTRONICALLY FILED FILED FILED FILED TABLE No. DE BEERS MINE 2023 2023 YEAR ENDING Diamonds tound Oct er 18 June 30th 1915 85 10:18 10:18 June 30th 1916 39 AM AM June 30th 1917 +2 RICHLAND RICHLAND 211 June 30th 1918 211 RICHLAND RICHLAND RICHLAND June 30th 1919 96 RICHLAND June 30th 1920 36 COMMON COMMON COMMON June 30th 1921 _ COMMON COMMON COMMON June 30th 1922 _ PLEAS June 30th 1923 3061 PLEAS PLEAS PLEAS - June 30th 1924 4,845 CASE June 30th 1925 220 CASE CASE # June 30th 1926 232 2023CP40 1759 2023CP40 1759 June 30th 1927 431 2023CP4001759 2023CP4001759 2023CP4001759 June 30th 1928 139 2023CP40 1759 June 30th 1929 188 2023CP401759 June 30th 1930 2251 a Includes 4.470 carats over 1-16th inch mesh from Rejection Concentrates Old Pulsator KIMBERLEY MINE YEAR ENDING Metric carata of Diamonds found June 30th 1917 June 30th 1918 June 30th 1919 June 30th 1920 June 30th 1921 June 30th 1922 June 30th 1923 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY 14 ELECTRONICALY ELECTRONICALLY TABLE No. 3 FILED FILED WESSELTON MINE FILED 2023 { Metric | 2023 Metric | per YEAR ENDING Ground of Hoisted Ground of Washed Washed Cost of carats found . Carate Production per 2023 Load Oct d Oct June 30th 1897 271,777 18 June 30th 1898 | 0 1A0:M31 June 30th 1899 1,146,984 2,032,771 691,722 1,662,778 194,378 ' 509,936 28 7.1 31 | 2 3 AM June 30th 1900 980,210 736,929 226,617 31 7.5 : ! RICHLAND June 30th 1901 1,571,631 1,517,981 459,264 30 3 0.9 RICHLAND June 30th 1902 1,932,140 1,752,189 535,266 | 31 . 3 5.2 RICHLAND June 30th 1903 1,987,543 1,989,598 610,667 31 3 37 RICHLAND June 30th 1904 1,919,304 2,134,903 621,292 22232 3 COMMON CCOOMMMMOONN June 30th 1905 2,068,278 2,032,582 593,484 : | 22232 3 9.74 June 30th 1906 2,433,905 1,935,905 561,254 22232 + 0.55 PLEAS PLEAS June 30th 1907 2,104,308 1,891,461 620,957 22232 58.87 58.87 PLEAS CASEPLEAS June 30th 1908 1,524,099 1,719,737 469,148 22232 48.73 48.73 June 30th 1909 1,853,562 1,798,160 634,510 10 4 5.09 CASE CASE 2023CP401759 June 30th 1910 1,702,237 2,139,738 692,206 | 2 5 5.82 | 2023CP4001759 June 30th 1911 2,422,487 1,423,117 400,540 | 0 + 9.09 2023CP401759 | June 30th 1912 2,573,398 2,020,291 597,407 = 0 47.576 47.576 22002233CCPP4400011775599 , 2023CP4001759 June 30th 1913 2,226,157 2,143,232 591,745 | 2220 44.45 44.45 2023CP40 1759 | 2023CP4001759 June 30th 1914 2,373,522 2,083,352 | 609,039 2220 47.28 47.28 2023CP4001759 June 30th 1915 217,483 219,276 57,853 | 2220 486 486 June 30th 1916 43,586 885,334 233,958 2220 June 30th 1917 June 30th 1918 June 30th 1919 1,814,393 2,065,620 1,035,311 1,669,104 1,805,436 1,657,146 467,750 | 500,765 | 413,728 | 20210135 20210135 20210135 49.959 49.959 + 10.94 6 7.19 June 30th 1920 June 30th 1921 June 30th 1922 June 30th 1923 June 30th 1924 1,927,178 845,295 Nil . 12,496 391,928 1,646,895 832,442 Nil 961,116 1,711,890 412,180 223,536 487 240,786 398,907 | = 20210135 | 20210135 i} | 25 i} 23 % 4.97 11 9.54 4 1.21 June 30th 1925 1,558,446 1,635,594 376,345 | 23 49.66 49.66 June 30th 1926 June 30th 1927 June 30th 1928 1,576,968 1,623,823 1,626,170 1,594,551 1,618,347 1,615,298 371,244 | 23 | 365,595 | 23 362,759 | 22 4 3.46 4 8.99 8.81 June 30th 1929 June 30th 1930 1,621,996 1,608,670 Productive operations 1,618,226 1,612,042 suspended 8th 374,370 378,120 | August 1914 owing to 23 | 23 | the war 49.43 4 5:38 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY 15 ELECTRONICALLY FILED FILED FILED TABLE No. 4 FILED 2023 2023 2023 BULTFONTEIN MINE 2023 Oct Oct YEAR ENDING Loads of Blue Ground Hoisted Loads of Blue Ground Washed Metric carats of Diamonds found | Carats per 100 Loads | Cost of Production Lond per 18 10:31 10:31 June 30th 1901 148,086 66 AAMM June 30th 1902 June 30th 1903 June 30th 1904 June 30th 1905 June 30th 1906 June 30th 1907 353,042 318,410 429,729 605,730 1,771,372 2,320,538 20,194 317,185 514,385 611,491 953,296 1,728,047 4,605 78,604 152,149 255,606 355.250 562,00+ RICHLAND RICHLAND 5 RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND 5 COMMON COMMON 5 5.26 COMMON COMMON 6 24 COMMON COMMON June 30th 1908 1,319,720 1,275,838 422,296 3 6 1.86 PLEAS PLEAS PLEAS June 30th 1909 1,214,301 1,573,118 618,433 39 6 7:39 PLEAS PLEAS June 30th 1910 2,099,173 1,818,509 685,551 ^ 4 348 CASE CASE June 30th 1911 2,457,412 1,866,212 718,973 ^ 3 11:45 CASE CASE # 2023CP4001759 June 30th 1912 2,334,720 2,025,450 856,898 +2 357 2023CP4001759 2023CP4001759 2023CP4001759 June 30th 1913 2,313,477 2,096,378 2,096,378 897,620 43 4 2023CP4001759 2023CP4001759 2023CP4001759 June 30th 1914 2,279,838 2,069,552 809,422 59 4 2023CP4001759 2023CP40 1759 June 30th 1915 256,950 214,522 78,101 36 4 2023CP4001759 2023CP4001759 2023CP4001759 June 30th 1916 60,997 864,052 351,764 7 June 30th 1917 2,092,267 1,761,756 693,313 39 39-856 June 30th 1918 2,328,615 1,859,531 664,084 36 11.61 June 30th 1919 June 30th 1920 June 30th 1921 1,262,942 2,021,026 934,537 1,629,198 2,251,257 670,907 521,327 681,013 240,128 32 32 2 5 6:39 3.99 0.51 June 30th 1922 Nil Nil 108 June 30th 1923 June 30th 1924 June 30th 1925 June 30th 1926 June 30th 1927 Nil 26,103 1,258,482 1,631,204 1,681,452 273.714 2,350,044 1.460,357 1,462,906 1,626,067 72,406 671,597 469,675 435,196 506,115 2:58 10.68 871 June 30th 1928 June 30th 1929 June 30th 1930 1,635,862 1,489,092 1,630,233 1,624,082 1,578,233 1,621,896 514.2841 491.830 510,018 6:38 9.65 495 Productive operations suspended 8th August 1914 it owing to the | war ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALY 16 ELECTRONICALY FILED FILED TABLE No. 5 FILED 2023 2023 DUTOITSPAN MINE 2023 Oct Washed | Carats | Production Ground Hoisted Ground Diamonds found | Cost YEAR ENDING Londs of Blue Loads of Blue ] : Metric carats of Carats per Loads of per Oct 18 10:31 Oo 10:31 re | S. d AM June 30th 1904 39,914 24,359 3,112 13 RICHLAND Development RICHLAND June 30th 1905 311,499 65,784 17,575 1 12 3.56 RICHLAND June 30th 1906 1,685,714 617,028 155,348 25 7 1.49 RICHLAND | COMMON June 30th 1907 2,481,987 1,539,327 375,523 24 6 5.84 | COMMON June 30th 1908 | 1,444,989 839,075 195,796 12 5 6.24 Nil Nil 12: June 30th 1909 118 COMMON PLEAS ! June 30th 1910 878,775 917,175 215,671 24 5 5.34 PLEAS \ PLEAS June 30th 1911 2,780,070 2,335,240 495,780 a 4 7.09 PLEAS CASE | June 30th 1912 2,718,703 1,845,796 439,569 27722221 3 10.665 CASE | June 30th 1913 | 2,491,235 2,330,234 554,354 27722221 4 2.09 CASE H 2023CP4001759 June 30th 1914 2,513,469 2,412,679 510,651 27722221 | 4 1.49 2023CP401759 June 30th 1915 , 264,039 280,324 57,084 27722221 ! 452 452 203CP401759 June 30th 1916 | Nil | 108,597 21.290 27722221 2023CP401759 June 30th 1917 135,650 | 1,957,335 387,584 387,584 27722221 6 1.366 2023CP40 1759 June 30th 1918 2,200,843 2,178,132 433,866 27722221 | 3 8.8 June 30th 1919 1,389,883 1,066,465 185,782 9:39 June 30th 1920 1,796,573 1,892,558 313,691 ES | 6 8.48 June 30th 1921 861,651 | 830,424 136,010 16 | 9 7.90 June 30th 1922 June 30th 1923 June 30th 1924 June 30th 1925 June 30th 1926 June 30th 1927 June 30th 1928 June 30th 1929 June 30th 1930 335 Nil 748 1,168 665,839 1,655,353 1,642,511 1,609,688 1,623,270 ve Nil 489,615 1,154,131 1,469,916 1,630,958 1,632,646 1,596,821 1,603,691 242 382 82,303 206,589 265,386 261,642 265,010 250,317 256,534 | : | | 17 18 18 16 16 16 16 56.95 56.95 5 1.45 4 11.67 5 2.72 47.83 47.83 Productive operations suspended 8th August 1914 owing to the war ELCTRONIAY TABLE No. 6 FILED - TAILINGS 2023 YEAR ENDING Loads Washed Metric carats of Diamonds found Oct 18 10:31 AM June 30th 1901 265,239 51,477 - June 30th 1902 1,151,816 208.209 208.209 RICHLAND June 30th 1903 1,347,115 233.509 June 30th 1904 1,881,090 409,6485 - June 30th 1905 1,616,030 1 263.877 263.877 COM ON June 30th 1906 June 30th 1907 2,200,964 314311 | 572,692 June 30th 1908 396,090 396,090 PLEAS June 30th 1909 632,857 - June 30th 1910 1,394,641 203CP41759 June 30th 1911 2,359,021 June 30th 1912 1,440,914 June 30th 1913 1,705,938 June 30th 1914 765,880 2023CP401759 June 30th 1915 3,956 No operations since 1915 Productive operations suspended 8th August 1914 owing to the war TABLE No. 7 KIMBERLEY REEF AND BLUE MIXED YEAR ENDING Loads Washed Metric carats of Diamonds found June 30th 1914 1,104,577 June 30th 1915 153,257 June 30th 1916 No operations since 1915 96,776 ELCTRONIALY FILED - 2023 Oct 18 10:31 AM - RICH- LAND COMON PLEAS - CASE#203P41759 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y 19 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY FILED FILED FILED FILED 2023 2023 GENERAL MANAGER'S REPORT 2023 2023 Oct Oct 18 10:31 10:31 TO THE DIRECTORS AM AM DE BEERS CONSOLIDATED MINES LIMITED RICHLAND RICHLAND RICHLAND Gentlemen RICHLAND RICHLAND RICHLAND RICHLAND I beg to submit for your consideration my report for the year ended 30th June 1930 COMMON COMMON COMMON COMMON COMMON DE BEERS MINE COMMON PLEAS PLEAS No mining was done during the year PLEAS PLEAS PLEAS Pumping was continued throughout the year the average quantity of water CASE pumped from the mine being 3,11 gallons per hour CASE CASE CASE Quantity of Blue Ground in Sight The quantity of blue ground in sight above # 2023CP4001759 2023CP4001759 the 2,040 foot level is estimated to be 2,750,000 loads 2023CP4001759 2023CP4001759 2023CP4001759 The depth of No. 1 Shaft is 2,640 feet 2023CP4001759 2023CP4001759 2023CP4001759 The depth of No. 2 Shaft is 1.728 feet 2023CP40 1759 2023CP4001759 2023CP4001759 No blue ground was washed during the year and the stock remains at 48,396 2023CP4001759 loads KIMBERLEY MINE The stock of reef and blue mixed remains at 571.176 loads WESSELTON MINE Output of Blue Ground follows :- The output of blue ground was 1.608,670 loads as 860 foot level Le 900 - . 940 ., - 980 ; 1,020 . 1,050 . . 1.080 . .. a 36,854 loads a 284,001 Le 402,404 a 298,384 298,384 251,356 oe 223,286 223,286 a 112,385 Total . 1,608.670 1,787 loads of reef or waste ground were also hoisted ELECTRONICALLY ELECTRONICAL Y ELCTRONIALY 20 Hoisting was done through No. 2 Shaft from the 1,600 foot level FILED Quantity of Blue Ground in Sight is estimated that there is in sight above the - 1,600 foot level 30,500,000 loads 2023 Water average quantity of water pumped from the mine was 35,315 gallons Oct per hour 18 10:31 - year Development Work The following development work was done during the Tunnels in rock and reef 3,681 feet AM - Tunnels in blue ground . 17,212 Passes in rock and reef a 166 RICHLAND Excavations rock we ... 13,940 cubic feet A new Shaft has replaced the caved portion of the old No. 1 Rock Shaft from the - surface to the 500 foot level COM ON The depth of No. 2 Shaft is 1.756 feet The stock of blue ground at the end of last year was 340.676 loads 1,608.670 PLEAS loads were hoisted from the mine and 1.612.042 loads were washed leaving a stock of 337,304 loads - Costs per Load - Year ended Year ended 203CP41759 Mining 30th June 30th June 1930 1929 d S. d . 10.16 .. 3 1.44 Washing 1 7.22 1 7.99 2023CP401759 Total . 4 5.38 j 9.43 BULTFONTEIN MINE Output of Blue Ground output of blue ground was 1,630,233 loads as follows : 840 foot level _ 306 loads 880 ..., .. . 5,577 920 960 . Le a 130,094 ces 145,726 1,000 307,098 1,030 . 325,378 1,050 . . 304,235 1,080 1,120 2... 1,150 2... 1,180 2... 1,220 0... 1,250 .. ; . 242,302 . a 143,782 . 8,791 . oo 5,870 a 7,597 . 3,477 Total 1,630,233 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y 21 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY FILED 2,931 loads of reef or waste ground were also hoisted FILED FILED FILED Hoisting was done through No. 2 Shaft from the 1,600 foot level 2023 2023 Quantity of Blue Ground in Sight is estimated that there is in sight above 2023 2023 the 1,600 foot level 25,000,000 loads Oct Oct Water average quantity of water pumped from the mine was 18,319 gallons 18 per hour This quantity includes all Dutoitspan Mine water which flows through a 10:31 10:31 connecting tunnel from the 1,350 foot level Dutoitspan Mine to the pumping station on AM the 1,600 foot level Bultfontein Mine AM Development Work following development work was done during the RICHLAND RICHLAND : RICHLAND year RICHLAND Tunnels in rock and reef : 720 feet RICHLAND RICHLAND Tunnels in blue ground . 19,306 RICHLAND Passes in rock and reef . 27 COMMON COMMON Passes in blue ground . 2,302 COMMON COMMON Excavations rock Lee a 468 cubic feet COMMON COMMON The depth of No. 1 Shaft is 708 feet PLEAS PLEAS PLEAS The depth of No. 2 Shaft is 1.715 feet PLEAS PLEAS The stock of blue ground at the end of last year was 148.796 loads 1,630,233 loads CASE were hoisted from the mine and 1.621.896 loads were washed leaving a stock of 157,133 CASE CASE CASE loads # 2023CP4001759 2023CP4001759 The stock of cylinder lumps remains the same as at the end of the previous year 22002233CCPP44000011775599 2023CP4001759 viz 220,655 loads 2023CP4001759 2023CP4001759 2023CP4001759 Costs per Load 2023CP40 1759 2023CP4001759 Year ended Year ended 2023CP4001759 2023CP4001759 30th June 30th June 1930 1929 S. 1 S. d Mining Washing . 27.49 27.49 1 9.46 29.22 29.22 2 0.43 Total . 1 4.95 49.65 49.65 DUTOITSPAN MINE Output of Blue Ground output of blue ground was 1,623,270 loads as follow : s 550 foot level . . 23,230 loads 590 81,191 630 a oe 205,304 670 a . 337,585 710 . a 563,510 750 2, - 253,710 780 0... 148,538 815 . _ 7,437 850 .. i, Lee vee 2,765 Total vee .. 1,623,270 ELECTRONICALLY 22 ELCTRONIALY 5,639 loads of reef or waste ground were also hoisted FILED FILED - Up to and including Saturday 24th August 1929 hoisting was done through No. 1 Shaft from the 750 foot level and from Monday 26th August from the 1,350 foot level 2023 Quantity of Blue Ground in Sight is estimated that there is in sight above Oct the 1,350 foot level 31,000,000 loads 18 Water water was pumped during the year all water being gravitated to the 10:31 Bultfontein Mine 1,600 foot level AM - Development Work following development work was done during the year -- RICHLAND Tunnels in rock and reef 2,452 feet Tunnels in blue ground .. 20,846 " Passes in rock and reef a 21 " - Passes in blue ground Le 824 " Excavations -rock _ Water shaft sunk we ... 13,300 cubic feet a 138 feet COMON PLEAS The depth of No. 1 Shaft is 1.476 feet The depth of No. 2 Shaft is 768 feet - The stock of blue ground at the end of last year was 283,965 loads 1,623,270 loads were hoisted from the mine and 1.603.691 loads were washed leaving a stock of 203CP41759 303,544 loads The stock of cylinder lumps remains the same as at the end of the previous year viz 610,804 loads Costs per Load : - 2023CP401759 Year ended Year ended 30th June 30th June 1930 1929 8. d S. d Mining 0.83 ... 3 6.61 Washing 1 7.00 ... 1 8.11 Total .. 4 7.83 -- 5 2.72 SUMMARY OF OPERATIONS LOADS BLUE GROUND HOISTED Wesselton Mine Bultfontein Mine . Dutoitspan Mine a we cee Le Year ended 30th June 1930 1,608,670 1,630,233 1,623,270 Total ve : : 4.862.173 Year ended 30th June 1929 1,621,996 1,489,092 1,609,688 4,720,776 23 ELCTRONIAY LOADS BLUE GROUND WASHED FILED - Year ended Year ended 30th June 30th June 2023 Oct 1930 1929 Wesselton Mine Lee wee wee 1.612,042 1,618,226 18 Bultfontein Mine vee wee Lee 1,621,896 1,578,233 Dutoitspan Mine _ was ves 1,603,691 1,596,821 10:31 AM Total vee wee wee 4,837,629 4,793,280 - RICHLAND STOCKS - BLUE LUMPS TOTAL 30th June 1930 30th June 30th June 1929 1930 30th June 1929 30th June 1930 30th June 1929 COMON PLEAS De Beers Mine Wesselton Mine 48,396 337,304 48,396 - -- - ae 48,396 340,676 - 337,304 48,396 340,676 Bultfontein Mine 157,133 148,796 220,655 220,655 377,788 377,788 369,451 - Dutoitspan Mine 303,544 303,544 283,9 610,804 610,804 914,348 894,769 Total 846,377 821,833 831,459 831,459 1,677,836 1,653,292 203CP41759 REEF AND BLUE MIXED 30th June 30th June 1930 1929 Kimberley Mine ... 571,176 571,176 AVERAGE YIELD PER LOAD OF BLUE GROUND WASHED Year ended 30th June 1930 Wesselton Mine ... .23 et Bultfontein Mine ... 31 et Dutoitspan Mine ... .16 ct Year ended 30th June 1929 .23 et .31 ct .16 ct GENERAL REMARKS Tramways addition to the Company's employees who travel free of charge to and from work and school children who are conveyed at reduced fares 4,267,892 passengers were carried during the year as against 4,289,389 for the previous year The total number of passengers carried was 6,255,643 Council Electric Lighting of Kimberley current supplied to Kimberley City during the year amounted to 2,966,446 units as against 2,631,466 units for the previous year ELCTRONICALY 24 ELCTRONIALY FILED Rainfall rainfall for the year was 17.68 inches as compared with 14.31 inches for the previous year - The rainfall for the last seven years was as follows : 2023 Year ended 30th June 1924 12.08 inches Oct 18 " 1926 10.48 " 1927 14.16 10:31 " , 1928 15.08 AM " 1929 14.31 - " 1930 17.68 RICHLAND Du Toit's Pan water in Du Toit's Pan on the 30th June 1930 was approximately 308,000,000 gallons as compared with approximately 313,000,000 gallons - on the 30th June 1929 COM ON Retirements and Appointments many years of valuable service to the Company Mr. J. Harbottle Consulting Mechanical and Electrical Engineer retired on the 1st July 1930 PLEAS Mr. A. Gardner Williams was appointed Acting Superintendent of Mines as from the 1st January 1930 - ary Mr. P. T. Easton was appointed 1930 vice Mr. L. McBean retired Chief Land Surveyor as from the 10th Febru- 203CP41759 Mr. T. P. Stratten was appointed Assistant Electrical Engineer as from the 22nd January 1929 Mr. R. Becker was appointed Superintendent Convict Station as from the 18th January 1930 vice Major R. Kemp retired and Employees number of white employees at 30th June 1930 was 1,562 men 166 lads as compared with 1,634 men and 178 lads at 30th June 1929 The number of natives 6,666 at 30th June 1929 employed at 30th June 1930 was 5,913 as compared with under In conclusion I beg to thank the various heads of departments and the them for the loyal support they have given me at all times during the year men Kimberley 1st October 1930 ALPHEUS F. WILLIAMS General Manager ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY FILED FILED FILED FILED 2023 2023 2023 De Beers Consolidated Mines Limited 2O0c2t3 Oct 18 10:31 10:31 Second Ordinary General Meeting AM AM RICHLAND RICHLAND RICHLAND RICHLAND RICHLAND The Second Annual General Meeting of Shareholders of De Beers RICHLAND Consolidated Mines Ltd. was held at the Office of the Company Stockdale Street Kim- RICHLAND berley on Monday 15th December 1930 at 11 a.m. Sir Ernest Oppenheimer Chairman COMMON of the Company presided The following Deferred Shareholders were present Colonel Sir COMMON David Harris K.C.M.G. V.D. Mr. A. G. W. Compton M.C. and q.q. Mr. G. W. Compton COMMON COMMON and Mr. S. E. Compton Mr. S. B. Joel J.P. Mr. R. Philipson Mr. W. Pickering COMMON D.S.O. J.P. Mr. H. P. Rudd Mr. A. Abrahams Mr. C. Anhaeusser Mr. M. M. Aron- COMMON son Mr. J. Buck Mr. H. A. J. Black Mr. J. A. Bodley Mr. L. H. Brailey Mr. M. E. PPLLEEAASS Doherty Mr. P. Denman Mr. W. D. Fynn Mr. J. H. Gratton Mr. M. Hodgson Mr. PLEAS PLEAS W. B. Humphreys M.P Mr. H. J. Lancaster Mr. C. E. H. Langley Mr. R. D. PLEAS Lawrence Mr. D. Moore McBean Mr. T. G. McLennan Mr. G. McKenzie Mr. W. CASE Meinke q.q. Mr. H. Feldman Mr. John Orr M.B.E. Mr. E. Ortlepp Mr. S. Peachey CASE Mr. T. G. Peacock Mr. E. S. Passmore Mr. E. H. Raynham Mr. A. J. Robins Mr. G. CCAASSEE M. Robertson Mr. H. E. Seccull Mr. Wm Sagar J.P. Mr. P. Sussman Mr. W. H. # 2023CP4001759 Snedden Mr. H. Solomon Mr. A. Silverston Mr. J. van Praagh Mr. J. C. Vos Mr. 2023CP4001759 2023CP4001759 P. R. Ward Mr. T. J. Woodburne Mr. Alpheus F. Williams Dr. S. Zweiback Mr. 2023CP4001759 2023CP4001759 C. E. Hertog the Company's Solicitor and Mr. A. V. Drake Secretary 2023CP4001759 2023CP4001759 Sir Ernest Oppenheimer held proxies representing 188,412 shares 22002233CCPP4400011775599 2023CP4001759 Mr. S. B. Joel held proxies representing 90,767 shares 2023CP4001759 2023CP4001759 Mr. R. Philipson held proxies representing 6,330 shares The Chairman declared the meeting properly constituted of the which The Secretary read last Annual General were confirmed the notice convening the meeting and afterwards the Minutes Meeting of Shareholders held on Friday 20th December 1929 The Secretary further read the Report of Sheet and laid on the table the Auditors Report 99 of the Companies Act of 1926 the Auditors attached to as required by section the Balance 5 of Section Mr. Van Praagh moved that circulated among the Shareholders be carried the Directors taken as read Report and Accounts having been Mr. Langley seconded and it was The Chairman prefaced his speech by welcoming Mr. Joel to Kimberley He was quite sure he said he was speaking for his Colleagues and himself and he was quite sure he was speaking for all the Shareholders present also when he said they were delighted to see him among them They were particularly glad to see him because they had heard alarming reports of his health He had been seriously ill but he had made an excellent recovery They hoped he would be spared many years and experience prosperity and happiness and help them to guide the destinies of this Company Applause The Chairman in moving the adoption of the Report and Accounts said The Chairmanship of the De Beers Company is regarded as one of the most important positions the South African mining world has to offer the position confers distinction upon the holder a fact of which I am keenly sensible and I take this opportunity of expressing my gratitude to my Colleagues for electing me to the Chair of this Company I know that the occupant of this Chair must be prepared for hard work and at times anxiety and worry but I face the future and whatever it may hold with equanimity born of the knowledge that my responsibilities and cares will be shared by my fellow Directors ELECTRONICALLY ELECTRONICAL Y 26 ELCTRONIALY FILED Speaking for the Board of Directors I can say that we have a full realisation of the varied nature of our responsibilities which comprise in addition to our obligations to - Shareholders officials and employees the responsibility which goes with a great primary 2023 national industry It is and always has been our aim to conduct the Company's opera- tions in harmony with the interests of the country Oct Here perhaps I may interpose a purely personal note I am as you know a 18 Member of Parliament as representative of the City of Kimberley nevertheless I realise 10:31 that our industry as such must have no politics This fact however does not deprive us of our rights of criticism should any Government neglect the legitimate interests of our AM huge industry which has done so much for the revenues of the State and the prosperity of its people The Government as an owner of diamond fields has the same direct interest in the - diamond industry as any other diamond producer in addition to indirect interests that are greater still RICHLAND Since the promulgation of the Precious Stones Act of 1927 the Government has vested in itself very wide powers to assist the diamond industry through the regulation of - the quantity of diamonds to be put upon the market from time to time nevertheless in con- sonance with that very wise maxim which says that it is the duty of a Government to COM ON govern it was clearly the intention of the law that these powers would be utilised only if and when the industry was faced with a difficulty which it could not overcome alone As regards the Conference Producers it must be remembered that the law gives them the opportunity to regulate their operations by mutual agreement and for this reason and PLEAS because of the confidence which comes from long years of experience we should shoulder our own burdens and invoke the assistance of the Government as a last resort only It - should be our definite policy to rely to the greatest possible extent upon our own resources our knowledge of the trade and our energy and enterprise 203CP41759 These views will I believe commend themselves to the Directors of the other Conference Producers but history and tradition impose upon us the duty of setting an example we are the oldest and largest diamond producer and say this without any desire to question the mining life of the properties of the other Conference Producers most permanent one Our position is rendered still stronger by the fact that our product 2023CP401759 comprises practically every size and quality of diamond which alone places us in a unique position amongst diamond producers though at the same time imposing upon us as a special responsibility the prosperity of all branches of the trade This being our outlook we shall endeavour to foster such close operation between Conference Producers that by pooling our knowledge not only shall we bring about the greatest efficiency in working our various properties and be better equipped to watch diamond discoveries in the Union and elsewhere but also acting togther we shall be able to deal effectually with any problems that may menace the stability of the diamond trade I have said that the Directors have to work hard and face anxiety and worry If after perusing the Balance Sheet and Accounts which later I shall ask your to adopt you wonder what we have been anxious and worried about I shall not be surprised but you must remember that the year under review ended on 30th June last and therefore the Accounts before you do not reflect to any appreciable extent the effects of the depression in the diamond trade Before I resume my seat I shall tell you something of our worries and anxieties but in the first instance I shall deal with the Accounts If you will refer to the Balance change in the amount of Capital issued nominal value of 10s each Sheet you will observe that there has been no and that there remain unissued 9,486 shares of the The Debenture " Redemption Reserve was increased by 110,855 being the nineteenth and final payment in accordance with the redemption table to 1,635,495 The Debentures having been redeemed on 1st January 1930 are expunged from the Balance Sheet and the Reserve has been applied for the time being to reduce the value of " Property Account but no definite allocation of the amount has yet been made The liquidation of our Debenture Liability will result in an annual saving of 73,597 in respect of interest The annual charge for Sinking Fund which this year was 110,855 will also disappear ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY 27 ELECTRONICALLY FILED The Appropriation for the Stabiliment of the Diamond Trade has been increased to FILED FILED " 3,394,586 by the transfer of 820,744 from General Fund which amount has been FILED invested in the acquisition of shares in the Diamond Corporation Ltd. This Corporation 2023 the formation of which was foreshadowed by Sir David Harris at the last Annual Meeting 2023 2023 of this Company was registered with a Capital of 2,500,000 A short reference to the 2023 principal objects of the Corporation appears in the Directors Report which I shall supple- OOcctt ment by a more extended reference later on this morning 18 Our cash reserve the General Fund amounts to 2,224,514 which is invested in 10:31 practically equal amounts in % British War Loan 1929-47 and Union of South Africa 10:31 Treasury Bills The net decrease in the Fund as compared with the Accounts as at the 30th AM June 1929 was 804,309 due principally to the acquisition of the Company's interest in AM the Diamond Corporation Ltd. RICHLAND RICHLAND Current Liabilities amount to 1,393,317 which includes no less a sum than RRIICCHHLLAANNDD 302,588 in respect of Union Income Tax These liabilities are covered rather more than RICHLAND " " " " RICHLAND twice over by Debtors and Cash Assets amounting to 2,797,946 Apart from this RICHLAND we have our Reserve Fund to which I have already referred COMMON COMMON Our contingent liability under the guarantee in respect of the repayment of the COMMON Cape Explosives Works 51 First Mortgage Debentures and interest thereon has been COMMON COMMON reduced by 78,400 to 984,100 The Imperial Chemical Industries Ltd. have indemnified COMMON De Beers Company to the extent of 50 of this contingent liability PLEAS PLEAS PLEAS Reference to Assets in the Balance Sheet will show that " Claims and other PLEAS PLEAS " 6 Mining Interests and Estates and Farms have been grouped together the total value being 5,004,082 which sum was reduced to 3,368,588 in the manner I have already CASE CASE explained by deducting the South African Exploration Debenture Reserve of 1,635,495 CASE CASE This total represents a very conservative might say a valuation as the Assets # include our Mines and Estates and in addition valuable farms in the Union and in Rhodesia 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 Here perhaps I may be permitted to digress for a minute in order to make a few 2023CP4001759 2023CP4001759 remarks regarding the magnitude of our farming operations 2023CP4001759 2023CP4001759 2023CP40 1759 In the Union we are actively farming 87 separate holdings aggregating 406,000 22002233CCPP44000011775599 acres On these farms we have valuable herds of Friesland and Shorthorn Dairy cattle 2023CP4001759 and have quite recently established an extremely modern dairy which we trust will be an instructive and inspiring object lesson to other dairy farmers We also breed horses and it has been acknowledged by the Police that our mounts are the best obtainable Sheep farming is also being experimented with as Company wishes to see whether Griqualand West can be made a growing centre re- the In addition we are applying scientific principles to the solution of the problem of providing foodstuffs for stock in a semi district by the cultivation of resisting plants suitable for fodder We are sole proprietors of the Rhodes Fruit Farms which have played and will continue to play a leading part in the development of the South African fruit industry When I tell you that our exports alone increased from 3,139 boxes in 1905 to 160,620 boxes during the past season you will appreciate the progress which has been made In Rhodesia we are ranching on a large scale and are establishment of a subsidiary ranch on the Limpopo River in order to of stock in good condition on the Union markets now considering the facilitate the landing These activities are our practical and tangible acknowledgement of the debt we owe to the country the mineral wealth of which has made this Company what it is but our achievements in these directions are I think sometimes overlooked by the general public The other main item under the heading of Property is now styled Investments in the Diamond Corporation other Diamond Mining Companies and Kindred Interests and at present amounts to 4,044,690 as against 3,223,946 at the 30th June 1929 the increase of 820,744 of course representing the acquisition of the important interest in the Diamond Corporation to which I have already referred The total of Property Account is now 7,413,279 ELECTRONICALLY ELECTRONICAL Y 28 ELCTRONIALY FILED African 66 Investments in Stocks and Shares 624.207 comprises our half interest in the Explosives and Industries Limited some Cape Explosives Works Debentures and - our holding in the Rhodes Fruit Farms together with sundry small items 2023 The interest in the African Explosives and Industries was acquired in conjunction with Imperial Chemical Industries with whom we subscribed the entire capital of the Oct Explosives Company and Shareholders will be glad to know that this investment is a very profitable one The importance and magnitude of the undertaking will be realised when I 18 10:31 tell you that it employs 1,157 Europeans and 3,415 natives that its wage bill is 600,000 per annum and that it pays about half a million per annum to the Union Railways AM Lord Melchett the Chairman of the Imperial Chemical Industries who recently - visited South Africa when presiding at the Annual Meeting of his Company referred at some length to the excellent prospects of the African Explosives Company and to the RICHLAND importance of development of Imperial Economic operation As the result of Lord Melchett's visit the Explosives Company is erecting at Modderfontein near Johannesburg plants for the production and oxidation of synthetic ammonia At Somerset West an oxidation plant will also be installed The cost of the plants is estimated at 585,000 - and when in operation they will of course provide remunerative employment for a large COM ON number of Europeans The actual value of our interests in the African Explosives Company is many times the value at which it has been taken into the Balance Sheet " " The item Reserve Investments is as you will observe a contra entry PLEAS - 86 " Debtors Special Investments and Cash amount to 2,797,946 In the details of this Account appearing in the Balance Sheet is an item Open Accounts and Loans to affiliated Companies This title was adopted to cover loans to the Diamond Corporation 203CP41759 and the Kimberley Diamond Cutting Company which are in effect companies affiliated to us The attention to < Profit and the welcome " Loss Account calls for reduction of 90,000 in some comment I would draw your Mining Expenditure the total under this heading being 1,140,371 This reduction was the result of sustained efforts to achieve the greatest possible economy without detriment to efficiency This effort has been main- 2023CP401759 tained since 30th June last and will I believe result in still further savings in fact I am hopeful that it will be possible to work the three mines on the present scale at a total expenditure in the neighbourhood of 1,000,000 As all Shareholders may not have time to study the report of the General Manager I shall give you a short summary of the mining position and The present hoisting the reserves above that output at the present rate of level at the Wesselton level are estimated at hoisting Mine is 1,600 feet below the surface 30,000,000 loads equal to 15 years The main haulage equipment in the Bultfontein Mine is on the 1,600 feet level Developed reserves above that level are estimated to be 25,000,000 loads and of this total probably 20,000,000 loads will be dealt with through the existing level giving an indicated output for 12 to 13 years on the current scale of operations At the Dutoitspan Mine the new haulage plant at the 1,350 feet level was brought into commission in August 1929. There are in sight above this level 31,000,000 loads equal to a 15 years output at the present rate of production These gentlemen are short particulars of the mining position on the operating properties of our Company and I think you will agree that they indicate a very satisfactory state of affairs Our development is well ahead and no money will be required in connection with development or equipment for many years Furthermore the fact that we have these enormous reserves above what are after all very moderate depths must clearly show you the very long lives of our mines I may add that should the diamond business expand sufficiently to warrant such a course we could double our output without any capital expenditure at any one or all of the operating mines by inaugurating a shift basis in place of the one shift at present working In addition work could be resumed at the De Beers Mine which is now out of commission ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y 29 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY FILED . The net expenditure on Farms Landed Property and the Alexanders- FILED FILED " fontein Electric Railway amounted to 59,537 as against 6,768 the increase of 52,769 FILED being due to the heavy depreciation in the value of livestock 2023 2023 66 " 2023 Charges amounted to 228,686 as against 249,985 for the previous year 2023 This total although showing a reduction might create the impression that administration Oct Oct expenditure is unduly large Reference to the details in the Account will however show that a large part of this sum was spent for the benefit of our employees 18 10:31 " I particularly direct your attention to the items Employees Provident Fund 10:31 Allowances to Retired Employees Pay to Employees on Leave and Compensation AM also to the item Donations and Relief AM RICHLAND Needless to say however every effort will be made to reduce the purely adminis- RICHLAND trative expenses included in this Account RICHLAND RICHLAND RICHLAND Expenditure in respect of . Interest on the Capital of Leased Companies " was RRIICCHHLLAANNDD unchanged at 96,392 whilst Debenture Interest was only half of the amount shown in the Accounts at the 30th June 1929 due of course to the fact that as I have already COMMON COMMON informed you the Debentures were redeemed on the 1st January last This latter charge COMMON as also the charge in respect of principal will not recur COMMON COMMON COMMON The credit to Diamond Account amounted to 3,262,665 as against 3,255,791 PLEAS for the previous year PLEAS PLEAS PLEAS ' PLEAS Interest and Dividends on Investments showed a drop of 28,986 the total revenue under this heading being 503,168 as against 532,154 CASE CASE CASE The other items in the Profit and Loss Account are small and do not call for com- CASE # ment 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 If you will refer to the Appropriation Account you will see that the credit 2023CP4001759 2023CP4001759 balance of 650,029 as at the 30th June 1929 was reduced to 377,401 by the payment of 2023CP4001759 2023CP4001759 the final dividend of 5s per share on the Deferred Shares which absorbed 272,628 The 2023CP40 1759 profit for the year under review was 2,126,905 which together with the balance of 2023CP4001759 2023CP4001759 377,401 brought forward from the previous year made a total of 2,504,306 which was 2023CP4001759 dealt with as follows Union Income Tax wee Preference Dividend Balance unappropriated wee 302,588 ves 800,000 wee 1,401,718 2,504,306 You will perceive that the balance of profit unappropriated is such that we could apart from making our usual allocation to reserves have paid a substantial deferred dividend but we were in the middle of a very severe economic depression which unfortunately is still with us The crisis in the United States of America which started in October 1929 was naturally accompanied by a shrinkage in the Syndicate's sales of diamonds until by June this year they had become negligible As our contracts are based on the replacement system that is to say the Syndicate's purchases during any six months are based on its sales during the previous period we knew that in turn our sales for the current six months would be insignificant and we were therefore faced with a very difficult problem During the year under review 1929-30 we continued to work one shift of eight hours at Wesselton Dutoitspan and Bultfontein Mines paid our Preference dividend and had money in hand for a Deferred dividend but after mature consideration your Directors came to the conclusion that it was in the best interests of all concerned to withhold the Deferred dividend and continue operations without curtailment Before deciding on this policy we made certain that our fixed liabilities namely rental of the leased Companies and the Preference dividend for 31st December 1930 could be met It would have been unreasonable to expect the Deferred shareholders to forgo their dividend if by spending money on the production of diamonds that were not required for the moment our fixed engagements could not be discharged 30 The present position is that the Preference dividend due this month is assured as also with a moderate revival of sales is that of June next Having dealt with the individual affairs of De Beers I now pass to the broader aspects affecting the diamond industry which recently has been passing through such a disturbed and critical period The present depression of this particular industry is a direct consequence of the general world commercial stagnation The economic condition of practically all the countries of the world day presents an almost uniform picture of a severe depression following the prosperous trade cycle which began with the recovery in 1922. This is not the place to enter fully into the causes of the present depression a matter on which opinions differ As is usual in the case of wide fluctuations in economic conditions people pass from extreme optimism during a period of prosperity to extreme pessimism in the subsequent reaction Judging however by past experience we may assume that what has happened during previous periods of depression will happen again namely that the decline in stocks of commodities and diminished speculation coupled with easy money rates will in due course prepare the way for a gradual revival Despite signs of political trouble in various parts of Europe and Asia the general position of the world is sounder day than it was in 1921 when the world was owing to the effects of the Great War in a far from stabilised condition An examination of the conditions affecting the diamond trade during the periods immediately following previous depressions shows that contrary to what might be expected diamonds are among the first commodities to come into demand and we are therefore I think justified in expecting that as soon as trade revives the diamond industry will again come into its own What is needed at present is that the trade and public generally should be reassured and satisfied that the control of production is effective that it is in competent and experienced hands that sales are limited to the market demands and carried on through one channel and that the financial resources of those in control are adequate I hope we will be able to convince you that as regards these points the diamond industry as a whole is on a firmer foundation than ever before in its history However severe and prolonged the present economic crisis may be it will come to an end prosperity will return and money will be again available for luxuries Whether a large or small part of this money will be invested in diamonds will depend on the judgment formed by the public of our conduct of the diamond trade in the last few years of exceptional difficulties and during this crisis If proper use is made of the experience accumulated over many years and the existing machinery of the trade is strengthened we will inspire even greater confidence in the intrinsic and stable value of the diamond and when the clouds of depression have passed we shall attract a larger proportion of the money available for luxuries than before To those who hold diamonds as an investment I would draw attention to the remarkable stability of the value of diamonds as compared with that of other commodities Examination of the average of diamands shows that since coffee and even wheat annual value 1920 diamond corrected for changes in the general price level values have fluctuated far less than lead copper The reason for the stability achieved in diamond values is undoubtedly due to the policy pursued in controlling diamond sales The Syndicate has never attempted to force up the price of diamonds above that warranted by the condition of the general price level It has exercised the function of adapting supply to demand so that values should fluctuate as little as possible At this point I think it advisable to survey briefly the alluvial diamond position and the important discoveries of recent years at Lichtenburg and in Namaqualand Prior to 1926 our experience of more than 50 years of Union river alluvial had created a feeling amongst the big producers that mines alone were the real source of diamond supplies alluvial fields being considered as so poor and limited in extent that there was no need to control production from this source Not even the discovery of a different category of alluvial deposits namely the rich and extensive fields in South Africa the Congo and Angola served to alter this fixed idea That the Government shared this view is made quite clear by the section in the Diamond Control Act of 1925 which expressly excluded alluvial ELECTRONICALLY ELCTRONIAY FILED - 2023 Oct 18 10:31 AM - RIC-HLAND COMON PLEAS - 203CP417592023CP401759 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY 31 ELECTRONICALLY FILED FILED from the operation of the Act Four years ago came the discovery of the rich fields at FILED FILED Lichtenburg which with their uncontrolled and unlimited output of diamonds found the Government and the big producers totally unprepared The Government without legislative 2023 2023 authority was not in a position to refuse proclamation of farms on which diamonds had 2023 2023 been found The result was the irrational and uneconomical exploitation of the new fields Oct with its consequential disturbance of the normal diamond trade The Lichtenburg produc- Oct tion rose by leaps and bounds to a peak in September 1927 during which month 223,328 18 carats for 507,342 were found and placed on the market Up to the end of 1929 production 10:31 from the Lichtenburg fields had amounted to the enormous total of 4,691,000 carats with a value of 10,879,000 The effect of the discovery of this field on the Union's alluvial diamond 10:31 production is illustrated by comparing the average for the years 1924 and 1925 of 263,000 AM AM carats for 2,000,000 with that of the four years 1926 to 1929 excluding Namaqualand of 1,344,000 carats for 4,067,000 an increase of 1,080,000 carats for 2,070,000 Since the RICHLAND peak production in September 1927 the Lichtenburg output has gradually declined and RICHLAND the average for the first nine months of 1930 was only 58,000 carats for 100,000 per RRIICCHHLLAANNDD month As a matter of interest I may state that the whole Union alluvial production RICHLAND RICHLAND figure including Lichtenburg for the first nine months of this year shows that the annual RICHLAND will be back on the 2,000,000 mark COMMON COMMON The serious position which arose at the time of the enormous Lichtenburg pro- COMMON duction was only saved and a catastrophe averted by the action of the Syndicate in buying COMMON COMMON the excess production well knowing that its disposal would have to be spread over a period COMMON of years PLEAS PLEAS PLEAS The Government finally realised the menace to the diamond industry of an PLEAS PLEAS uncontrolled alluvial production and a Consolidated Precious Stones Bill was introduced ou the 1st April 1927 and became law in November of the same year Under this Bill CASE CASE a the Government brought alluvial within the provisions of the 1925 Control Act Moreover CASE while under the old legislation alluvial ground could only be disposed of to individual CASE # diggers and had practically speaking to be proclaimed within three months of discovery 2023CP4001759 2023CP4001759 2023CP4001759 being made the new law gave the authorities discretion as to the date of proclamation 2023CP4001759 and the additional right of leasing the ground selling it or working it themselves 2023CP4001759 2023CP4001759 2023CP4001759 2023CP4001759 But just as if nature had determined that the new lesson must be properly learned 2023CP40 1759 she allowed that able geologist Dr. Merensky to discover her Aladdin's Cave on Crown 2202032C3PC4P0400107159759 Lands near the Orange River mouth at Alexander Bay early in 1927 before the passing 2023CP4001759 of the Consolidated Law and this discovery led to a further strengthening of the new Act Under the then existing legislation Dr. Merensky was entitled to certain dis- covery claims but the balance of the ground which belongs to the State was proclaimed a State digging under the provisions of the new law The very nature of the deposit and the facility with which anyone gaining access to it could help himself to the treasure especially necessitated the quickest possible removal of the diamonds contained in the enriched areas to the strong room This accounts for the excessive production of diamonds in Namaqualand during 1928 duction In view of somewhat alarming rumours I feel that a statement concerning pro- in Namaqualand will have a reassuring effect The total production from Namaqualand up to the end of 1929 amounted to approximately 1,230,000 carats valued at 12,500,000 Of this total the Syndicate has the remainder has been substantially reduced already purchased over 8,000,000 by sales to South African cutters during the past two years while the balance will be disposed of over a period of years in accordance with the demands of the market Here again it is significant to note that the production from Namaqualand for the first six months of this year was as shown by the returns of the Mines Department only 55,191 carats valued at 407,359 This decrease together with the reduction in the alluvial output previously mentioned and the closing down of several small mines such as West End Phoenix and New Eland will serve to show that given a normal market the question of production in the Union no longer exists The claims allotted to Merensky as discoverer diamonds produced were purchased by the Syndicate have been worked cut The The production from the State diggings has as mentioned above with the exhaustion of the rich ground become very moderate 32 In addition to the Alexander Bay deposits diamonds were also discovered on other farms along the Namaqualand Coast These farms were practically all acquired by the Cape Coast Exploration Limited the Directors of which are fully familiar with the diamond trade they are confirmed subscribers to the basic principles of limitation of sales and disposal through one channel and will therefore work in the fullest operation with the Conference Producers and the Syndicate Briefly put the Government now possesses the power to prevent any repetition of production from the alluvial fields within the Union and by their use of this power they have shown that they are determined to ensure that this production shall not again assume such unreasonable proportions as to constitute a menace to the whole diamond trade and jeopardise the prosperity of companies such as this upon which settled communities are dependent The statement made by the Minister of Mines on the 14th November 1930 to the effect that the Government " intends to limit its own sales of diamonds proportionately with the sales of other big producers and will only sell diamonds for export through the Syndicate clearly demonstrates that the Government is fully alive to the needs of the trade and solicitous of its welfare I have tried to bring into bold relief two important points firstly that the danger which threatened secondly that the the diamond trade from Government of the Union Lichtenburg and Namaqualand has passed; now possesses ample powers to prevent a recurrence of uncontrolled production if an emergency should arise and has shown by its actions that it will not hesitate to use them You Gentlemen and the public in general will perhaps realise what a tremendous burden was put upon the Syndicate in maintaining the market when I say that in 1927 the alluvial production was at its highest and in 1928 the production in Namaqualand reached its peak while such assistance as the producers gave had perforce to be of a passive nature In order to prevent an supply of diamonds reaching the market which would inevitably have caused a heavy fall in prices and spelt disaster for the trade they had to put up with the unpleasant experience of having to stand by and see their sales dwindle and their dividends diminish or even disappear There was the further problem to be solved as a consequence of the Lichtenburg and Namaqualand productions namely the disposal of the large stock of Outside diamonds in the hands of the Syndicate which would quite naturally have to be liquidated when market conditions permitted and which could not but tend to delay further the recovery as far as the Conference Producers were con- cerned It was felt essential to improve the system of marketing so as to give producers a more direct voice in the disposal of the diamonds This idea was not a new one but it gained special emphasis through the exigencies of the situation As a matter of fact as far back as 1923 Mr. Ross Frames my predecessor in the Chairmanship of this Com- pany when referring to the post crisis said some method or machinery for the sale of diamonds The question arises at times whether cannot be devised which would give results more satisfactory to the producers than those at present obtaining As a result of the resuscitation of the idea discussions took place between the Conference Producers and the Syndicate the outcome of which was the formation of the Diamond Corporation Limited with a paid capital of 2,500,000 and loan facilities for a similar amount the Conference Producers and the Syndicate each subscribing half of the funds required The Corporation took over the accumulated stock of Outside diamonds and agreed to spread their sale over a period of years in order to ensure a reasonable share of the available trade to the Conference Producers The formation of the Diamond Corporation marks the beginning of a new era in the diamond trade : The existing agreements with the Syndicate expire at the end of this year and as far back as February last negotiations for new Producers and Sales Agreements were commenced There were no difficulties in arriving at a fair division of trade between the various Conference Producers but nevertheless the negotiations were protracted and as they proceeded it became increasingly apparent that the logical solution of all difficulties would be for the Sales Agreements even if made in the first instance with the Syndicate to be transferred to the Diamond Corporation Ultimately this course was decided upon and the new Sales Agreements which will come into operation on 1st January next and cover a period of four years from that date will be ceded to the Diamond Corporation The terms of these Agreements are substantially the same as those of the existing Agreements the main difference being a clause which provides for the maintenance of a ratio of not less ELECTRONICALLY ELECTRONICAL Y ELCTRONIALY FILED - 2023 Oct 18 10:31 AM - RIC-HLAND COMON PLEAS - 203CP417592023CP401759 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICAL Y 39 ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY ELECTRONICALLY FILED FILED than 5 to 3 in the sales of Conference Producers diamonds to Outside diamonds The effect FILED of this clause will be to ensure to the Conference Producers their fair proportion of what- FILED ever volume of trade is available It affords me much pleasure to announce the completion 2023 of the Agreements and in that connection I should like to add an expression of our great 2023 2023 appreciation of the full operation of the Minister of Mines and the Administrator of 2023 South Africa Oct Oct To ensure that the finances of the Corporation would be adequate to meet its 18 increased liabilities the capital is being increased to 5,000,000 and in order to pay for 10:31 the stock of Producers diamonds in the hands of the Syndicate on the 31st December an 10:31 issue of 5,000,000 Debentures bearing interest at 53 is being made which will be AM allotted to the Syndicate The Debentures are redeemable in five equal annual instalments AM commencing in 1935 which means that during the currency of the new Sales Agreements RICHLAND no provision for the redemption need be made RICHLAND RICHLAND The right of appointing the Chairman of the Corporation is vested in the De Beers RICHLAND RICHLAND Company and as the appointment carries a casting vote the Producers will in effect con- RICHLAND trol the Corporation from the outset I should like you to realise the extraordinarily favour- RICHLAND able position in which the Producers are placed in this matter Through the control of the COMMON Corporation they will have the full benefit of the financial resources of the Syndicate and COMMON COMMON in addition they will have at their disposal the accumulated knowledge and experience of COMMON the experts who have conducted the affairs of the Syndicate over a long period of years In COMMON other words without payment or consideration of any kind they find themselves with a big COMMON PLEAS share in an established business PLEAS PLEAS PLEAS As regards production outside the Union the most cordial relations exist with the PLEAS various Producers in Angola the Congo and West Africa They too have subscribed to the CASE policy of limitation of production and sales through one channel CASE CASE CASE Current contracts expiring at the end of the year have been renewed recently for # 2023CP4001759 a period which will run concurrently with the Sales and Producers Agreements The 2023CP4001759 2023CP4001759 terms of these contracts cover the purchase of a maximum value of diamonds while the 2023CP4001759 Producers bind themselves to sell to no outside parties 22002233CCPP44000011775599 2023CP4001759 2023CP4001759 This rationalisation of production and marketing will am sure be welcomed by 2023CP40 1759 the European diamond cutting centres who will be inspired with a fresh confidence as to 2023CP4001759 2023CP4001759 the intrinsic and stable value of the diamond Moreover the understandable desire of the 2023CP4001759 Government of the Union of South Africa to establish diamond cutting in South Africa has not been lost sight of and as you will have seen from the public statement made by the Minister of Mines and Industries arrangements under which South African diamond cutters will be supplied with rough diamonds have been placed on a satisfactory basis and without detriment to the trade as a whole As further evidence of the Government's sympathy with the diamond trade I may again mention its intention as announced by Mr. Fourie to limit the sale of State diamonds proportionately to the sales of Conference Producers diamonds and that Union Government sales other than to South African cutters will be made only to the Diamond Syndicate I do not wish to weary you with too long a speech but I feel that it is desirable that I should summarise the present position in regard to world production and sales The sales of the big South African Producers are dependent on the volume of world trade while practically all other sources of production are limited on the basis of a maximum yearly figure This happy position has been reached as the result of the wholehearted and far- sighted operation of those in control of production outside the Union coupled with the firm attitude taken up by the Union Government in regard to alluvial production When it is remembered that all future sales of Conference Producers diamonds will be effected by a South African Company the old accusation that South Africa was being exploited by overseas diamond interests should be silenced once and for all Having created machinery to put the selling of diamonds on an eminently sound basis the Conference Producers turned their attention to the question of the effect upon their own production of possible further discoveries During the last five years particularly as a result of the Lichtenburg and Namaqualand discoveries most intensive prospecting for diamonds over a large part of the Union and even beyond the borders of the Union has taken place aided in no small measure by the better transport systems now available The negative results of this prospecting 34 ELCTRONIALY FILED give grounds for believing that the risk of further discoveries is small Nevertheless the FILED Producers have not forgotten the lessons taught by recent experience and they are not pre- pared to allow themselves again to be lulled into a false sense of security It is true that the 2023 Government now has the power to control all production and would undoubtedly come to the assistance of the industry in an emergency but it would not be reasonable or even dignified for Producers to rely solely on Government assistance It should be their duty Oct to collect and tabulate all possible information in connection with diamonds to do which 18 the establishment of a Joint Geological Department is essential in order that a vigilant eye 10:31 may be kept upon developments and generally to ensure the closest collaboration amongst all Producers AM Feeling convinced that the diamond trade the world over would welcome this close - operation amongst Union Producers and that it would be for the benefit of all concerned RICHLAND it remained only for someone to take the lead and give practical effect to the suggestion Obviously history tradition and prestige marked out this Company as the leader amongst the Producers a responsibility which your Directors were proud to accept They felt how- ever that they could the better fulfil the important functions devolving upon them and at - the same time acquire the greatest amount of influence with the other Conference Producers COM ON if they had a definite and material interest in those Companies This they propose to bring about by the acquisition of substantial shareholdings believing that such acquisition will prove to be profitable and will make for the protection of the trade As you are aware we already possess a very large shareholding in the Premier Company and it therefore remains PLEAS to acquire the necessary interests in the New Jagersfontein and Consolidatel Diamond Mines of South Africa Companies and arrangements are being made to secure these shareholdings upon the satisfactory completion of the further steps involved in the reorganisation - of the industry as I have described to you Large funds are required for the acquisition of these shareholdings as well as for 203CP4 1759 our interest in the Diamond Corporation Limited and the Board feels it is not equitable as between the holders of our Preferred and Deferred shares that the money should be pro- vided solely from profits or current funds In this connection I would like to refer to the speech delivered at the 32nd Ordinary Meeting of Shareholders of this Company in 1920 when the late Sir Carl Meyer presided In a reference to the support given by the Company 2023CP40 1759 to industrial enterprises in South Africa he stated that as most of the concerns were on a paying basis he thought the time had arrived when they should be capitalised Further- more at the Extraordinary General Meeting of Shareholders held on 29th December 1922 " Sir David Harris who presided stated inter alia Your Board has for many years past found it necessary to spend large sums of money in buying interests in other Diamond Mining Companies . . which have all been defrayed out of profits no new capital having been raised for the purpose This policy might be subject to criticism in that the Deferred shareholders have been deprived of dividends whilst the Company was extensively increas- ing its assets In fairness to the Deferred shareholders we cannot continue this policy Because your Directors are in full sympathy with the opinions expressed by the late Sir Carl Meyer and also by Sir David Harris it has been decided to ask for powers enabling the Directors to increase the Capital of the Company should they consider it to be in the interests of the Company to raise funds in that manner and the necessary resolutions will be placed before an Extraordinary General Meeting to be held at the conclusion of this one In any case the present cash resources of the Company will not be depleted for this purpose With regard to the proposed increase in the number of Directors I am confident that Shareholders will appreciate that this is made necessary by the large volume of additional work which will devolve upon the Board of this Company To sum up I would go so far as to say that we have established an ideal selling organisation which is so necessary to the diamond trade and by acquiring shareholdings in the other Conference Producers Companies our interests are now so closely allied that in future we shall present a united front to any danger which may threaten the trade I must refer to the death of our Colleague Mr. L. Breitmeyer who for many years was so closely connected with the diamond industry both as a Director of Producing Companies and formerly as a partner in the Diamond Syndicate His counsel and experience will be sadly missed at De Beers Board Meetings 35 ELCTRONIAY FILED Before closing my remarks I wish to record the Board's appreciation of the services FILED rendered by the General Manager Secretary Chief Accountant and Staff and Employees - generally Applause) 2023 Sir Ernest concluded by moving the adoption of the Directors Report Balance Sheet and Profit and Loss Account for the year ended 30th June 1930 Oct 18 Mr. R. Philipson said In seconding the motion proposed by the Chairman I 10:31 know you do not expect or wish me to say much But I feel I must congratulate Sir Ernest upon the manner in which he has placed before you the position and prospects of the Company and the industry as a whole in terms not too glowing and not too black If there I AM were a vein of optimism running through the speech am confident that it will be fully - justified if all of us who control the conduct and policy of the Company face our task with the determination of making the future as successful as the past at times has been RICHLAND Applause) Questions were asked by Dr. S. Zweiback Mr. M. M. Aronson and Mr. S. Peachey and were replied to by the Chairman The motion for the adoption of the Directors Report and Accounts was then put to the Meeting and carried COMON The Chairman reported that in terms of Clause 82 c of the Company's Articles PLEAS PLEAS of Association Mr. S. B. Joel Sir Ernest Oppenheimer and Sir Basil Blackett retired from office as Directors of the Company but were eligible and offered themselves for election - Mr. Humphreys moved and Oppenheimer and Sir Basil Blackett carried Mr. Orr seconded that be elected Directors Mr. S. B. Joel of the Company Sir and Ernest it was 203CP41759 Mr. Woodburne moved that Messrs Howard Pim and Hardy and Salisbury Beaton and Raynham be reappointed Auditors of the Company for the year at a remuneration of 1,700 Mr. Doherty seconded and it was carried Messrs ensuing This closed the business of the Ordinary General Meeting 2023CP401759 ELECTRONICALLY ELECTRONICAL Y 36 ELCTRONIAY FILED - 2023 Extraordinary General Meeting of Shareholders Oct 18 10:31 AM - An Extraordinary General Meeting of the Shareholders of the Company was held immediately after the termination of the General Meeting for the purpose of considering RICHLAND and if thought fit passing with or without modification in the manner required for the passing of extraordinary resolutions in accordance with the Companies Act 1926 all or any of the following resolutions viz - - a That the Capital of the Company be increased from 4,750,000 divided into COM ON 1,100,000 Deferred Shares of 2 10s each and 800,000 Preference Shares of 10s each to 5,500,000 divided into 1,400,000 Deferred Shares of 10s each and 800,000 Preference Shares of 10s each by the creation of 300,000 Deferred Shares of 108. each and that the Directors be empowered to dis- pose of the aforesaid new Shares or any of them for any purpose they may deem advisable PLEAS - b That Article 82 a of the Articles " altered by substituting the word it appears in that Article of Association of the Company " * sixteen for the word twelve ; shall be " where 203CP41759 c That Article 82 g of the Articles of Association of the Company shall be deleted and the following Article inserted in its place namely - g The Directors shall have power at any time and from time to time to 2023CP401759 appoint any qualified person as a Director either to fill a casual vacancy or as an addition to the Board but so that the total number of the Directors shall not at any time exceed the maximum number fixed In the case of a Director being appointed to fill a casual vacancy he shall retain his office so long only as the vacating Director would have retained the same if no vacancy had occurred The Chairman said Having dealt very fully in my speech at the Ordinary General Meeting with the proposals which will be submitted to you at this Meeting I do not wish to detain you any longer than is necessary for me briefly to explain those proposals Before doing so I should like to mention that since the Notice was published it has been found necessary in order to comply with the regulations of the London Stock Exchange to modify the terms of the proposed new Article 82 g so that it will read as follows - g The Directors shall have power at any time and from time to time to appoint any qualified person as a Director either to fill a casual vacancy or as an addition to the Board but so that the total number of Directors shall not at any time exceed the maximum number fixed but that any Director so appointed shall hold office only until the next following Ordinary General Meeting of the Company and shall then be eligible for election as it fore The alteration involves no material divergence originally appeared in the published Notice and I shall put it to you in its modified form from the intention when putting the of the new Article resolution there- As you will have gathered from my remarks at the Ordinary General Meeting the Board in pursuance of their past policy of acquiring interests in other diamond mining concerns are making arrangements to acquire substantial shareholdings in the New Jagersfontein Mining and Exploration Company Limited and the Consolidated Diamond Mines of South Africa Limited and have decided to convene this meeting to ask for powers | 37 ELCTRONIAY FILED enabling them to increase the Capital of the Company should they consider it to be in the interests of the Company to raise the necessary funds in that manner I may say that in any - case should the Capital be increased the new shares issued will be offered to existing share- holders 2023 As regards the proposal to increase the Directorate of the Company I shall not Oct dwell upon this at length as I have already explained that the step is rendered necessary 18 by the large volume of additional work which will devolve upon the Board by reason of the 10:31 expansion of the Company's activities including the Diamond Corporation which will in future handle Conference Producers diamonds as well as Outside diamonds as I have already explained AM - I shall now put to you the Resolutions which I shall ask the Secretary to read RICHLAND The Secretary then read the Resolutions separately to the Meeting Resolution a was proposed by the Chairman seconded by Mr. Philipson and - carried carried Resolution b was proposed by the Chairman seconded by Mr. Philipson and COMON Resolution c was proposed by the Chairman seconded by Mr. Philipson and carried PLEAS Mr. Aronson proposed a vote of thanks to Sir Ernest Oppenheimer for presiding - Sir Ernest in acknowledging said he hoped when they met again the clouds would have lifted from the diamond trade and they would be able to look forward to more prosper- 203CP41759 ous times This concluded the business of the Extraordinary General Meeting 2023CP401759 ELCTRONIALY FILED - Further Extraordinary General Meeting of Shareholders 2023 Oct 18 10:31 A Further Extraordinary General Meeting of the Shareholders of De Beers Con- solidated Mines Limited was held at the Office of the Company Kimberley on Tuesday AM 30th December 1930 for the purpose of receiving a Report of the proceedings at the Extraordinary General Meeting held on Monday 15th December 1930 and of confirming - if thought fit as special resolutions all or any of the resolutions passed at the said Meeting RICHLAND Sir Ernest Oppenheimer M.P. Chairman presided and the Deferred Share- holders present were Sir David Harris K.C.M.G. V.D Mr. A. G. W. Compton M.C Mr. W. Pickering D.S.O. J.P Mr. H. P. Rudd Mr. R. Philipson Mr. M. M. - Aronson Mr. G. McKenzie Mr. E. Ortlepp Mr. T. G. Peacock Mr. S. Peachey Mr. COM ON H. E. Seccull Mr. W. Snedden Mr. P. Sussman Mr. Alpheus F. Williams Mr. T. J. Woodburne Mr. T. Bawden representing the Company's Solicitors and Mr. A. V. Drake Secretary PLEAS Sir Ernest Oppenheimer held proxies representing 188.207 shares Sir David Harris held proxies representing 90,767 shares - Mr. R. Philipson held proxies representing 6,330 shares 203CP41759 The Secretary read the Notice convening the Meeting and also the Report proceedings proceedings at the Extraordinary General Meeting held on 15th December 1930 was confirmed of the which The Chairman said they had just had read to them a Report of the proceedings 2023CP401759 at an Extraordinary General Meeting of Shareholders of the Company held on the 15th inst and arising out of those proceedings there were two Resolutions which being special resolu- tions required to be confirmed by this Meeting He proposed that the following Resolu- tion passed at the Extraordinary General Meeting of Shareholders of the Company held on 15th December 1930 be confirmed as a special Resolution b That Article 82 a of the Articles of Association of " " altered by substituting the word sixteen for the it appears in that Article the Company shall be 66 " word twelve where carried Mr. Philipson seconded and the motion on being put to the Meeting was The Chairman then proposed that ordinary General Meeting of Shareholders be confirmed as a special Resolution : the following Resolution passed at the Extraof the Company held on 15th December 1930 c That Article 82 g of the Articles of Association of the Company shall be deleted and the following Article inserted in its place namely 66 g The Directors shall have power at any time and from time to time to appoint any qualified person as a Director either to fill a casual vacancy or as an addition to the Board but so that the total number of Directors shall not at any time exceed the maximum number fixed but that any Director so appointed shall hold office only until the next following Ordinary General Meeting of the Company and shall then be eligible for election Mr. Philipson seconded and the motion on being put to the meeting was carried The Chairman said this concluded the business of the Meeting and thanked those present for their attendance ELCTRONIAY FILED - 2023 Oct 18 10:31 AM - RIC-HLAND COMON PLEAS - CASE#203P41 759 ELCTRONIALY FILED - 2023 Oct 18 10:31 AM - RIC-HLAND COMON PLEAS - CASE#203P41759 OLA OT