American Copper Costs in 1931

THE YEAR 1931 was for most American copper producers one of restricted output but extremely low production cost.. When compared with 1929, the marked reductions in costs achieved in 1931, operating at rates in many instances a third to a half of capacity, can only be regarded as remarkable. In fact, the recent shut-down of several large operations suggests the probability that 1931 costs represent a bare minimum for many properties. Before discussing the 1931 results a few remarks on cost data are appropriate. The type of cost tabulation here presented was first published in 1929, (A. B. Parsons. E. & M. I. June 8, 1929), and has appeared each, succeeding year following in general the calculation method and company set-up of the original article. (. G. W. Tower, E. & III. L, July 8. 1930; S. D. Strauss, E. & M. J.; July 27, 1931). As far as possible the leading American copper companies are included. In considering these cost tabulations it must be borne in mind that the information from which they have been prepared is entirely contained in the annual report of each company; and that a multiplicity of interests and a condensed income statement for some of the larger companies, such as Cerro de Pasco and Kennecott, make the cost figure an arbitrary one depending upon sundry metal credits, metal products, miscellaneous income, etc. For Granby, Howe Sound. Magma, and Noranda, sundry metal credits are important. Furthermore Andes, Chile and Greene Cananea give costs only against copper sold. Although the individual costs here figured are by no means absolute they are computed by the same method each year and offer a basis of annual comparison; and with attention to footnotes the premises on which the costs are based may be easily followed.