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Show MR. CHAIRMAN, LADIES AND GENTLEMEN: Eleven years ago Utah Construction & Mining Co. made its first appearance before this distinguished group and indeed the occasion was the first time the company had appeared before any Society of Security Analysts. Now the name of the company has been changed this year to Utah International Inc. to reflect more accurately the vast changes that have taken place in the nature of the company's operations. However, the name of its spokesman is unchanged and for this, my fourth appearance before you, I am most grateful. Utah International is primarily a mining company, employing surface mining methods in virtually all of its present operations. It engages directly in the production of steam coal in New Mexico, uranium oxide in Wyoming, iron ore in Utah, and copper concentrates in British Columbia. Through a 90% owned subsidiary, Utah Development Company, it mines coking coal and iron ore in Australia. A 46% owned affiliate, Marcona Corporation, mines and beneficiates iron ore in Peru and iron sands in New Zealand and operates a fleet of large ocean carriers, partly owned and partly chartered, for the transport of iron ore and beneficiated iron ore products, oil, coal and other bulk commodities. Pima Mining Company, in which Utah International holds a 25% interest, mines copper ore and produces concentrates from deposits in Arizona. It was not always so. For the first fifty years of its corporate existence Utah was primarily a heavy engineering and construction contractor and until we sold this branch of our business to Fluor in 1969 this activity accounted for 75% of our employees and the majority of our gross revenues. However beginning in a small way in the mid-40's the company began to diversify into mining and land development. The pace accelerated in the 50's and the 60's and this year with the sale of our dredging activities in April the transformation from a construction company to a mining company was completed. Our only remaining construction activity is as a limited partner with Haas and Haynie in building construction. This redirection of the company's activities has served Utah's shareholders well, for it brought with it a dramatic leap forward in earning power, dividends, asset values, and market appreciation. In its first fifty years annual earnings never hit the $2 million mark. In the decade of the 50's the pace quickened and earnings for the ten years aggregated $38. 2 million. In the 60's we earned a total of $130 million, and now in the first two years of the 70's we have earned $65. 8 million. We have earned more in the last two years than we did in the entire first sixty years of our corporate existence and the strong upward thrust certainly has not yet run its course. Earnings have grown at a compound rate of 15% for the last twenty years and 21% for the last five years. 1971 marked the seventh consecutive year of record earnings and the twenty-first year of increased dividends. |