3. but disappointingly unstable pit conditions aggravated by unusually high precipitation caused the pit walls to slide and prevented normal operation of the mine during the fiscal year. This condition is being corrected but operations have not yet achieved full capacity, although they should do so in the near future. The Waipipi iron sands project in New Zealand, in which a Marcona subsidiary holds a 75% interest, began shipments in 1971, recording a small loss because of startup expenses, but the loss was smaller than had been anticipated for this period of time. The new Goonyella mine in Queensland started railing coking coal in June to build up port stockpiles at Hay Point. Shipments to customers commenced in mid October with the completion of port facilities. The new Island Copper mine and concentrator in British Columbia produced its first copper concentrates in October, shipped its first concentrates in December but has not yet attained designed capacity production. Although earnings in 1971 were at record levels, the result includes a bag of mixed trends. Higher earnings were achieved from our coal operations, thanks to increased shipments at Navajo and to the addition of Goonyella shipments in the last two weeks of the year. The improvement would have even greater except for industrial strife in Australia that prevented Blackwater from shipping the coal that it otherwise would have produced. Particularly significant were the earnings from ocean shipping which were exceptionally high as the Marcona management played its cards skillfully and took full advantage of the sharply shifting rises and falls in charter market rates. This unusually high profit from ocean shipping more than offset the decline in profits from Marcona's iron ore mining activity in Peru where work stoppages caused lost production and increased unit costs, leaving this phase of Marcona's operations at virtually a break-even level. Land development profits were higher in 1971 but even so represented a modest contribution to the total. Offsetting these favorable developments were lower earnings from iron ore, uranium, and copper. Our Cedar City activities produced profits relatively unchanged from the prior year but lower iron ore profits were recorded by Goldsworthy and by Marcona Mining. Uranium earnings declined despite a 13. 5% increase in shipments because of the problems at Shirley Basin and the fact that we encountered a limited area of lower grade ores at Lucky Mc. Copper earnings from Pima were also down because of a decline of approximately 6 l/2 a pound in the price of copper. As we enter 1972 the outlook is beclouded by more than the usual uncertainties - the impact of the lower value of the U. S. dollar, the uncertain price of copper, the pace of recovery in the world economy, the absence or presence of industrial strife, and the degree and rate at which our newer operations achieve their production potential.