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Show capacity from 39,000 to 53,000 tons per day. Located on Vancouver Island, British Columbia, Utah's Island Copper Mine will commence operations late this year. With its initial mill capacity of 33,000 tons per day, Island Copper will produce 55,000 tons of copper, contained in concentrates, annually. Output during the first five years of operation is substantially pre-sold, as is 60% of the output for the second five years. Prices under these contracts fluctuate with London Metal Exchange copper quotations. Expansion Financing Early external financing requirements of the company were provided by the banking community, and later by long term institutional borrowings and $55 million from two issues of convertible debentures. In recent years the equity base of the company has risen dramatically to a level now exceeding $200 million and it is anticipated that debt will be utilized to finance near term requirements. Borrowing commitments, which were not in use at year end, now total $180 million. Supplemented with internally gen-erated funds, these borrowings are sufficient to enable Utah to complete its expansion program of the early 1970's, one which will see annual revenues from mining op-erations rise threefold from their record levels of today to $250 million by 1974. Keys to Continued Success Beyond those reserves committed to existing and planned operations, Utah holds an assortment of mineral interests which are the subject of an ongoing program of de-velopment and sale. Furthermore, the company is continuing its practice of channel-ling considerable talent and expenditure into mineral exploration activities. This work is generally directed toward politically stable countries and certain minerals believed to offer an attractive market climate, preferably involving price stability and long term sales contracts with provisions for price escalation. To receive an Annual Report or Financial and Statistical Facts, you are invited to write: Utah Construction & Mining Co. 550 California Street San Francisco, California 94104 UC Listed on the New York Stock Exchange and the Pacific Coast Stock Exchange MINERAL SALES BACKLOG $ Millions 2800 |
