the preliminary screening and blending of marcona iron ore are performed at the mine site 17 miles from the port of san juan bay transport to port stock pile is by 60 and 85-ton semi-trailers pima's earnings for the 12 months ending october 31 1960 were 1,734,862 after non-cash charges of 1,037,387 of which our company's share was 433,716 an initial dividend of 5 per share or 594,560 was paid in september of which our share was 148,640 pima's i960 results were bene fitted by accelerated sales made out of inventory from concentrates produced and stockpiled in latter 1959 because of the labor dispute that shut down customers smelters marcona mining company our income from foreign iron mining operations is derived from a 50 per cent voting interest and a 41 4 per cent equity interest in marcona mining company which mines iron ore from extensive and high grade reserves in peru for distribution to the world steel market exploration to date on the properties which extend over 600,000 acres has developed ore reserves in excess of 200,000,000 tons shipments to date have been made primarily from direct shipping ore but the bulk of the reserves require beneficiation to remove certain impurities tests have indicated that the ore lends itself easily to beneficiation and yields an end product of premium quality construction of the first stages under the bene ficiation program were initiated during the year and contemplate a 22,000,000 expenditure for plant port mine-to-port transport conveyor and related facilities despite the low operating rate in the united states steel industry marcona reported profits of 6,319,825 for the 12 months ending october 31 1960 after non-cash charges of 2,465,956 our equity in these earnings is 2,606,928 an increase of 1,430,122 over last year sales during the period were 4,032,561 tons a 29.5 per cent increase over the comparable period last year increased deliveries to mills in europe and japan more than offset reduced shipments to u s mills profit margins improved and barring a general decline in the european and japanese economies the outlook for 1961 is encouraging during the year marcona's concession agreement was revised and rati fied by the peruvian government and the changes are considered beneficial and equitable to both parties mineral development and geology the company spent approxi mately 1,200,000 on further mineral development in order to replace and to expand its mineral reserves iron ore and coal were the principal minerals and the results achieved were encouraging a similar program has been authorized for 1961 to assure continuity and provide for expansion of future income from mining operations tf land development and related activities