this year is wholly-owned by Utah and was acquired in two steps. Sixty percent was purchased for $360,000 when the company was a largely unexplored prospect. The remaining 40% was exchanged for some 240,000 shares of our stock having a market value of over $12,000,000 at the time. In the interim Lucky Mc, under Utah management and sometimes working with Utah as a contractor, had proved up the original properties, doubled the reserves through the acquisition of new properties, opened up the mine, designed, constructed, and operated the mill, borrowed and repaid $10,000,000 in bank credit, negotiated and renegotiated a sales contract with the A.E.C. Utah also has the largest proven reserves in the more recently discovered Shirley Basin Field where our grade is almost twice as rich as the Lucky Mc ore. Operations started in May this year but profits will be limited because of the small production allocation granted by the A.E.C, and the difficult and expensive underground mining conditions encountered. Copper Mining Additional mining income is derived from our 25% interest in the Pima Mining Company, which operates a 3,000 ton mill and open pit copper mine near Tucson, Arizona. As a contractor we were retained to prepare the original feasibility report, construct the mill, and perform the preliminary stripping. Our investment in Pima cost us $858,000. From January 1957 through June 30th this year our share of the earnings of Pima amounts to $1,075,000 and we will receive our first dividend of $148,000 in September this year. Pima's 3 1/2% term bank loan is being retired out of non-cash charges. 4 Coal Mining We cut our teeth in coal mining with a metallurgical coal mine near Ozark, Arkansas which terminated its 11-year life in May this year when open pit reserves were exhausted. While annual profits were modest, the experience gave us confidence in our conviction that large open pit coal mines would enjoy an increasing competitive advantage over other fossil fuels as a source of energy for the generation of electricity. We acquired two such deposits, and the first of these is now ready for development. It involves vast reserves of sub-bituminous coal which we control under a lease from the Navajo Tribe in the Four Corners Area of New Mexico. A fuel agreement is ready for signature between Arizona Public Service Company and ourselves. This agreement provides that Utah sets aside from its reserves 2,185 trillion BTU's (about 115,000,000 tons of coal)950 trillion BTU's to cover two generating units having a total of 350,000 KW capacity which the utility company will bring into commercial operation in 1963 and 1,235 trillion BTU's under option until 1973 to provide fuel up to an additional 450,000 KW generating capacity. The term of the agreement runs approximately 35 years from the time when the first two units go into operation but may be extended up to 55 years if the utility company exercises all its options. Initial coal requirements would be about 1.5 million tons annually, could reach 3.6 million tons if the options are exercised. We view this contract as an important step forward for several reasons. First, it is the largest single contract ever signed by our company in terms of gross revenues involved. Second, the contract provides for the sale of energy units, not tons of coal, and we hold the hope that we may find additional profitable uses 5