13- earnings in the future will have its ceiling set by management's willingness and ability to invest funds to expand capacity and the market's ability to absorb the company's output. As a mine Marcona has many advantages an unusually low investment per ton of annual capacity, an ideal 12 months' working climate, close proximity to the sea coast, vast reserves of high quality ore economically mined and easily beneficiated. Nor are we now concerned with the fact that Marcona is located in South America. True, Peru is not the United States but neither is it Cuba. It has an enviable record in dealing with foreign investment, is dedicated to free enterprise, has dealt fairly with the mining industry in a way Minnesota might study. Before we were given our concession, Peru learned its lesson in trying futilely in the preceding 10 years to develop Marcona as a government enterprise before recognizing that greater benefits would accrue to Peru from placing the project in the hands of private enterprise. Even in our more conservative moments, we cannot help but be optimistic about Marcona's future. Marcona, as well as other Utah-owned Western and Alaskan iron ore reserves, stand to benefit from any expansion of blast furnace facilities on the Pacific Coast, and this appears to be a certain development uncertain only as to time. Our existing real estate holdings are strategically located in areas of rapid growth, have already appreciated in value above cost, thereby providing a reservoir of profits that can be drawn out for some years to come. Our land holdings as well as our mineral assets provide a hedge against inflation in the future.