Certainly much has happened since the company's inception, and with this audience I believe that I can safely assume that there is little point to be served in dwelling at length on the company's history, which is known to most of you. Suffice it to say, in the first 50 years of its existence Utah Construction Company grew and prospered primarily as one of the leading builders of heavy engineering works and derived virtually all of its profits from this source. By 1950 the company had achieved a net worth of around $12,000,000 and was earning around one and three quarter million dollars annually. However, in the last decade a program of diversification has brought about a rapid increase in earnings levels and asset values so that today annual earnings are in excess of 9 million dollars, net worth in excess of 56 million dollars, and the market value of the company stock outstanding in excess of 100 million dollars. This record of progress has been made possible not so much by changing essentially the things that we did but by changing the application of our arts and skills in a manner that made possible earning power of far greater magnitude than we had been able to achieve by simply confining these arts and skills in the performance of heavy engineering work on a contract basis as a service for others. THE ACTIVITIES OF UTAH Today Utah Construction & Mining Co. is both a holding and an operating company with five principal areas of activity. From an earning standpoint the most important of these is mining, and here we are concerned with iron ore, uranium, coal, and copper. Our second major source of profits this year will come from our general construction activities, which are conducted on an international basis and spread throughout 15 countries on six continents. The third major source of profits in the current year 4 is from our interest through an affiliated company in ocean shipping. A fourth major area of activity is land development, which is concentrated primarily in California and which involves a substantial commitment of company assets, although current earnings are of modest proportions. The last major area of activity is the field of hydraulic dredging, which will make a small contribution to our earnings for the present year, although historically it has been a losing venture. These activities are conducted by the parent company directly or through 28 active wholly owned subsidiaries, through joint ventures with other companies, and through investment in 20 affiliated companies, of which three are worthy of special mention. Affiliated Companies Utah Construction owns half the voting stock and 41 1/4% of the equity stock of Marcona Mining Company which is engaged in iron mining in Peru. We own a similar interest in Cia. San Juan, S.A. which bears the responsibility for the sale and delivery of the iron ore produced by Marcona Mining Company to its steel producing customers in the United States, Europe and Japan. Cia. San Juan transports this ore using 26 ships having a capacity of 700,000 D.W.T. San Juan Carriers, Ltd. a wholly owned subsidiary of Cia. San Juan owns 6 of these ships with a capacity of 200,000 D.W.T. The balance is available through charter arrangements. Last year Cia. San Juan handled approximately 25 billion ton miles of freight. To give you some better understanding of the scope of this operation, this is equivalent to a train of 100 ore cars operating from Salt Lake City to San Francisco leaving here every three hours every day of the year. The third affiliated company I would like to mention is the Pima Mining Company in which we own a 25% interest and which is engaged in the mining and milling of copper from a deposit near Tucson, Arizona. 5