6- be sold as direct shipping ore without beneficiation. 5. Pima Mining's copper operations are being expanded from 3800 to 7000 tons daily with completion scheduled for September this year. These are important steps forward for Utah Construction & Mining Co. and cause us to feel optimistic about the future. Let us now turn to a more detailed discussion of our principal operations. CONSTRUCTION Let's start with construction, an industry in which the remarkable growth in the volume of work available has been accompanied by an even greater growth in the size and number of contractors and their capacity to perform work. This has resulted in increasingly intense competition and has made construction a low profit endeavor. The trends within the industry show a rising rate of failures and a lower rate of earnings by the surviving companies, both in the percentage of profits on the volume of work performed and the rate of return on investment. The construction operations of our company have not been immune to these trends within the industry. During the last five years as a whole, our construction earnings would have covered overhead charges but left little return on our investment. Unsatisfactory as the situation in the construction industry is today, we believe that it must in time correct itself and that capacity will be brought into better adjustment with volume. The basic tools for construction have a relatively short life and the industry does not have the rigidity of capacity that characterizes manufacturing plants. I cannot conceive that contractors, their bonding companies, or their banks will tolerate for much longer the