Page Three interruption in the last 35 years. The company's financial condition has strengthened considerably over the la3t decade, and I invite your attention to the chart showing our consolidated assets and liabilities. Paced by the increasing value of our investments, total assets have more than doubled, stockholders' equity is 2. 7 times as large now as it was 10 years ago, and has increased at a considerably faster rate than our term loans and other long-term liabilities. As early as 1956 the company's program of diversification into mining, ocean shipping, and land development had already begun to register a substantial impact on company earnings, but the size of this impact has become more pronounced in the ensuing years and has been primarily responsible for the substantial rate of growth in the profit picture that we have enjoyed. When we met as shareholders a year ago, I reported to you that the company had underway expansion programs at Marcona, Pima, and at our Navajo coal mine in New Mexico, and I am pleased to report to you today that each of these programs played its part in contributing to the 50% increase in earnings in 1965 over 1964. The Marcona and Cia San Juan operations reported substantially higher profits over the preceding year because of higher volume, better prices, and a better product mix because of the additional production of pellets from the newly installed facilities. The earnings of these two companies were at record levels before tax and on an after-tax basis only slightly below the peak earnings levels achieved in 1961 when the mine was operating primarily on direct shipping ore in contrast to beneficiated products. Pima Mining Company