Pima to do the construction. The original capacity of the mill was 3800 tons daily. It was doubled in 1963, increased to 18, 000 tons in 1965, and now this year has been increased to over 30, 000 tons. Although the grade of the ore has declined, the reserves were increased when the enlarged capacity allowed the treatment of lower grade ores. As the capacity has increased Utah's investment has prospered accordingly, and our share of Pima's earnings in 1967 were $2. 9 million after distribution taxes, up 58% over the prior year. Certainly this has been a satisfactory investment and we continue to be optimistic about its future. The immediate outlook is obscured by the copper strike. While Pima is in production the strike has closed the domestic smelters to which it ordinarily ships its ore and limited its sales during our first quarter to those sales it has been able to make to foreign smelters. The balance of the concentrate is being stockpiled and this excessive inventory cannot be worked off until the smelters are reopened, a date presently indeterminable. Those of us in Utah Construction & Mining have believed implicitly in the future of the energy market and we wanted to participate in it. We had neither the capital nor the skills to engage in petroleum or natural gas, but we saw our opportunities in uranium and in coal in the Western United States. Both represented calculated risks with uranium the lesser of the two risks. Here the government was willing to buy for a limited time any uranium production that could meet the government criteria - - and so we set our geologists on the hunt for uranium opportunities. Two came our way, the first being a 60% interest -6-