spot sales are running ahead of this figure and will be 4 million tons or over this year and next. By 1971 we would hope to increase capacity to 6 million tons. Profits from Mt. Goldsworthy were one of the factors that allowed Utah to report record earnings in 1967 and these earnings this year are running sharply ahead of last year and should help us carry our earnings to new high levels in 1968. URANIUM Perhaps today no aspect of our business has a brighter outlook than uranium, for the growth of electricity produced from nuclear reactors has astounded every one including the Atomic Energy Commission, which has repeatedly had to revise sharply upward its estimate of future requirements. This has caused a reevaluation of the adequacy of the existing reserves, the level of future prices for uranium concentrate, and has stimulated a vigorous search for new supplies, a search in which we are participating. Our company, as the prospectus shows, has an enviable position in uranium with 4.7 million tons of reserves in the Gas Hills Area and another 4.0 million tons in Shirley Basin, Wyoming, a mill in the Gas Hills currently producing around 2 million pounds of uranium concentrate annually, and contracts requiring us to produce and sell 2.7 million pounds to the AEC through 1971 and another 9.8 million pounds to private buyers through December, 1975. The AEC price is $8 a pound through December 31, 1968 and thereafter will be materially lower based on our production costs. The private sales average $6. 27 with the price during the last five years subject: to escalation. We are -10-