12- company activities, and we have opportunities to seize in the future with the benefit of the experience that we have gained in making mistakes in the past. I emphasize the importance of personnel here, because while any management must in some measure "run on its record", it is particularly important in a project-type business like ours. We have no franchise with the consumer, no patent protection, no impregnable defense against competitive inroads. We are a dealer in wasting assets, a merchant of land, a performer of services. To continue to grow we must add assets of potential earning power greater than those we consume each year in the performance of our normal activities. It takes men of special quality to recognize and translate into reality the profit opportunities that are ever present in a dynamic and changing economy. True, we now have a stream of earnings flowing from a wealth of assets that never were present when we relied solely on construction. Certainly some of these are favorably situated and stand to benefit from growth trends in their field. Marcona has a future profit potential that certainly should carry earnings well beyond levels enjoyed in the past. It serves the world market which requires rapidly increasing quantities of imported iron ore whether it be the United States, the United Kingdom and Europe, or Japan. Marcona has acquired additional reserves adjacent to but outside of the Santa concession. This year the company has undertaken the $22,000,000 first step in a program designed to make marketable the huge reserves of ore having a high iron content but excessive sulphur, thereby eliminating the self-imposed marketing limitation dictated by the reserves of direct shipping ore available. The rate of