POSTCARD -13- after 1968 would be variable but not more than $6. 70 a pound since the factor for plant amortization included in the present price would then be eliminated. Also the AEC would permit consolidation of properties which would allow greater efficiency in mining and processing and allow the miner to recover some of the profits lost through the lower annual tonnage. I mentioned earlier that we are already operating on an interim agreement which contemplates that we will conclude a final agreement along the lines outlined above. The effect will be to reduce our annual profits from uranium. The result of this has already been felt in the first half of 1963. The impact will be greater in the second half. We are willing to accept a reduction in our near-term uranium profits because our total profits through 1970 will be substantially greater than under our present contract. We believe our shareholders are best served by this program. Our position in uranium is excellent. We have ample uncommitted reserves of good quality ore. We believe that we are one of the lowest cost producers in this country and in an excellent position to compete when the day comes that there is a free market in uranium --a day that seems to be fast approaching. COAL Perhaps the most significant development in our company's picture in the last three years has been our successful entry into a specialized coal operation providing fuel for the generation of electricity. Our Navajo Mine