obvious added profitability which permits the acceleration of ship loan retirement. In 1963 the earnings of Marcona and Cia San Juan were approximately 50% higher than they were in 1959. For 1964, even with start-up costs and plant interruptions to increase production and provide better quality control, the profit outlook for these two companies for the calendar year 1964 appears somewhat better than in 1963, although for Utah, with its October 31 closing, the results will be about the same as in 1963 We anticipate more favorable results in 1965 because the additional pellet sales will improve the product mix. Our second source of iron ore earnings is from our Iron Springs Mine in Utah. This mine is isolated from the factors that affect the international iron ore markets and its output is sold under long-term contract to United States Steel. This contract was renegotiated last year and was extended from 1968 to 1975. The new contract gives the buyer greater flexibility in his purchases based on his operating rate. The special advantages of this rearrangement to Utah are greater total sales and profits over a longer period of years and the utilization of its remaining reserves in the Cedar City District. There are two other important iron ore deposits in which Utah owns an interest. The largest of these is the Mount Goldsworthy deposit in Western Australia, in which Utah has one-third interest in association with Cyprus Mines Corporation and Consolidated Gold Fields. This deposit contains in -9-