annually. Pellets have the highest profit margin among the beneficiated products, and Marcona's earnings in 1966 and future years will benefit from this improvement in the product mix as well as increased volume. Deliveries for 1966 are expected to increase over the prior year and profits for 1966 should, barring the unforeseen, be at record levels. With its new mining facilities and its enlarged fleet we foresee Marcona's profits increasing over the next 6-year period. We are even more confident about the trend in Pima's profits, for the new mill capacity will permit substantially increased production of copper. Part of the impact of this change will reflect itself in 1966 and all of it in 1967. Pima has already sold 90% of its 1966 production and received premium prices on 40% of it and indeed has already booked some premium sales into 1967. While we cannot expect premium prices to last forever, certainly there is fundamental strength underlying the present United States producers' price and we anticipate that Pima's earnings will grow over the next six years and particularly so if the Board authorizes a further expansion from 18, 000 to 30, 000 tons, an event which might occur in the near future and a course which I as one of its directors personally favor. Perhaps the distinguishing feature of Utah's mining operations is the significant role played by long-term sales agreements. Given our background in the construction business where the backlog is rarely more than twice the size of the annual volume put in place, Utah has wanted the comfort and protection that comes from underwriting our mining - 13 -