stretch out our contracts, for at the time neither we nor the government realized the rapidity with which the private demand for uranium to fuel the nuclear reactors would develop. Today the outlook for uranium mining is vastly different. The nuclear reactor has captured over one-half of the new orders in competition with conventional plants and statistically the projection of uranium demand increases through the 70's at a pace that would exhaust the presently known reserves. While production will exceed supply for the next few years, the situation will change rapidly. New discoveries must be made and in my opinion will be made to avoid a potential shortage and the search for new supplies is already vigorously under way and we are partici-pating in it. As the private demand developed, Utah moved to secure private sales to utilize its idle capacity. Although these sales were at prices well below the $8 being received from the A. E. C., their incremental effect on profits was important. Our uranium earnings declined under the stretchout in 1965, but picked up sharply in 1966 and even more rapidly to a new high in 1967. We anticipate that they will register still a further gain in 1968. We feel that our position in uranium is an enviable one. As a result of S. E. C. insistence our production costs are now public knowledge and were reported at $3. 02 a pound for the 21 months ended July 31, 1967, and this is a figure worth comparing with others who have had to file prospectuses. We have ample reserves and must be numbered among the lowest cost producers in the industry. This will work to our disadvantage -8-