COPPER Our present income from copper derives from our 25% interest in the Pima Mining Company acquired in 1954 at a cost of $ 859,000 and our share of the net worth amounted to $7. 6 million on April 30, 1968. Pima operates a mine and mill near Tucson, Arizona. Shipments started in 1957, selling that year 21. 8 million pounds of copper at a profit of $ 690,000. Since that time the mining and milling capacity have been expanded on several occasions, so that in 1967, with a milling capacity of 18,000 tons, the company sold 72. 7 million pounds of copper at a profit of $10.8 million. The mill has been expanded to 36, 000 tons daily. Copper production will not increase proportionately because lower grade ores will be processed. Pima's reserves are estimated at 210 million tons of .555% cu ore. Utah's share of Pima's earnings in 1967 were $2,949,000 after provision for taxes, as if all the earnings had been distributed and during the current year are running ahead of last year. In recent years Pima has benefited by receiving prices above the U.S. producers price on a portion of the copper sold. How long these premium will prevail is a matter of conjecture. Because of the strike that closed down the U.S. Copper smelters, Pima was unable to ship its concentrates in the early part of this year, causing its earnings to decline. This situation is now corrected and currently earnings are at anticipated levels. -14-