Economists generally are becoming more despondent about the outlook for business in 1970. Many now foresee the growth of business slowing to a halt, an increase in unemployment, and even the possibility of some recession, albeit a recession that might see the contradiction of a continuing increase in prices and wage costs while corporate profits and employment are declining. In contrast to this general prediction we in Utah foresee once again improved profits for our company in 1970. We anticipate that our remaining construction activities will show improved results this year and that our income from real estate activities will hold up well despite the chaotic conditions in the mortgage market and the depression in residential housing. Our mining activities should continue the healthy trend of the past few years. Marcona hopefully will continue to hold its own against the record profits reported in the past two years, provided conditions in Peru continue to leave Marcona Mining relatively unaffected. High copper prices should allow Pima's earnings to increase, and we look for profit improvement from higher coal sales both at Blackwater and Navajo. In uranium we are faced with the necessity of selling 1 million pounds of our production to the Atomic Energy Commission at around $5 a pound. However, we have approximately an equal amount of sales to private customers booked at higher prices and our uranium profits for 1970 may show some improvement over 1969. But uranium profits this year will not regain the level of 1968 when the government price was $8 a pound. Excluding the capital expansion programs for Marcona and Pima the company has committed itself to the expenditure of $284 million to bring in the three new mines and to expand existing mining projects. Our organization will have its hands full bringing these new facilities into operation over the -6-