6. we would expect a quid pro quo to preserve Utah's long range interests. Despite the situation presently prevailing and after allowances for normal start-up difficulties, Utah's earnings from copper should be sharply up in 1972 because we expect to sell about 90 million pounds or more of copper in concentrate from Island Copper, and the additional profit from these new sales should more than offset any decline in our earnings from Pima resulting from weakness in copper prices. Utah International is primarily a mining company but I submit that it is no ordinary mining company. It has its own distinguishing characteristics that set it apart and justify in my opinion the higher earnings multiple that its shares have commanded in recent years. I suggest that you consider these aspects: The company, apart from Marcona and Pima, has a backlog of undelivered mineral sales under long-term contracts of $2,509 billion, up 2.25% over last year. 78% of this backlog is represented by long-term contracts with escalation protection against future cost increases. From this backlog we expect mining gross revenues to reach $288 million by 1975 compared to $104 million in 1971. The backlog gives an assurance of earnings and cash flow, a predictability rarely found in any kind of a company. This in turn allows the company to go forward safely in a highly leveraged position. Except for copper Utah basically serves two major markets -- the steel industry and the energy market. The production of steel world-wide grows only at modest pace but revolutionary changes have taken place and are taking place in its raw material sources and the international trade in raw materials has expanded rapidly with the advent of the big ship and deep harbor and the decline in production of the older sources of supply. The growth in energy requirements is obvious and the needs must in large measure be met by sharp expansions in the production of uranium and coal, and by gasification of coal. Utah is well positioned to participate in the growth in these demands, not only from reserves now in production but from those controlled but not yet on stream. Consider one program alone, Utah's recently announced participation with Pacific Lighting and Texas Eastern Transmission in a project to determine by July 1972 the feasibility of producing natural gas by the Lurgi process from our uncommitted Navajo reserves. At this point one can only speculate about the outcome of the studies and it may come to nought. But if the plan becomes a reality the final result would be four plants, the first coming on stream in mid-summer, 1975 and a new plant every three years or less thereafter. Each plant would require 7 l/2 million tons of coal annually or a total of 30 million tons when and if four plants are built. This would make the Navajo mine 5 times its present size, and it is already the biggest coal mine in the United States.