9 - Higher margins have brought about sharply increased earnings over last year and support our view that Utah's diversification into oil and gas was a sound and timely move. Another area of Utah's operations where results are sharply improved over last year is iron ore but here a word of explanation is very much in order. These earnings are derived from three sources not necessarily affected by the same factors. Near Cedar City, Utah, the parent company performs contract mining for CF & I mines its own ore from the limited reserves at its Iron Springs mine with the output largely sold under long-term contract to U. S. Steel. Here earnings are up modestly from a year ago. Our 89.2% owned subsidiary, Utah Development Company, has a one-third interest in the Mt. Golds-worthy project in Western Australia, producing about 8 million metric tons annually. Here earnings are up sharply over the first half of the prior year when margins had been squeezed by rapidly increasing costs. But Goldsworthy earnings are not at satisfactory levels because of inflation and frequent work interruptions caused by labor disputes. Utah also participates in iron ore earnings through its 46% ownership of Marcona which ships 1 million tons of iron sands from New Zealand and some 10 million tons of beneficiated product from Peru. Marcona's iron ore operations continued to operate at a loss during the first half of 1975, little changed from last year's results, but are expected to Improve sharply because of renegotiated prices and lower shipping costs, for Marcona sells on a delivered basis. If Goldsworthy and Marcona's Peruvian operations can achieve planned results in the second half, iron ore earnings will once again