10 -PROSPECTS FOR 1977 As we look ahead to 1977, barring unforeseen events, Utah anticipates once again having net income at record levels. As we have every year for many years, we plan to increase our expenses for exploration. On the other hand, we foresee greater contributions from virtually all of our major profit centers. In coking coal larger shipments and a further reduction of the export levy indicate another increase in profits from this source. Mount Goldsworthy expects a return to profitable operations because of slightly better prices and improved waste-ore ratios. Marcona also anticipates a return to profitability because of income it expects to earn from the sale of iron ore pellets purchased from the Peruvian government under the terms of the settlement agreements related to the expropriation. Although the charter market is still in poor health, Marcona's shipping activity will benefit with the expiration in 1977 of certain higher-priced charters entered into in earlier years in the expectation that the ships would be used to carry Peruvian ore. Marcona management is also hopeful that increased business activity will improve results it derives from its other activities. Utah's domestic iron ore activities should be more profitable in 1977 than in 1976. We anticipate that SAMARCO, the new iron ore project in Brazil, will experience start-up losses in 1977 before it becomes profitable, expectantly in the relatively near future. So in iron ore we have a mixed bag but on balance we anticipate that the net effect will be an improvement in 1977 over 1976. We also expect better prices and therefore better profits from copper operations. Increased shipments of steam coal with margins and prices that are