excellent competitive position for utah has one of the lowest cost operations in the united states and substantial ore reserves will still be in the ground profit contribution was not as high in 1961 as in the prior year because outside mines supplied their share of ore this year and your company was lim ited to its own contract allocation copper utah's copper interest is through it 25 ownership in pima mining compa ny near tucson arizona your company's equity in pima's 12 months earnings ended october 31 is 323,092 after allowance for distribution taxes the life of pima will be extended as a result of a 4-million-dollar program to enlarge operations and utilize lower grade ore mineral development and geology expenditures for mineral development and geology amounted to 1,444,751 it is vital to a successful mining company that it con tantly replace and expand assets that are continually being depleted through this function it is believed that additional mining opportunities will be found and explored and major emphasis continues to be directed to ward obtaining properties containing basic minerals active prospecting is under way in the continental u.s alaska canada and australia also consideration is given to other nations that have a favorable invest ment climate the company constantly re mews technical advances in many fields for application to its own activities an example i the increased research toward a more effec tive means of discovering concealed ore de posits through the development of new tech niques of observation and interpretation of geological and geophysical data development of the dayton deposit shows that this is a very significant addition to our domestic iron ore reserves negotiations are under way to sell this ore under a long-term contract ocean shipping and ore sales cia san juan s.a an affiliate in which your com pany has a 50 voting and 41 v4 % equity position has an exclusive export sales con tract for marcona's iron ore which it mar kets throughout the world its subsidiary san juan carriers ltd owns an ore fleet of six ships totaling approximately 200,000 dead