left stripping operations with utah's walking dragline at company's navajo coal mine in the four corners area of new mexico lower left one hundred twenty ton coal carrier enroute from mine to processing plant right stockpiling facilities navajo coal mine enabled pima to record the highest profits since the beginning of this operation utah's share after allowance for distribution taxes amounted to 908,201 compared to 702,233 last year uranium a fixed annual tonnage of uranium production from the company's properties and mill in the gas hills area of wyoming is sold under contract through 1970 to the atomic energy commission annual earnings from this operation will be important and relatively predict able for the duration of the agreement during fiscal 1965 uranium profits were below last year this was the combined result of re scheduling deliveries a write-off of shirley basin underground oper ations other than solution mining and the closing of a small mine owned by another company whose output was milled by lucky me the decline in profits was offset in part however by lower cost ores fed to the lucky me mill beyond 1970 there are increasing indica tions that there will be a continuing demand for uranium at that time utah will still have substantial reserves and production costs which are believed to be competitive with any domestic producer and the company should be in an excellent position to participate in the anticipated growth of the nuclear power industry utah's opti mism for the strength of this future market is underscored by the company's re-entry into uranium exploration steam coal utah's navajo coal mine in the four corners area of new mexico came into production three years ago it has grown rapidly into a major operation and has the promise of further expansion this was the first complete year that the navajo mine served the full capacity of arizona public service company's present mine-mouth generat ing facility accordingly utah's coal operations recorded improved profits since this mine is the fuel source for a base-load plant re quiring constant feed its earnings are closely tied to the output of the generators being served and are relatively predictable the 2j/2 million ton annual fuel requirement of the 575,000 kilowatt genera ting units now in service is supplied by utah under a fuel agreement for a 35 year period arizona public service company has an option