ten year comparison consolidated utah construction & mining co and subsidia the 5 subordinated guaranteed debentures of utah international finance corp a wholly owned subsidiary due september 15 1983 are japanef total re tion of the c i in 1970 su h sales jximately one-halt of 1973 at october 31 1970 404 the company capitalizes fir of stock w of a premium beginning in f mining projects not yet in operation such its which amounted to 1,488,721 in 1970 and 103,019 in 1969 zed over the productive lives of the properties significant a substantial portion of the output of oertain mining projec now being developed is expected to be sold to japanese industry fn addition approximately two thirds of marcona s consolidated revenut without duplication of mount goldsworthy ore sales was from japan note 8 contingent liabilitii ind coi note 4 surplus restriction the company's long-term adequate consolidated eai redemption of outstanding nts with lending institutions contain i surplus as defined such provision f cash dividends and on the purchase * ipital stock and convertible debenture sarned surplus in the amount of 370,893,000 was free october 31 1970 e 5 provi on foi e taxes idends a substantial portion of the company s income is derived from earnings from mining operations with a resulting depletion allowance i excess of cost depletion as permitted by the united states internal rev code and profit from the sale of investments all of which are taxed at rates lower than those applicable to ordinary income the company nas redit has no significant effect upon the solidated ir contingent liabilities include the usual liability of contractors for the performance and completion of both company and joint venture contracts the company has agreed to purchase a note on demand after july 31 1971 secured by a deed of trust on certain property owned by an affiliate in which the company has a fifty percent interest the balance on such note is approximately 3,700,000 as of october 31 1970 the company has started the development or expansion of mining projects which in the aggregate will require an investment of approximately 287 million of which amount about 99 million had been expended as of october 31 1970 borrowings of approximately 125 million from lending institutions without the united states which borrowings if made would be guaranteed by the favor of approximately 40 million in the opinion of the management of the company proceeds from borrowings from lending institutions together with current working capital and cash generated internally are sufficient to fund mining projects now underway or heretofore approved and finance other cash reouirements of the company s business peruvian income tax deficiencies have been proposed against an affiliate j taxes applicable to ne from discontinued operations . . . lordinary item 14,686,000 6,134,000 607,885 being contested by the affiliate and a peruvian civil court has ruled in fav of the affiliate which decision has been appealed by the government authorities the affiliate has advised the company that it considers it unlikely that the civil court decision will be reversed in the event of an adverse decision any resulting tax liability of the affiliate in the company quid not have a material effect on the accompanying financial 14,686,000 n therefore has bee 7,56 amounts included in the provisions for income taxes which will not be due and payable until future periods are 8,765,000 for 1970 and s2,439,000 for 1969 including 1,224,000 and 1,116,000 for taxes payable upon distribution of undistributed earnings of affiliates note 6 equipment and facilities dredging and mining equipment and facilities are depreciated depleted or amortized over their estimated useful lives by use of the unit of production straight-line or declining-balance methods as applicable where amounts deducted for tax purposes exceed those recorded for book purposes thereby deferred note 7 revenue the company reports income from its dredging activities including those which are performed by joint ventures and the limited partnership engaged the company hf 260,000 for 1971 to 270,000 for the last five years of the lease the company also has a long-term lease agreement for equipment requiring payments of approximately 420,000 annually for a remaining period of three years the parent company's united states federal income tax returns have been examined through 1986 and tax deficiencies paid e9 res ved got n stock note 10 dis business to a wholly owned subsidiary of the fluor corporation fluor the total sales price was 10,753,000 on which the company recorded a net profit of 1,844,291 after applicable income taxes of 818,809 income from discontinued operations in 1969 was 507,020 after applicable income taxes calculated after giving effect tc