to our shareholders the 1970's began with a successful and eventful year for utah interna tional in 1971 earnings and dividends continued to increase the last of the company's construction activities was terminated the name of the corporation was changed and the prospect of sharply increased future earnings was brought close to realization with the completion of important new mining projects financial earnings in 1971 rose to an all-time record of 35,501,000 higher by 17.3 % than the 30,273,000 earned in 1970 the 1971 results include an extra ordinary item of 1,355,000 exclud ing the extraordinary item 1971 earnings were 12.8 above the prior year's profits on a fully diluted basis these results are equivalent to 2,45 a share for the year including the extraordinary item and 2.36 a share without it as compared with 2.11 in 1970 this is the seventh consecu tive year in which utah international has achieved a new record level of profitability and the eighth in which earnings have increased over the prior year dividends of 75 cents a share were paid in 1971 15.4 more than the 65 cents a share paid in 1970 1971 was the 21st successive year in which utah's dividend payments to share holders have increased shareholders equity increased by 16.2 to 241 million this growth being derived from retained earnings and the conversion of subordi nated debentures operations mining and ocean shipping including utah's share of the profits of affiliates and subsidiaries accounted for ap proximately 92 of utah's net income in 1971 higher earnings from coal mining ocean shipping and land development more than offset lower earnings from iron ore uranium and copper land development profits rose sharply in 1971 more than doubling the results recorded in the prior year construction activities were terminated during the year and all of the dredges were sold operations of the construction division were profitable however and including the gain on the sale of the dredges earnings in 1971 were at approxi mately the same level as in 1970 expansion four new projects were completed or substantially completed during 1971 a new uranium mill and open pit mine at shirley basin the goonyella coking coal project in queensland australia the waipipi iron ore sands project in new zealand in which a marcona subsidiary holds a 75 interest and the new island copper mine and concentrator in british columbia development of the new peak downs coking coal mine in queensland was proceeding on schedule with completion expected around july 1972 expansions were under way at the mount goldsworthy iron ore mine in western australia pima mining company's copper mine and mill in arizona the blackwater coking coal mine in queensland and at marcona mining company's iron ore mine beneficiation plant and related facilities in peru name change with the discontinuance of its con struction activities and in order to emphasize the international character of its operations the name of the company was changed from utah construction & mining co to its present name utah international inc outlook we enter 1972 with more than the usual uncertainties beclouding the business outlook the u.s dollar is at lower levels in relation to other cur rencies and this situation will have some impact on our profit margins in australia canada and peru the trend of the japanese economy and its ability to adjust to the changed international business situation may affect its suppliers of raw materials copper prices have weakened and industrial unrest in australia con tinues to hamper our operations despite these problems the pros pects are excellent for utah's business and earnings in 1972 the four major new facilities completed in 1971 will add their contributions to our profit stream and peak downs should provide additional coking coal profits in the last quarter of the year added capacity will cause uranium and copper earnings to rise the market for utah's coking coal appears strong with new sales to european customers bringing total demand up to our capacity to produce during the year directors three new directors were elected to the board during the year paul l wattis jr following the death of paul l wattis a director since 1931 fred }. borch chairman of the board and chief executive officer of general electric company and thomas d dee succeeding lawrence t dee who retired after more than 25 years of service on the board staff high tribute and deep appreciation are due our talented and dedicated management and technical staff and all of the loyal and hardworking em ployees of the company and its subsidiaries and affiliates in the united states and abroad the grati fying results which we are able to report to you have been made pos sible because of their unflagging zeal and untiring efforts to assure the success of our enterprise sincerely mineral sales backlog mining gross revenue net income per share dividends per share