Show quarterly report utah copper to the stockholders of the utah copper company we beg to report as follows regarding the operations of your company for the fourth quarter of the fiscal and calendar year 1909 for the month of october both the garfield and copperton hopperton Cop plants operated to their full capacity for the month of november the combined plants suffered a deficiency of tonnage due in part to adverse weather conditions dit ions but principally to the poor railroad service of the denver rio grande railroad for the month of december the railroad companas comp anys service was so poor that there was a deficiency of tons a day in the tonnage transported which the mine was at all times prepared to supply and the mill to treat thus we are unable to treat tons of ore which except for deficient railroad service we were in a position to mine and to mill during this quarter we treated the lowest average grade of ore that has ever been mined by the company being slightly less summary of production 2nd and 3rd ard ath lbs ibs lbs ibs lbs ibs lbs ibs january february 0 4 march total than 15 per cent copper the character of the ore however was morma Vo rable for 1 ar concentration because of the lie lesser s s e r proportion of oxidized material resulting in a higher percentage of recovery the character of ore milled during the last quarter was not only still above the average in its percentage of oxidized material but carried less copper than the average of the ore deposit of the mine consequently much better recoveries will be shown later when operating on clean sulphide ores of normal grade the commercial importance of the treatment of a uniformly large tonnage even at a slightly lower extraction has been fully demonstrated for example during the month of october when operating at full capacity the total cost of producing a pound of copper was cents and the earnings for that month were in november on a moderate decrease in tonnage and a slightly less percentage of extraction the cost per pound of copper was cents and the earnings were in the month of december operating with a great shortage of ore largely due to poor railroad service as above stated ahe the cost per pound of copper rose to cents and the earnings were although the percentage of extraction in this month of december was higher than that in either october or november we append herewith a table showing the gross production by months quarters and for the year giving the profits per quarter the cost per pound of copper per quarter and the price per pound of copper upon which the profits are computed total for the year pounds profit first quarter second quarter third quarter fourth quarter cost first quarter cents pound second quarter cents third quarter cents fourth quarter cents price of copper first quarter 1282 cents second quarter 1285 cents third quarter 13 cents fourth quarter 1315 cents the costs given above include not only all direct operating expenses but also the proper proportion of all fixed and general expenses taxes insurance freight refining selling and managerial expenses and the usual per ton charge for the retirement of prepaid stripping expense and are based upon net product after smelter deductions and allowances the sales of copper for the quarter were satisfactory no copper available for delivery remaining unsold at the end of the quarter the tonnage of underground ore mined during the quarter was only about 3 per cent of the total underground mining being practically discontinued at the date of this report the inefficient railroad service already referred has been due to a deficiency not only of cars but of motive power we are advised by the railroad that a number of new and larger locomotives will soon be placed in our service the ore delivered to the plants in january was of a better grade than that treated during the preceding quarter due to more favorable mining conditions and a greater area of stripped ground on which to work these favorable factors of operation are steadily increasing the development and equipment of a property which are necessary in order to place it in condition to produce and treat so great a tonnage 0 as we are handling has necessarily involved considerable time but now the physical condition of our property with respect to its ability to produce ore and all our plants and equipment are in perfect condition to accommodate full tonnage capacity without interruption since the close of the fiscal year 1909 your company has acquired the ownership of the entire capital stock of the boston consolidated mining company and its physical property will be conveyed in fee to the utah copper company as soon as the legal formalities can be completed which will not involve much delay and thereafter these two contiguous properties constituting one enormous ore body will be operated as a physical unit the consolidated operation of these properties will enable us to introduce economies and enlarge production which insures largely increased profits respectfully submitted CHARLESS M president D C JACKLING general manager |