Show UTAH COPPER REPORT net profits for fop last quarter amount to nearly half million dollars the second quarterly report of the utah copper company has just been issued and is as follows k to the stockholders of the utah copper co we submit the following statement of 1 results applying to the operations of your company for the months of april may and june comprising the second quarter of the current calendar year during the entire period both the garfield and copperton hopperton Cop plants were operated at practically their full capacity but the earnings predicted in our report covering the first quarter were not realized on account of the copper contents of the ore having been considerably lower for the first two months of the period than it was anticipated it would be when the report covering the first quarter was made the deficiency in the grade of the ore as compared with the previous quarter amounted to approximately four pounds of copper per ton of ore but as the result of our having milled a greater tonnage than in the previous quarter the gross output of copper for the quarter was considerably greater than that of the previous quarter mills doing better work the ore treated during the latter part of the second quarter was of an improved quality and the recovery at the mills correspondingly spon better as compared with the previous quarter on account of a decreased proportion of copper existing in oxidized form the lower headings resulted from the necessity of amov moving ang a comparatively large block of low grade ore that was encountered in the extension of our lowest steam shovel level this particular block of ground had bad not been thoroughly developed by underground workings and when we came to remove it we found a great quantity of ore of a grade lower than we had reason to expect from the information gained from developments in other and immediately surrounding territory towards the end of the quarter the grade increased somewhat but the average of the entire quarter was as above stated about four pounds per ton of ore lower lowar than that for the previous quarter output of copper the gross output of copper contained in concentrates produced and shipped dur ing the quarter was pounds be ing 0 greater reater than that of the previous quarter by slightly less than pounds the net profit from mining and i milling operations for the quarter amounted to f additional income from rents and f other incidental items amounts amount af ed to if total net profit for the quarter the average price of copper upon which the above earnings were based was per pound as compared with the price applying to copper for the previous quarter at the end of the second quarter copper sales had been made covering all copper metal due for delivery up to the early part of september notwithstanding the lower grade of ores handled dur ng the quarter the cost per pound was slightly less than that applying to the quarter the cost per pound was slightly less than that applying to the quarter previous being for the quarter under discussion per pound for far the net copper produced after deduction of smelter allowances costs of mining and milling considering the results at the garfield plant by themselves the cost per pound of the copper produced was lower being for the quarter por the month of june the cost at the garfield plant alone was per pound the costs at the cop plant are uniformly higher than those at the garfield plant on account of its smaller capacity late in the month of june some alterations were undertaken at copperton hopperton Cop that are still in progress which will bring this plant to a condition more nearly similar to that of the garfield plant as respects its efficiency the per ton cost at both mine and mill has been steadily decreased to the end that the milling cost at garfield for the month of june including its proper proportion of all general and fixed charges was per ton the direct mining cost including only the expenses at the time and applying to all ore mined during the month of june was slightly in excess of per ton this average including both underground and steam shovel ore the indirect expense including development and the proper charge made against each ton of steam shovel ore for the retire retirement meat of prepaid stripping fund amounted to slightly over 8 cents per ton bringing the total charges for mining up to nearly 28 cents per ton so that considering the operation of the garfield plant alone the total cost of mining and milling was less than 82 cents per ton this figure not including of course the transportation of ores the average average total cost of mining and milling at both plants for june was less than 86 cents the relative percentages of steam shovel and underground ore for the quarter under dis discussion cusson were per cent of the former and 16 7 4 per cent of the iatter gifter kif ter stripping work mine conditions the average monthly movement of stripping for the quarter was cuble cubic yards the average cost of stripping for the quarter was cents per cubic yard for the month of june only the cost was cents these figures may be compared with the average cost for the first quarter of this year which was cents per cubic yard on an average rate of movement of cub cuba c yards per month the physical condition of the mine is improving rapidly towards a state which will enable us to produce more nearly an average grade and character of ore and we expect constantly improving results both with respect to copper production and earnings the transportation of our ores for the quarter was conducted in a manner that vias vas generally speaking satisfactory and the railroad company is continuing in its application of betterments which should be completed before the beginning of winter weather the outlook therefore is that there is no occasion to expect otherwise than that we will continue to receive satisfactory is transportation service respectfully submitted C M MACNEIL P D C JACKLING SPENCER PENROSE executive committee |