Show why utah copper is outstanding real money maker and the cheapest red metal producer in the world today copper now owns over 96 per cent of utah copper outstanding stock and it can be said that the latter I 1 has been proving a most profitable acquisition for according to the last analytical review of the gigantic proposition in the boston commercial of the ad instant utah in 1926 returned profits of after all charges including depreciation and federal taxes but before depletion this was equivalent to a share earned on the shares of capital stock outstanding 10 par value in 1925 utah reported net profit of equal to a share for the outstanding stock it is apparent that utah is covering its 6 annual dividend disbursement with a wide margin of safety even under the copper market conditions which have been recently prevailing it is also evident that is deriving a sizable income in dividends from its share holdings of the leading porphyry and should its proportionate onate equity in undistributed earnings of utah be included with its own income a still more impressive figure would be the result in the first quarter of 1927 utah showed net income of after taxes and depreciation but before depletion this amount amoun was equivalent to a share on its outstanding stock in the second quarter utah returned net similarly figured equal to ashare on its outstanding stock on the basis of quarterly reports thus far in 1927 therefore company shows first half earnings amounting to or a share after all charges but before depletion this compares with net earnings in the first half of 1926 of or a share utah coppers record on low grade ore that utah was able to establish an earning record such as the above in the first half of 1927 with copper averaging throughout the period somewhat less than 13 cents a pound and that moreover this record could be established in the treatment of ore averaging well under 1 per cent copper is is tribute to the mining and treatment efficiency of the com banys operations and constitutes it without doubt the leading producer in the industry utah made its second quarter production at an average producing cost of barely over 7 cents a pound as compared with nearly eight cents a pound in the first quarter and with 85 cents a pound in the second quarter of 1926 producing cost of copper per pound is figured after depreciation and all fixed and general expenses before depletion depiction and with precious metal values and miscellaneous earnings credited to copper the steady reduction which has occurred in the companas comp anys operating 6 cost dur during ing i recent quarterly periods is a matter for much favorable engineering gi comment in the industry utah appears definitely to be on a producing product ng cost basis of well under eight cents a pound the character of the utah ore deposit is not such as to give the company any large operating advantage over many other producers nor does the average b grade of ore now being concentrated by the company exceed or even equal the average being treated in the copper industry today in fact the alie average grade of ore treated by utahan utah in the second quarter was per cent copper which is about as lean a grade of ore as is treated anywhere in the industry Is leading copper producer of the world nevertheless utah takes rank as the leading copper producer of the world because its earnings 6 are gre greater a ter than can be shown by any other important unit in the industry and it is the factor of earnings alone which can really decide the matter other producers may show larger reserves of ore greater current production and even a lower producing cost than utah but the latter maintains its position as the greatest earner in the industry it owes this position almost entirely to the keen executive ability and progressive spirit which actuates the policies of its management incidentally utah has haq been holding output well within the limits warranted by present consuming demand and general ener copper market conditions this being the companas comp anys part in the gren general endeavor to promote a satisfactory price for the metal it is on the basis not only of the large contributions to its earning power made by utah since its acquisition but also because of the fact that practically all units within the organization are today working at a high pitch of producing b and earning capacity that stock is currently quoted near its high record price for all time this was 72 a share reached a short time ago as compared with the low for 1927 to date of 60 a share the stock is currently quoted about 70 this gigantic producer is today responsible for well over half a billion pounds of copper annually representing nearly 15 per cent of the worlds present output this figure does not include Kenne cotts large equity in the output of nevada consolidated which in 1926 exceeded pounds or in mother lode over pounds including the proportionate equity in the production of these two companies in 1926 the organization accounted for well over pounds of copper the acquisition of control of utah by carried with it control of nevada consolidated with the latter including as it does today ray consolidated and chino the present status of has outstanding shares oi of no par value stock which represents the sole capital liability of the company as all prior obligations have been retired ll last 11 year the company paid off 5 per cent notes remaining of an ori original inal issue of issued in october 6 1924 inter organization debt has also been large largely ay written off the books A few years ago braden was ind indebted to the parent organization for a total of which has since been paid braden by the way is another porphyry which should have a long and profitable future operating av e career showing as it does ore reserves of approximate 3 y ore its tons averaging per cent copper reserves are twice as rich as those of utah the latter hoi h ever greatly exceeding braden in bulk utah reports ore reserves at the close 0 of f 1926 amounting to OW tons toi with average copper content of per cent of the large as its capitalize capit capitalization aliz aaion necessarily i is s in view be D 0 re ex extent tent of its producing assets it should kin kind d of obliga OD has no funded debt or any other annual tion prior to its capital stock As compared with its a a output production capitalization is also very moderate per e 1926 was equivalent to practically pounds of ca copp of 0 out share of stock outstanding an unusually high ratio in put per share and comparing favorably with the poston posit i as this respect of smaller and favorably situated producer produce or example granby orthe of odthe the entire kenne average producing cost barnin e gs in 1926 was eight cents a pound and ino stoc k were equivalent to a share on the outstanding outstanding 0 b due to its highly successful marketing the ants company 1414 cents en ts of bained an average price 1 ce for metal sold last Y year 42 a pound ill financial in ancial statement at the end 0 of f 1926 cu current rrt in i current assets as against only in ex total liabilities cash and marketable securities al alone one gotai cess of |