Document 0JEJONeMxwrDXJXbbjeNVbmmJ

!'! Anaconda Copper Mining Company CAPITAL STOCK Authorized. 3.000.000 shares. $50 each . . Issued. 2.351.250 shares. 350 each . S150.OCO.OOG 116,562.500 OFFICERS Chairman of the Board . President .... i ice-Presidcnt Secretary and Treasurer . General Auditor Assistant Secretary Assistant Treasurer JOHN D. RYAN CORNELIUS F. KELLEY B. B. THAYER A. H. HELIX J. T. ROBERTS R. D. COLE D. B. HEXXES.SY DIRECTORS William Rockefeller John D. Ryan B. B. Thayer Cornelius F. Kelley George H. Church J. Horace Harding Nicholas F. Brady Andrew J. Miller A. H. Melin OFFICES An a c o n d a , Mo n t a n a 25 Bk o a d w a y , Ne w Yo r k . ISR008020 To the Shareholders of the Anaconda Copper Mining Company : The following report covering the operations and business of the Companv tor the year 1920 as stsbmitied: The year opened with a strong demand for both copper and zinc, a broad having movement which began in November. 1919. extending into February* and sales of metals covering 'deliveries tc the end of the second, quarter at fair prices seemed to promise a recovery from the depression resulting from the ending of the war and the Unsettlement of the world's business: due to that event. The promise tailed of fulfillment, for the buying of metals ceased during; the first quarter and. deliveripSj after August were at a rate below production, until during the last quarter the cpillpsei'in general business and industry, both domestic and foreign, brought businessia{frtolf!|'tc|::''aiStandstill. Prices:were reduced below the.cost of production and metals were forced,.upon tfie:'market, without attracting buyers of afiy reasonable quantities. The redhpeii rate of production resulted in excessive costs,; and rapidly accumulat ing stocks' of ufisoid naetals forced me dosing of the mines in March and April of the pres ent year. The condition of the markets in metals since, the Autumn of last year and until the present time is not ,different from that in all lines of .industry, and in our opinion recovery will depdnd fcpBjj the revival of general business in1 this country and Europe. It is our belief that signs are commencing tp appear indicating a business and indus trial-reccivery in which the, metal producers will share, and that the demand for the products of our mines is certain to be restorer, as normal business conditions return. The income, for the year after payment of all, direct expenses was $9,335,253.13, and after deduction for interest paid and depredation reserve, the net income was $2,691,660.62. Dividends were declared; during the year amounting fp $6,993,730.00, or S3.00 per share. Tour Directors in Deceihberdecided to orfiit the quarterly dedaration, due to exist ing finanpal and business conditions* A summary of operations and activities follows: Mining Department Mine Tonnage The mines of the Company produced during the year 2,152,763.30 tons of ore and 7,557.11 tons of predpitates, or a total of 2,160,320.41 tons. Development and Exploration The operation of the Company's mines was curtailed throughout the entire year, but notwithstanding this fact, an amount of development work greater than that done the pre vious year was carried on, with very satisfactory results, and a large amount of repair work was done in the various shafts and levels of the different mines. During the year there was done in the mines of the Company in the form of drifts, crosscuts, laterals, upraises and winies, 22.55 miles of development, as compared with 20.39 1SR0Q8Q21 miles in the year 1919. The shafts of the:Company were sunk additional depths aggregating 829 feet. The main shaft of the Steward mine was sunk 406 feet during the year, making a total depth, or 3623 feet, and the ore disclosed by this work was of a better grade than that in manv of the upper levels. This is the greatest depth yet attained in any of the -hafts of the Com pany'? .mines, and the discovery of the ore referred to at depth encountered is considered of much importance. At the Silver Bow mine, the No. 2 air shaft was sunk an additional 120 feet. The Emily shaft of the Badger State mine was sunk 303 feet to the 1600 too: level. Advantage was taken of the curtailment to complete repair work in a number of the shafts which were not producing; during the: year. The shafts of the Anaconda. Never Sweat... St. Lawrence. Bell. Original. Gold Hill. Pennsylvania air shaft, Leonard. Liqui dator. Alex Scott. Moose and Nettie mines were retimbered for' distances varying from 100 feet to 3/5 feet. At the Tramway mine the station at the 1350 foot level tvas retimbered. The Alex Scott shaft was enlarged to three compartments for a distance of 392 feet, while ap additipriai compartment was: added to the Moose and Nettie shafts for distances of 200 feet and 125 fee: respectively. Construction At the High Ore mine three quintuplex electric pumps were installed on the 1200. 2200 and 2800 foot levels, and a ten inch lead-lined water column was placed in the shaft between the 2200 and 2800 foot levels. A hoisting engine and head frame was put in place and operated on the Gold Hill shaft. A triplex electric pump was placed on the 2100 foot level of the Berkeley mine, while a new ten inch air column was installed from the surface to the 1000 foot level. At the Leonard mine, the blacksmith shop, boiler shop and construction shop were provided with new roofs, and an eleven inch wood-lined pump column was installed in the shaft. A new roof was placed on the main hoist house of the West Colusa mine. At the Badger State mine an ironclad building 40 x 40 feet was added to the car penter shop. A new office Building, constructed of steel, 33 x 60 feet was built. In the shait a ten inch air column was put in place. In addition to the above, all of the underground electrical fixtures and wiring, some of .which had become somewhat antiquated, were replaced with the most modern appliances. All of the stations and the shaft of the Anaconda mine were rewired, for lighting as well as power. One leaded steel armored 5000 volt, 3 conductor cable was put in place from the surface to the 2000 foot level. Steel armored cables have been placed in most of . the mines in place of the old system, and everything possible has been done to safeguard the use of electric power underground, as well as at all other points. Storage battery locomotives have been installed for underground haulage in all the new levels of the mines in place of the trolley system, and excellent results have been ob tained from their use. 3 ISR00802 1 Ventilation There was no diminution in the work of improving the ventiiar'on in the mines, and it has made itself felt most appreciably throughout the underground wordings. In connection with this work nine ele-.-'wally driver, tans ivehe installed at the diner-, er.t mine-, having :r. total a capacity of C*J;. "jO cubic feet of air per minute. F.jrtv-r.vo blowers 'were aNo installed, also 9.3S miles, of canvas tubing for' distributing the air. - The air shafts of the Never Sweat. St. Lawrence. Original. Pennsylvania and West Colusa'ntines, were smooth-surfaced with concrete slaps, in order to overcome the a:r fric tion occasioned by exposed shaft timbers. Fireproofing Fireproofing by means of the applies:1 a of "gunite" was carried on in many of the mines. Both kuijtmg compartments of the Be 1 mine for a distance of 1681 feet were Com pleted. the main station on the 2300 foot let.-! and the power station on the same level were completed. All of the, powder, fuse and cap magazines in many of the mines were fireprod'fed. and many thousand feet of cros. hits, mine exits, and surface adits to the -hafts were cohered. Every precaution known was t..ken to guard against underground tires and with very good success. Reduction Department Copper The Copper Reduction Works treated f >r all companies during the year 2,319.336.76 tons of ore and other cupriferous material at Anaconda. No copper ores were treated at Great Falls, except a small tonnage of copper concentrates from Anaconda used for the flux ing of Zinc Plant residue. Ot the total amount. 1.328,379.59 cons oi ore were produced by the Company mines. 45S.359.30 tons of ore were either purchased from or treated for other Companies, and 32.617.87 tons of precipitates and cleanings were from the old plants at Anaconda and Butte. At Anaconda there were produced 155.339.575 pounds of fine copper. 7.113.659.22 ounces of silver, and 32.530.302 ounces of gold. Of this production 138.763.065 pounds oi fine copper. 6.420,026.20 ounces of silver, and 32.530.302 ounces of gold were produced by your Company. The Electrolytic Copper Refinery at G eat Falls produced during the year 145,149.392 pounds of cathodes, which were melted into stupes at Great Falls. The Copper Leaching Plant at Anaconda treated during the year 484,352.61 tons of tailings and 43,271.94 tons of purchased ore, from which there were produced 5,037.30 tons oi cement copper. The Copper Concentrator also treated by flotation 181,033.83 tons of slimes from the ponds and 722,769.61 tons of tailings. Zinc The zinc plants at Anaconda and Great Falls treated during, the year 443,582.39 tons of ore and other zinciferous material, of widen amount 310.572.35 tons of ore were pro duced by die mines of the Company, and 133.410.04 tons oi ore and concentrates v. -re pur chased from other companies. At Great Falls there were produced during the year 101.332.458 pounds of electro lytic zinc, 5,255,452 pounds of zinc in dross, and residue from which were produced 12,536,- 4 ISR0Q8023 V) : ') e OSS pounds of lead. 2,17i3,080 pounds of copper. 2,073,313.56 ounces of silver, and 6.130.961 ounces of gold. > Rod and Wire Mill Ot the Company's production there were rolled into rods 74.596.737 pounds of c per. Of this amount. 22.326.173 pounds were manufactured into wire, of which 5.292.0U4 pounds were made into strand. Construction Anaconda Very little construction work was done at Anaconda during the year 1920. the prin cipal items being the completion of the 30-ton phosphate piant, which was begun in the latter part of 1919, and the completion of the arsenic running plant, work on which was begun at the same time. Both of these plants were operated in a very satisfactory manner. The 30-ton phosphate plant treated approximately 1300 tons per month.of rock and produced about 900 tons per month of treble super-phosphate, containing about 17^c avail able phosphoric acid. This plant is a pilot plant intended for developing the process of producing high grade phosphate and demonstrating the marketability of the product. Plans are under Way for the construction oi a large commercial plant to treat 100 to 430 tons of rock per day, to gether with the necessary sulphuric add plant. The new arsenic refining plant, the remodeling of which was completel during the year, cpntains two refining furnaces each capable of producing about 200 tons per month of refined . arsenic. Toward the end of the year a baghouse was constructed to recover the fume from the gases leaving the arsenic plant. The entire system operated, in a most satis factory manner. The final dam for clarifying the water of the Deer Lodge River aa Warm Spring; was completed during the year. A small experimental plant for the production of liquid sulphur dioxide and an experi mental precipitator for the predpitation of copper from sulphate solutions by means of liquid sulphur dioxide were completed, and successfully operated during the year. Great Falls In connection with the zinc plant a warehouse 40 x 104 feet was constructed. A very considerable advance was made during the year in connection with the treat ment of zinc plant residue and bag house fume, by making the fume and the residue into briquettes and smelting the same in one of the old copper blast furnaces, which was re modeled for this purpose. No construction work of note was done at either of the copper refineries. At the rolling mill a double six-die wire drawing machine, a nine-die wire drawing machine and a seven-wire strander were added to the plant. At the ferro-manganese plant considerable work was done during the year in the way of reconstructing the furnaces as they wore out. Two of the furnaces were rebuilt along new and improved lines and the electrode holders were very much improved. The plant for the last half of the year operated very satisfactorily, but as there was a decided falling off in the; demand for ferro-manganese in the middle of December the operation of the piant was discontinued. 5 1SR008024 :s I Subsidiary Departments and Companies < Coal Department The mines at Diamond'ville, Wyoming, produced during the year 494.733.50 tons of coal. 260.112.50 tons of which were shipped to other departments of the Compaav, 139771.2c tons were sold commercially and 44.399.75 tons were used at the coal mines. The mines at Washoe. Montana, produced 207,767.90 tons of coal. 109.4.36.10 tons were shipped to other departments of the Company, 87,495,80 tons were sold 'Commercially, and 13.356 tons .were used: at the csai mints. The mines at Sand! Coulee, Montana, orccttced 192.783.25 tons of coal. 89.332.95 tons were shipped: to other department^ oi the Company, 105.042.30 tons were sold commercially, and 403.00 tons were used, at the coal, mikes, ' Lumber Department The sawmills, at Bonner. St. Regis,, anrj Hope cut 92,865,620 feet of lumber and pur chased 358.115 feet,, of which, 38.185,389: feep were shipped to the. mines of the Companv, 32.027.243 feet were sold commercially, 1,318,034 feet were used at the mills for repairs and construction, and 2.003.362 feet were supplied to the factory for manufacturing; or a total disposition of 73:534,028 feet, increasing! ifie stock of finished lumber on hand by 19,689,707 feet, leaving a balance on December 31st, 1920, of 48,451,078 feet. Fbotphate Development In the report covering operations for the year 1919, mention was made of a phosphate property which had been acquired in the vicinity of Garrison, Montana. Development work was begun in October, 1919, and durijig the ireffiainder Of that year a tunnel was driven on the phosphate bed for a distance of 74 fee^thk last 60 ieet of which averaged upwards oi 4 feet in width, and a content of 30.15% phosphoric acid.; During the year 1920 this tunnel was driven a distance of 518 .feet; of yh!kki<478 feet was on the bed, the remainder being in crosscuts where faulting had occurred. 'Wht| phosphate rock developed in this length of tunnel averaged about 4 feet in width and a content of 31.1% phosphoric acid. Operations at this projwrty were dfecpntinued on September 27th, 1920, as it was deemed advisable to concentrate the work at the phosphate property located at Conda, near Soda Springs, Idaho. Conda Phosphate Property In addition to the claims originally purchased in the year 1919, arrangements for pur chase oi 21 additional claims were made in the year 1920, ail containing phosphate rock, and .480 acres of land were purchased for plant site and townsite purposes. The townsite of Conda is located about 7j4 miles southeast of Strachan, a station on the Oregon Short Line Railroad, and in order to develop the property it was necessary to construct 7J4 miles of railroad connecting Conda and the mines with the main line of the Oregon Short Line Rail road. An agreement was arrived at with the Railroad Company, and contracts were let for the building1 of the railroad. Due to a comparatively open winter, work of building the railroad was carried bn without interruption up to the end of the year, when all work was suspended until Spring. Track was, however, laid to the plant site and considerable ballast ing was done. The first work train arrived at Conda on December 10th, and the first material was hauled over the road on December 31st. Temporary buildings for housing the employes were built, a telephone line was com pleted to Soda Springs, and a 44,000 volt power line 7J4 miles in length was built to the ' plant, which furnished electric power with which to conduct operations. An electrically driven compressor was installed. 6 * o I 1SR008025 The property will be opened up by nvo adit tunnels. Xo. 1 adit was driven a distance of 391 feet to cut the east dipping- bed. while adit Xo. 2. the portal of which was completed at the end of the year will be driven; to cut the West dipping bed. It is expected that adit Xo. 1 will reach the -phosphate bed about April. 1921. The, stirface tram line connecting adits Xo. 1 and, Xo. 2 was <83% completed at the end of the year. The excavation tor'the plant site was 50% completed. Excavation was started tor the pipe line through which water w-.il be brought to the plant site, a distance of 7400 feet. -* Material ::r a crushing and drying piant. ore bins, trestles, etc., was ordered, also storage bhc;ery,.ioc:omotiSeSi.ca:rsi:ahd.dthe'tiine.cesS'afiy machinery. It,is estphtated by the epvifleers in charge of the property that, the plant will be ready to operate about: August, 1921. Butte, Anaconda and Pacific Railway The Railway transported during the year 4.3S1.267 tons of ore and other freight and 241,250 passengers. The gross revenues were $1,542,675.21; rental and miscellaneous re ceipts $4,516,39; operating expenses $1,295,241.69; taxes, interest'and rental of leased lines $232,146.79; net income $19,803.12. International Smelting Company The smeltery of this Company, at Tooele, Utah, treated during the year 104.210.44 tons of copper ore, and 200,787.83 tons of lead ore, from which there were produced 9,909,763 pounds of fine copper, +6,130,752 pounds of fine lead, 4,182,881.41 ounces of silver, and 22.592.316 ounces of gold. The copper smeltery at Miami, Arizona, treated during the year 335.912.41 tons of concentrates and purchased ores, from which there were produced 165,791,986 pounds of fine copper, 378,050.17 ounces of silver, and 5-379.814 ounces of gold. International Lead Refining Company The lead refinery of this Company at East Chicago, Indiana, treated during the year 23.457.38 tons of lead bullion from the Tooele plant, and 4266.67 tons of purchased ore and other bullion, from which there were produced 49,173237 pounds of common lead. 2.811,008 pounds of antimonial lead, 3,438,37073 ounces of silver, and 11,897.133 ounces of gold. Raritan Copper Works The Raritan Copper Works, owing to the unsettled conditions of the copper trade, operated at reduced capacity in all departments during the entire year, the production of copper being only 46.3% of the total capacity of the plant, which caused a corresponding curtailment in the production of the precious metals. During the year the installation of the oil system, whereby fuel oil was substituted for coal throughout the plant, was practically completed. This installation included the building of two storage tanks, each with a capacity of 55,000 barrels of oil, the laying of pipe lines from the dodcs to the storage tanks of the various departments of the plant, and the recon struction of -the fire boxes on the boilers of the furnaces to permit the use of fuel oil. The copper furnaces have, run more continuously with less repairs and labor charges than when using coal, while in the boiler-rooms results of tests have shown a marked in crease oi efficiency by the use of fuel oil over coal. 7 1 1SR008026 saatBaswsBfsraasii / The Refinery of this Company at Perth Amboy. New Jersey, treated tor all companies during the year 124.-t63.44 tons of copper bullion and 4J35.616.64 ponces of silver bullion, front which there were produced 243.473.190 pounds of fine copper. 14.320.S31.S1 ounces of silver, and 76.746.243 ounces of gold. South America. Andes Copper Mining Company Development Churn drilling to the extent of 9.08$ feet was done during the year, a large portion ot whidh was confined to an area south of the main ore body, and a tonnage of 7.326.241 tons of ore. averaging 1.64'A copper, was added to the are reserves, making a total estimate of 12S.262.p03 tons, having a copper content of 1.49f& copper. About 2300 feet of the above drilling was represented by short holes drilled in order to more accurately determine the grade of Ore in certain sections which had not been fully developed. There was also 4540: feet of small drifts, winzes and raises driven for the pur pose pi! checking drill hole assays. and: also for obtaining a sufficient tonnage of properly mixed; Ore that would represent an average sample of the oxide ore body and which could be used as feed to the experimental mill. The: amount; of work done in drifts, up-aises and inclined shafts for the removal of waste afid the; development of the intermediate haulage level was 12,392 lineal feet. 108.000 tons of waste were removed during the year, the average tons per man per day in .the latter part of the year was 22. demonstrating the efficiency of the caving system of mining as applied to this class ot material. An inclined shaft 422 feet in depth to facilitate development of a haulage level which will be used ior mining die oxide ore body wis completed during the year. The main adit was advanced 3.142: feet, the total length at the end of' the year being 11,142 feet. The work during the last hali of the year was seriously interfered .with on account ot .a Iarge.:Jlow of water, amounting at times to upward of 10,000 gallons per minute. This, however, is gradually decreasing, and is lowering the water level in the ore body at the rate of three feet per day. Water Supply The survey of the proposed pipe line was finished in the month of May. 1920. The pipe line, as located is 37.8 miles long, with an elevation at the intake of 11.715 feet and an elevation at the discharge of 9.695 feet. The total length of tunnels is 12.721 feet, of which 7.526 feet have been completed. The amount of tunnel work done during the past year was 1,955 feet. Potrerilloe Railway The Potrerillos Railway, consisting of the main line from Pueblo Hundido to the townsite of: Potrerillos and the line connecting Barquito with the Chilean State Railroad at Chanaral, was operated satisfactorily during the year. Property Additional acreage was taken up in the year 1920, making a total of 272,275 acres owned by the Company. 8 JSROOSO Construction The hospital, the carabineros' quarters, and 43 new houses were completed during the .year. The status of dwellings at the end of the year was, at the mine. 5'dwellings 100% complete: at PotreriUos 217 dwellings 92% Complete; and at Barquito 14 dwellings 100% complete. The temporary machine shop was finished and equipped. Its capacity is sufficient to take care of. thtj ordinary needs of the mine and railroad, 'as operated at present. Operations in general at the property were curtailed during the year by .inability to secure fuel. ; The experimental mill at PotreriUos was started January 25th, 1920. Various altera tions were made .fp,permit of thorough tests on the oxide ores by a leaching process, to be fbllowed by `sufpHup dioxide: precipitation and trbn cementation. The leaching experiments carried onidurifig the year indicated a consistent extraction of 92% of the copper content in the oxide.Pres treated. The sulphur dioxide plant has been shipped to South America and should be in oper ation eariyUn the year 1921. In the meantime tests on similar ores have been made at Ana conda, Montana. These experiments have ruby corroborated the results obtained originally in the Irtpini plaintiat Ar.acor.da and warrant the expectation of a very satisfactory recovery from the Pres treated. Due to shortage of fuel, the mill was shut down in September, 1920, but will be started up early ini the year 1921. Santiago Mining Company Lo Aguirre Mine The prinripalwork done during the year was confined to the work of preparing the ore body for caving by driving haultig; drifts and raises; also the development of the sul phide ore body mentioned in the last report. Winzes were sunk showing the body to ex tend a considerable distance below the tunnel level, but on account of the presence of water in the bottom of the winzes it was impossible to determine the exact extent of the ore. The work, however, proved that there was a substantial body of sulphide ore below the tun nel level. It will require the erection of machinery and pumps to prosecute this work further. The total work done on all faces amounted to 8,121 feet. The construction work during the year consisted of 12 two-family houses, 2 fiveroom staff houses, powder magazine and a telephone line from Africana to Lo Aguirre. Africans Mice The total development for the year was 8,403 feet, consisting of the sinking of an additional 270 feet in Shaft No. 1 to a total depth of 858 feet, while in.Shaft No. 2, 190 feet were sunk to a total depth of 423 feet, the balance being represented in drifts and crosscuts. The results of the development work were quite satisfactory and would tend to indi cate an extension of the ore bodies to the north and a weakening of the ore bodies in a southerly direction. The copper in the Africana ores appears entirely in sulphide form, assaying 3.73% copper for ore so far developed. 9 Investment! (a) Mines, and Minin? Claims.--During the rear your Company added to the mining ciaims owned by it in the Butte District, by purchasing either the whole or undivided interests in a number o outlying properties situated in promising districts'. The amount expended in making these purchases was S191.694.65. In addition, the sum of 3147.8/3.28 was oaid inr-r.g the year upon the contract, tor the purchase of phosphate lands situated in Idaho, and in at mur-.r.g idmcer.t property necessary tor operating purposes. tb'i Walker Mining Company.--The operations or the Walker Mining Com.ttany were continued in 1520 under d: iicui.-ies. due to shortage or labor. There were mined and milled 41.823 tons, producing 7,338.92 tons of concentrates. There, were'.shipped tp .theilnterpational Smeltery. Tooele,. l"tah. 2*293.43 tons of con centrates. containing 907,988' pounds of cooper. 17,128.37 ounces' of silver and 445.444 ounces' of gold. There was on hand at the concerjtratpr and in transit December 31st. 1920, 7.660 tons, of which 2.572 was tonnage at concentrates on hand, December 31st, 1919. The new aerial tramway for the transportation of ore and concentrates to the railway and supplies from the railway to the mine, was completed in 1920. The extension of the crosscut tunnel* a distance of 1.324 feet on the strike ot the vein and through what is Called the main ore body, was completed during the year. A raise through this pre body from, the tunnel to the No. 4 level, a distance of 343 feet, was completed during the year. A raise from the tunnel to meet the incline shaft from the 3rd level was started. The developments indicate that the ore body as now outlined will average better than 4"c in copper values. An. electric, haulage System was installed in the. above mentioned tunnel, which w:l! be used as the main haulage way from the ore body to the concentrator. The installation of a new crusher, picking belt and conveyor is about 858b comple'e. The additional housing facilities mentioned in last year's report were completed. (c) Arii9h* OH Company.--During the year this Company produced 395,641 barrels of oil and paid 340.00 per share in dividends, of which your Company received $326,400.00 (d) Anaconda Lead Products Company.--The electrolytic white lead plant, locate ! at East Chicago; Indiana, was put in operation on January 25, 1920, and immediately, as > usually the case in new process work, weaknesses in equipment and plant design developed. which" frohi ,time to time wife rediedied and will be completely overcome in the near future The cgllroom: of: the. plant: developed a greater tonnage than was anticipated, 'thereby throwing out of balance the filtering, drying and barreling departments. The .process, operated satisfactorily, the grade of the product being excellent, esta'-[ishinga new standard .ot1 whiteness for white lead. Construction and operation of the plant was seriously hampered by a scarcity of labor, which was remedied only toward the dose ot the year. The plant made an output of 18 tons of white lead per day during the last month the year. (e) During the year your Company increased its holdings of stock of the Inspiration Consolidated! Copper Company from 250,900 shares to 285,300 shares.. 10 ISR0Q802? Financial Condition Continued expenditures in South America, together with the carrying of abnormally heavy stocks Of metals, necessitated the borrowing of additional money. Accordingly, your Directors in October authorized the sale of Series B, of the authorized bond issue. :o the principal amount of S25,00G.t)0O at 7% per annum. These bonds were sold and the pro ceeds therefrom, and the distribution thereof, are reflected in the balance sheet attached hereto. Attached hereto you will And a consolidated balance sheet showing the financial con dition of fhh; Company, and , its. Subsidiary Corporations, it the close of business December 3:1.: 1920; and ,Sn;lihqpme`;!:statemhnt. for tfie pear, both certified to by .Messrs. Pogson, Peiouber Sc.Company. Certified;'Public Accountants. You will note that certaiit changeq haye been made in the balance.sheet, which are not the.result'of efirfeiit operations for the year. Up to tfte.yqar 1914 Anaconda's balance sheet showed the status of that Company only. Slnqp ;that:; fiate- pecausebpf the acquisition of subsidiary companies entirely owned bv this Complaiiyi. baJ^Hpd sfieetirdf'such Cpltipanies have been combined with, that ofThis Com pany1 and adtpItiliShe'd. Under the heading of ``Investments'' there has heretofore been included Anaconda's interest in.ppmliptiSSiapUfrpl'lNithough not entirely owned, as well as other investments. Due to the 'mpfasfhg:|'^||l3fiaiipe:.of `such Companies, particularly those owning the. South Ameri can prppetti^S:,;i|.ag|;;||l;'|^Ptjr:tD[im:&re accurately present the status of this Company's inter est. issued .spick is owned,, the assets and liabilities as the same. :atpp!(^.g|1 j.jpjaiejfjg|;;.iteidp^sertiviei:.ttoolq^ firs distributed under, appropriate: headings on the conSolidaf|dj:j:l|maif<;|j|||^;;,taita0ticf' hereto. The change does'not imply a valuation of the prOpertieslot Suihlpolhplhihii'Twhidh: wpUltf show'greatly ip.excess of1 the.book values taken. New York, N. Y,, May 5th, 1921. JOHN D. RYAN, Chairman of the Board. CORNELIUS F-KELLEY, President. 11 ISR008030 ANACONDA COPPER MINING COMPANY and Subsidiary Companies Consolidated Balance Sheet--31st December, 1920 ASSETS Fix e d : Mines and Mining Claims, Coal Mines, Timber Lands, Water Rights and Lands for Reduction Works and Refineries, etc............................................................... $118,364,4-59.16 Buildings and Machinery at Mines, Reduction Works, Refineries, Sawmills, Foundries, Waterworks, Rail roads, Manufacturing Plants, etc.............................. 75,019,735.27 Investments* in sundry companies.................................... 15.975,377.34 ---------------------- 209,359,571.77 Cu r r en t : Supplies on hand, advances on Ores and Expenses prepaid .,.................... ......................................... .... $24,050,298.44 Manufactured products and Merchandise held for sale.. 3,980,697.16 Metals in process and on hand--at cost............................ 32,536,182.89 Accounts Receivable and Cash.......................................... 24,868,981.96 ------------------- 85.436,160.45 $294,795,732.22 T We have examined into the affairs of the Anaconda Copper Mining: Company and of its Sub sidiary Companies and have verified the Assets, Liabilities and Income shown above. The Net Tncome is after deducting all Development expenditure oi the year. Depletion of Coal and Timber Linds and Depreciation of Plants and Equipment. We hereby certify that this Balance Sheet shows the financial condition at 31st December, 1920 of the Companies as an aggregate whole and that the accompanying Income Account for the year ending 31st December. 2920 is correct as stated. POGSON, PELOUBET & CO., Certified Public Accountants. New York and Butte, 23rd April, 1921. 12 N11775.01 W ; : ' 1SR008031 ANACONDA COPPER MINING COMPANY and Subsidiary Companies Consolidated Balance Sheet--31st December,' 1920 LIABILITIES Ca p it a l St o c k of Anaconda Copper Mining Company: Authorized--3.000.000 shares of $50.00 each; issued-- 2,331.250 shares .................................... :................. Min o r it y In t er es t s in Subsidiary Companies......... ............. Te n Year Sec u r ed Go l d Bo n d s , due 1st January, 1929: Authorized and issued-- Ties A. 6JI S25.COO.OOO.OO; Series B, 7JI S25,0tO,000.00 .................................... Res er v e f o r De p r e c ia t io n ......................................... 3116.362.300.00 3.594.090.37 50.000.000.00 22.310.S19.8S Cu r r e n t : Accounts and Wages Payable and Taxes and Interest Accrued ......... 17,574,839.53 Su r p l u s : Balance 31st December. 1919--Anaconda Copper Min ing Company and Subsidiaries entirely owned........ S62,011,125.45 Additions through consolidating accounts of Subsidi aries substantially owned and changes required in adjustment of prior years' taxes............................. 27.044.426.37 89,055,551.82 Net Income for the year ending 31st December, 1920, per Income Account annexed.................................... 2,691,660.62 91.747.212.44 Deduct Dividends Nos. 79 to 81........................................ 6,993.730.00 ---------------------- 84.753.462.44 $294,795,732.22 Non.---In order to comply with the Government Income Tax requirements for the purpose of computing depletion, an additional valuation of the mining property as of 1st March, 1913, has been recorded upon the books of the Company; but, for the sake of uniiqrmity, the result of those entries has been omitted from the current statements. 13 1SR0QS032 ANACONDA COPPER MINING COMPANY and Subsidiary Companies Consolidated Income Account--Year Ending 31st December, 1920 EXPENSE Metals in process and on hand at beginning o year...................................... Mining, including Development....................................................................... Ore Purchases ............ ...................................................................... ,............. Reduction, including Transportation ot Ore.............................. '.................. Refining and Selling, including Transportation of Metals............................ Cost of Manufactured products and Merchandise sold................................ Administration. Federal Taxes and loss on Government securities sold... Balance carried down............ ......................................................................... . $28,705,375.47 17,943,873.52 13,813,410.19 19,248,563.22 4,963.639.08 5.664.6S2.26 1,935,451.94 8.020,165.93 $100,295,166.61 V f 1 % Amount charged off this year for Depreciation and Obsolescence of Min ing Plants, Smelters, Refineries, etc...... ................................-............... Interest ................................................................................................................ Balance, Net Income, carried to foregoing Balance Sheet............................ $4,300,349.22 2,343.243.34 2.691,660.62 $9,335,253.18 14 - 1SR008033 ANACONDA COPPER MINING COMPANY and Subsidiary Companies Consolidated Income Account:--Year Ending 31st December, 1920 INCOME Sales of Metals.................................................. :............................................. Sales of Manufactured products and Merchandise........................................ Royalties, Tolls, Rentals, etc............................................................................ Metals in process and on hand at end of year................................................ $53,227,2/3.08 7.716.975.83 _ ,$14,729.76 32.536.182.S9 $100,295,166.61 Balance brought down ...................................................................................... Income from Investments in sundry companies.................................. '......... $8,020,165.93 1,315.087.25 $9,335,253.18 15 1SR008034 SjtgBBSISSKSlilU