Document 2jMyEa1zMObLxjYeGpwkEE7p

ANNUAL REPORT An a c o n d a Co p p e r Min in g Co mp a n y 1944 PNYC 00010224 \ An a c o n d a Co p pe r Min in g Co mp a n y Annual Meeting of Stockholders PROXY STATEMENT This Proxy Statement sets forth certain information with respect to the enclosed Proxy, which is solicited by the management of Anaconda Copper Mining Company (hereinafter referred to as the Company), and the matters to be voted upon pursuant thereto at the Annual Meeting of Stockholders of the Company, to be held May 16, 1945. Any stockholder giving a Proxy in the form accompanying this Statement has the power to revoke the same at any time before the exercise thereof. As set forth in the accompanying notice, the matters to be considered it the meeting are the election of tfire? Directors of the Company and the transaction of such other business: as may properly- come heftfre the meeting, Th. Sy-Lawi of the Company provide for a Board of nine Directors divided Into three-c^-sses each consisting -of three Directors, who are elected for a term, of three years, the term of each di|ss expiring in different years. ' At each annual meeting the successors to the class whose term of oMsel'iSkpires in tfidt year, are elected for a three year term. No min e e s f o s El e c t io n a s Dir ec t o r s The persons designated in the accompanying Proxy have been selected by the Board of Directors and have indicated that they intend to vote for the election as Directors of Messrs. William C. Potter, James E. Hobbins and Gordon 3. Rentschler, whose terms of office expire at the coming annual meeting. Cu mu l at iv e Vo t in g f o r El e c t io n o f Dir ec t o r s Under the laws of Montana and the By-Laws of the Company, each stockholder of "record has the right to vote, in person or by proxy, the number of shares of stock standing in his name on the record date fixed for the meeting for as many persons as there are director* to be elected, or to cumulate said shares and give one candidate as many votes as shall equal the number of directors to be elected multi plied by the number of his shares of stock, or to distribute the votes so cumulated among as many candi dates as he may desire. In f o r ma t io n a s t o Dir e c t o r s a n d No min e es The principal occupation of each Director and nominee, the year in which he first became a Director of the Company, and the approximate amount of securities of the Company beneficially owned by each Director and nominee, directly or indirectly, at February 28, 1945, were as follows: Nt Priedpad Oeeapatia* or Eaplgmcct Y**r la WVc& rim Elected Director Somber of Share* of Common Stock 3estSctUy Ovce-i at F`>, J3. .bt j John A. Coe Robert E. Dwyer E. Roland Harriman James R. Hobbins Cornelius F. Kelley Maurice Newton William C. Patter Gordon S. Rentschler William D. Thornton Chairman of the Board of The American Brass Company, a subsidiary Executive Vice President of the Company Member of the firm of Brown Brothers Harriman & Co. President of the Company Chairman of the Board of the Company Member of the firm of Hallgarten & Co. Chairman of the Executive Committee of Guaranty Trust Company of New York Chairman of the Boards of Directors of The National City Bank of New York and City Bank Farmers TrustCompany President of Greene Cananea Copper Com pany and Inspiration Consolidated Copper Company 1926 1933 1937 1930 1911 1941 1936 1940 1935 700 1.000 412* 814 14.409 1,100** 4,000 100 2,186 Mr. Hardman is itso tbe owner of 50% of the outstanding stock of two corporations which own in the ajgr5,015 shares of commas stock of the Company. **Mr. Newton also has a contingent beneficial interest in a crust which owns 1-509 shares of common stock Company. pNYC 00010225 In f o r ma t io n a s t o Re mu n er a t io n a n d In d eb t ed n es s or Dir e c t o r s a n S Of f ic er s The aggregate amounts of remuneration received from the Company and its subsidiaries by each person who has acted as a Director during the fiscal year ended December 31, 1944, by each person nominated for election as a Director, and by each person who has acted as an officer but not as a Direc tor and who has received payments of remuneration totaling more than $30,000 during such fiscal year, are as follows (the amount stated being before payment of Federal and State income taxes by the respective recipients) ; CacitieWtaW| RheiccheivReedmase,ndos Affreftta Remuaenaea Paid by Cosaaar tod Subsidiaries Dun04 Fiscal Year 19** Esuu Orer Total Aa o u s i of RttnonerxtioB Darin* Fiscal' Ytat John A. Coe Robert E. Dwyer As a Director and Chairman, of the Board of The American Brass, Company, and Director of Anaconda Wire and Cable Company As Executive Vice President of the Company, as a Director and Vice President of Chile Exploration Com pany, as a Director ,pf Chile Copper Company, Andes Copper Mining Company, Greene Cananea Copper Company, international imeiting and Refining Com pany, The American, Brass; Company, Butte Water Company, Butte, Anaconda & Pacific Railway Com pany;, Anaconda;;..Wife' and Cable Company, National Tunnel & Mines; Coiftpany, and-Chile Steamship Com pany, Inc., and as an employee of Anaconda Sales Company $ 66,560.00 97,015.00 E. Roland Harriman Director 1,300.00 James R. Hobbins As President of the Company, as President and a Director of Chile Exploration Company, Andes Copper Mining Company and Butte Water Company, and as a Director of Chile Copper Company, Greene Cananea Copper Company; The American Brass Company, Butte;; Anaconda & Pacific Railway Company, Internitipfi^l,Smelting and Refining Company, Chile Steam ship Company, Inc., Anaconda Wire and Cable Com pany; and Basic Magnesium, Incorporated 152,789.00 W. H. Hoover As Vice President and General Counsel of the Com pany and as General Counsel of Butte Water Company and Basic Magnesium, Incorporated, and as Director of Ahaiohda;' Wire ahd Cable Company 62,390.00 Cornelius F. Kelley As Chairman of the Board of the Company and as a Director and Chairman of the Boards of Chile Explora tion Company and Andes Copper Mining Company, and as a Director and President ; ,of International I Smelting and Refining Company and Butte, Anaconda St Pacific Railway Company, as President of Anaconda Sales Company, and as a Director of Chile Copper Company, Greene Cananea Copper Company, The American Brass Company, Butte water Company, Basic Magnesium, Incorporated and Anaconda Wire and Cable Company 202,061.00 Maurice Newton Director 1.500.00 William C. Potter Director 500.00 Gordon S, Rentschler Director 1.300.00 William D. Thornton As a Director and President of Greene Cananea Copper Company, and as a Director of Chile Exploration Com pany, Chile Copper Company, and Raritan Terminal and Transportation Company * Indicates decrease. 39,180.00 $ 300.00 249.00 300.00 1.133.00 ! 40.i00 875.00 500.00 300.00* 300.00 30.00* OOOAO^ M>a Caotdtiai ia Wbicb XeBROcnoai Wm RecciTwj A**Tr*t Pt.aaRDdidcaaS3ruiaTaab*CacarPotdtBaaiaaeohaaaala*r Year 1944 &gent Ot t toui Atnauai sf RDeiYaaenjuaaar*e5Fr9*i*u1aoUa Daniel M. Kelly Frederick Laist As Vice President of the Company and Butte, Ana conda & Pacific Railway Company $ 55,003.00 As Vice President of: the Company in Charge of $-- Metallurgical:. Operations, as a Director and Vice Clyde E. Weed President of International Smelting and Refining Com pany and as a Director of National Tunnel & Mines Company and Basic Magnesium, Incorporated As Vice president of the Company in Charge of 67,460.00 980.00 Mining Operations, and as a Director of Chile Explora tion Company, Chile Copper Coenpahy,., Andes Copper Mining Company, Greene Cananea Copper Company, International Smeldng and Refining 'Company' and James Dicksonf VV. Kenneth Daly NaiieaaT^utmd fik.Mines Company As. Secretary andi Treasurer of the. Compiny, as Direc tor, Secretary and Treasurer ot Butte Water Company, and as Director of Andes Copper Mining Company, Butte. Anaconda & Pacific Railway Company and Aiji'- As ,r!|tole|;[:|!fii&ii|ld|fe^||?;^::.:Ghi!e: Exploration 66,800.00 44,805.00 130.00 75.00 Company,] Andes Copper Mining Company, Interna tional The American Brass Company and Basic 'Magndsutm, Incorporated - Deceased. March 20, 1943. - Indicates decrease. 41,000.00 230.00* No Director, officer or nominee was indebted to the Company and its subsidiaries during such fiscal year. The aggregate amount of remuneration paid during the fiscal year ended December 51, 1944, by the Company and its subsidiaries, directly or indirectly, to the Directors and officers of the Company considered as a group, was 5899,660.00. Re mu n e r a t io n o f Emp l o y e e s Set forth below is a table showing the number of employees of the Company and of its subsidiaries, other than officers and Directors of the Company, who, on an accrual basis, received from the Company and its subsidiaries during the last fiscal year remuneration in excess of $20,000: Naabx H Eapioyw* 30 6 None laExeus of $ 20,000 50,000 100,000 RecgiTtd Bat Dot Mort Tbm $ 50,000 100,000 ------ A**r(ttRecRgiawBedusntu $840,873.98 369,678.33 None REMUNERATION OF OtHES PERSONS The following named persons (other than Directors, officers or employees of the Company) received aggregate remuneration from the Company during the last fiscal year in excess of $20,000 for services in the capacities described: ffluat Chadbourne, Wallace, Parke & Whiteside Pogson, Peloubet & Co. Aowtfl* $45,000.00* 40,345.00** CtPtcitr Attorneys Auditors Also received from subsidiaries for legal services during the year $103500.00. ** Also received from subsidiaries for auditing services during the year $76547,46. PNyC 0001022? \ Nu mbe r o f Sh ar es Ou t s t a n d in g The Company has issued and outstanding 8,674,338 ihires (excluding shares held in treasury). The Company has no knowledge o any stockholder owning beneficially more than 10% of the outstanding common stock of the Company. In t e r e s t o f Dir e c t o r s , No min ee s f o r El e c t io n as Dir ec t o r s a n d As s o c iat es in Ma t e r ia l Tr an s a c t io n s w it h t h e Co mp a n y a n d Su b s id ia r ie s William D. Thornton, a Director of the Company, is also President and a Director of Inspiration Consolidated Copper Company. The Company and one of its wholly owned subsidiaries are the owners of a total of 333,000 shares, or 28,17%, ot the outstanding stock of the Inspiration Company- The Inspiration Cdni'pafty has no smelting and refining, facilities'and its entire production consisting of coo per concentrates, cement copper, mifie precipitates: and electrolytic copper cathodes is delivered to Inter national Smelting! artcf- Refining Company, a wholly owned'subsidiary of the Company, pursuant to agreements (which are subject to cancellation upon 90 days' notice) ..under the terms of which the Smelting Company is required to return to the Inspiration Company either blister copper in the form of anodes or electrolytic refined copper in commercial shapes, subject to the charges provided tor in said agreements. Ot h e r Ma t t er s The Company has no knowledge of any matters other than the election of Directors which will be presented at the meeting. The persons named in the Proxy will use their own discretion, in voting with respect to matters which are not determined or known at the date hereof. An n u a l Re p o r t t o St o c k h o l d e r s The Annual Report to Stockholders, containing a Consolidated Balance Sheet at December 31, 1944, and a Consolidated Income and Surplus Account for 1944, together with other information respecting operations of the Company, accompanies this Proxy Statement and related documents, but is not to be Considered as a part of the soliciting material. Ex p e n s e s o f So l ic it a t io n The cost of preparing, assembling and mailing of the Proxy Statements, Notice of Meeting, form of Proxy and accompanying documents, will.be paid by the Company. The Company will pay broker age firms and other persons holding stock in their names or in the names of nominees for their expenses in distributing proxy material to the beneficial owners of such stock. All solicitations of proxies in the form accompanying this Statement by or on behalf of the Company will be by mail, but the officials ot the Company may personally solicit proxies from brokerage firms and a few of the larger stockholders, for the doing of which they will not receive any compensation in addition, to their regular compensation. The cost, if any, of such personal solicitation will be nominal. By Order of the Board of Directors of ANACONDA COPPER MINING COMPANY CORNELIUS F. KELLEY, Chairman of the Board. April 14,1945. An a mw d A The American B/os* Comoany'i production facilities con tinue in fullest oovsibU operation to supply materials necessary lor prosecution or rh war. Because of 'he extensive and diversified character of its equipment, the Company has been able *0 meet, many emergency requirements involving regular and special products. Close, cooperation has been' maintained di rectly with the Services, and Government departments, and with.our Customers, to assist m meeting all vital needs. In Canada the facilities of rfie Company's subsidiati.es and Government owned plants operated by the Company have continued in full operation, producing war materials for Canada and our Allies. Following p temporary decrease, fhe demands upon the brass industry for smoil orms and artillery ammunition have, been greatly increased and the facilities of rh Company wiii p fully utilised in meenng these arid other requirements of the Armed Forces Os rapidly os manpower can be recruited. All available information points to a continued and accumulated demand, for The. American Brass Company's peacetime product*. As! war requirements decrease, the Company will be ready, through cbuntry-wide1 manu facturing plants, warehouses and offices, to serve cus tomers' need* for its commercial products. Air -Conditioning Automotive Aviation Building SOME OF THE INDUSTRIES SERVED Chemical Electricol Equipment Hardware Heating Jewelry Light and Power Machinery Mining Petroleum Plumbing Pulp and Paper Railroad Refrigerorion Shipbuilding Textile Welding PRINCIPAL PROOUCTS COPPER, BRASS, BRONZE AND COPPER-NICKEL ALLOYS--SHEETS, WIRE, RODS, TUBES Airplane Gas, Oil and Pressure Lines Ammunition Metal Brass and Copper Pipe Bracing Solder Bronte Screen Wire Bus Bars and Shapes Cartridge Discs and Cup* Condenser Head Plates Condenser and Heater Tubes Copper-Nickel Alloys Copper Tubes and Fittings Drawn Sections Everdur* and Super-Nickel Tank Plate* Extruded Shapes Eyelets, Grommets, etc. Flexible Metal Hose and Tubing Free, Cutting Brass Rod* Phosphor Bronte Pressure Die Casting* Hot Pressed Parts Shell Rotating Bands Tobin* Bronte Shafting Turbine Blading Welding Rods *8*g. U. S. Pm. Off. LOCATION OF MANUFACTURING PLANTS Ansonia, Conn. Detroit, Mich. Torrington, Conn, Buffalo, N. Y. Kenosha, Ws. Waterbary, Conn. Anaconda American Brass Limited, New Toronto, Ontario, Canada Atlanta, Ga. Boston, Man. Buffalo, N. Y. Chicago, lit. Cincinnati, Ohio Cleveland, Ohio OFFICES ARE LOCATED IN THE FOLLOWING CITIES, Denver, Cola. Detroit, Mich. Houston, Teem Kenosha, Wit. Los Angelee, Calif. Milwaukee, Wit, Minneapolis, Minn. Montreal, Coneda Newark, N. j. New York, N. Y. Philadelphia, Pa. Pittsburgh, Pa. Providence, R. 1. Rochester, N. Y. St, Louis, Mo. San Francisco, Calif. Seattle, Wash. Syracuse, N. Y. Toronto, Conada Washington, D. C. iISETt?H3SHSWEra An a c o n d a Co p p e r Min in g Co mp a n y CAPITAL STOCK December :jt. 194-1 Authorize,'!:, W,000,OUO shares, A5Q each ... Outstanding. $.6?4.JJS shares, &30 each ^1)0,1)00,001) WO.ribh'HXI OFFICERS r!<<C.r-nati vf the Board ... President ...... Exec at he l'i'ce~President....................................... Vice-President ........................................................ Vice-President in Charge of Mining Opernlions Vice-President in Charge of Metallurgical Operations Vice-President and General Counsel Assistant to the President........................................ Secretary and Treasurer........................................ (.'omptroller................................................ Assistant Secretary and Asr'danl Treasurer Assistant Secretary- and Assistant Treasurer Assistant Secretary and Assistant Treasurer Assistant Secretary . ,........................................ "Deceased March 0. 194-5, Co r n e l iu s F. Ke l l e y Ja mes R. Bo b bin s Ro s er t E. Dw y e r Da n ie l M. Ke l l y Cl y d e E. Weed Fr e d e r ic k L.u s t W, H. Ho o v er El b er t O. So w er w ime Ja mes Dic k s o n * W. Ke n n e t h Da l y Ke n n e t h B. Fr a z e r Th o mas E, Co n r a d C. Ea r l e Mo r an Je r emia h D. Mu r p h y DIRECTORS Jo h n A, Co e Ro b e r t E. Dw y er E. Ro l a n d Ha r r l ma x Ja mes R. Ho b b in s Co r n e l iu s F. Ke l l e y Ma u r ic e Ne w t o n Wil l iam C. Po t t e r Go r d o n 5. Re n t s c h l e r Wil l ia m D. Th o r n t o n OFFICES An a c o n d a, Mo n t an a Bu t t e , Mo n t an a 25 Br o ad w ay , Ne w Yo r k 4, N. Y. An n u a l Re p o r t of An a c o n d a Co p p e r Min in g Co mp a n y For the Year Ended December jr, igjj To the Shareholders of Anaconda Copper Mining Company: The operation^ of your Company and its subsidiary organizations during the vear were devoted to production in aid of the war effort. The gross sales and earnings of the Company upon a consolidated basis (after elimination of inter-company items) totalled. ..................... $397,039,033.46 Other income, including dividends from non-consoiidated subsidiaries, was.................... ....................................... 1.418,069.49 making total gross income...................................................... The cost of sales, including all operating expenses, develop ment and maintenance charges, repairs, administrative, selling and general expenses and all taxes, except income taxes, amounted to.................................. 3344,145,614.70 $398,457,104.95- Provision for depreciation and obsolescence and for deple tion of timber lands, and phosphate deposits amounted to............................................................... 13,409,453.87 making total deductions from gross income......................... 337,533,068.57 $80,944,036.38 United States and foreign income and excess profits taxes amounted to............................................. $ 47,339,069.45 Provision for contingencies was................. 4,000,000.00 making a total of......................................................... .......... 49,339,069.45 Net income, without deduction for depletion of metal mines, was.............................................................. ..................... . Of which minority share amounted to...................... ............... Leaving consolidated net income of.......................................... $ 31,582,966.93 159,837.88 $ 31,443,149.07 Gross income decreased $47,434,134.12 or 10.64% from 1943. Net income decreased 84,337,671.95 or 6.92%. Profit per share without deduction for Capital Depletion of 4 PNYO 00010231 Metal Mines was $3.65. compared with $3.89 in 1943. Continued wage increases and the shortage of labor were the principal factors causing decrease of production and income. Dividends on the capital stock of your Company amounted to 841.885.843.00 or .-Moil per share, cimtmuing the same rate paid in 1U41. 1944 ami 194:1. Current a->ets as of December :!t. 1044. amounted to *414.B4i).Uil..8i of which *14.>.:>im>4'* ni was in cash and Government securities. There was no indehti- hies, <-\o,.pt for current accounts and Wages 814.001.10l.:18 and accrued taws # 14.733.7S.i..lo. a total of 848.758.887.St>. leaving net current assets of 8183.883.444.96 equivalent to sis.sp per share, an increase of 84l.44ff.483.63 or'84.4.5 per share for the year. Net income as heretofore is based upon invoices to customers. Material- -old but not delivered are inventoried on basis' of "last in--first out" at the cost of variou- metalon hand and in process, such values being below market prices for the varum- metals and products at December 31. 1944. Renegotiation of Government contracts with The American Brass Company for the year 1!)43 resulted in the determination that there was no amount payable a- a result of such renegotiation. It is anticipated that there will be no payment resulting from renegotiation of such contracts for the year 1944. Established reserves are con sidered adequate for contingencies, if any, resulting from renegotiation of other Govern ment contracts, which are deemed relatively unimportant. The Company and its subsidiaries had on hand at th- end of the year United States Government Securities of a par value of 369,945.On- During the year pur chases amounted to 343.415.000 par value. Of the Government securities purchased during 1944 and those on hand at the beginning of the year, 313.631.000 par value matured or were applied to the payment of Federal income taxes. The Company's Canadian subsidiary purchased $1,700,000 par value Canadian Government bonds during the year, with a total on hand at December 31. 1944. at cost in Canadian currency 34,145,375. Ca p it al Ex p e v d it c s e s less sales of capital assets in 1944 amounted to.. as follows: Mines, Mining Claims and Lands................................................. Buildings, Machinery and Equipment at the Mines, Smelting, Refining and Manufacturing Plants of the Company and its subsidiaries............................................................................. Less Sales (Book Value)................................................................. A net increase of.............................................................................. Miscellaneous--Including acquisition of shares of stock of subsidiary companies.................................................................. 35,844,110.44 3 383,694.24 4,905,484.48 35,469,146.74 443,786.48 35,045,360.44 818,750.00 3 Co r p o r a t e Tr a n s a c t io n 's During the year the Company increased its.holdings in shares of subsidiary com panies by purchase of -IS.OOt) shares of stock of Chile Copper Company, 6 shares of Butte Wafer Company arid *HW shares of Anaconda \Vire ami Cable Company. These tran-actions increased Curhpany holdings to 4.dT7.:53tS -hares !l!).UlC"cn 11!) 1.6,56 shares ;l!l "r( and -hares f>S.t>6c_c- respectively, of the issued capital ,-tock of thn-f eouipurties. As a remit of the issuance of additional shares of National Tnunel & Mines Companv in exchange for the stock of Utah Metal and Tunnel Company, yonr Company'- participation in National Tunnel & Mines Company urns reduce*! from 57.41'T to approximately 47l~J-. ' OPERATIONS The Company's operations.in the United States in the production, reduction .md processing of metals ivere materially curtailed by a critical shortage of manpower in practically all of the Departments of the Company engaged in the above activities. This situation was common to all non-ferrous metal producers, with the result that production of copper, lead and zinc in the United States was less than in 11)43. During 1044 the number of employees in the mines, mills, smelters and refineries of all com panies engaged in the production of copper in the United States decreased bv more than In.UOO, or -iOCC Importations of copper. lead and zinc -.including metal in concentrates> from foreign sources continued at high levels and as a consequence there was at all-times an adequate supply of metal available for war purposes. In the production of munitions ami other items in the United states practically the same tonnage of primary copper was utilized as in 1943. More than one-third of the total tonnage used was imported. Due to a substantial increase in imports, the reserve stock of copper held by the Govern ment increased notwithstanding the decrease of production in the United states. The additional facilities for copper production at Chuquicamata, Chile, were practically completed and were in full operation during- the major portion of the year. The development of the low-grade copper ore project at Cananea, Sonora, Mexico, was practically completed and the new plant started operating before the end of the year. shipments of The American Brass Company's plants decreased from those of the prior year, due to a lessened demand during the summer and early fall and also to labor shortage. However, the demand for munition purposes was increased materially in the last quarter and these plants have been operating to the capacity for which necessary labor has been available. Additional equipment required to meet war production requirements was installed i;n various manufacturing plants of the Company during the year. No important con struction program was undertaken at any of the plants. Experience having demonstrated the inability of the United States to produce a Sufficient quantity of strategic and critical metals, including copper, lead and zinc, to meet its requirements in the existing emergency, the Congress passed, and the President approved. October 3, 1944 the surplus Property Act of 19+4. This Act provides that all government owned accumulations of copper ami other strategic minerals and metals, except an amount estimated by the INar Production Board as the deficiency in industry requirements for a period of six months, -hall he frozen for the period of one 1 '-'ear from the.submission of the recommendations hy the Army and Navy Munitions Board to Congress respecting the maximum anil minimum amounts of each strategic miwml or metal to be permanently stockpiled and held pursuant to the Act of -June 7. 1:b i?>. The Army and N'avv .Munitions Board has submitted such recommendations to Congress. The creation of the permanent stockpiles and the amounts thereof await the further action o| Congress, the Act of dune T.T989. in'etecf; provides that mate rials stocko-i'ledi thereupdcf age to te used duly Upon the order of the President in time of war or aen lie shhJI'fihd that a national emergency .exists with. respect to National Defense as a consequence of the threat of war. Re c o n v er s io n Inasmuch as, with but comparatively few specialty items, the products of vour Company for peacetime industry will be the same as are now required of it, no serious reconversion problem exists. Pr o d c c t io n The following is a summary of the comparative output of the principal products of the Company for 19+3 and 19++: Copper Total Output---Pounds................................... By-product materials sold to others: From Company mines................................ From other sources...................................... Finished Copper.............................................. FromToU..................................................... From Purchased ores, concentrates and secondary metals................................. . . From Company mines................................ 1343 1.-190,807,140 219,973 *05,7*4 1.*96,381,443 *49,4*5,970 **.548,93* 1.0*4,406,541 1944 1,195,2*3.947 0.447 101.733 1,195,112,765 2*6,250,803 *1.680.51* 947.181.450 Zinc Total Production--Pounds............................ 514.6*4,*63 473,978,086 From Toll..................................................... From Purchased materials.......................... From Company mines................................ 331,*40.556 17*,738,773 10,644.934 303,363.098 168,069,948 543,040 Contained in by-products sold to other companies................................................. 15 ,***,385 13,679,704 Zinc Dross.................................................... 5,61*,380 8,232,004 Produced on toll for the Company by others...................... ......... ....................... 14,702,883 145,119 Secondary Metals........................................ 3,914,534 1,139,322 Electrolytic Zinc at Company Plants........ 473.171.881 448.781.739 5 I lead Total Production--Pounds. From Toll......................... From Purchased ores, concentrates and other materials From Company mines Contained by-products sold to other companies...................... Produced in metallic form Silver Total Production--Ounces. . From Toll................... From Purchased materials. Ftcm Company mines. . . . Contained in by-products >old to other companies . . . .................. Producedin metallic form. . . Gold Total Production--Ounces. . From Toil........................... From Purchased materials. From Company mines,, . . Contained in by-products sold to other ^mpapies........................... Produced in metallic form . . . Manganese Xodule Production--Long Tons... Assay--Min. .................. ................. Arsenic--Short Tons ................... .............. Cadmium--'Total Production--Pounds........ Molybdenite--Pounds..................................... Treble--superphosphate and phosphoric acid- -Tons. Lumber--Feet.................................................. liu '8,931,157 1.876.676 73.409,664 1.664.819 43,113.618 > 53,835.539 13,869,440 43,895 6,009.689 7.833,636 4,467,816 11.601,404 137,852 2,793 82,125 52,93* 11.233 126,619 im 68.970,626 68.635,431 335,192 19.140.918 49.829.708 li,105.295 5,103.114 6.000.183 1,797,481 9,307.814 105,333 63,364 41.969 11.046 94,287 114,327 61.14% 10,414 4,464,334 3,674,990 39.441 106,833,090 117,781 60,64% 9,743 4,030,614 4,980,396 65,133 103,508,146 There was no important change in the production of miscellaneous products such as bismuth, gallium, indium, nickel sulphate, palladium, platinum, selenium, tin, vanadium red cake precipitates, white lead and zinc oxide. Fabricating Hants: The shipments of manufactured products from the plants of The American Brass Company (including Toronto Plant) and Anaconda Wire and Cable Company amounted to 1,444,584,971 pounds, a decrease of 14.84% from the record established in 1943. In addition, shipments from the fabricating plants operating for Government account in excess of shipments of manufactured products from Company departments to those plants amounted to 300,224,696 pounds, making combined total of 1,544,807,667 pounds or 10.09% less than during the prior year. PNYC 00010235 Ar my -Na v y "E" The: number of plants of Anaconda Copper Mining Company and subsidiary companies honored with the "E" award for war services increased to fourteen in 1044. Renewals, valid for six'months or.one year, have brought total awards to fiftv*two np to December ;H. 1044, Awards to the various plants Have been as follows: THE AMERICAN* BRASS COMPANY Ansonia Branch Navy %,Z" awarded April 7, 1943 Army*Navy f\E'vwith One Star. October 6, ll)H Second Star. April 16. 1943 Third Star., November V-194$ Fourth Star. May 9, 1044* Torrington Branch Navy '*E" awarded April 7, 1943 Army-Navv "'E*' with One Star, October 6, 1943 Second. Star. April 16, 1943 Third Star, November l, 1943 Fourth Star, May 9, 1044* Waterbury Branch Nayv ``E" awarded April 7. 1943 Army-Navy "E" with Qne Star, October 6,1043 Second Star, April 16, 1943 Third Star, November l. 1943 Fourth Star, May 0, 1944* Detroit Branch Navy "E" awarded May 30. 1943 Army-Navy "EM with One Star, December 16, 1943 Second Star, June 10, 1943 Third Star, December 31* 1943 Fourth Star, Junel-b 10^4'* Buffalo Branch Army-Navy "" awarded November 14, 1943 Renewal Star, May 30, 1943 Second Star, December 9, 1943 Third Star, May U, il:944!r Fourth Star, November 16* 1944* Kenosha Branch and Kenosha Brass Co. Army-Navy "E" awarded May 8, 1943 Renewal Star, December 4, 19*43 ANACONDA WIRE AND CABtE COMPANY Hastings Plant Marion Plant Muskegon Plant Navy "E" awarded May 30, 1942 Army-Navy '`E" with One Star, November 13, 1943 Second Star, October 23, 1943 Third Star, June 7, 1944 Fourth Star, December 23, 1944* Navy UE" awarded May 20, 1942 .Army-Navy "E" with One Star, November 15, 1943 Second Star, October 23, 1943 Third Star, May 11, 1944 Army-Navy k`E" awarded March 2, 1944 Renewal Star, September 5> 1944 7 ! Shelby Plant Svcamore Plant Array-N'avv "E" awarded March 2, 194-4 Renewal Star, September 3, 1944 Army-Navy awarded September -23, 1944 INTERNATIONAL SMELTING AND REFINING COMPANY Miami Plant Army-Nayy "E awarded September Renewal Star. June 19, 1949 Second Star. Mav -27; 1944 194-2 ANACONDA COPPER MINING COMPANY Anaconda Reduction Works Array-Navy "E" awarded December -26, 194-2 Renew-al Star. July -24, 1943 Second Star, March 11, 1944 Third Star. September 15, 1944 Great Falls Reduction Works and East Helena Slag Plant Renewal for one vear. Army-Navy "E" awarded December -26. 1942 Renewal Star. July 24, 1943 Second Star, March 11, 1944 Third Star, September 15, 1944 Emp l o y e e s The relations of the Company with its employees were maintained upon a satis factory basis throughout the year, with the exception of strikes of short duration at the Andes property in South America and the Cananea property in Mexico, Within the United States there was no cessation of production. The management wishes to express its appreciation for the cooperation of its employees and the assistance rendered by the Labor-Management Committees which had been established in all of the prin cipal departments and branches of the Company. During the year 1944 the average number of employees of the Company and its consolidated subsidiary companies was 51,060. Of these 32.779 were within the United States, compared with 38,064 in 1943. Purchases of War Savings Bonds with par value of 816,505,600 were made in 1944 by approximately 90% of the employees in the United States. As of December 31, 1944, total employees of the Company including its nonconsolidated subsidiary companies numbered 54,607, in addition to which employees in Government properties operated by subsidiary companies numbered 3,331, making a total of 57,938. Up to the end of the year 13,356 employees of the Company and its subsidiary companies had entered the military service of our Country or our Allies. We record with regret that 258 of these have made the supreme sacrifice or have been reported as missing in action. Gr o u p In s u r a n c e The Group Insurance at the close of the year amounted to $77,153,966, covering 38,422 employees. The amount of insurance paid to beneficiaries during the year was $888,500. 8 Nu mb e r o f Sh a r eh o l d er s The number of registered shareholders appearing on the transfer books of the Company at December 31. 1344 was 117.240 compared with 116.400.at the beginning of the year. '/ugne-dum: G j v er n me n t Pr o j ec t s Dnrimr the year, due to the accumulation of adequate supplies of magnesium metal, tlie varum* Governmental plants were instructed to make successive cutbacks in pro iucti'in. and finally operations in practically all qf them were suspended. After successive steps in curtailment the metal production at the Las Vegas plant, operated-under a management contract with Defense Plant Corporation by Basic Mag nesium. Incorporated, was suspended on November 15th and the plant has since been in "stand by"" condition. This the world's largest magfiesiuni plant operated con tinuously for 307 days, during which time;- it produced 166,32-2.68-5 pounds of marketable refined or alloyed magnesium metal in commercial shapes. The plant had attained a production In excess,of rated capacity. Many changes in the original process and in mechanization had been made which were successful in greatly improving: the efficiency of the operation and in substantially reducing produc tion costs. The chlorine and caustic soda plants, heretofore operated in connection with the magnesium plant, have continued to operate at full capacity for the account of the Government, the chemicals produced going into other uses. Brass and (Fire Mills: The American Brass Company continued to operate the Ammunition Brass Mill at Kenosha, Wisconsin (owned by Defense Plant Corporation) as well as the Ammuni tion Brass Mills legated at Toronto and Montreal (owned by the Canadian Government . Anaconda Wire and Cable Company likewise operated special Wire Plants (owned by Defense Plant Corporation) at Marion, Indiana and Sycamore, Illinois. These five plants ran continuously throughout the year, meeting all emergencies as reflected in the changing requirements of our Armed Forces and those of our Canadian Allies. Fin a n c ia l St a t e me n t s There is attached hereto as a part of this report a Consolidated Balance Sheet showing the financial condition of the Company and consolidated subsidiary companies at the close of business December 31, 1944, together with a Consolidated Income Ac count and a Consolidated Surplus Account for the year, certified by Messrs. Pogson. Peloubet k Co., Certified Public Accountants. By Order of the Board of Directors. CORNELIUS F. KELLEY, Chairman of the Board. New York, N*. Y., April 14, 1945. JAMES R. HOBBINS, President. 9 An a c o n d a Co p p er Min in g Co mp a n y and Subsidiary Companies Consolidated Balance Sheet--December 31. 1944 FIXED ASSETS: ASSETS Mines and -eenoteD water rights and lands for metal producing and manufacturing plants-- . ............................. ......................... ................... Timber lands, am) phosphate deposits-->see note D,........................................................................................ i Less reser^e fordepietion. .................................. 6.-295.076.36 2.691.310.77 459.0bi).094 44 3.003.465.55 Buildings arid machinery at mines, reduction works, refineries, manufacturing plants, sawmills. Foundries^ waterworks and railroads fincludin* railroad concessions to the extent of 644.179.13) #314,33$>IS6.04 Less reserve for depreciation........................................... ................................................................. 410.720.73043 103.617.437 70 Patents............................................................... '.................................. Investments: Securities lot subsidiaries not consolidated--see notes C and >. Other investments--see note D---................................................ Indebtedness of subsidiaries not consolidated--not current.. . l.UUl.Ui) # I5.J81.S19.96 16.179,375.48 310.837.49 31.654.434.73 FUNDS PROVIDED BY GOVERNMENT AGENCIES: For extension and operation of metal producing and manufacturing facilities--per contra................... The assets sijjowh in this Balance Sheet do not include funds in the amount of 817.650.340.84 pro* vided by government agencies for the construction and development of metal producing facilities --seendtejE. 8398.334.9:11.49 7,488,643.37 DEFERRED |CHARCES.: Mine development, including expenditures on leased properties. Prepaid expenses................................................................................. Deferred expanses............................ ................................................. _. # 7,816,408.19 669.190.53 401.119,09 S.686.717.81 CURRENT AND OTHER ASSETS: Current A^seta: Supplies, including operating and replacement parts--atcost................................................................. t 43.984,441.47 Metals and manufactured products: In processFinished -generally at cost, on last-in, first-out basis; silver, gold and molybdenite at market or jjess 6,366,318.60 47.910,965.87 . Accounts and notes receivable--trade, lew reserve- 47,565,744.10 indebtedness of subsidiaries not consolidated--current- 854,794.07 United Sta es and Canadian Government securities.------ 73.713,518.96 Cash. 52.446,549.95 414,640,110.34 Other Aaaek*: Installment land sale* and other accounts receivable, less reserve............................................... ........... 8 1,540,869,16 Advances tjls sundry mining companies, includingadvances on ores, less reserve................ ................ 416,874.82 Postwar relund--United States and Canadian excess profits taxes--estimated................................... 6.645,449.40 4,404.993.18 #631.873.396.47 See explanatory notes, pages 13 and 14. 10 . . --a PNYC 00010239 An a c o n d a Co p p e r Min in g Co mp a n y and Subsidiary Companies Consolidated Balance Sheet--December 31, 1944 LIABILITIES CAPITAL STOCK ->t Anaconda Cupper Mining Company; Authorued--Vi.OoO.utiO shares oi the par olueoi each Issued..................................... - . .................................... .................................... 3.[>l9,!)!j6 shares Held m treasury .... ... ................. ......... 1*4,748 shares Outstanding.................................. ................. ..........................3.674.338 shares CAPITAL STOCK AND SURPLUS of consolidated subsidiaries owned by minority interest.......... j !-i.-HT. V".'"O -Hd:5.7lti.'ji>imi> :5,90'>, ADVANCES BY GOVERNMENT AGENCIES for extension and operation of metal producing and,manufacturing facilities, less repayments--per contra......................................................................... 7, 33.64;).3? RESERVES: For [workmen's compensation insurance............................................................................................................ I 1.815.1&7.83 For Contingencies................................................................................................................................................... 6.400.000,00 CURRENT LIABILITIES: Accciuots'and wages payable..........................................................................................................................:.... t 14,001,101.36 Accrued taxes--seenoteG................................................................................................................................. _ 34,755,736.30 48.75tf.>'7 >6 DEFERRED CREDITS TO INCOME. SURPLUS--see note F._. b See explanatory notes, pages 16 and 14. 11 TiS.jT) .;> 19.66.9:)7 -1 . $631.373..m v? An a c o n d a Co p p er Min in g Co mp a n y and Subsidiary Companies Consolidated Income Account--Year Ended December 31. 1944 < iro-rs -.lie-! and - iminsj'--*e :iute H... Other income-. ; Dividends from subsidiary not consolidated.................. 'Other1 dividends, interest and miscellaneous income-.... 1.U-VHTI9 1.4|' k> Cost of sales---on last-in. Srst-out basis---operating expenses, development, maintenance and repairs. |.idrninistratiye. seilingand general expenses and taxes, except income and profits taxes;................ . Wit.liJ.SH.ro Provision for depreciation and obsolescence..................... ........................................................................ i {, iS7.63i.34 Prov-jision for depletion of timber lands and phosphate deposits inot including depietioo of metal hjinesi............................................................................................................................................................................... lil.3il.03 :U7.3.;.;.< raw^rinsr.rii5(aastras'M NOTES TO FINANCIAL 5TATEMENTS-DECEMBER 31. 1944 a NOTE A--BASIS OF CONSOLIDATION TW| wns.)K.lattd financial <tatementi tocW* the account' ->i ail .iiniocnnt fubndaries in wkicfc the stock interest of the cornpsnv 7.7'-ir more. NOTE B-\>r*ET~ AND [Nf'oME IN FOREIGN COUNTRIES A'*?jt .n f.-reign e-'intr-e*. principally tho*e ->f ?>ib.*iiliane? operating ;n south America. Mexico ami Canada, are approximately i !tive per cent, ( `.he c.et amount 05 fixed asset*, investments and deferred charges,, less reserves, and approximately five per c of ammint "f net current assets = including cash balances in such countries of'ii.-19i,300,.3'45 shown on the Consolidate 1 Q.d. jsheet. The greater part of the assets in South America and Mexico were acquired for United States dollars 'sea note D as to h.i.-. <r . insets*, those acquired for foreign currency* not significant in amount, being converted at rates of exchange current at the ; >t acquisition. Assets in Canada have been converted at rates of exchange current at dates .of acquisition adjusted in the f net current assets to the exchange rate at December d l, 134+. Consolidated income includes 316..346.JOU7 as Anaconda Copper Mining Company'* proportion of the income of subsidiar.e* -m ng m south America and Mexico, allot which has been received in ,United' States rund3, and -31.139.569.11. the eqim-aie: "nited States dollars of the net income of the Canadian subsidiary which paid no dividends during the year. NOT C--EQUITY IN ASSETS AND INCOME OF UNCONSOLIDATED SUBSIDIARIES The estment of the parent company in its principal unconsolidated subsidiaries (Anaconda Wire and Cable Company ami Mountain City Copper Company) is included1 in the Consolidated Balance Sheet at 34.231.947.16 less than the company's equity in the r et assets of these subsidiaries as shown by their books. The Company's proportion of the net earnings of such subsidiaries (without, in the case of mining companies, making any providon for epletion of metal mines! exceeded dividends received in the year by 3478.236.63. Of such dividends amounting to 3*3-5.3U.4*1 i2S9.622.00 is included in the Consolidated Income Account and 3146.293:40 has been credited to investments in unconsolidated ubsidiarie*. NOTE D--FIXED ASSETS--BASIS OF VALUATION (a! Property, plant and equipment is included ia the Consolidated Balance Sheet on the basis of cost to tbe consolidated group either , in cash or in stock of the parent company at par value. Investments in securities of subsidiaries not consolidated ami other investments are included at cost or less. Ojiher investments include 330.000 shares of Inspiration Consolidated Copper Company, carried at 39,582,107.51. Securities and notes of National Tunnel & Mines Company previously included with securities and indebtedness of subsidiaries not consolidated are .now carried as other investments, tbe ownership having been reduced below 50% by reason of its merger with Utah Metal and Tunnel Company. (b) Pursuant to tbe requirements of the United States Treasury Department, valuations as of March 1, 1913 of mining properties : then owned have been recorded on the books for tbe purpose of computing the amount allowable as a deduction for depletion in arriving at taxable income under the Federal income tax taws, but these values have not been reflected in the published accounts of the Company. Tbe Company has consistently followed the practice of not deducting in any of its published accounts any amount for depletion on account of metals mined, and no such deduction is included in any of the financial statements submitted herewith. Depletion based on cost has, in the case of timber and phosphate lands, been deducted from income in the financial statements submitted herewith and also from the cost basis shown in the Consolidated Balance Sheet. (c) The values of fixed assets aee shown oa the bases above set forth and do not indicate current values which could be established only by current appraisals. 13 NOTE E--FUNDS PROVIDED BY GOVERNMENT AGENCIES Cnder the contract pursuant to which the 417,850,340.34 was expended certain options were granted to the subsidiary with which the contract was entered into with respect to discharge of obligations in connection therewith. There is no basis at the present time for determining whether any of these options will be exercised. Under the construction contract the subsidiary ;s obligated to.operate the property* at cost, otte of the principal considerations for the expenditures and advances above referred to. If none >s the options are exercised, the facilities are to be disposed of and contractual accounting'made. NOTE E-sURPLUS Included in Consolidate.! Surplus are a credit of -**0.816.1.33.49, being the excess of the proceeds of the issue of 'U>.>9.J9* U -hares ; of stock of Company over the par value thereof and t'b) a charge, of 411,907.498.50, being discount and expense on nuance, and premium oft redemption.of bonds, redeemed through funds obtained by issuance of stock above referred to. >ee paragraph <b> of rtbte D as to-practice regarding depletion. NOTE G--FEDERAL INCOME AND EXCESS PROFITS TAXES United States income and excess profits taxes for the taxable years up to and including December 51. 1959 have been determined by the United States. Treasury Department and any amounts due thereunder have been paid. Audits of returns for -ubsequent years bave not been completed by the United States Treasury Department. It bas been determined that no liability to the United States Government existed in connection with renegotiation of 1943 sales contracts of The American Brass Cornpanv. It ,s re lieved1 that no liability exists with, regard to renegotiation of 1944 contracts and Federal taxes for the year have been accrued on this basis. NOTE H--GROSS SALES AND EARNINGS Salejs of metals and manufactured products are included in income as billed and delivered to customers. Undelivered sales contracts and purchase commitments are not given effect to in the Consolidated Income Account. Included in sales is the excess over the current prices of metals received in pursuance of certain contracts and agreements with agencies of the United States Government >l u : .s e w yosk Z CfV* S * S 5':mv * '*ra`D *N* S j'-v.. U *4 SO "Eacr * =p>5CN ocBi-y m sns.sas Po g s o n . Pe l o u s e t & Co. CERTIFIED PU3UC ACCOUNTANTS Ciiu 100I$S CERTiP'CO AGENT S J-.s 23 3SOAOWAY NEW YOR*C 4 N Y T'> the Board of Directors* Anaconda Copper Mining Company, 53 Broadway, Xew York 4, X. Y. We have examined the Consolidated Balance Sheet as of December 31. 1944 of Anaconda Copper Mining Company and the other corporations whose accounts are consolidated with its accounts as stated in note A to the financial statements and their Consolidated Income and Surplus Accounts for the calendar year 1944: have reviewed the system of internal control and the accounting procedures of the Company and its subsidiaries and, without making a detailed audit of the transactions, have, examined or tested accounting records of the Company and its subsidiaries and; other supporting evidence, by methods and to the extent we deemed appropriate. It was not practicable to obtain direct confirmation of balances owing bv departments and agencies of the United States Government, as to which we have satisfied ourselves by other auditing procedures. At the request of the United States War Department certain, of the; usual physical inventories were omitted by The American Brass Company at December 31, 1944, but we have satisfied ourselves by means other than physical observa tion of' the substantial fairness of the amounts representing these inventories in the financial statements. In all other respects our examination was made in accordance with generallv accepted auditing standards applicable in the circumstances and included all procedures which we Considered, necessary. The practice of the Company and its subsidiaries in computing their net income or net loss without deduction for depletion of metal mines is in accordance with accepted accounting pricedui;;es in industries engaged in themining of copper, zinc, lead, silver and gold, and is in agreement with long established and consistently maintained accounting practices and procedures of this Company and its subsidiaries and others similarly situated, and the Company is advised by counsel that such procedure is in accordance with legal requirements. In our] opinion* the accompanying Balance Sheet and related Income and Surplus Ac counts, [together with: .the [notes attached thereto or appearing thereop, present fairly the con solidated position of the Company and its consolidated subsidiaries at December 31, 1944 and the combined results of their operations for the calendar year 1944, in conformity with generally accepted accounting principles which have been applied on a basis consistent in all material respects with that of the preceding year. Xew York, March 22* 1943. POGSON, PELOUBET & CO., Certified Public Accountants j*r " An a c o n d a Wir e a n d Ca b l e (A Subidiary Company) s\ Ama c o k d A Co mp a n y The year 1*?44 brought ro this company even greater tetpormbrl'i'es ter producing military requirement*. The continuance of war has emphasized the DO* played by our products, increased demand has,been pioced on our facilities. lor manufacture of field telephone 'wire for the U. Si Signal Corps. During the y'ea.r some revisions in Navy schedules occurred, but production facilities thus made available have been token up by other products essential :rd the war effort such as those used in the rocket and radar programs. The company Kgs also carried on development of confidential items for the Armed Services and production of' those approved continues unabated, in such activities out Research and Development Department* are acting m close.cooperation with fhe Army and Navy, in common with American industry, rhe Company's facilities are fully devoted fp helping to wrn the war. When porntpercrol production 1$ again possibleithe fac.ili- es of the Company con be easily converted to suoply demcnds accumulating during, the war years, That this company continuing to merit the 'esoonsibility placed upon it. iky our Armed Forces is demon-' strated .by three new A rmy-rNayy "E" awards, plus f>v renewal slars at thiese <nd other plants previously cited. Automotive Aviation Building Chemical Communication SOME OF THE INDUSTRIES SERVED Construction (Heavy) Electric Utilities. Electrical Manufacturing Food Marine Metal Fabrication Mining Petroleum Radio Railroad Rural Electrification Shipbuilding Textile Telephone end Telegraph Sore Wire and Cable Coble Accessories Communication Cable Copper Rods Cords pROOuas ELECTRICAL WIRE AND CABLES OF EVERY DESCRIP'T' ION Hollow Conductor Cable Magnet Wire and Coils Non-Metallie Conduit Power Cable: Rubber, Paper, Varnished Cambric Parkway Coble Rubber Covered Building Wires Shipboard Cables Slow Burning Wires and Cables Synrhetic Insulated Wire and Coble Weatherproof Wire and Cable LOCATION OF MANUFACTURING PLANTS Anderson, Ind. Great Fails, Mont. Hasings-on*Hudson, N. Y. Marion, Ind. Muskegon, Mich. Orange, Calif. Pawtucket, R. I. Sycamore, Hi. OFFICES ARE LOCATED IN THE FOLLOWING CITIES* Atlanta, Go* Deflat, Texas Milwaukee, Wis. Rochester, N. Y. Boston, Mo m. Denver, Colo. Minneapolis, Minn. St. Louis, Mo. Charlotte, N. C Detroit, Mich. New Orleans, La. Son Francisco, Calif. I Cincinnati, Ohio Kansas City, Me. Philadelphia, Pa. Seattle, Wash. Cleveland, Ohio Los Angeles, Calif. Pittsburgh, Pa. Washington, D. C. General Offices: 25 Broadway, New York 4, N. Y. Chicago Sole* Offices: 20 North Wackef Drive