Document DDNZD4eVnyvLzLgV9964LkXYQ

An a c o n d a Co p p e r Min in g Co mp a n y DRAWER 19B1 K. B. FRAZER ,#\**ISTAJT SXO*T*T 'AHailTAWT T*KAIMJ>fclt Bu t t e . Mo n t a n a December 13, 1951 Kr. Horn Warburtoa, Cashier International Smelting and defining Ccjapany 321 Kearns Building Salt Lake City 10, Utah Dear Sir: Herewith, report of Kr. C. 5. itcwm, Traveling Auditor, covering audit of metallurgical operations of the Tooele Plant of the International Smelting and defining Company for the month of August 1951. T>ro additional copies of the report are enclosed, cue for Kr. Floyd and the other to be given to any party who might be interested. Tours very truly. WJPT3 Enc. eei Kr. 2. 3. KcCELcn* Hr. W. K. Daly PNYC 00012285 An a c o n d a Co p p e r Min in g Co mp a n y DRAWER 1961 Bu t t e . Mo n t a n a December 13, 1951 pBETC&TVED \ \ DECA 31951 i Mr. E. 3. McGlona, Vice President Anaconda Copper Hining Company Heanessy Building Butte I ^ q a LY ___j ^ ; f*- ----------------' Dear Siri Herewith, report of Mr. C. E. Sevan, Metallurgical Auditor, covering audit of metallurgical operations of the Tooele Plant of the International Smelting Refining Ccnpany for the month of August 1951. The Auditor's findings are susnarised on pages 14 to 13, inclusive. Copies of *y letters to Mr. V. K, Daly, Comptroller, and Mr. Sea Warburton, Cashier, are also enclosed. Tours very truly. WJFj TS &xc. col Mr, V. K. Daly N11175.01 An a c o n d a Co p p e r Min in g Co mp a n y DRAWER 1961 E. B. FRAZER As s is t a n t Sk c u x t aj j t aj t d AllllTA.IT TXEASCTia Bu t t e , Mo n t a n a Hr. W. K. Daly, Comptroller Anaccnda Copper Mining Company 25 Broadway New York 4, New York December 13, 1951 I RECEIVED- i DEC 1 j W. X. DALY Dear Sir: Herewith, in quadruplicate, report of Mr. C. E. Rowan, Metallur gical Auditor, covering audit of metallurgical operations of the Tooele Plant of the International Smelting and Refining Company for the month of August 1951. Reports are for the following: Mr. . K. Daly Mr. W. C. Roney Pogson, Peloubet & Company Extra Valuation of inventories is set forth in detail on pages 10 and 11 of the report and in this connection we note item (4), page 18, wherein the Auditor states, "The New York Office is herein asked to clarify the desired inventory valuation procedure. The methods used are changed at will to facilitate recoveries and to hold low costs and all parties concerned desire written instructions." Errors and Discrepancies and Conclusions are covered on pages 14 to 18, inclusive. Hr. E. S. McGlone, Vice President, has been provided with a copy of the report and three copies have been sent to Mr. Rom Warburton, Cashier, for distribution to interested parties in the Salt lake vicinity. Copies of ny letters to Mr. E. S. McGlone, Vice President, and Mr. Rom Warburton, Cashier, are also enclosed. Yours very truly PNYC 00012287 V/JF.-TS Snc. N11175.02 C 5. Rowan r.ONTU OF AUGUST 1951 TITIS REQUIRED FOR AUDIT September 17, to November 16, 1951, inclusive Audit of the Metallurgical records of the Tooele Plant of the International Smelting and Refining ! Company for August 1951 included the three operating plants, as follows* ApproxLmfltely 61,5#, 17,= and 65% of the purchased receipts of the Concentrator, Lead Plant and Slag Treating Plant, respectively, were audited In detail for weights, assays, unloadings, contracts, settlements and coats. In addition, $5% and 2532 of purchased receipts of the Concentrator and the Lead Plant, respectively, were audited for Tooele weights and unloadings. This covered seven fully audited shippers and four tested shippers. Detail on some receipts and new contracts appears in the report. All of the outside shipments and interplant movements were audited in .detail'as were moat of the Interplant movements at the Sulphide Concentrator and the Lead Plant, All-shipments-frem:the Slag Treating Plant were audited except two cars of Deleaded Zinc Fume shipped to the;Great/Palls PJ*nt' of tha'lnaccoda Copper Mining Company, Final and preliminary data as included, in the Angujit' *tatemont were used in all caees, 1 'N * Inventory observations were made on September 1st and 27th, October 1st and Kerrember 1st, as detailed in the audit. All four observations were checked to the books to determine practices and.accuracy, Mi September 1st inventories were audited in detail from the physical and estimated inventory-reports cm into the statements. Valuations of all inventories were also audited. In fall including purchase oosts* fisad operating costs and worked bacu inventory, A complete review of the lead plant metal'.valuation was'made and a discussion of such is presented herein, V\. - rr/ v ',. r** 'in.- August work sheets and statements as well as August 51, 1951 euanlatlve statements were audited using the data as mentioned above and assuming all July 31, 1951 inventories to be ecrrect#'<| ' . a,--2v C, S. Rowan Metallurgical Auditor ; November 2$, 1951 ' y- ; " PNYC 00012288 ^ _.y< ' y ; ,V> N11175.03 i/rrc.r.Juio'AL s u it in g a n d aspiriiKi c q -t a i.t TC'CELS PLATT TOOELE, UTAH KC1-TI CP U:-?a-T 1951 I K n| E X SULPHIDE COKCETTRATOR: Receipt* Shipments Inventories Valuation of Inventories LEAD FLASrT: Receipts Shipments Kiscellaneous InterpLont Tx*ansfer; Inventories Valuation of Inventories s l a g Tnsrrura p l a:.T: Receipts Shipments Inventories Valuation of Inventories Sulphide Concentrator Lead Flcnt Slag Treating Plant General GSiEii'iL ccniffits* Lead FIant Cottrell Fire Copper Plant Write Off Date of Receipts Adjustments to arrive at Normal Recoveries Excess Fetal Recover? from Furnace Pottons ' CONCLUSION Rsfl 1 2 3 3 4 to 5# inclusive 5 to 6/ inclusive 6 to 7> inclusive 7 to 8> inclusive 9 to 13> inclusive 13 13 13 to 14/ inclusive 14 14 15 15 15 15 15 to 16/ inclusive 16 16 to 17 inclusive 17 17 to 18/ inclusive PNYC 00012289 y.;;./: L'l.sl -J-V'-r' : z s t in in g c c n f ak y iLv; t - iv c s l e , u t /j i TC^Ti; 0? AlVrloT 1951 GUI-FUISE CU CSm^TOa -WUA Park Utah Consolidated Lines Company - Pro T'lj.p ore accounted for ov*-r 4?3 of the Concentrator receipts in August 1951* The contract has rcr.sin^t? 'arentially ss.me as detailed in the 192*3 audit. The treatment cost has risen to $1*49 par dry ton and the sarpLin;; credit has been increased to 50 per dry ton. This ore is all sampled, weighed and assayed by the Uteh Ore Sampling Company and tha International Company accepts and uses these weights ar.d moistures but averages the assays with thair own and.calls for umpires Wien needed. .Ml M'nist zinc contents ware totaled and averaged and the shipper was paid for the balance of 7..lnc in tve lots which had V*n given the AO pound minimum deduction because of low content sine. Oils ir. ?icv-d In t.he contract if the monthly average assay is largo enough to receive the 653 pay- Tir:t. l?,\lfi pounds wore pMO for at 9r433i per pound* Also, tho difference between the July samp ling ci-'d't (pO per d\~ Vr.) pnd half the July sampling charge ($1.00 per wet tcc) was paid to tho shipper an allowed in tho contract. Fred end Earl 35> irt.s - Ore TIi n d-r.inc oi^ fron Kptchu", Jdrlio, roonivod in August 1951 amounted to 5 lots or 4.73 of the TV contract of "rptenlv'r 15, 1943 states the usual metal percentages and prices bit tso rfi'nll rate copy has not yet v-cn signed and returned, as is the custom. The August 1951 treat ment c^ot 2.921 per dry tor. and copper is not paid for. No agreement could be located for the &3 royalty raid mi each lot to J. D. Zldridgo, owner of the property* NcPsrland and Nu]linger - Tailings There teilincs arc from Park City, Utah, and accountod for 6,5# of the August 1951 receipts. No written contract wan available but the terms of the last two lots were listed by Kr. G. A. Burt, Ore Puyer, cn cv.e of the lot sheets, as follows? f>old - 1003 "3 *16.00 per ounce, if *01 ounce per ton or over* Silver - C03 market over 1 ounce per ton. bead - 1003 9 01.50 per unit over 1.5 units. Copper - 1003 59 -91.50 pnr unit Zinc - 1003 0 91.75 p^r unit after deducting oxide sine and *7 unit. Treatment - $4.00 per dry ton. Hauling - $1,00 per wot ton to shippers. Splitting Limits - Au. - .01 ot. per ton, Ag. - .3 os. per toa, rb. - -33, Cu. - .23, Zn. - *53. r?.;rmnt - Half to Silver Ling Coalition Ilines. IV:rc terms were higher than those on the first three August lota beeause of an upswing in grade during t/. e month. Neither formal contract was available. Anaconda Corp;?- inin/r Company - Silver Iron Concentrates TVs? concentrates accounted for 34-53 cf the Concentrator receipts for August 1951* Tooele , weights, rof.ctures and assays are used on the settlements. These were checked in detail but the settle ments thei-relves ware not proven because they are checked yearly in Anaconda, during the Zinc Concentrator Audit. PNYC 00012290 oin.n:iDE c c c e t r a t o r 2, Load Concentrates to lead Plant. In August 1951# five cars, 293 wot tons of load concentrator# were received and treated at tha Lead Plant. All Concentrator production is considered shipped, used a Lead Plant Receipt# and the Lead Plant carries all inventories. These shipments are adjusted monthly to arrive at normal concen trator recoveries. August shipaents were reduced by 13,000 pounds of lead, 1,700 ounces of silver, and seven ounces of gold. Bach car is assayed so this reduction in August pushed the concentrator recoveries down and helped to raise the Load Plant recoveries at the same time since all ef these shipments were rccoived at the lead Plant in August. These adjustments are made at December 31st, b s well, if needed. A schedule of payments and credits, similar to the Lead Plant epea contract is used for valuing these concentrates for transfer. The schedule, including latest changes In freight and labor, is as follows: Lead Copper Zinc Silver Gold - Less 1.5 units, balance 95^ N. T. prioe, less 2.0225$ per pound. - (Kin. deduction 10 lbs.)90 N. I* price, less 3.5225$ per pound. - If 5? 30% 9 22% of Saet St. Louis price. - If 1 ounce 9?& Hint Price - If .02 ounce 91^ $35*00 por ounce Iron .Insoluble Sulphur Zinc - Credit - 6$ per unit. - Charge - 10? per unit - Z-> freo - balance 25$ per unit - Kasdnum $2.25 ton. - Charge - 15$ per unit paid for. Treatment - `5.215 per dry ton plus or minus 8$ per unit ef lead over or under 48?, (after deducting l.J units) Labor Base Coke Base Bullion Freight Be.se - * 9.85 - 15$ for each'- 25$ change - ,`16.167- 15$ for each - $1.00 change - --22.95 Heights, assays and value of shipmenta wore audited in detail for August 1951* Iron Concentrates to Lead Fl&nt Concentrator production is also used to determine lead plant receipts but no adjustments are mads to come to normal concentrator recoveries. All inventories are Lead Pl^nt inventories, August 1951 shipments were 18 cars, 759 wet tons. The schedule for valuing these iron concentrates is as fellows: Lead Copper Zinc Silver Gold - 50.? at W. I. price less 4*0225$. - Deduct 20 pounds, balance at N, X. price less 3*5225$. -ho payment. - If .5 ounce, 95? at Hint price. - If .02 ounce, 91? at $35*00 per ounce. Iron less insoluble - 5$ per unit, oredit. Treatment - 37.59 per dry ton. If entire value is deficiency, change treatmont to bring total to sere. Labor Base Bullion Freight - v 9G5 - 15$ for each - 25$ change - v22.95 base. Heights, assays and value of shipments were audited in detail for August 1951* PNYC 00012291 MMk 3- j,n:7/jE ci csr.T.moa ijiya-rroiiES All Concentrator bin inventories wore measured on September 1, 1951 and observed and noted by Kessr3. J. C, Wilson'and V.\ F. Foil, .Tr,, Pog3on and Feloubet Auditors, These measurements, capacities and specific weights arc used as comparisons. Full oars and/or lots are used to approximate the esti mated tonnages. Actual voipjits y.nd e.C3ays are used on a first-in,* first-out basis. Stockpile removals arc at average stockpile assays. Zinc conccntratos on hand ar* weighed and assayed. Lead and Iren concentrates are included in Lead Plant inventories# The Superintendent prepares a monthly oheet detailing the full lots which remain in bins, estimated weights and actual weights cn any zinc concentrates band. This report is used for inventories whereas bin measurements are only used for checking, Cn September 27, 1951 the Auditor viewed the shutdovc concentrator and its inveateriea. No fixed in-process inventories are reported for this plant because it is usually between runs when inventories arc taken and any material cn hand belongs to the prior run. Some base material was observed in the classifiers and on the floor but neither the Superintendent nor the Accounting Office thought it to be large enough to affpet rvcoverles of the prior run and put it into inventories. '^juyrn;: o f it /s it o io es Stockpile and Fins A3 explained in thr previous audit, these ore inventories are valued on a cost basis except for silver and gold. Each lot, on a fir^t-in, first-out basis for weight, is valued at cost. The total silver ounces paid for are valued *t 34.75$ p:r ounce. The total value of gold paid for is divided by ?34.91 to arrive at ounces pai'1 for and this total is valued at i;'34.00 per ounce. The theory back ef this is that, even though the tews of the many contracts differ in percent ef geld paid for and price, all arc based nn a :'>3491 price, npprorfxately. This io market price less cost to market.' Ores and concentrates in bins which were not sampled at the public sampler in Salt Lake are given a sampling cost of j .4646 per ton which is an old fixed Tooele sampling cost. Stockpile materials do not carry this because they are tc> by sampled again before treatment. Zinc Concentrates Zinc Concentrates are oti21 valued at the contract salos prices except for silver which is valued at 34.75$ P'.-r ounce. The contract states a gold price of *33*78 per ounce and this is used for valua tion. PNycoo,2a2 1. 5 :>) t i:.\ - 4. .'iCE) ITS Chief Cc~. l J Ir.e. Company - l;cr<\ tye , ?h date of jwtaliurgical receipt of thin ore depends on the availability of the silver affidavits and/or the final rettlewont data in t.ini* to enable the two offices to submit their estimated profit and loss statement by the 12th of the following month, If a let is on hand at month end but the settlement is not complete in time for the ertineted profit and loos statement, it is regarded as cot yet received in that month and the inventory is adjusted. This is true of all other Tooele receipts, also. Chief Consolidated ore accounted for 14,5". of t>*e Lead Plant receipts of August 1951* Pull lots of this ore arn weighed, sampled and assevM by the l tab Ore Sampling Company of Salt Lake op by the Tooele Plant at the discretion of the shipper. In August 70-> of the lots vere weighed at the Tooele Plant, seven lots, 303, wire sampled, assayed and weighed by the sampling company and were completely audited, through settlements end contracts, to Lead Plant receipts. The contract dated January 22, 1948 contains the following payments and charges: Gold 3*3-nr Lefd Sine Coprwr Ir.r'Ouble Sulphur Iron Lire Zinc Arsenic and Antimony Treatment Labor Tase Coke `'ase Pnlj.lcn Freight* Splitting Halts .02 os and .1 os. - 1003 9 31.816 O-r ,1 ns. - 1003 9 32,316 I ns. or over - 963 9 i'-int m date of arrival If ei-.tl~,ont or over, deduct 1,5 units from wet assay and pay for 90" of balance at i', X, price, less 1,9725* 6 to 4: - 803 5 223 of East St. Louis price 0 to 93 - 803 S 213 9 to Xtf - 803 3 243 Over 103 - 803 9 253 Tf under 63, can v!' monthly average end pay for all as above Deduct 12 pounds, balance at K, 2. cathode price less 5,52251 104 cherno per unit 25* for eacii 13 over 23. Maximum 53,00 per ton 3? credit per unit 5* credit per unit if over 43 All poid sine at 15i charge per unit 2.3 free - 504 charge per unit on excess v 6.556 per dry ton - Add or subtract Bf. per unit when lead is under or over 203 Credit 25* wVien copper is 5% or more Credit 25* when sampled by U, 0. S, Co, If net return is under C-11,00, credit 503 of difference up to a maximum of vl.00 v 9.85 - add 15* for each - 255 increase 63.5*755- add 155 for each - $1,00 increase 20.64 - variance for shippers account, made in lead .price ,Au. " ,01 03 ng. - .3 os., Pb. - ,43 Cu. - .23, others - 13 To be sampled weighed and essayed at Utah Ore Sampling Company, Salt Lake at the shippers decision. These terms include the latest letter changes of April 6, 1951 and November 1, 1950'which were the latest freight and wage rate changes, ir> that order. In the earlier letter of.Ncrwaber 1, 1950, from I'r. G. A, Durt, Ore Buyer, to V.r. Horn "Warburton, Cashier, the wage increase of labor from $10,25 per shift to 311.05 per shift effective October 15, 1950 was noted. The later letter from Mr, Suit to the Ore Settlement Department noted the freight rate increase of 23 effective April 4# 1951, Bonanza Tine, 'naconda Copper lining Company - Lead Concentrates Three lots of Bonanza Lead Concentrates, 1.53 of August receipts, were received from Palmers, Washington, This concentrate comes under a new contract dated Kay 22, 1951 covering one year with a nixty day cancellation notice. The contract, in a letter from International Metallurgical Manager, Kr, . L. Sackett, Salt Lake City, to t!r. 2. S, KcGlone, Vice President of Anaconda1 in Butte, and signed and returned by Kr. KcGlcne, contained the following provisions: * * GoldSilver .03 to 3*0 o*, 1003 9 $31,31825 Ovr-r 3.0os. 1003 S $32.81825 1 oz. or over 953 3 Lint Frice PNYC 00012293 if i -. WWm-***: '-An.vi.-v .- K-, , . LBAD FLAi.T :CEIFT3 - Continued Bonanza Line. Anaconda Copper Nlniny Company - Lead Concentrates - Continued 5 Lead Copper Arsenic and Antimony Treatment Freight Labor Coke Bullion Freight I'ndfr 253 - 903 or Wet Assay, Minimal 2.53 25 to 50/j - 915 of Wet Assay Over 505 - 925 of Wet Assay Frieo - Average New York E. k K, J. price week ending Wednesday, next preceding sampling date, less 1,73# when lead is 15#, plus or minus #031# for each 1# change in lead price. Also plus or minus change in Refinery labor rate. Deduct 20 pounds, balance at ft. T. price less 6# per pound 1 ' free, excess at 50# per unit 39.00 per dry ton, F.O.B. International - Utah International pays freight from Bradley, Idaho Chipper pays only freight to Bradley, Idaho Smelter - *`13.6467, Base. Add 17* for each 25# raise Refinery - $1.55663 per hour Base. Adjust lead price 3*5# per ton of paid for lead for each 1#. Use third preceding months la'>or cost average *16.167 Base plus 15# for each $1*00 raise ,22.95 -ase. Variation for shippers account, made in lead price deduction. The splitting limits on assays were mentioned in a letter dated June 20, 1951 from Kr, B. C, Stephens, Manager at Bonanza, to Nr. B. L. Sackett, suggesting limits of .55 oa lead and .5 ounce on silver. Nr. Sackett agreed in his reply of June 25_, 1951# August 1951 Bonanza line receipts using Tooele weights and assays for settlements were: Wet Weight Dry Weight Legi 332,720 lbs. 303,187 lbs 164,829 lbs. 53.483? Tiie zinc was not paid for and there was no gold content. Zinc 3,657 lbs, 1.195 Silver 1,491.69 oz. 9.66 oz. SHIHSNTS Lead Bullion to Omaha. Nebraska Lead bullion shipped to the American Smelting and Refining Company, Omaha is the major product of the Tooele Smelter. The silver is returnable 1005 in 40 days and the lead is returnable 1005 less G pounds per ton of bullion in 20 dayo after receipt at Ctaaha. 99.55 of the gold is paid for at t-34,9125 per ounce. The contract has remained the same as outlined in the previous audit except that the last half (5 years) of contract period started on June 15# 1951 and-the supply co?t addition to treatment cost went into effect adding *2.769 per dry ten to the treatment charge of June receipts after the 14th. Also the splitting limit on silver was raised to .3 ounce in June 1943 in an exchange of letters between Nr. Carl Gall, Manager of the Omaha Plant and Mr. Carlos Bardvell, Superintendent of the Tooele Plant. If silver ran over 100 ounces the splitting would be raised to .4 ounce. ' The final settlement for June 1951 shipments was audited in detail as was the preliminary settlement for August 1951 shipments. The settlements and entries are made in New fork, but the settlements are checked in Tooele as received. August shipments with Omaha weights (final) and Tooele assays fnd costs (preliminary) were: Total Weight Lead Bismuth Silver Cold Gold Payment Bismuth Charge estimated Treatment Estimated Freight Assays Pounds 4,801,851 98.7015 4,739,475 .0605 2,881 84.27 oz. 9363 oz# Ounces ' 202,325,00 2,248.00 Payments $ 78,095.77 PNYC 00012294 Returnable 4,720,268 lbs. None 202,325.00 oz. Charges Cm WKmmm 1-Z,\d KLAI.T 6 S^irr^S - Con'.inuou Conr^r bullion to Cor?-r b'crks Two cars of roppu- rUi-.-m were shirred to the Raritan Copper Works, Perth Amboy, New Jersey in :rru'>t 19'A* 'loth wer* at that- plant in August along with fiT care in transit on August 1, 1951, ..oritan weights c are used cu receipts whereas until receipt, Tooele weights and assays are used ?" preliminaries. Jettlcr-.ent.s, payments and entries are handled in New Tork*- The audit in cluded only the use of -Triton vniphts end assays on August Raritan receipts and the inclusion of those figures intr> the I'etallureical Statements* Cadmun rWe to Groat Frlls, >`cr:tena> T).e Fv.nc Toasters did net operate in August 1951 nor was there any inventory of Cadmium Fume on August 1, 1?U nscRU.Ai'd-hs iiT-yjLA;.T T^rcr:y^j_h_^v^frrs As a nOc ;M transfers tb/ throe major`plants. Sulphide Concentrator, Lead Plant and .91f-r, Tr-atj..:e Pl?.*it, ore valued v'\ transferred on entries hut materials moved between divisions of one plant are not forcibly transferred* Often one division will charge another for treating the Jitter's material, hut no -.itry follow that movement. The five divisions of the Lead Plant are: Cooper Converts -Cadmium Roasters Sintering PlMit Blast Fvtvnc*''-^ Dressing ilo^t - run at intervals to recover copper - run at intervals to produce Cadmium Fume - prodxices 3inter for the blast furnaces - produces lead for drossing - draw.? off dross and pours lead bars The Cample Till ia not a division of the Lead Plant, nor a separate plant# Its costs are distributed to the pl-nt-s serviced and it has no metallurgical statements* The weights, moistures, unloadings and assays of the following materials were checked in detail: Load F:ir.e iron Slag Tro?+ inr Flant This materia} is vrei.thsd by cars and assayed monthly* It entors the Sintering Plant charge Mns and be conns a part of the sintering nix* It is transferred by entry ec explained in the 194S audit* Cadmium Calcine This calcine is produced at the Cadmium Roasters after the Fume is drawn off# It ic to the Gint^riny, Plant charge bins, also* In August the. entire August 1st inventejy vas shipped so no current wights or assays were used* Hast Furnace Dust This dust, recovered from the Blast Furnace Baghouse is returned to the Sintering Plant charge bins. Actual weights with monthly moisture and assays are used* Old Cooper Plant- Inventories Mow that the old Copper riant inventories have been transferred, they do not require entries when used. In August sons old reverb dust and copper calcine were sent to the Sintering Plant but since all the metals except copper in those old in ventories have been recovered, only copper is used on the metallurgical sheets* Current weights and copper assays are used* Some old reverb furnace bottoms were also treated at the Blast Furnaces in August but only the copper content was used* See General Remarks for discussion of excess ratals reclaimed- Conv^rter Cleanings This is slag from current runs at the converters which is sent to the Blast Furnaces for further recoveries. It has actual weights, monthly assays and contains no moisture# PNYC 00012295 Lll^riAAT 7# rises l v a -u 's r.;1. a p l .; t t ;iv j Paaa ... > ? 5 T3 - Continued Drp.13 Acyerb Vatte end oueiss The Convert-ro receive and trsat this material from the Blast Furnaces. The Aui.u^t transfer ws from the August 1st inventory and carried those assays. Tlect Furr.?ce CadmiumDust ' LrXi cadmium cortrnt durt iy accumulated for twice yearly roasting runs at .the old ccppsr roasters. Tone ys shipped in August 1951. Sinter to Hast Furnaces The product cf the Sintering I'aus is weighed by cars, adjusted by inventories at the ."lest Furnace Tins and th? balance used as shipments to the Blast Furnace and as blast Furnace Treatment All inventories are for the Sintering Plant. A fixed moisture of .75'* io usd. Covotunt Ions percentages are used or. each metal to arrive at the con tent. of the sinter, nv-m though a monthly aesay is taken for comparison. August statistior. sinter shipped are; Lyad Fixed Loss Z,i rorthly Assay Computed is3ay 29.20.3 79.063 Tor.ti.l5* weight* 4,477#236 lbs Conjnstod Weights 4,455,/'70 lb* Pot Slag to the 31ag Tres trwit Plant Copr-T Zinc Silver 2sM *5% 1.55 .55 1.05 . 2.003 1.95. 10.705 9.02, 22.46 oz. 25.168 os. .24 oz. .278 oz. 306,650 lbs. 1,640,631 lbs. 172,189.59 oz. 1,839.960 oz, 5.98,9% lbs. .1,303,037 lbs. 152,950.47 oz. 2,131.287 oz, The molten slag sent to the Slag Treatment Plant is computed by assuming no loss of iron end Manganese *t the Tll?ct Furnaces. The total treated iron plus manganese, including that At-, the cold dump slag, sort-p iron and coko, leoa the production of iron and manganese in all Materials except slag is the content of the slag. Using a monthly composite assay, the dry weight and othrr contents of the slag are ascertainable. The cost is transferred to th* blag Treating I'lent on the following schedule; Zinc Charge * Total zinc content of molten slag less 95% of all zinc from* the Gleg Treating Plant treated at the lead Plant during the month plus cold slag zinc and toll zinc treated. 75% of this canputed zinc content ie paid for at 20% of the monthly average Prime Western Priced 'Treatment of Cold Slag Charge - 37-CO per dry ton treated by Blast Furnaces. Increased from 35.00 per ton in August 1951 as per letter of Augu9t 21, 1951 from Hr. Sackett to Mr. Floyd. Credit for further Treatment of Toll Zinc - '.'6.75 per dry ton of toll material treated at the Lead Plant during the month. ITr/tSPTOAIS At o A,. I on September 1, 1951, Hessrs, J. C, Wilson and'W. F. Noll, Jr*, Pogson, Peloubet & Company Auditorr, observed the taking of all bin inventories at the Tooele Smelter. The measurements were recorded and turned over to the Hetallurgical Auditor upon his arrival at the plant on Septeatoer 18, 1951 These bins accounted for a major portion of all inventories except.stock piles. Being taker, at the end of the audit period, they did not necessitate any duplicated audit such as was re quired with inventories taken at a later date. Bin audit included converting measurements to weights using specific weights per cubic foot if available, checking weights to inventory sheets and extending contents us Jug specific assays. Full or partially loaded cars on hand were accepted as recorded ty the cleric who observed that inventory, but were further audited for dump weights and dates, assays and ex tensions of contents. This al'so included clerkc* estimates of materials on the floors. PNYC 00012296 MMap m 6. l eap pl aj it I?"V^TCniE3 - Continued On September 27* 1951 while the plant -was down the Auditor accompanied James Lougy# Clerk* on an inventory taking trip around tho Lead Plant* Observations were made* of materials on the floor* in bins and in cars at the old Copper Plant. Those are mostly lead inventories* They were later traced to the work sheets for September 30* 1951. Also observed on September 27# 1951 wore the old Reverberatory Furnace Building and Baghouse, the Yard, Sintering Plant* Blest Furnaces and the Drossing Plant. At the Reverb building both Reverb fur nace bottoms bad been excavated leaving one 25 foot pit and one 10 foot pit. Surplus recoveries have been realized but copper content is still being treated and deducted from the balance in the Copper Plant dust and calcine inventory. The Converter Baghouse was observed as completely empty# although it is used at every Converter run. The Sintering and Treroast (crasher) buildings were devoid of any appreciable Inventories. Three partially loaded cars were noted at the loading platform near these buildings. At the Blast Fpmaces considerable repairs were in progress. Furnaces number 1* 2 and 5 are completely gone with only a bin replacing number 2. Furnace number 3 had been tom down for repairs and number A was being cleaned out to make ready for the next run* Inventories were very difficult to take but it was assumed that no change in quantities had taken place since September 1* 1951 even though a change in location had been made. Following are consents on a few inventories. All were conpletoly explained in the 1948 Audit but these were.deeaed to be of sufficient interest to warrant duplication* Sinter Actual car weights end monthly assays were first used as v3 the .75% fixed moisture. In taking this inventory to the plant sheets# however, and to the statements* other assays were used as explained under General Comments* Flue Dust Kost- of this dust is in fixed quantities as follows: Dry Flue l-Ioistu.ce Chamber Tain Flue Treater Intake Stack Base 25 Tons 100 Tons 60 Tons 35 Tons 40 Tons The assays on these fixed inventories are also fixed and are reasonably near the monthly assays used on the car inventory of Dust. Actual weights and monthly moistures were used on the car inven tories, See further cocracnt at the end of this audit report. Lead Dross The small stockpile of this material was observod on September 27* 1951# unchanged since September 1* 1951. An estimate of baskets (pots) of dross on hand in the dross plant was also made on September 27* 1951# agreeing with the Septenber 1, 1951 inventory. This material also.carries a fixed .75/5 moisture and monthly assays on the work sheets# As with Sinter, these monthly, assays were not used on the plant statements. Blast Taphouse Fume Tills inventory was in bins, stockpile# pits and flue intake. The bin inventory is measured and computed as explained in the 1943 audit. The cars freo*stockpile arc weighed and average moistures and assays used for these removals as well as for the remaining inventory. The pits at the baghouse are estimated each month. The flue intake is kept at 50*000 pounds as a fixed inventory. The pit and intake inventories are added to the bin and car inventories* however* and carry the' same current monthly assays. Lead Bullion The In transit and plant inventories of lead bullion are essentially the same as reported in the 1943 audit. The plant closed on August 27th so no assays of early September shipments were available to use on the on-hand inventories# as is the usual practice. Estimates of Bismuth* Silver and Gold assays were used* slightly lower than the in transit assays* which were available.' The lead assays of both inventories were taken from the estimated settlement sheets* as follows: Using the last available settlement figures from the A. S, and R, Company* the total of the Lead# Bismuth and Dore (Silver and Gold %) assays is taken without change and the actual Bismuth and Dore assays are deducted to get the Lead Assays. This assumes that the total of the four assays is unchanged on both inventories. PNYC 00012297 LEAD FLAKT 9. VALUATIOH OF 1\'V~:'?C.VIES Stockpiles and Stock Bins The method of valuing these inventories has clianged since the 194$ audit. The silver and gold are no longer reduced to 34.75 cents and C.-34.00 per ounce* respectively, when added to the stockpile. All lots ar* now added at actual costs and charges but the gold cost ia divided by 534*91 to arrive at a new paid-for ounces figure. Thus, all gold paid-for ounces go into stockpiles and stock bins at $34,91 per ounce. As before, cars out of stockpile and stock bins are given average contents and values. At month end,inventories of all lots are recapped and silver and gold total paid-for ounces are revalued at 34*75 cents and $34.00 per ounce, allowing the difference to fall into treatment.' Therefore, the individual stockpile records carry actual costs and charges with gold at $34.91 per ounce but the total inventory as used on statements is revalued for both silver and gold* This is useful *fcen lots are transferred between plants because original coats are then needed* Actual freight and refining charges, zinc and zinc costs and treatment charges are used as totaled on the Stockpile Recap Sheet. The lead and copper valuctions now are made on a "normal base" method along with the lead and copper in tho by-products inventory. On hay 31, 1949 this method was started using the Kay 31, 1946 inventory as a base when the government controlled price was lifted. The Kay 31, 1949 inventory was called normal. Use included in the base were old Copper Plant inventories on hand at that plant in 1946 but transferred to the Lead Plant on January 1, 1949* PNYC 00012298 S to ck P ile 4? f"-j.i S tock S in s - C ontinae $ I .BAD Fl.-MJT 11. ^H-UATIUfl (.? 7W-:Ti':cig'& - Continued Stock F.Up ? and Stock "itv? ~ Cortinur:d Ease Period Inventory - Kay 31. 1946 TJ.Lr: inventory contain--.,: v.--to* ton of lend and copper at two distinct sets of prices,both govern- cent cpntin.UM and bo'.h us:d tin yrior method of valuation. The early prices were 4.5* and 8.5* ''hU'i th* tost crn! ; v\''n~ were 6,5* and 11.775*# both for lead and copper respectively. .nrvrj.rj'.im; j>tv--ntor/ - i!av 31 1 Tto nt.ock pile and by-product inventories were valued separately on a last-4ji, first-put basis using Jfx.vory 1, 1749 quantitic-. (!) Tins stock of copper pound, incorrectly valued. It should have been carried at 11.039* per (2) C.H copper p.lnt iuv.ntorics were transferred to the Lead Plant on January 1, 194? and tlK-ne mounts '/oro still on h-rto at i'ay 31, 1949. Values are at transferred costs, (3) E*to-r.c ccro.vr (4:-?,37f. pounds) over January 1, 1949 amount {554,674)pound was valued at average current tale* price. Tbi* excess was loot at year end, however. Year End Inventories - 194? arri J/J'iii ik stock rile r.n-l ky.r,-, '.dnet inventories vnro here valued ao one unit but separate bases wore ied irPtoatolesn of ph/jj.ieci ? nv?r:;oi-iao vi each. (3) In 1?50 th? oM copp:r plant inventor/ was being reduced at the current rate of use al though much of it had bren rrcuvnrto in the previous year and not written down. Some of the write off w ar being r.'Artc at 10.5* pr i-o-r-.l which was higher than the original inventory as shown at Kay 31# 1949, (4) Ever, though tlvs Uc.v 31, 1949 gain of 459,176 pounds was lost at December`31, 1949, anothor gain was shown (86,9-21 pounds) v}\ich was th.3 difference between the stock pile gain and the by-product loss. Th- v a1*v j per pound trad th- avtrago stock pile cost for 1949, (5) Incroascsand doc.loReun ars at current markot prices. (6) This copper incrcavi wan valued at Kay and June 1950 average sales prices as remained on the last on, first-out basis. Cjirront Inventory - August 31. 1951 A return has now be--n mad? to valuing the two inventories separately with each having its own normal l*an fro:* the Ha;' 31, 1/ i9 inventory, (1) This ie to be written down to 11.039* P?-r pound on October 31, 1951* (2) This balenco of old copper plant inventory is well above the actual amount, still on hand. The removal at 10.5* has reduced too value to 9.727* per pound, Thisis to be written down to the actual pounds of old copper plant copper still on hand by December 31, 1951, - The August 31, I95I book inventory was 1?7,943 pounds at 10.5* pur pound transferred cost. (7) The load contmt of old copper plant inventories has been fully recovered and, Kr. Floyd plans to eliminate this pert of t?v* ban* inventory (90,807) pounds at 4.5*) ty December 31, 1951. (8) The practice of deernss-ing (borrowing) from base inventory at current priest shows a possi bility of p v*iy low val'<? even tbonrh it would be called a Hbelow-noraal". inventory, It was suggested to Hr. Floyd tlt he value the decreases at tbo last added base'costs per-pound,', at least at December 31st, of each year. Then the s/stow could be classified as a last-in, firet-out.method, #e stated that this would give him a bad looking profit end loss statement if and when inventories dropped but he 'agreed that this is a necesssry evil of thin valuation system. lie *nd tbo Auditor agree that-there is need for written instructions on tho drairorl m'whvd of valuation to be followed. The December 31, 1951 inventory should sho-f a lar.*.' increase over tlv.re boss inventories becauso of the recent two month shut down* p n y c 012300 12, LEAD PI. ANT VALUATION OF - Continued In Process Inverttori, d s Defining Costa As in the past, a worked back inventory Is used to apply a refining cost to material* in process, Noconverterbag house fume has been roasted since 1950 and Cadmium Fume Calcins is regarded as a by product. no there was no calcine in the August 31, 1951 inventory. Lead Bullion is valued in New fork so the only "main line" product, to bs worked back was Sinter* The Sinter weight and ccntruts are forked back to the equivalent material neceaeary to produce then, using current Sinter plant recoveries* This necessary material is then broken down between cus tom ore and by-products using current lead ratios in materials treated at the Sinter plant as well as current assays on ore treated. The ty-products carry the balance. Tbs fixed Sinter cost per ton it applied tr. each of the two equivalent inventories.1 The custom ore thus arrived at is added to custom ore in bins and each ie given the fixed sampling cost. Ore in stock piles and stock tins does not carry sampling costs. Current and fixed costs are coi.ipe.red as follows: Date of Fixed Cost Cost Per Ton Fixed August 1951 Sintering Calcining Sampling December 31, 1941 March - 1947 December 31, 1941 $ 2,5063 4.1316 .4517 # 9.283 (1) 1.0779 (1) No lead calcining has boon carried on since 1950*' Cadaixm Fuae calcining cost does not apply to work in process costs as its calcine ie a by-product. Purchase Coots Treated custom ore is computed on the inventory work sheet using receipts and original inventories with their raid for metals, costs and charges. The above equivalent inventory dry weight and content*, from the wrked back sheet ore unod on this work sheet along with metals paid for computed from 'the average paid for percentages of this total custom ore treated. The average values for lead and copper are the average prices for each in the total current receipts. Silver and gold are valued at 34*75# and 134,00 per ounce, respectively. Freight and refining coets against lead and copper are computed using average current costs' of treated custom ors. Treatment cost is also at tbs se cost per ton as current treated custom ores, No zinc content or cost is retained in this work in process ^inventory. Furthenacro, no laet-xn, firat-out pri?icipl9 is used for metals or costs. By-Products (- As before two schedules are used to value the by-product inventory. One ie used for Dross Reverb Matte and Speise, a copper product and the other for the balance of the by-producta* Both axe sales schedules and provide a near r.tirVet value for these materials. Lead and copper on both schedules are valued on the "normal base" method explained above undor Stock Pile* and Stock Bins* Silver and Cold paid for are valued at 34.75# and 134.00 per ounce, respectively. Zinc ie not included nor valued. The Matte and Speies schedule ie drawn up for valuation purposes only as it has no transfsr schedule. Lead is C7 percent paid for and copper is 97 percent paid for after deducting four pounds per too of material. Silver and gold are raid for at 99 percent and 94 peroent respectively. The arsenic penalty is still 75< per unit of twenty pounds but the treatment charge has lncreaeed to |21*2$6 per dry ton* Lead and copper price deductions have increased slightly. The balance of the by-products plus the equivalent by-product amount from the Vork-2nProcess worked back sheet are valued on the by-product transfer schedule as In the past* Lead is 95 percent paid for after a one percent deduction, copper is 92-1/2 percent paid for with a minimus eight pounds per dry ton deduction, silver ie 97 percent and gold is 94 percent paid for* Treatment charge is #7.86 per dry ton and th*ro are maneroue other credits and chargee. PNYC 00012301 VALUATION Q? IhVgTUtlES - Continued Finished Material Lead Bullion is valued in lJv York but any lead bullion on hand in veil and kettles; is credited with cost to finish - drossing ej^onse, This credit is held on the Salt Lake statements until the following month* A fixed cost of $1.7589 per ton is used which was the cost-at December 31, 1941, As stated In the previous audit, it io assumed that the New York Office uses this credit when valuing this lead inventory. nqcsjws ;I,AO Trjs/.TI^ PLANT Combined Metals Seduction Company Sixty-five percent of the purchased ore receipts at the Slag Treating Plant in August case from the Combined Hetalo Reduction Company stockpile at Jean, Nevada. The special contract for this material states tho following terns; Zinc and Load - CO poreent at 44 percent of average East St. Louis price for the week ending Wednesday, next preceding date of sampling of last car of each lot. SHIFKFJrrS Treatment Splitting Limits Weights - $7.48 per dry ton F.O.B. International, Utah. - Sane as Load Plant Contract ' Tooele 'Weights Leaded Zir.c Oxide All nine oxide is weighed and assayed os shipped. If consigned, it remains at such assays and vjhen partially sold, it in sold at such assayo. August 1951 shipments and sales were as follows* America^ Chsmet Conaorftion. Eaot Helena. Montana One car chipped and sold in August. Lead per pound - 6.4*. Ziad^per pound - 14.32$*. No cotttigned inventory on hand. .* Consi^tnont Shipments One car shipped in August 1951 but no sales were made from it. Two sales of 2,950 pounds and 53CC0 pounds wero made t 12.675* per pound of oxide. One consignee had no.-sales in August. Deluded Zinc Firs* returned to American Zinc Company Eighty percent of ths zinc content of American Zinc Company residue treated is returnable to them in d.eleaded zinc fume. In August 1951 approjdmataly 270 tons of fume containing 379,492 pounds of zinc wero returned, using averaged assays and their weights as received at Kaeboveo, Texas. Tooele weights e.r.;J nsst/8 are used on the books as shipped, Deleaded Zir.c Fic a ; to International Minerals and Hetals All lets shipped to Bcrthlssville, Oklahoma in August 1951' were still in transit at August 31, 1951. The August settlement for previous shipments and the August shipments were completely audited for Tooele and Bartlesville wedghts, all assays, receiving dates and contract,^prices. INVENTORIES Stock Pile There was no change in the stock pile during August 1951* Any accruals would be added at actual weights and assays. Removals would be taken out at actual welghtsand average.pile assays. Dins Those bins were among those measured by tho Pogaoo, Feloubet Auditors on Septosber 1, 1951, Measurements, cubic foot volume end specific weights are used for these materials and the total weight is checkod by in and out actual weights. Lot weights and assays are used oh a first-in, first-out basis to accumulate the desired total weight. All measurements, computations and assays were audited in detail p n y c o o o ^02 14. ${&r, TlirJiTJ :.q FI.C'-T IfrVS.-TOnTiiS , Doleadof. 25--.c T rv m:d Jy-Pr^.lnctg ).? inventory conslatci of in transit to I, M. and M, Company, on band company owned and r.r h returnable to AT*'rinsn Z.;.r.o Company. Moat of tho on hands are still reported by tho op-trati'-.; ''ri.rtnent ar.d tro all handled as outlined in tho previous audit, except the assay of u;tt lart )/ .', fume chipped vesd for contc.it of the fume on hand. The car and miscellaneous i-.vonlnty -r.c observed by tho Auditor on October 1, 1951 vdth Kr. W. H. Floyd and later checked to the rVonle. This did not inclutf? those reported by the operating department which were esti mated. ?* auditor was present on 1'c.vshfeer 1, 1951 when the Lead Plant Superintendent, the Slag Treating Plnnt Foremen aryl Ids assistant met and reviewed cleanings, deposits and operations-since remadnj; or. October 22, 1951. The Baghouoe pits were viewed and estimated while all other by product:; jmentorieo Mere entirely ectinated, The in process inventory at East Helena i* com- ' puted but both a/ates* seem to be rts.sena.bly accurate* The estimated inventories at Tooele include f'.rs* ir> tv.i C'w'ber, FJ.s and Be,: Honse, moat of which is not available for measuring or viewing. Consigned Zinc Oxide Ccnsirnod stocks of zinc oxid? i/ore out of town and were not physically verified by the Auditor but consign*** Totters were audits:! to confirm poles and balances on hand. AH consigned stocks ro- tain the car originally shipped, 0no consigned belnnco of 20,775 pounds of oxide was on hand at August 31, 1951 out of a car shipped in 3unn 1971.- Tte nonsign^ is the C. L. Duncan Company, HOI - 17th Street, San Francisco, California. Ho sales had born rcjxrted since Aii:u3t 31, I95I up to the date of this writing, VAUJAflOK Ur lE'/.^Wjtllg The netted* of vtlvinr, Sine, Trsatnent Plant inventories have not changed since the 1948 audit. Ore in stock pilno orri bins is vrJu.'d at. actual lot costs. The lots are designated on the first-in, firet-out. basis. Bin ore nl.so carries sampling cent at the current cost per too, Deleaded zinc fume. in trftnnit to Jtsn:wtin&l KirernJs and Metals Company and on hand at the plant are Valued together1 on the 1. K, and H. Company contract t.ems but >/ith an estimated treatment cost as used on the prelimi nary settlement. Gold sr-1 silver are not pnid for in this contract nor valued.on any of these inven tories. Leaded zinc oxide at th* plant is valued on the sales tense of fumes sent to the Lead Plant, Consigned *to*k wee also vrjved at those same sales terns except that lead was carried at 16.04# per pound. Mr. Floyd stated that he would change this to follow the fume sales price which is the current wnrfcnt vslu- Cold and silver are paid for snd valued at 132.816 (1005$) and 34,75# per ounce, re spectively. Hy-products which include dusts, cleanings, fumes etc., are valued at current fuming costs only. This includes sampling cost, A minor portion of these materials, some furnace cleanings, -etc,, are returned to the Lead Plant for retrsatment but most continue en through the. Slag Treating Plant. J!o deleaving coat is applied because tho only by-product ia this section ef the plant is aitbar re circulated or perhaps sold as 0 finished product with Leaded Zinc Oxide. Mr,' Pleyd was questioned about th* craiosion of purchase coot on all ty-products and he stated that there was no purchase cost during the early operation of this plant and he is using a last-in, first-out theory en this material, enly. This inventory is almost entirely estimated and fluctuates very little. SUbFKIDiS CU.C&miATOU BtftUB All!} DISCRSWCISS Zinc Corcrv^raton shirr.*?*! to A.nac.-nda In checking the August oet.tietient for Zinc Concentrates shipped to Anaconda, Montana, the addition to zinc price fer zinc frei^t to East St. Louis was noted as being ,7635# per-pound, or $15.27 per ton. Thi-s was nut auditable frn the infonoation on hand at Tooele because the prevleus rate in March 1951 he'1 boon $15.43 per ton end the last increase on April 4, 1951, was twe percent, supposedly giving a new rate f $15.74 per ton. T>w rate used in August 1951, however, was $15,27, Upon inquiry to Anaconda, Mr. R, N. Kelly replied that the Washoe'Sampler had not been advised of a rat*-' decrease in Febjvaiy 1951 to $14.98 widen would explain the two percont increase to $15*27 in April 1931. Mr. Kelly also stated that Salt Lake was informed tho orror but "docidpd that tho. amount involved did not warrant revinin the settlements.* ' PNYC 00012303 m m BKJGBo iilD DISCREFA'iCXS? - Continuod L3BU3 PLANT Apportionment of Total Treatflieot Ccst In rwr^i^S total cysts to the six Anaconda Copper Mining Compary materials treated and the one cuntn ore classification, thn charge for treating cold slag.at the Blast Furnace* As .deducted from the total treatment co9t as are the current Cadmium Fuming expense. and the current reclaiming expense. This assumeethe Anaconda materials do oot contribute to these expenses and'rice Terse. Then the average cost per ton treated derived from this net cost is applied to the Anaconda materials treated *r.d the balance of treatment cost is applied to the custom ore* In August 1951 the deferred C&taium and reclaiming costs were deducted.From`the total treatment coat instead of the current treatment portion of those operations. This gawa per ton treatment cost for Anaconda materials which was approximately 65# par ton lower than it should have been. It also left a larger treatment coat against custom, ore than was correct. This will be corrected in November 1951 accounts. SjJLG TnZATJ.UO ?hAKT Dolearied Fivno to International Kirar.l9 p.M Ketals Thn freight bill. Bcrtlesville weight, on car U. P. 66460 of deleaded cine fume shows s net weight of 112,900 pounds but using the gross and tareweights, the net ehould have been 111,900 'pounds, Bartlesville weights are used on the settlement and for the freight charge* but not on the Metallurgical Statements, as in transit inventories. Inventory Value of Conyj/ined Zinc Oxide In valuing the consigned stod: of line oxide, it was noted that the transfer value of lead fume was used except for the lead price. Cttirent load price is used in the schedule of lead fuae transferred to the load plant but an older price of $16.04 was used in this csss. Mr. Floyd stated $ . .t.hot current price wauld be us'd henceforth. The August 31, I95I inventory was understated by 580 86 GENERAL With the above exceptions, only a few minor error* and discrepancies were discovered. LEAD PLANT COTTRELL FIRE GENERAL COMMENTS On Monday morning August 27, 1951, just before the I95L strike started, a bad fire broke out In ths Lead Sintering Flant Cottrell. It necessitated the rebuilding of the Cottrell and a portion of the Pluo, which vaa started early in September. On October 22, 1951 enough of the Job v r o completed to allow the Lead Flant to resume operations in part. Tbe fire had shutdown all of the Lead Flant except the Sample Mill and the Fuse Roaster*. The Slag Treating Plant also was closed because of ths loss of its major receipt, hot slag. Some deleading of fume on band was continued in the Slag Plant kiln. The Suplhido Concentrator was not affected and continued its norms! operating runs. COFFER PLANT WRITE-OFF The copper plant was completely written off on Januaiy 1, 1949 as per instructions of Hr* E, 0, Soverwine In his letter of January 17, 1949, to Hr. Floyd, Chief Cleric. The only remaining copper plant inventories on December 31, 1948 were by-products; Reverberatory Furnace Bottoms and Flue Dust end HcDougall Boaster Bottoms and Flue Dust. No entry was available on tbe transfer as the inventories are carried cn the New fork books. The entire copper plant lnvotoi7 of by-product* was included in the Lead Flant by-produets inventory on January 1, 1949. Tbs contents and values of the transferred inventory werv: Load Copper Silver Gold Stabto-- 227,018 lb. 1,039,123 lb* . 45.A5ft.10 o. 424.241 ox. Total Reclaiming Cost IiiH2 2,683.35 69,326.69 15,005.52 13.702.99 *1007leT?iS f1.372.19 PNYC 00012304 16, QRiSKja <x52S225 Col r/si i J.Al'f wr.lTE-.yrF - Continued I'o Metallurgical statem-nts have been prepared for the Copper Plant since 1948* DATE OF U5CE1PT8 As l'* forp. date of receipt depend entirely on availability of final settlement data when the cstinvted profit end lor* figures are submitted to Hew York. This la usually the 12th of the follow ing mouth, Tii* Selt I.?S;o and Tocol* Officos agree on lots to be included and excluded at months end, At\r lots w-ilch lied been physizolly r-coivei and dumped but were not to be.included in the aontto roecipta arc- grooved from the inventory where they were dursped. This ia confusing and easily erratic method ct` arriving at rcnoiptn ivl inventories but Mr* Floyd states that it is necessary because of the need for accuracy in the estimated profit and loss statement. He also has received instructions to in clude only firval silver affidavit figures in hie monthly profit and loss statements. The estimated profit and losn otatement is also the fins! monthly statement, ADJUSTS ITS 'W KliM'v'Z AT NUu\AL ^`VIXISS It is still the practice to adjust, will, various inventories and lnterplant shipments to arrive at wo1*3 noivil racov* ries. In August 1951 numerous changes in weights and assays were in evidence but were not shown a? o.dJusU-onts. The majority of cliftages made were in Lead Plant secondary inventories but stool; pile ren-ovals t.rd interplant movements were also watched and adjusted whon needed. Stock pile removals ere given oiUwr actrel essays or average stockpile assays, depending on desired ' results, i'ljo Sinter serf tc the 'J.lnah Funees from tbo Sinter Plant is adjusted monthly to affect more reasonable recoveries c.t both plants tut dc-vr not affect the overall Lead Plant recoveries. Also, the sine cailent of hot sla.j sent tn ttx* Sleg Treating Plant fivm the Lead Plant ia often adjusted to .-'-it a more rvsnombla recovery at t!o Slag Treating Plant, Cn August 31, 1951 two Sinter Plant inven torize warn net. used at rll So help puLL dor.: an abnormally high recovery. Because of the shortage of maborials aud the Impending stvLUe- August tine a cleanup month. Below is an example of three of tho larger August 31st inventory adjuetnents, the tw? omissions and the Sinter transfer adjustment: InvanterJ os: JjfJU) 5 Pounds COPPED Pounds SILVER Or. Per Ton Ounces GOLD 0s, oer Top Ounces Sinter - A* Taken 27.00 428,501 2.00 31,761 An Uned 21.00 333,275 1.00 15,970 Winter denning* \[i) - An Talien 31.35 981,505 2.01 62,900 - Ap Uf-ed 27-35 759,3V? .073 -?4,056 Dross Hovert Spoirs - As TffceD 8,60 64,125 57.30 430,980 A* Used 0.69 MizlZl 67-39 Total at rk*u Total as Used 1,474.131 1.156,552 525,621 396,363 19.25 13.25 20.705 16.635 72,96 62.96 15,275.26 10,516.16 32,608.36 22,917.10 27,200.95 16_.016.35 74,834.55 49,447.59 .15 .15 .126 .1024 1.04 .66 119.028 119.028 193.534 141.005 387.733 3IU49 700*295 573.202 Dncrsa*'? Crdosicf'^: Yard Clo?ninrs Pelt Cl'3Aung3 Total Invontor^ Decrra** IS.* 12.9 317,579 129,278 ?2,60# 3-6 2.6 6,376 0,71? 383.503 163,393 17.08 9.71 25,636.96 1,038.04 1.816.5? 28,293.59 .12 .09 127.093 ' 7.293 16,856 151.262 Transfer Sinter - -.i Taken 29.20 4,677,236 2.00 306,660 - As l>:d 59.06 ktltiZSJO !.<?*> 278.974 Decreased 21, 1,66 7,666 22.1& 23.168 172,189.59 laz&sua 20,760.88 .26 .278 1,839.960 2.131.207 2V1.327 (1) The dry weight of this n&terial was reduced 375*220 pounds* PNYC 00012305 CKuIKA;- Cl'K::^T3 ATJ.no ff.UNtS TO A:UJ.V_Ar I rbKAh hliXr-SMTps ,, Continued cf p*ct imvco* nt*.l.0.c {*<) .1.01593, as published, are: 17, GOFPElt SILVBt tc = r - J?y? Ycc.r - 3 JArf 3'JIJC .iWi Mil .. 1751 - -ruus 1 ?;il 6,V4l^ U5.G1655 3-9W5E s.mi W7* (3.) These Wi si! losses except alas loos, which is nearly constant. QOLD 4.179# 4.645# 5.565# 4.116# Whil:? it in true that ttv. Tooele Flint has large fluctuation* in content* of ores ant concentrate* traced* Mr-iro nliculd b-* a no** uv.lfiur ?.* .' r ue easily traceable method of leveling these recovery and l?*-* po3cc*:*,o-o.n, Thi >c:t pr>>;:?r*Kle no* vo-.-lc* bo n<ore exact and completo inventories and better assays* Tiv>-v -o bo virplo ari^ayrt,. Ccmpooi*e? .- ht.jvJ to use because of the content fluctuations. After all this is dor* , a'JJvst'-rnta would V? p- 'i v if needed. An abnormally high adjustment vould then teen to ciU for ?-n i)u*s3tj.r*:.ion *.f *Ji>-c allowed, Jn the Montana plant, adjustments are allowed every month end except -U'oo 3'Jth ",ni December 31st. In n discussion with Mv. Carlas nni?n, Swelter Superintendent, ani W, H, Floyd, Chief Clerk, the Auditor 3v:j.;*4$*vt that t,dju trouts bo liiritog to a few specific inventories when needed and that all ad- Jurtment# b*. on the ''Kk she*4 9 as swob sd shown to the management each month. This was readily n-rood to by Jotb wen. In rHsot'.ssin;: irvertny taking, Mr. UenUell agreed with Mr, Floyd that the fluctu ations of th<* contents of treated custom ores fntl concentrates are a major consideration at Tooele and that recovery flurtimti?nr. at*, bound to occur huh in the long, run losses are reasonably constant. He also stated tint tha point of Iona occurrences Pre watched and controlled, making sure that these losses are not chang ing noticeably, VtY'K inquiry by the Auditor, Kr, Bardwell stated that he would be glad te have the operat ing depertaont give specie! *.?si*taoo to Uie cleric at December 31st of each year when tbqy take inventories sni be offers*! to submit vero complete flue and bag house inventories each month at the Lead Plant, where all parti**3 arrived, tbs inventories vers \*y. I>< ttac j.t 1=* >>nl ievp.j t);/t f r*e changes will fiake both departments more cognizant of the causes and effects of those f liv'tusticrs r.ed j.erhpc.ps vd.ll l*rict to their being partially solved, tiZZZ?. 1 -pTAi., RKCiiVEHf V'itOK Fl'RKACS H/nvi.l Removal of the old Copper Pl.vjb Keverfceratoxy Furnace bottoms from 1947 to October 1950 recovered roue Inrjpa excesses in metals o*er t.'io original inventory. All excesses are treated but carry no metals :-r values, The firsi accounting .'ho"-i<i the following excess metals recovery, a* at October 31* 1950: Lead Pounds Copper Pounds Silver ffVEEM Gold Ounces Fumn-ra "o. 3- 560,175 130,740 26,214.34 3,975.129 Mo. U 61,834 17,653 566.82 222,599 This Is r'-'rM'er ruru'*rt to *ho theory recently proven at other plants that the build-up of furnace u-,fr,*rt5 over tho period of opnrsti.mo tends tc be considerably conservative* 7h<* recoveries of p?st ?or*05 she* np Ir higher current recoveries as in ths case of any metals with.1r*un from cold olsg ?t the *.] as t France FIant, COJCUftlCff Ths J.oM and Slag Treating riant 3 were shut down from August 27th to October 21, 1951* inclusive, as a renalt or a strike and ? fire, ' oth of uUich began on August 27, 1951, A new Lead Plant Sinter Cottrell wj.s built rb ring the e-rutdovp. All rosining Copper Plant :!.TV'iitorio? were transferred to the Lead Plant on Januaiy 1, 1949* Ko Copper Plar.t tatavents have v>een drawn up r,ir.ue that date. PNYC 00012306 COMCmSIPH 18, During the audit, the ro'-lovdng major points vsro brought up nd preceding report: dicued in more detail in the (1) The necessity of ccupiling a final profit and loss statement by the 12th of the following month makes it necessary to eliminate some receipts from the physical inventory. (2) The Auditor observed the taking of inventory at four different date* The operatic department has offered to submit mere dntn on wonUdy Lead Flant Flue System* inventories. They alto will assist in all December 31t inventories, (3) Nusi-roua adjustment* were made in August intorplant shipments and August 31st inventories* The plant management has agreed to limit those adjustments to a few specific materials and to show them on the work sheets. (A) The Hew fork Office is herein asked to clarify the desired inventory valuation procedure. The methods used are changed at will to facilitate recoveries and to hold low costs and all parties concerned d>*>*ure written instructions. Only a few errors and diecrepencise wre uncovered during the audit. Th* work sheets and statement* audited appeared .to bo in coed ordnr and to follow the Anaconda Comparer Ketallurgical standards with the *hov noted exceptions. The Ketallurgical staff was cooperative and their work was neat and accurate. PNYC 00012307