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Saint Joseph Lead Company Annual Report -- 1964 America's Corporate Foundation; 1964; ProQuest Historical Annual Reports Pg- 0J lA0 and/or Zifte . AREJMPQRTANT .'..nmms . Adhesjye Tap - Aircraft' /, Ammunition ; Appliances : Automobiles ; y* SeaBroinltgs.s Brass Buses"'?; .' /: % Business Machines /CableSheathing / Canning . . Cartridges / Cathodic. Protection Ceramics ,' ; Chains. - : Chemical Storage Collapsible Tubes r:': Condensers -r~ Cosmetics ? ' tDe'ijtal&MiC/ ; Die Castings piesifry Cell Batteries /f'-jByes? . . Dynamite i Electrical Fittings ^ Electroplating v Engravers' Piates / .Fencing .. - ` * Fertilizers ' 'Flashing., j, ' 'Food "; t i 'i . % Forgings \ 7 Galvanized Steel // Gaskets Gasolines ; A. Glass \ ' Glazes- . A; Glue. . , : Golf Balls : ; Gutters, Insulation ' Jar Topsflighting fixtures Linoleum . Medicines ' ' coKTifsura ONI SACK COVER ? Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY Incorporated March 25, 1864, under the laws of the State of New York executive office 250 Park Avenue, New York, N.Y. 10017 BOARD OF TRUSTEES YFAR ELECTED Andrew Fletcher*............................... .. . ... .................................................................... Chairman George I. Brigden*................................Retired Vice President and Treasurer, St. Joseph Lead Company Francis Cameron* .................................... ................... .. ;........................ .................. ..................... President Bernard F. Desloge....................................................... Vice President, Minerva Oil Co., St. Louis, Missouri 'Eli Whitney Debevoise* .................................... Debevoise, Plimpton, Lyons & Gates, New York, N. Y. 1921 1944 1953 1953 1954 James W. McAfee........................President, Union Electric Company of Missouri, St. Louis, Missouri 1954 David R. Calhoun.......................................................................... President, St. Louis Union Trust Company 1957 Joseph Pursglove, Jr............................................ Vice President, Consolidation Coal Co., Pittsburgh, Pa. 1959 Plato Malozemoff.............................................................................President, Newmont Mining Corporation 1961 Guido F. Verbeck, Jr..................Senior Vice President, Morgan Guaranty Trust Company of New York 1961 Elmer A. Jones .......................................................... .. ... . .Division Manager, St, Joseph Lead Company 1963 Lawrason Riggs III*............................................................... Vice President 1963 Robert H. Ramsey................... ...................................................................................................Vice President 1964 Member of Ec,n e Commmee EXECUTIVE OFFICERS Andrew Fletcher, Chairman Francis Cameron, President James G. Colvin, Treasurer Malcolm Bonynge, Vice President -- Sales D. Broward Craig, Secretary John R. Englehorn, Vice President William L. Murphy, Jr , Comptroller & Assistant Secretary Robert H. Ramsey, Vice President Edward P Merrell, Assistant Treasurer Lawrason Riggs 111, Vice President Frank J. Reidy, Assistant Comptroller MANAGER OF EXPLORATIONS Norman H. Donald, Jr. UNITED STATES DIVISION MANAGERS Mines Elmer A. Jones, Southeast Missouri Marshall G. Jones, Baimat-Edwards, N.Y Smelters John W. Sherman, Herculaneum, Missouri Charles D. Henderson, Josephtown, Pennsylvania CIA MINERA AGUILAR S A.. ARGENTINA Wing L. Lew, Managing Director CIA MINERALES SANTANDER, INC.. PERU Cimton L. Miiier, Vice President & General Manager MERAMEC MINING COMPANY Robert G. Peets, Resident Manager ,--f--~------- -- GENERAL COUNSEL AUDITORS Debevoise, Plimpton, Lyons & Gates Haskins & Sells 320 Park Avenue, New York, N.Y. 10022 Two Broadway, New York, N Y. 10004 TRANSFER OFFICE St, Joseph Lead Company 250 Park. Avenue, New York, N Y. 10017 REGISTRAR . The First National City Bank 55 Wall Street, New York, N.Y 10005 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1964 ANNUAL REPORT St. Joseph Lead Company CONTENTS Highlights 2 Letter to the Stockholders 3 Lead and Zinc--Essential Elements in American Life 5 Review of 1964 Operations , 13 Financial Review Inside Back Cover The 1965 Annual Meeting of the Stockholders will he held Monday, May 10, at the Sheraton-East Hotel, Park Avenue and 51st Street. New York, at 11 00 a m All Stockholders are cordially invited to attend If you are unable to attend, please vote by proxy A proxy and proxy statement will be mailed to you on or about April 9, 1965 Reproduced with permission of the copyright owner! Further reproduction prohibited without permission. H I GHLIGHTS 1964 1963 Sales of metals, etc............................................................................ $ 109,509,039 $75,598,525 Federal and State income taxes.................................................... $ 6,521,990 $ 1,651,971 Net income (after taxes) and special credit -- 1964 .............. $ 20,244,494 S 9,903,773 Dividends paid: Cash .............. ............................................................................... $ 7,588,828 $ 3,763,404 3-for-2 stock split effected in the form of a stock dividend................................................................ 50% Shares of capital stock outstanding............................................. 4,560,077 3,028,217 Per share on capital stock: Taxes on income..................... ..................................... $1.43 $0.361 Net earnings (and special credit -- 1964, $0.51).............. $4.44 $2.17 Dividends .............................. .. . i. iV. .............. .. $2.25 $1.25 Current assets.................................................................................. $ 70,071,803 $45,422,385 Current liabilities ........................................................................... $ 14,222,293 $11,352,128 Net current assets........................................................................... $ 55,849,510 $34,070,257 Ratio of current assets to current liabilities.............................. 4.93 to 1 4.00 to 1 Long-term debt (excluding amounts in current liabilities). . $ 30,388,098 $17,095,240 Cash ............................................ ...................................................... $ 3,281,913 $ 3,761,225 Short-term marketable securities ............................................... $ 44,932,844 $21,344,579 Capital expenditures (excluding Meramec Mining Co.).... $8,050,$2134,186,963 Number of employees................................................. 3,736.6921 Number of stockholders ...................................................... 9,107 8,772 Stockholders' investment in the business: Total .............................................................................................. $104,778,131 $91,795,960 Per share...................................................................... $22$.9280.21* Adjusted to reflect the ,Vfor-2 stock split cfTected September 30, 1964. 2 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. St. Joe Top Management -- Seated, left to right: Lawrason Riggs III, Vice President; Andrew Fletcher, Chairman: Francis Cameron. President; Robert H. Ramsey, Vice President. Standing: John R. Englehorn, Vice President; James G. Coivin, Treasurer; Malcolm Bonynge, Vice President; D. Broward Craig, Secretary. To the Stockholders: 1964 -- the 101st year of operation of your Company profit of $2,332,715 after taxes -- or 510 per share -- -- was one of accomplishment. It brought record earn- from the sale of its equity interest in the Missouri- ings, an increase in dividends paid, and capacity pro- Illinois Railroad Company. The total net income for duction. Back of this record are two major influences: ^le ^scal year was 520,244,494, or $4.44 per share, a sustained demand for St. Joe's principal products; In 1963 net income was $9,903,773 -- equal to $2,17 and expanded production from our investments in new per share after adjustment for the 3-for-2 stock split mines and facilities which allowed the Company to which was distributed on September 30, 1964. In take full advantage of this demand. comparing earnings for 1964 with 1963 it should be In the center of this Report is a special section realized that 1963 earnings were affected by a strike which has been prepared to illustrate the end uses for at our lead operations which was not settled until St. Joe's lead and zinc products. These metals -- not April 1st of that year. as spectacular in the public mind as some of the so- Total cash dividends paid amounted to $7,588,828 called exotic or glamorous new materials -- are, never- or 32.25 per share, theless, essential to today's standard of living and will There were several reasons for improved earn- continue in this role for the foreseeable future. In the , *ngs in 1964; back pocket of the Report are the detailed financial First: The expansion of the Josephtown zinc and production statements. smelter during recent years has increased plant Earnings from St. Joe's operations reached an capacity from approximately 100,000 tons to all-time high of $17,911,779 in 1964, or $3.93 per more than 175,000 tons per year of slab zinc share on the 4,560,077 shares outstanding at the end equivalent. Along with this St. Joe has expanded of the year. In addition, the Company realized a net r its output of Special High Grade zinc metal, Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. used chiefly in die casting, with the result that we have materially broadened our market base for zinc. Second: A higher percentage of the Company's lead production now comes from newer mines with better grade and lower cost ores treated at more efficient plants. Third: The Company's income in 1964 from its foreign operations was unexpectedly high, amounting to $4,180,364 or the equivalent of about 870 per St. Joe share after taxes. Metal products in those countries where we have for eign operations enjoyed a high rate of consumer demand. Fourth: The Company benefited materially from the steady rise of metal prices throughout the year. On January 1, 1964 the New York selling price of lead was 12140 a lb., and zinc at St. Louis was 130 a lb. By the end of the year the lead price had risen to 160 and zinc to 14140. Foreign prices for both metals, throughout the year, averaged somewhat higher. Also, due to the unprecedented demand from metal con sumers, domestic inventories of metals and concentrates were reduced to minimum work ing levels, and our foreign affiliates sold sub stantial tonnages of lead and zinc concentrates from accumulated stocks on the world market at advantageous terms. j. To sum up, then, 1964 was to a great extent a record year for us because we began to realize returns from our investments in exploration, modernization and expansion of facilities made in previous years. To continue our program of modernization and expan sion, our capital expenditures in 1965 will be approxi mately $12,000,000. On August 18, 1964 the Board of Trustees de clared a 3-for-2 stock split, to be effected in the: form of a 50% stock dividend, payable to shareholders of record at the close of business on August 28th. The reason for the stock split was primarily to capitalize a portion of the earnings that had been reinvested in the business, and to effect a market price for the stock at a level more attractive to individual investors. As this is written, our mines and plants are operating at capacity rates and demand from our customers continues at an all-time high. With both producer and consumer inventories at extremely low levels for both lead and zinc, it would appear that the price structure will continue firm, unless, of course, there should be a major dislocation of the economy because of strikes or unfavorable world developments. A number of changes occurred in the ranks of corporate Officers and Trustees during the year: In April, Charles R. Ince, Vice President for Sales and a Trustee of the Company, died sud denly. Mr. Ince served St. Joe with distinction for over 35 years and his loss has been keenly felt by the Company and by the industry. Robert H. Ramsey, Vice President of the Company, was elected to the Board to fill the vacancy caused by Mr. Ince's death. The Board of Trustees also elected Malcolm Bonynge and John R. Englehorn Vice Presidents in April. Mr. Bonynge is responsible for our sales activities, and Mr. Englehorn for raw mate rial purchases, legislative matters, and indus trial association activities. In August, William J. Elliott, Assistant Secre tary, also died very suddenly. Mr. Elliott had served the Company faithfully and efficiently for over thirty years. Mr. Frank J. Reidy, formerly associated with the accounting firm of Haskins & Sells, was ap pointed Assistant Comptroller of the Company in June. In December, D. Broward Craig was elected Sec retary of the Company to succeed Donold K. Lourie, who resigned. Mr. Craig came to us from the law firm of Debevoise, Plimpton, Lyons & Gates, who have been our General Counsel for many years. We, in St. Joe, are proud of our 1964 accom plishments and of the people who made them possible. We thank employees and stockholders for their con tinuing support, without which the programs that have made possible our growth, could not have been accomplished. Sincerely, Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Lead and Zinc Essential Elements in American Life Roman coin of orichalcum, a zinc alloy, minted about 40 B.C. Lead ingots being poured at St. Joe's smelter in Herculaneum, Mo. The Company is the largest miner of lend in the country. St. Joe's zinc smelter at Josephtown, Pa. is the largest in the United States. Drawing shows zinc slabs being cast there. Although lead and zinc have been important to man since prehistoric times, they are more valuable today than ever before. Industrial designers and engineers are specifying these metals, their alloys, and their compounds for an extremely wide range of important jobs because they perform them better than any other materials. As a result, lead and zinc have become woven into the very fabric of American life -- often, however, in ways which may be unfamiliar to the average investor. , Since St. Joe is an important producer of both metals, we felt that our stockholders would be inter ested in a brief survey of what lead and zinc mean to American industry. The uses described in this gatefold are only a few among thousands which make this country the world's largest consumer of the two metals. Present indications are that the uses of lead and zinc will be enlarged and extended, and that these elements will prove even more vital in tomorrow's civilization than they are in today's. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Why Lead Is a Valuable Metal Lead has great weight in small volume, density, imperme ability, comparative softness which makes it easy to work, high resistance to corrosion, virtual indestructibility. The chemical properties of lead are also of great importance, Although chemically stable itself, lead forms hundreds of alloys and compounds which can be tailored to fit the requirements of manufacturing processes. They account in great part tor the present widespread use of lead, and for its future promise. "" STORAGE BATTERIES 36% Storage batteries -- the most dependable devices by which electric energy can be produced and stored for future use -- are more than 90 percent lead. The bat tery plates are made of a lead-based alloy onto which is pasted an electrolytically-active mixture of lead oxide and other forms of lead. ANTI-KNOCK ADDITIVES 18% The addition of lead alkyls to gasoline is the most economical method for boosting power and perform ance. The best-known of these anti-knock additives is Tetraethyl Lead, often called TEL. Ninety-eight per cent of all automobile gasoline contains lead -- from 2 to 2Vz grams to every gallon. CONSTRUCTION 10% The wide use of lead in construction stems from its corrosion resistance, comparative flexibility and soft ness, and low melting point. Engineers are constantly finding new solutions to their building problems by adapting lead and its alloys to meet the requirements of the job at hand. SOLDER 6% Lead solder, in the double role of joining metals and filling and smoothing metal surfaces, takes an increas ing amount of lead, year after year. Easily melted, it hardens quickly, makes a firm, stable joint or surface. The form of solder and method of use are capable of many variations, depending on the job to be done. PAiNT COMPOUNDS 4% h Lead in paint becomes an integral part of the painted surface. It produces a tough, flexible film which offers high resistance to weathering. Many lead-based paints are rust mhibitive, and are therefore widely used for exposed steel surfaces Lead-based paints also provide a good surface for repainting.* OTHER 26% In this category are many uses: ammunition, cable sheathing, weights, ballast, type metal. There is a growing trend to explore and utilize lead's many other properties, notably in coated metal for roofs, in bear ing metals, collapsible tubes, and sonar equipment. * Estimated from U.S. Bureau of Mines Statistics FOLD OUT Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. &lll||pl USES OF ZINC IN 1964 .} Why Zinc is a Valuable Metal Zinc combines three very desirable qualities: compara tively light weight, hardness and durability, and a low melting point Zinc is also highly resistant to corrosion and is able to impart this resistance to iron and other vul nerable metals. It combines with other elements, notably copper, to produce a wide variety of usetul alloys. DIE CASTINGS 42% Zinc is used for making die castings because it molds quickly and easily into simple or complex shapes, requires relatively inexpensive tools, and accepts many finishes, notably chrome-plating. BRASS 12% Brass is an alloy of zinc and copper. Its properties can be changed by varying the proportions. Brass can be beaten, drawn into wires, tooled and die-cast. It is among the most corrosion-resistant of all metals. OTHER 4% About three-quarters of this category is pure zinc from which a special high-grade zinc oxide and zinc metal pigments are made. Zinc oxide, as an independ ent product, is also important to American industry. thus preserve its strength, serving as an effective shield which continues to protect, through electro-chemical action, even if it is broken. ROLLED ZINC 4% Zinc is ductile and malleable and is. therefore, easily worked into a wide variety of shapes and forms rang ing from sheet to ribbon to wire, its inherent resist ance to corrosion is valuable indoors or out "-Estimated from U S. Buicau of Mines Statistics USES OF ZINC OXIDE IN 1964* ZINC OXIDE Why Zinc Oxide is a Valuable Compound Zinc oxide is u Huffy white powder made up of extremely fine particles. It has hundreds of industrial uses as a pig ment and a chemical and is important in a wide variety of manufacturing processes. RUBBER 55% Zinc oxide is indispensable in vulcanizing rubber. It adds strength, dissipates heat, and extends service life. CERAMICS 6% As an important ingiedient of ceramic glazes, zinc oxide's function is to assist m successful firing. y Estimated PAINTS 20% Durability, lasting color, resistance to mildew and erosion are qualities which zinc oxide brings to paint. OTHER 19% Other valuable uses of zinc oxide are in ointments, medicines, fine chemicals, plant foods, sod builders Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. SBBnsmMMEMM Storage Batteries I The largest use ot lead is in storage batteries, vital to transportation, communication, elec tric utilities and virtually every other Amer ican industry. Lead storage batteries furnish power for starters, ignition, lights, radios, and other accessories in cars, trucks and buses. They provide emergency power for hospitals, theatres, stores, and many other installations. They are in almost everything that moves -- aircrait, ships, boats, farm machinery, con struction equipment, and materials-handling trucks. In 1964 alone, 39,000,000 automotive batteries were manufactured in America. Our 82,000,000 motor vehicles, with their number growing yearly, arc a huge market for replace ment batteries. t Gasoline The second largest use ot lead is as the active component ot anti-knock additives -- lead alkyls - which markedly improve the per formance of automotive and aviation gaso lines. These high octane gasolines make possible the smooth, powerful performance ot high compression automobile engines. Today, virtually all automotive gasolines contain lead. The magnitude ot this use can be under stood trom the lact that automotive traffic in the United States moved about 800 billion miles in 1964, and that it is increasing at a rate ot 2'T percentor20billion milesperyear. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ESSENTIAL ELEMENTS Construction Today's building boom has brought this use of lead to a new high. Lead serves a multitude of uses in plumbing. Other large and growing uses are for roofing, waterproofing, calking to fill joints, sound attenuation, and insulation against vibration caused by highways and railways. ! Paints Red lead (above) is the world's standard primer for iron and steel, and lead-based sihco-chromate paints give excellent pro tection for metal surfaces. Other well-known lead paints are the brilliant yellow used for traffic markings, and white lead, renowned for water resistance out of doors. Solder Three industries are the chief users of lead solder; automotive, electronics, and canning. Lead solder is easy to work, makes a strong, serviceable joint, and is adaptable to almost any set of conditions. As a filler for automobile bodies, it produces a smooth, even surface for painting. Peacetime uses of ammunition are growing because of the great public interest in the sport of shooting. Hunters account for a large amount of ammunition, and public shooting clubs, lighted for night use, and offering skeet, trap and rifle shoot ing, are increasingly popular everywhere. Cable Sheathing As a protector of power and communications lines, either alone or in combination with other materials, lead has no equal. Lead used for this purpose is virtually indestructible underground and underwater, in many circumstances there is no acceptable substitute for lead. Type Metal The traditional type metal is an alloy of which lead is the chief component, with antimony, tin, and sometimes copper. Its low melting point makes it easy to use in typesetting machines, and it produces an exceptionally true impression of the mold, which results in clear, clean printing. ii a For centulies, the presence of lead in glass, porcelain enamel, and in the glaze of ceramics has been a measure of their qual ity. Lead adds brilliance and clarity. It gives resonance to crystal and adds the properties needed for making durable, color-true enamels and glazes. Lead has natural qualities of lubrication and resistance to wear which recommend its use in wheel bearings, In addition to railroad car journal bearings above, lead bearings have impor tant automotive applications. They arc also used in diesel engines, steel mills and all kinds of electric motors. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. \ IN AMERICAN LIFE ZINC Die Castings Die castings of zinc arc precise, rugged and corrosion-resistant. They can he made fast, inexpensively and in volume, in a wide range ot sizes, and in shapes of almost any com plexity. They are easily machined, readily plated with chrome and other finishes. For all these reasons, the use of die castings, espe cially in the automobile industry, has more than doubled during the past twenty years. The 1965 model passenger automobile con tains about 90 pounds of zinc die castings. The largest casting made to date is an instru ment panel in a single piece. Zinc die castings are also essential components of tractors, vacuum cleaners, power mowers, office equip ment, and almost every conceivable machine and appliance. Galvanizing Every year, millions of tons of steel and other metals are protected against rust and corro sion by galvar izing -- coating them with a thin layer ot zinc which continues its protection even it broken or pierced. Galvanized prod ucts take many forms, tor many uses: sheets tof rooting and siding of industrial and farm buildings, for air conditioning and ventilating ducts, for culverts and highway guard rails; galvanized steel wire for tarm fences, bridges, telephone and telegraph cables. Two growing uses tor galvanized steel are structural beams and automobile bodies. In tact, any steel prod uct which requires effective, inexpensive pro tection against corrosion is likely to be gal vanized with a zinc coating. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ZINC Brass The alloy of zinc with copper results in a metal of great strength and hardness and. superior corrosion resistance. Its use is growing and we see it in thousands of forms, from and irons to marine hardware, from screws to powder compacts, from water pipes to musical instruments. Rolled zinc finds its greatest use in dry cell batteries where it serves both as the container and as an active chemical element of the power cell. It is also used for radio and television condensers and tube shields, and for engravers' plates in both letterpress and offset printing. Weather Stripping &: When exposed to weather, zinc forms its own protective eclat ing and therefore makes an excellent material for weather stripping. Other outdoor uses of zinc are leaders, down-spouts, gutters, terrazzo stripping, and termite shields. Zinc will not stain painted walls and can be set in concrete. Cathodic Protection Through electro-chemical reaction, iron, steel, and other metals are protected by zinc against corrosion. Under earth or water, zinc bars or "anodes" need only be connected or attached to the other metal, as is the zinc collar to the pro peller shaft in the drawing. ZINC OXIDE Automobile Tires More than half the zinc oxide used in America goes into rub ber. It is essential in the manufacture of both natural and syn thetic rubber. Also, by protecting white-wall tires and other while rubber products from the rays of the sun, zinc oxide keeps them white, prevents cracking, and helps insure long life Paints The second largest use of zinc oxide is as an additive in paints, to help them retain their original color. Zinc oxide has good hiding power and helps protect paint against mildew, and the eroding effects of wind and weather. Most paints intended for exterior use contain zinc oxide. Zinc oxide is an important ingredient in the glaze of bathroom ceramics. It also assists in the proper working-out of ceramics manufacture. In opaque glass, zinc oxide serves as the princi pal pigment agent. In still another related use, it controls the colors in ruby and opal glass. Zinc oxide has soothing and healing qualities which account for its use in ointments and lotions. It is an ingredient of insulin. It is also used in dandruff shampoo and in medicinal powders, because it resists fungus. Adhesive tape owes its sticking power to the action of zinc oxide. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Important Elements in America's Future On the preceding pages, we have shown why lead, zinc and zinc oxide are valuable materials and are used for many important jobs in American industry. For the future, St. Joe is actively seeking new and better uses for its products through continuing pro grams of research and development to expand present uses, as well as to create new markets for these products. This work is being conducted in our own laboratories; by independent scientific organizations on a contract basis; and by the International LeadZinc Research Organization, which is currently administering more than fifty projects designed to expand the uses of lead and zinc. The following is a partial list of the areas in which research is presently being pursued; LEAD ZIMG D-S Lead... (Dispersion-Strengthened Lead) is being inves tigated us u new lead material having superior resistance to creep and abrasion, that would have a wide variety of uses, such as better storage batteries tor automobiles, hand power tools and other appliances. Among the design advantages ot such batteries are longer life, improved rechargeabiluy, and lower cost. Flame-Sprayed Ceramic Coatings... New ceramic glazes, with lead as an important component, arc being developed for such uses as coating lor concrete blocks, structural steel members, glassware and other materials. This material would be flame sprayed rather than fired in a kiln and would make it practical to coat or patch material at both the point ol manufacture and in the field. Such a develop ment could well clTect a revolution in the appearance'of the exteriors of new buildings as well as in the techniques lor their construction. Protective Chemicals . .Chemical lead compounds, for pro tecting wood, cotton and wool labnes, and other materials against insects and lungus, are being researched. Such chemicals would have application to wooden piles and docks to repel marine borers, on railway tics and trestles to resist termites, and lor similar uses. Sound and Vibration Attenuation... Lightweight lead sheet is being perfected, w'hich would serve to control sound and vibration in walls, partitions or ceilings m hotels, motels, office buildings and factories. Structural Uses... Development work is being conducted on wrought zinc products, such as extrusions for door and wandow t r.imes, and architectural hardware such as lead ers and gutters, knobs, locks, handrails, etc., to take ad vantage ol zinc's resistance to corrosion and its ability to accept a variety ol finishes. Other Current Development Work... A wide variety of other potential uses ol zinc are being investigated, such as lightweight storage batteries, bonding of zinc to itself and other materials, improved corrosion resistance of plated zinc die castings, wrought zinc applications for auto mobile trim, galvanized steel reinforcement bars in conciete and prestressed concrete members, zinc dust primers lor painting ol automobiles, structural steel work and marine structures, zinc for shot blasting steel to give it temporary protection against corrosion, and application to cotton textiles to improve their weather resistance. Current Zinc Oxide Development Work.. .The uses of zinc oxide are already numerous and varied, but additional research is being conducted m its possible uses as an ingre dient in coating photo-copy paper (which would make it possible to make color reproductions on office copiers)... to improve color control and increase strength ol struc tural clay products... as a component ol paints to pre vent blistering .. . lor improved glazes for such products as electrical insulators . . . and in specialized glasses required for rockets and missiles. In addition, basic re search is being conducted to determine how much zinc is necessary lor development ol plant and animal organisms. 12 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Twin rotary-percussion drills on self-powered jumbo shown above can each penetrate rock at average rate of 5Vz feet per minute. Review of 1964* St. Joe Operations LEAD OPERATIONS The Company's mining and milling operations in south- . and to sell about half of the tailings from its milling east Missouri -- comprising the Federal Division, the operations as agricultural limestone. Indian Creek Division and the Viburnum Division-- To develop a portion of the Indian Creek mine, were on a 40-hour a week basis throughout the year. north of the main orebody, plans were formulated for f Ore milled at these properties during 1964 totalled sinking a new shaft (No. 32). This ore will be trucked i 5,120,082 tons, as compared with 3,353,861 tons in to the Indian Creek mill -- 1 Vz miles distant. At the ) 1963, when production was suspended for the first Viburnum plant development work was completed at t three months because of a strike. shaft No. 29, which began production on November 1, > The Federal Division is composed of eight mine 1964. At Viburnum and also at Indian Creek drilling units and a concentrating mill, with a capacity of of holes for blasting is being done by self-propelled 12,000 tons of ore per day, located at Flat River, Mis two-drill jumbos like the one at the top of this page. 1 souri. This complex is connected by an underground St. Joe worked with the manufacturer for more than rail network consisting of more than 250 miles of eight years to develop this equipment, which is help track. During 1964, in addition to lead concentrate, the ing set new records for production. Operated by one Federal mill continued to produce copper concentrate man, the jumbo can drill 1,000 feet of 1 !/2~inch hole in Trucks haul ore from new No. 29 mine at Viburnum to mill 4>/2 miles away. Each truck can carry 30 tons at up to 30 m.p.h. Versatile Transloader, which can load and carry six tons of rock at up to 23 m.p.h., operating underground at Viburnum. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. November, 1963 -- Aerial photograph shows Fletcher plant site five months after development work was started there January, 1965 -- The same site fourteen months later, showing substantial progress in construction of surface installations. one 8-hour shift. The Transloader is also proving most valuable in mining operations at Viburnum, where each of these machines is currently handling an average of 575 tons of rock per shift. During the year the Viburnum mill reached its planned capacity of 7,000 tons of ore per day and began producing zinc conccntrates in addition to its lead concentrate output. A 2,800-foot hard surface aircraft landing strip at Viburnum was also completed. At the new Fletcher plant, fifteen miles south of Viburnum, development work proceeded satisfactorily during the year. Shaft No. 30 was sunk to a depth of 980 feet, and preparations were made for the sinking of a companion shaft (No. 3 1) for ventilation, men, and supplies. Considerable progress was made in construction of surface installations, including the service building and the mill, which will have a capacity of 5,000 tons of ore per day. An airstrip similar to the one at Viburnum was also completed during 1964. The Fletcher plant is expected to go into production late in 1966. During 1964 the lead smelter at Herculaneum, Mis- souri, operated on a two-furnace basis for 9 V2 months and on a three-furnace basis for 2Vi months, achieving the record production of 117,634 tons of pig lead, as compared to 81,319 tons in 1963, when a strike at the Company's mines curtailed its output. Early in the year work began on an expansion program, to cost about $ 1 1,000,000, designed to increase the capacity of the smelter from its present 1 10,000 to more than 200,p00 tons of refined lead per year. Design of all phases of this project is well advanced, and some construction is under way. Principal areas of expansion include a new thawhouse (see below); an improved system for unloading raw materials; enlargement of the blast furnaces and alterations in the facilities for charging them; and construction of a plant which will simplify the handling of dross and increase the capacity of the refinery, in addition, a new updraft-type sinter plant will be built, with construction scheduled to start in June, 1965. All utilities serving the plant are also being expanded and modernized. Completion of the Herculaneum expansion program is expected about September, 1966. Capacity of Herculaneum lead smelter is being almost doubled by present expansion program, to be completed lute in 1966. New thawhouse at Herculaneum, shown below, will uccommodate 24 railway oie cars, quadrupling the present facilities ' ' ' > > 1 , t Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Hoisit for new countershaft at Edwards mine was installed at 1.300-foot level and placed in operation early in 1965. ZINC OPERATIONS During 1964 mining and milling operations at St. Joe's mines at Balmat and Edwards in northern New York State produced 114,383 tons of zinc concentrates and 1,224 tons of lead concentrates, as compared with 99,248 tons of zinc concentrates and 1,643 tons of lead concentrates in 1963. The Balmat mine set an all-time record by producing an average of 2,029 tons of ore per day, from which were extracted 335 tons of zinc concentrates. Due to the heavy demand for zinc, the work week at both the Edwards and Balmat mines was increased from 40 to 48 hours on August 1, 1964. At the end of the year, the program to increase the production of the Edwards mine from 410 to 600 tons of ore per day was proceeding on schedule, with com pletion expected before the target date of July I , 1965. This work includes deepening the present countershaft by 600 feet, installing a new hoist (sec above) and placing a new flotation circuit in the Edwards concen trating mill. St. Joe's zinc smelter at Josephtown, Pennsylvania, also established all-time production records during 1964. The zinc content of metal and oxide production was 193,444 tons for the year as compared with 174,089 tons in 1963. In January, 5964, an addition to the smelter's facilities for producing Special High Grade zinc was completed and went into operation. This addition increased refinery capacity from 2,200 to 3,700 tons per month; subsequent process develop ments have increased this capacity even further. Also installed during the year was a new bag collector for recovering metallic dusts from sinter machine gases prior to their entering the atmosphere. In 1964 the Division's Research Department and its Metal Prod ucts Development Laboratory were transferred to a New flotation circuit at Balmat concentrating null has increased productivity of operation Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. New equipment for Josephtown research laboratories includes Casting 2,400-pound ingots in Josephtown smelter's newly-exinstrument for analyzing particle size of metal powders. panded facilities for producing Special High Grade zinc metal. reconditioned building where adequate facilities and modern equipment were installed. One of the first programs to be undertaken by the Laboratory will be in connection with dispersion-strengthened lead, During the year the Division developed methods for producmg zinc billets for extrusion, in a wide variety of alloys, on a commercial scale. Methods for production of zinc dust also were developed. In addition a number of studies were carried out in connection with the use of zinc oxide in the photo-copying industry. By the end of the year, the Division was supplying this material to the trade. IRON OPERATIONS , The Pea Ridge mine of the Meramcc MiningCoriipany, oitb. Hematite concentrates currently produced are be our joint venture with Bethlehem Steel Corporation, ing pumped to a storage area for later treatment. began producing high-grade iron ore pellets towards A phosphorus concentrate is also being recovered, the end of the first quarter of 1964. This modern, and the potential of this material is being investigated. highly automated facility (exemplified by the car- Production steadily increased over the year and, by loader pictured at right) produced and shipped 817,000 year end, had reached a rate of 1,200,000 long tons. long tons of pellets by year end. Meramec's pellets are The target production rate for 1965 is 1,500,000 long in demand because of their high iron and low silica tons of finished pellets. content. Due to start-up delays, the 1964 production was below our original target of 1,000.000 long tons for the year. Because of a lower rate of production, and the fact that development work at the mine was car ried on at a higher than normal rate, Meramcc showed an operating loss for the year. St. Joe's share of this loss amounted to $923,872, and after tak ing depreciation and deferred development costs was 1 $1,908,311. We did receive from Meramec a royalty payment of $ 1,250,000 -- and therefore the book loss after all charges to St. Joe was $658,311. The underground development work and diamond drilling during the year indicated large additional ton nages of hematite ore that were not considered in tjie reserves of the original magnetite orebody on which the operation was predicated. This ore will add sub stantially to Pea Ridge total iron reserves. We are i; presently investigating methods of best utilizing this i Remote-controlled car-loader fills moving railroad cars with 100 tons of pellets at the rate of a car every two minutes. L Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission -Contents .. . ' 'i St. Joseph Lead Company and Consolidated Subsidiaries Balance Sheet Statements of Income and Retained Earnings Notes to Financial Statements ; Accountants' Opinion Comparative Financial Review 1955-1964 Working Capital Analysis 1955-1964 General Statistics 1955-1964 Lead Statistics (U. S. and St. Joe) Zinc Statistics (U.S. and St. Joe) Compnnia Mincra Aguilar, S A. Balance Sheet Statements of Income and Retained Earnings Notes to Financial Statements/ Accountants' Opinion Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. St. Joseph Lead Company and Consolidated Subsidiaries CONSOLIDATED ASSETS 1964. 1963 Current Assets: Cash............................................................... Marketable securities (at cost).............. Accounts receivable ~ trade...................... Other accounts receivable................... Inventories (Note 1): Lead, zinc, etc........................................... Materials and supplies.......................... r. , r /. $ 3,281,913 ' i 44,932,844 9,885,059 918,509 $ 3,761,225 21,344,579 7,087,959 1,914,245 5,241,508 ' 5,811,970 $ 70,071,803 4,805,491 6,508,886 $ 45,422,385 Investments and Advances (Note 2)............ 25,192,184 24,839,162 Property, Plant and Equipment (Note 3) . . . Less accumulated depreciation and depletion.......................................... 145,505,033 94,089,993 138,564,706 51,415,040 90,931,628 47,633,078 Other Assets: Securities on deposit with Governmental agencies.................................................... Cash and marketable securities -- Fire Insurance Fund (sec contra) . . . 963,812 360.743 1,324,555 964,193 333,626 1,297,819 Deferred Charges: Deferred shaft sinking, development and exploration charges (Note 4).............. Other deferred charges.......................... 4,890,212 813,807 5,704,019 3,790,379 628,710 4,419,089 Total.............. ............................................ $153,707,601 $123,611,533 See Notes to Financial Statements. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. BALANCE SHEET DECEMBER 31, 1964 AND 1963 LIABILITIES AND STOCKHOLDERS' EQUITY 1064 1963 Current Liabilities: Accounts payable and accrued liabilities. $ 7,226,971 Long-term debt due within one year (Note 5)................................................... 4,282,143 Federal income taxes........................... 2,713,179 $ 6,009,811 $ 14,222,293 4,282,143 1,060,174 $ 1 1,352,128 Long-Term Debt (Note 5) ........................... 30,388,098 17,095,240 Deferred Federal Income Taxes -- related to accelerated amortization and depreciation 2,978,452 2,061,910 Reserves: Injury claims and workmen's liability insurance.............................................. . Employees life insurance andretirement Fire insurance (see contra)...................... 71 7.374 262,510 360,743; 1,340,627 682,782 289,887 333,626 ,306,295 Stockholders' Equity (Notes 5 and 6): Capital stock, par value S10 per share: Authorized--5,000,000 shares Outstanding-- 1964, 4,560,077,5 shares: 1963, 3,028,217 shares (after deducting 21,386.35 shares in treasury) .............................................. ' 45,600,775 30,282,170 Other Capital -- representing principally excess of amount of stock dividends over par value of capital stock . . . 22,927,363 22,732,538 Retained Earnings.................................. 36,249,993 104,778,131 38,781,252 91,795,960 Total $153,707,601 $123,611,533 See Notes to Financial Statements. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. St- Joseph Lead Company and Consolidated Subsidiaries STATEMENT OF CONSOLIDATED INCOME FOR THE YEARS ENDED DECEMBER 31, 1964 AND 1963 Net Sales.................. ....................... ................. ......................................... . Cost of Sales ................................................................................. Other Income: Dividends on: Foreign investments................................................................................... Domestic investments...................................... Interest................. Royalty, Meramec Mining Company.............................. Sundry -- net................. Total ................................. 1984 $109,509,039 83,481,096 26,027,943 4,180,634 274,860 1,544,327 1,250,000 235,528 33,513,292 Deduct: Selling, general and administrative expenses...................................... Research expenses .......................................... ............................................... Strike and shutdown expense............................................................... Shaft sinking and development expenses Meramec, Viburnum and Fletcher Projects (Note 4).......................... Other exploration and development expenses............................................. Past service annuities (Note 7)................................... Depreciation......................................... Depletion....... ...................................................... Interest on indebtedness.............................................................................. Write-down of North Africa investment........... .......................................... Total Deductions ......................................................... 2,495,910 559,611 -- 501,176 217,490 153,580 4,329,009 222,246 1,378,073 ............... -- 9,857,095 Income Before Income Taxes ............ ........... ................................................... Federal and State Income Taxes........................................................................... Net Income for the Year (1964, $3.93 per share; 1963, $2.17 per share, based on 4,560,077.5 shares outstanding December 31,1964)....................................... 23,656,197 5,744,438 17,911,779 Special Credit-Profit from Sale of Investment in Missouri-IHinois Railroad Com pany, after Taxes of $777,572 ................ ......................................................... 2,332,715 Net Income for the Year and Special Credit................. ...................................... $ 20,244,494 Per Share on 4,560,077.5 Shares Outstanding as of December 31,1964 .............. $4.44 1963 $75,598,525 57,932,666 17,665,859 2,371,238 241,950 853,089 1,250,000 275,344 22,657,480 2,110,631 392,996 1,566,461 1,500,652 157,195 153,580 3,758,074 139,907 975,111 347,129 11,101,736 11,555,744 1,651,971 9,903,773 $ 9,903,773 $2.17 STATEMENT OF CONSOLIDATED RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1964 AND 1963 Retained Earnings at Beginning of the Year............ ............................................ Net Income for the Year and Special Credit......................................................... Dividends Paid: Cash (1964, $2.25 per share; 1963, $1.25 per share).............................. Stock (Note 6)................................................................................................ Total ................................................... Retained Earnings at End of the Year.......... ........................................................ 1964 $ 38,781,252 20,244,494 59,025,746 7,588,828 15,186,925 22,775,753 $ 36,249,993 See Notes to Financial Statements. 1963 $32,640,883 9,903,773 42,544,656 3,763,404 - 3,763,404 $38,781,252 4 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. St. Joseph Lead Company and Consolidated Subsidiaries NOTES TO FINANCIAL. STATEMENTS I- INVENTORIES Inventories of lead, zinc, etc. (finished, in process, and concentrates) are valued at cost (not in excess of market), determined substantially on the last-in, firstout (LIFO) method. Materials and supplies are valued at average cost. 2. INVESTMENTS AND ADVANCES The carrying values of investments in the consoli dated balance sheet, which are stated at cost, except as noted below, do not indicate the current value of such investments. The following is a summary of investments and advances: Subsidiaries not Consolidated: Compania Minera Aguilar, S.A. (capital stock--nominal value $1 and advances $26,165).................. $ 26,166 Compania Minerales Santander, Inc. (capital stock $899,071 and debentures $2,123,536)................ 3,022,607 Fifty-Percent Owned Companies: Meramec Mining Company (capital stock $2,500, and advances, net $16,399,984) ................................. Mine La Motte Corporation (capital stock--nominal value $1 and ad vances $150,000)........................... 16,402,484 150,001 Other Securities, Loans, Etc.: The New Jersey Zinc Company -- 200,000 shares capital stock (at cost less non-taxable dividends). . North Africa Investment: Societe des Mines de Zellidja (at market quotation, less than cost) . ........................... Societe Nouvelles des Mines D'Ain-Arko (nominal value), . 5,724,028 52,115 1 The Bunker Hill Company -- 400 shares capital stock, at cost.. Sundry securities, loans, etc................ Less Reserve ........................................ 4,000 10,782 (200,000) $25,192,184 The financial statements of Compania Minera Agui lar, S.A. are included herein on pages 14 to 18. Divi dends received from the subsidiary are recorded as they are converted into U.S. dollars. The net assets of Compania Minerales Santander, Inc. and its liability to the Company on debentures totaled $4,190,014 at December 31, 1964 and its net income for the year then ended was $809,372 after provision for interest on indebtedness to the Company, depreciation, and depletion of $129,803, $295,921, and $80,429, respectively. The loss for the year 1963 was $44,664 after provision for interest on indebted ness to the Company, depreciation, and depletion of $145,308, $308,290,' and $66,886, respectively. De velopment costs for 1964 were $266,871 of which $266,113 was charged against income and $758 was deferred. Such costs for 1963 were $439,945, of which $286,955 was charged against income and $152,990 was deferred. During the year 1964, Bethlehem Steel Corpora tion and the Company each incurred expenditures of $9,427,969 for the account of Meramec Mining Com pany. Of this amount, $2,230,849 was recorded in the Company's accounts as an additional investment in that fifty-percent owned company, $6,860,370 prin cipally to cost of iron pellet production, and of the balance of $336,750, representing shaft sinking and development expenditures, $235,725 was capitalized under the policy adopted in 1963 (see Note 4), and $101,025. together with $142,424 of items deferred in prior years, were charged against income. For financial accounting purposes, depreciation is provided in the accounts of the Company on its share of the depreciable property of Meramec Mining Com pany over twenty years, but for Federal income tax purposes on the declining balance method over ten years. Depreciation was provided in 1964 in the amounts of $838,489 and $3,035,849 for book and tax purposes, respectively, and deferred U.S. income taxes of $ 1,098,680, based on current tax rates, applied to the difference in the depreciation amounts were charged against income. The Company's equity in the net assets of Mine La Motte Corporation at December 31, 1964 was $343,593 and its equity in the corporation's net income for the year then ended was $95. 3. PROPERTY, PLANT AND EQUIPMENT All properties are stated at cost except for $17,000,000 of mining properties and mineral rights stated at appraised values, for which full allowances for depletion have been provided. The net amount of property, plant and equipment as shown in the consolidated balance sheet does not indicate the present value of these assets, as such value could be arrived at only by current estimates which would vary trom time to time depending on the price of metals, rate ot production, cost of labor, and other factors. A. SHAFT SINKING AND DEVELOPMENT EXPENDITURES In 1963 the Company adopted the practice of cap italizing for financial accounting purposes, shaft sink ing and development expenditures reduced by amounts equal to the current tax reductions. The amounts so capitalized are to be written off over the life of the property or the lives of the related mine equipment. 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. St, Joseph Lead Company and Consolidated Subsidiaries NOTES TO FINANCIAL STATEMENTS fcontinued) 6. LONG 'TERM DEBT Long-term debt, exclusive of amounts due within one year, at December 31, 1964 and 1963 was as follows: 3% % Notes payable to Consolidation Coal Company............... 1964 $ 3,400,000 1963 $ 4,250,000 4% and 4Vi % Notes payable to banks... 8,571,429 11,428,571 4Vz% Notes payable to Bethlehem Steel Corporation ........... 18,416,669 1,416,669 $30,388,098 $17,095,240 The 3% % Notes are payable in fixed semi-annual instalments of $425,000 each on January 1 and July 1 through July 1, 1969. The instalments due January 1, 1965 and 1964 were paid on December 31, 1964 and 1963, respectively. The 4% and 4Vz % Notes payable to banks are payable in fixed semi-annual instalments aggregating $1,428,571 each on January and July 15 through July 15, 1968. The related Credit Agreement requires the maintenance of not less than $20,000,000 in working capital and prohibits the declaration of cash dividends which, taken with aggregate dividends paid since December 31, 1957, would exceed the sum of 75% of net earnings since that date, plus $6,000,000. At December 31, 1964, working capital amounted to $58,706,653, after excluding from current liabilities instalments of indebtedness under the Credit Agree ment due within one year, and $20,074,109 of accumu lated earnings were free from the prohibition against dividends. Under its Credit Agreement with Bethlehem Steel Corporation, the Company has assigned royalties to be received from Meramec Mining Company up to $ 1,000,000 annually as collateral security for the 4V2 % Notes payable. Since a royalty of $ 1,250,000 was due from Meramec Mining Company for the year ended Decem ber 31, 1964, $1,000,000 thereof received in January, 1965, was assigned as a payment against the Notes, which latter amount is included in long-term debt due within one year. 6. STOCK DIVIDEND AND STOCK OPTIONS On August 18, 1964, the Board of Trustees de clared a three-for-two stock split to be effected in the form of a 50% stock dividend. On September 30, 1964, the Company issued 1,518,692.5 shares of Capital Stock and transferred $15,186,925, represent ing the par value of the shares issued, from Retained Earnings to Capital Stock. Under the Stock Option Incentive Plan approved by the stockholders in 1958, 130,000 shares of the Company's unissued stock was reserved for issuance and sale to officers and other key employees under 60 years of age, at a price not less than the market price at the time the options are granted. Due to the 10% stock dividend in 1962 and the three-for-two stock split declared in 1964, the total amount of shares so reserved was increased to 189,589 after the elimination of shares applicable to options exercised totaling 49.403 shares. The options may be exercised in equal annual in stalments on the anniversary date of each grant and any part of an option not exercised at the end of five years from the date of the grant becomes void and available for future grants. During the year 1964, options for 35,300 shares were granted at $53,375 per share, adjusted to $35,583 per share, due to the stock split, options for 13,168 shares were exercised, and options for 5,352 shares expired or were cancelled. The excess of the aggregate option price over the par value of 13,168 shares issued upon exercise of options in 1964, which amounted to $194,825, was credited to Other Capital. Outstanding options at December 31,1964 adjusted to reflect the 10% stock dividend and the three-fortwo stock split, both in the number of shares and the option prices, are as follows: Date of Grant Number of Shares Option Price April 28, 1961 January 10. 1964 8,481 48,075 56,556 $18.2576 35.5833 At December 31, 1964 there remained available for future grants, 79,630 shares. 7. RETIREMENT AND PENSION PLANS The Company and its consolidated subsidiaries have a Retirement Plan for Salaried Employees and a Pen sion Plan for Payroll Employees, covered either by a contract with an insurance companv or by funds deposited with a Trustee. The assets of the Plans are not included in the accompanying consolidated bal ance sheet. Both plans are non-contributory and all past service costs have been funded. At December 31, 1964 the deferred past service cost was $476,617, of which $153,581 is to be written off in 1965 and the balance to be amortized over ten years ending Decem ber 31, 1974. Current service costs of both the Retire ment Plan and Pension Plan aggregated $842,049 and $814,733 in 1964 and 1963 respectively. 8. INCOME-1964 Sales and cost of sales for the year ended December 31, 1964, include $5,343,649 for lead and zinc sold from the Government stockpile on which no profit was realized. 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACCOUNTANTS' OPINION HASKINS & SELLS CERTIFIED PUBLIC ACCOUNTANTS TWO BROADWAY NEW YORK 10004 To the Stockholders of St. Joseph Lead Company: We have examined the consolidated balance sheet of St. Joseph Lead Company and its consolidated subsidiaries as of December 31,1964 and the related statements of consolidated in come and consolidated retained earnings for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying consolidated balance sheet and statements of consolidated income and consolidated retained earnings present fairly the financial position of St. Joseph Lead Company and its consolidated subsidiaries at December 31, 1964 and the results of their operations for the year then ended, in con formity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. HASKINS & SELLS February 26, 1965 '' ' '" : 7 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. St. Joseph Lead Company and Consolidated Subsidiaries COMPARATIVE FINANCIAL Average Metal Prices (Cents per pound) Lead, New York.................................. Zinc, St. Louis..................................... Sales .......................................................... Cost of Sales............................................. Gross profit on sales.............................. Other Income: Dividends................................................ Interest and other (net) ...................... Royalty -- Meramec Mining Company Total .......................................................... Deduct: Selling, general administrative, research, etc........................................ Strike and shutdown expense............... Shaft sinking, development and exploration ....................................... Depreciation and depletion................... Interest on indebtedness........................ U.S. and foreign income taxes............. Total Deductions.............................. Net Income Before Special Credit........... Special Credit............................................. Net Income............................................... Per Share Outstanding at End of Year* .. Percent Gross Profits on Sales Applicable 1964 13.596 13.568 $109,509,039 83,481,096 26,027,943 4,455,494 1,779,855 1,250,000 33,513,292 3,209,101 .......... i- ' 718,666 4,551,255 1,378,073 5,744,418 15,601,513 17,911,779 2,332,715 $ 20,244,494 $4.44 1963 11.137 11.997 $ 75,598,525 57,932,666 17,665,859 2,613,188 781,304 1,250,000 22,310,351 2,657,207 1,566,461 1,657,847 3,897,981 975,111 1.651,971 12,406,578 9,903,773 -- $ 9,903,773 $2.18 1962 9.631 11.625 $ 67,981,883 58,106,248 9,875,635 3,588,027 952,053 729,166 15,144,881 2,542,330 1,844,107 2,770,751 3,538,848 1,142,997 518,216 12,357,249 2,787,632 1,532,241 $ 4,319,873 $.96 1961 10.871 11.542 $ 71,008,301 58,063,668 12,944,633 1,634,422 2,493,264 -- 17,072,319 2,272,135 -- 2,304,202 3,180,607 1,136,735 1,846,444 10,740,123 6,332,196 -- $ 6,332,196 $1.41 Lead ....................................................... 41 29 Zinc.................................................... 59 71 Total Assets..................................................... $153,707,601 $123,611,533 Current Assets........................................... 70,071,803 45,422,385 Current Liabilities..................................... 14,222,293 11,352,128 Current Ratio (to 1)................................ 4.93 4.00 Stockholders' Equity: Amount....................................................... Per share outstanding at end of year* . . 1 $104,778,131 $22.98 $ 93,795,960 $20.21 * Adjusted to reflect the 10% stock dividend paid December 21, 1962, and the three-for-two stork split effected September 30, 1964. 6 94 $117,897,308 46,823,524 8,753,333 5.35 $ 84,578,891 $18.86 26 74 $120,298,163 54,787,270 11,276,912 4.86 $ 82,967,539 $18.50 8 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. REVIEW 1955-1964 I960 11.948 12.946 $ 79,970,908 69,062,502 10,908,406 1959 12.211 11.448 $ 86,611,677 72,804,292 13,807,385 1958 12.109 10.309 $ 76,075,865 67,370,230 8,705,635 1957 1956 14.658 11.399 $107,473,568 92,042,828 15,430,740 16.013 13.494 $120,229,545' 100,905,492 19,324,053 1955 15.138 12.299 $121,634,411 99,229,217 22,405,194 1,991,830 551,587 2,276,864 732,196 2,762,943 321,775 2,042,879 639,177 1,065,833 284,534 1,055,118 376,684 13,451,823 16,816,445 11,790,353 18,112,796 20,674,420 23,836,996 2,322,476 2,880,829 3,766,920 1,172,042 337,488 10,479,755 2,972,068 2,355,219 316,272 1,850,551 3,334,648 1,154,307 1,542,372 10,553,369 6,263,076 2,310,268 2,468,540 2,286,583 1,945,138 1,522,462 2,754,733 513,973 702,037 7,803,473 3,986,880 561,676 2,935,632 118,833 4,001,842 10,086,523 8,026,273 166,740 2,649,221 5,280,519 10,383,063 10,291,357 75,107 2,608,753 6,478,178 11,107,176 12,729,820 $ 2,972,068 $ 6,263,076 $1.40 $ 3,986,880 _ $ 8,026,273 ' $1.79 $ 10,291_,3_57 $ 12,729,820 $184 26 74 $116,545,876 45,178,167 7,485,650 6.04 42 58 $117,549,738 50,098,983 7,456,767 6.72 33 67 $107,679,085 45,791,438 5,786,183 7.91 42 58 $ 94,327,695 42,707,719 9,148,775 4.67 53 47 $ 85,320,288 49,625,248 11,383,335 4.36 54 46 $ 85,221,667 47,421,282 13,805,252 3.44 $ 79,349,540 $17.70 $ 79,064,194 $17.64 $ 75,517,340 $16.85 $ 74,246,682 $16.57 $ 71,652,895 $15.99 $ 69,510,204 $15.51 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Si. .Joseph Lead Company and Consolidated Subsidiaries WORKING CAPITAL ANALYSIS AND WORKING CAPITAL SOURCE 1964 Earnings ........................................ Provision for Depreciation and Depletion Long-term Borrowings............................. Sale of Investments................................... .. Other, net ............................................... Total ................................................. $ 20,244,494 4,551,255 18,000,000 197,213 1,509,276 $ 44,502,238 1963 $ 9,903,773 3,897,981 -- -- __ $13,801,754 1962 $ 4,319,873 3,538,848 3,000,000 -- -- $10,858,721 1961 $ 6,332,196 3,180,607 -- 8,549,758 179,429 $18,241,990 USE Dividends Paid: Shares outstanding at end of year......... Per share................................................ Amount................................................... Capital Expenditures................................. Investments................................................ Repayment of Debt................................... Other, Net................................................... Total................................................ Working Capital at End of Year............... 4,560,078 $2.25 $7,588,828 8,050,214 2,376,800 4,707,143 - $ 22,722,985 $ 55,849,510 3,028,217 $1.25 $ 3,763,404 3,186,963 5,866,947 4,290,476 693,897 $17,801,687 $34,070,257 2,989,382 $1.00 $ 2,717,622 3,750,014 4,634,987 4,290,476 905,790 $16,298,889 $38,070,190 2,717,322 $1.00 $ 2,717,247 2,445,243 3,554,516 3,707,143 -- $12,424,149 $43,510,358 GENERAL STATISTICS Number of Stockholders.................. .... United States Employees: Number.......................................... .. . . Salary and wage costs.................... ... . Pension and Retirement Plans: Members ........................................ . ... Contributions............... ................. .... Pensioners...................................... ___ Pension payments........................ .... Deferred Profit Sharing Plan: Eligible employees ......................... .... Contributions................................. .... 9,107 3,769 $ 24,926,760 3,185 $ 1,314*415 1,023 $ 537,621 669 $ 590,768 !0 8,772 3,621 $20,813,527 2,822 $ 814,733 937 $ 496,194 687 $ 297,113 8,986 3,774 $19,781,411 2,971 $ 939,017 920 $ 457,701 683 9,740 3,871 $22,598,389 2,983 $ 944,152 886 $ 434,517 702 $ 189,966 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. GENERAL STATISTICS 1955-1964 I960 $ 2,972,068 3,766.920 -- -- -- $ 6,738,988 1959 $ 6,263,076 3,334,648 5,000,000 -- 1,509,628 $16,107,352 1958 $ 3,986,880 2,754,733 15,000,000 -- 1,108,897 $22,850,510 1957 $ 8,026,273 2,935,632 8,500,000 -- 399,130 $19,861,035 1956 $10,291,357 2,649,221 -- 5,437,827 -- $18,378,405 1955 $12,729,820 2,608,753 -- -- 406,682 $15,745,255 2,717,222 $1.00 $ 2,717,222 5,912,656 1,891,994 850,000 316,815 $11,688,687 $37,692,517 2,716,222 $1.00 $ 2,716,222 9,283,290 620,879 850,000 -- $13,470,391 $42,642,216 2,716,222 $1.00 $ 2,716,222 11,830,509 1,857,468 -- -- $16,404,199 $40,005,255 2,716,222 $2.00 $5,432,486 15,017,048 4,094,470 '-- -- $24,544,004 $33,558,944 2,716,222 $3.00 $ 8,148,666 3,533,984 1,326,339 -- 743,533 $13,752,522 $38,241,913 2,716,222 $3.00 $ 8,148,666 2,237,015 1,258,098 -- -- $11,643,779 $33,616,030 10,651 4,171 $24,803,687 2,884 $ 1,049,557 819 $ 355,782 698 -- 11,812 4,263 $22,670,522 2,816 $ 780,000 822 $ 331,550 682 $ 187,892 13,315 4,581 $23,755,404 2,642 $ 826,198 780 $ 303,019 693 --, 14,267 5,076 $27,832,266 2,776 $ 800,928 710 $ 276,461 685 $ 240,788 13,219 5,213 $25,682,126 2,850 $ 2,170,872 671 $ 254,942 662 $ 308,741 11,263 5,101 $23,818,704 2,772 $ 401,278 615 $ 248,998 -- -- Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UNITED STATES LEAD STATISTICS IN SHORT TONS Available Supply: Recoverable U.S. mine production ............................ From U. S. stockpile................... ................ ............... From scrap........................... ............. ..................... Imports of concentrates and bullion (lead content).. Metal imports (net)..................... ............................... Total Lead Metal Available................................ 1964 (Estimated) 283,000 50,000 490,000 121,000 199,000 1,143,000 Consumption: Batteries .................................. .................................... Ethyl gasoline.............................................................. Cables .......................................................................... Construction ................................................................ Pigments ............................................ ......................... Other uses.................................................................... Total Consumption.............,............................ Deficit................................................................................. 430,000 217,000 56,000 127,000 108,000 262,000 1,200,000 57,000 1963 (Final) 253,000 -- 482,000 123,000 218,000 1,076,000 439,000 193,000 58,000 125,000 99,000 249,000 1,163,000 87,000 ST. JOSEPH LEAD COMPANY LEAD STATISTICS IN SHORT TONS Year 1955 ............ .......... 1956 ............ .......... 1957 ............ .......... 1958 ............ .......... 1959 ............ .......... 1960 ............ .......... 1961 ............ .......... 1962 ............ .......... 1963 ............ .......... 1964 ............ .......... Lead Concentrate!, Produced from Company's Mines 162,552 158,861 163,079 149,624 143,167 147,879 139,817 86,375 113,801 170,704 Net Lead Raw Materials Purchased 43,100 44,353 46,309 25,102 8,300 13,656 4,927 4,453 2,773 3,528 Pig Lead Production 138,796 137,429 137,940 116,799 101,478 98,447 116,148 77,156 81,319 117,643 Pig Lead Purchased 56,345 61,522 62,392 51,569 50,306 33,209 17 _ 10,357 8,724 Pig Lead Sales Including 1955-1960 Sales Under Agency Contracts 212,100 199,294 183,942 139,131 164,084 131,852 108,447 112,857 96,692 125,177 12 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UNITED STATES ZINC STATISTICS in short tons Available Supply: Recoverable U. S. mine production............................ Less -- used to make pigments.................................... Recoverable domestic zinc available to metal smelters From U. S. stockpile....................... ............. ............ From scrap ........................ .......................................... Imports of concentrates (recoverable zinc content;.. Imports of slab zinc........................... ......................... Total Zinc Metal Available............................ Consumption: Galvanizing...................................... ........................... Zinc-base alloys.................................... ....................... Brass ............................................................................ Rolled zinc.................................................................. Oxides........................................................................... Other.....................................T, ................................. Total Consumption............................................ Exports ........................................................................ Total Zinc Metal Consumed and Exported .... Deficit ..................................................... .................. .. 1964 (Estimated) 572,000 92,000 480,000 75,000 60,000 290,000 133,000 1,038,000 449,000 490,000 137,000 44,000 20,000 32,000 1,172,000 27,000 1,199,000 161,000 1963 (Final) 529,000 93,000 436,000 -- 60,000 346,000 131,000 973,000 420,000 469,000 128,000 42,000 16,000 30,000 1,105,000 34,000 1,139,000 166,000 ST. JOSEPH LEAP COMPANY ZINC STATISTICS in short tons Year Zinc Concentrates Produced from Company's Mines 1955 .......... ............ 109,303 1956 .......... ............ 114,138 1957 .......... ....... 123,417 1958 .......... ............ 99,523 1959 .......... ............ 81,292 1960 .......... ............ 128,762 1961 .......... ............ 111,598 1962 .......... ............ 104,080 1963........... ............ 99,914 1964 .......... ............ 117,473 Net Zinc Raw Materials Purchased 131,219 151,452 129,847 110,182 121,611 166,613 123,882 170,281 153,053 214,772 Slab Zinc Equivalent of Smelter Production 138,201 136,879 151,554 122,774 128,670 148,788 141,209 153,968 174,089 193,444 Purchased Zinc 65,822 48,672 56,613 46,453 44,334 26,730 8,511 4,709 6,726 15,538 Slab Zinc Equivalent of Sales 202,545 181,324 192,112 174,083 179,478 158,276 162,005 152.258 178,515 211,731 Sulphuric Acid Sales 183,609 190,004 204,255 171,938 176,607 186,722 194,327 189,866 211,930 243,920 13 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Compania Minera Aguilar, S. A. BALANCE ASSETS ARGENTINE PESOS (NOTE 1) Current Assets: 1964 1963 Cash............................................................ 172,114,074 88,662,124 Marketable securities: Argentine Government (at cost) .... 3,751,000 3,751,000 Other (at cost, less reserve--1964 and 1963, 19,493.471) ......................... 275,136,811 408,980,250 Loans receivable...................................... 565,960,667 10,000,000 Notes and accounts receivable--trade (less reserve--1964 and 1963, 15,000,000) Due from partly-owned company--trade. Other accounts receivable, etc.................. 91,258,714 93,205,339 77,119,252 161,602,250 153,527,176 19,206,946 Inventories (Note 3): Lead and zinc concentrates................ Materials and supplies......................... 41,209,189 231,623,168 1,551,378,214 97,699,576 235,164,260 1,178,593,582 Investments: Sulfacid, S.A. Industrial--Investment and Advances (atcost--50% owned) .... Compania Metalurgica AustralArgentina, S.A. Comercial (at cost -- 43.3% owned) ................................ 149,417.235 8,746,356 134,418,835 158,163,591 8,746,356 143,165,191 Capital Assets (Note 2): Mining properties and mineral rights, including exploration and development prior to the commencement of operations ............................................. Less accumulated depletion from January 1, 1960 ................................... Land, buildings, plant and equipment . . Less accumulated depreciation from January 1, 1960 .................................... Deferred charges...................................... Total.................................................... 63,133,687 17,619,637 690,956,133 ffe,950,677 45,514,050 504,005,456 10,931,161 2,269,992,472 63,133,687 14,487,365 661,336,998 144,155,141 48,646,322 517,181,857 22,820,936 1,910,407,888 See Noit'\ to Financial Statements. 14 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. SHEET DECEMBER 31, 1964 AND 1963 LIABILITIES AND STOCKHOLDERS' EQUITY ARGENTINE PESOS (NOTE 1) Current Liabilities: Accounts payable -- trade........................ Due to St. Joseph Lead Company........... Wages accrued....................................... .. Accrued Argentine income and other taxes....................................... .... Other accounts payable ...................... ;. Advance from St. Joseph Lead Company .... 1964 68,659,479 100,623,283 25,639,257 321,674,769 16,998,281 533,595,069 1963 73,793,494 4,344,240 24,693,528 191,624,142 11,185,163 305,640,567 3,744,226 Deferred Credits -- Unearned interest, etc.................. ............................ Reserves: Replacement of capital assets (Note 2) . Employees' compensation under Argentine social laws........................... Accidents.................................................. Other ......................................................... Stockholders' Equity: Capital Stock -- Nominal value of 80 Argentine pesos each (Note 5): Authorized--1964, 12,500,000 shares; 1963, 5,000,000 shares Issued--1964, 8,590,000 shares; 1963, 4,700,000 shares........................ .... Other Capital (Notes 2, 4 and 5): Arising from 1936 valuation of mining properties and mineral rights (remainder after transfer of pesos 48,000,000 to stated value of capital stock)............................... Arising from 1960 revaluation of capital assets (1963 remainder after transfer of pesos 106,400,000 to stated value of capital stock)......... Arising from shares received from other companies (remainder after transfer of pesos 3,600,000 in 1962 and pesos 99,861,910 in 1964 to stated value of capital stock)......... 576,115,230 48,502,102 75,037,454 33.153,738 1,446,736 38,841,676 28,663,352 732,808,524 506,419,327 35,271,163 61,280,150 46,021,283 204,338 648,991,923 687,200,000 376,000,000 1,446,736 211,338,090 40,288,412 101,876,589 314,661,415 Retained Earnings (Note 6): Appropriated for statutory reserve . . . Unappropriated................................... Total Stockholders' Equity........... Total............................................ 32,714,535 214,722,580 247,437,115 974,925,527 2,269,992,472 24,280,955 236,884,464 261,165.419 951,826,834 1,910,407,888 See Notes to Financial Statements. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Compania Minera Aguilar, S. A, STATEMENT OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1964 AND 1963 Net Sales . .. Cost of Sales Other Income: Profit on exchange......... ................................................... .. Dividends...................... ....................................... ..................... Profit (loss) from sale of marketable securities .......... Interest..................................................... .................................. Sundry -- net............. ....................................... ....................... Total .................................................................................. Deduct: Selling, general and administrative expenses ............. Taxes, other than taxes on income........... .............................. Depreciation and depletion (Note 2)..................................... Strike expense ......................................................................... .... Total Deductions .................................... ......................... Income before Taxes on Income and Special Appropriation ...... Provision for Argentine Income and Emergency Taxes, Net.......... Income before Special Appropriation .............................................. Special Appropriation for Replacement of Capital Assets (Note 2) Net Income for the Year (after special appropriation) .................... See Notes to Financial Statements. ARGENTINE PESOS (NOTE 1 1964 1963 1,758,877,766 1,240,307,890 474,044,388 437,984,407 1,284,833,378 802,323,483 33,504,751 2,681,894 (4,441,389) 18,623,594 48,974,301 1,384,176,529 7,238,086 401,761 3,726,484 6,154,002 26,958,019 846,801,835 85,741,321 18,492,668 46,483,213 10,596,942 161,314,144 1,222,862,385 414,604,350 808,258,035 69,695.903 738,562,132 57,424,448 9,734,729 45,090,971 112,250,148 734,551,687 243,223,670 491,328,017 72,199,015 419,129,002 STATEMENT OF UNAPPROPRIATED RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1964 AND 1963 Unappropriated Retained Earnings at Beginning of the Year.................... ........ Add--Net Income for the Year (after special appropriation)........................ ........ ARGENTINE PESOS {NOTE 1) 1964 1963 236,884,464 738,562,132 975,446,596 195,449,748 419,129,002 614,578,750 Deduct: Dividends paid or declared during the year -- cash .................. .... 752,290,436 371,884,544 Appropriation for statutory reserve...................... .............................. .... 8,433,580 5,809,742 Total Deductions ................................................ ......................... ...................................... 760,377274,,609146,286 Unappropriated Retained Earnings at End of the Year (Note 6)............. .......................................214,273262,,858840,464 See Notes to Financial Statements. 16 - . v . Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Compania Minera Aguilar, S. A. MOTES TO FINANCIAL. STATEMENTS 1. The quoted free rate of exchange for a peso was approximately 0.66 cents at December 31, 1964 compared to 0.75 cents at December 31. 1963. On April 10, 1964 and on subsequent dates the Argentine Central Bank issued regulations gov erning the purchase and sale of foreign exchange. Essentially these consist of allowing remittances to be made freely in payment of properly substantiated imports of merchandise, while other remittances, such as those in respect of capital repayments, in come arising from investments in the country, serv ice charges, royalties and technical service fees, are subject to the prior approval of the Central Bank; remittances abroad in payment of imported capital goods are to be made in instalments over periods which may extend up to eight and one half years after the goods are shipped. Foreign exchange arising out of exports, or becoming available as a return of capital, or income earned abroad, must be negotiated on the local exchange market within terms which do not ex ceed 30 days. 2, As of January 1, 1960 capital assets were sub ject to a revaluation as permitted by Argentine Law No. 15,272. The total appreciation of pesos 393,738,090 was applied to mining properties and mineral rights (pesos 52,489,454) and to land, buildings and equipment (pesos 341,248,636); con currently an equal amount was credited to other capital--arising from revaluation. At their revalued amount, net capital assets are still considered to be stated at less than present value. The method of revaluation in terms of the Law consists in deducting from original cost the accumulated depletion or depreciation to the date of revaluation, and adding to such net figure the amount of appreciation permitted by the Law. For accounting purposes in Argentina, the resulting total is the basis for providing depletion or de preciation which, under the terms of the Law, is calculated on the basis of extending the useful life originally assigned to each capital asset by fifty percent. Additions subsequent to the revaluation are being depreciated, over the estimated useful life previously assigned to each asset. Accordingly, the capital assets at December 31, 1964 and 1963 are stated at the net aggregate amounts of cost, less depletion or depreciation to January 1, 1960, plus the amounts added for the revaluations at that date, and the allowances for depletion or depreciation are the amounts accumu lated since the revaluation date. Following the practice of prior years a special appropriation of pesos 69,695,903 for replacement of capital assets has been made out of income for the year 1964. Similar special appropriations were made out of income in the preceding thirteen years aggregating pesos 489,000,985. 3. The inventories were valued at cost determined principally on the Iast-in, first-out (LIFO) method, 4. Shares totalling pesos 38,598,239 (1963 pesos 86,480,474) received from other companies as a result of their capitalizing the appreciation arising on revaluation of capital assets under Argentine Law No. 15,272 have, in accordance with the Law, been credited to Other Capital. 5. During 1964, 3,890,000 shares of capital stock of pesos 80 each were issued to shareholders in proportion to their respective holdings. In this con nection pesos 211,338,090 and pesos 99,861,910 were transferred to stated value of Capital Stock from Other Capital arising from 1960 revaluation of capital assets and shares received from other companies respectively. 6. As a result of a recent Argentine Law sanctioned in December 1964, distributions to stockholders abroad as from January 1, 1965, are subject to a withholding tax of 30% plus an emergency tax of 15% thereon. However a bill at present under deliberation in Congress proposes a modification whereby dividends will be subject to a Company tax of 9.2% thereon. 17 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACCOUNTANTS' OPINION DELOITTE, PLENDER, HASKINS & SELLS AV ROQUE SAENZ PENA 763 BUENOS AIRES St. Joseph Lead Company: We have examined the balance sheet of Compania Minera Aguilar, S. A. (incorporated and doing business in Argentina) as of December 31, 1964 and the related statements of income and unappropriated retained earnings for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying balance sheet and the statements of income and unappropriated retained earnings pre sent fairly the financial position of Compania Minera Aguilar, S.A. at December 31,1964 and the results of its operations for the year then ended, in conformity with accounting principles gen erally accepted in Argentina and applied on a basis consistent with that of the preceding year. The accounting for capital assets and related depletion and depreciation, and for special appropriations out of income for replacement of capital assets, as described in Note 2 to Financial Statements, differs from that normally accepted in the United States of America. However, in all other material respects the accompanying financial; statements, in our opinion, have been prepared in conformity with accounting principles generally ac cepted in the United States of America. DELOITTE, PLENDER, HASKINS & SELLS February 5, 1965 18 f Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY Incorporated March 25, 1864, under the laws of the State of New York EXECUTIVE OFFICE 250 Park Avenue, New York, N.Y. 10017 BOARD OF TRUSTEES ' ELECTE Andrew Fletcher*........................................................................................................................................... Chairman 1921 George 1. Brigden* ................................ Retired Vice President and Treasurer, St. Joseph Lead Company 1944 Francis Cameron*................................................. .. ................................... ............................................. President 1953 Bernard E Desloge....................................................... Vice President, Minerva Oil Co., St, Louis, Missouri 1953 Eli Whitney Debevoise*..................................... Debevoise, Plimpton, Lyons & Gates, New York, N. Y. 1954 James W. McAfee .........................President, Union Electric Company of Missouri, St. Louis, Missouri 1954 David R. Calhoun....................................................................... .. .President, St. Louis Union Trust Company 1957 Joseph Pursglove, Jr..............................................Vice President, Consolidation Coal Co., Pittsburgh, Pa. 1959 Plato MalozemolT............................................................................. President, Newmont Mining Corporation 1961 Guido E Verbeck, Jr.................. Senior Vice President, Morgan Guaranty Trust Company of New York 1961 Elmer A. Jones......................................................................... Division Manager, St. Joseph Lead Company 1963 Lawrason Riggs IIP............................................................................................................................... Vice President 1963 Robert H. Ramsey................................................................................................................................. Vice President 1964 ^Member of E\ecuti\e Committee EXECUTIVE OFFICERS Andrew Fletcher, Chairman Francis Cameron, President James G. Colvin, Treasurer Malcolm Bonynge, Vice President -- Sales John R. Englehorn, Vice President D. iBroward Craig, Secretary William L. Murphy, Jr., Comptroller & Assistant Secretary Robert H. Ramsey, Vice President Lawrason Riggs III, Vice President Edward R Merrell, Assistant Treasurer Frank J. Reidy, A ssistant Comptroller MANAGER OF EXPLORATIONS Norman H. Donald, Jr. UNITED STATES DIVISION MANAGERS Mines Elmer A. Jones, Southeast Missouri Marshall G. Jones, Balmat-Edwards, N.Y. Smelters John W, Sherman, Herculaneum, Missouri Charles D. Henderson, Josephtown, Pennsylvania CIA. MINERA AGUILAR, S. A,, ARGENTINA Wing L. Lew,1 Managing Director CIA. MINERALES SANTANDER, INC., PERU Clinton L. Miller, Vice President & General Manager . MERAMEC MINING COMPANY Robert G. Peets, Resident Manager GENERAL COUNSEL Debevoise, Plimpton, Lyons & Gates 320 Park Avenue, New York, N.Y. 10022 AUDITORS Haskins & Sells Two Broadway, New York, N.Y. 10004 TRANSFER OFFICE St. Joseph Lead Company 250 Park Avenue, New York, N.Y. 10017 REGISTRAR The First National City Bank 55 Wall Street, New York, N.Y. 10005 (0) Printed in U.S.A. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.