Document n9XQR8ob5N6oXj5LVVnEYrZQX

Saint Joe Annual Report -- 1969 ' America's Corporate Foundation; 1969; ProQuest Historical Annual Reports1 pg- 0J : Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD COMPANY Today more than 26 million Americans own common stock. This widespread stock ownership is unique to the United States, and of relatively recent origin. In 1952 there were fewer than seven million shareowners. The willingness of Americans, in large numbers, to invest in h. business and industry has many benefits. It stimulates free enterprise by providing a broad source of capital. It spreads throughout the economy the ownership benefits of industrial success. And it can provide people with a measure of protec tion against erosion of the purchasing power of the dollar, ; St. Joe shareholders are typical of shareholders df any I large company. Their confidence in St. Joe is reflected in the fact that their number has doubled within the past decade. Some of these shareholders are involved in the day-to-day operation of the Company, but there are many dthers, flom every state. They are retired couples relying on an income- producing stock. They are young couples and parents looking to the future, colleges and universities, investors with a primary view to capital appreciation, members of investment clubs, and a variety of institutions. They are housewives, small chil dren and those to whom St. Joe stock has been handed down from generation to generation. All of them are attracted to St. Joe as a Company with a record for steady growth, solid finances and a sound policy for future expansion. ......... We are hopeful that in recent times our shareholders' ex pectations in St. Joe have been fulfilled, both by the substantial appreciation of the value of St. Joe shares and by the fact that the Company has been able to increase dividends steadily. In this annual report, we feature a few of the 20,957 Si. Joe shareholders. We preseni them as representatives of Amer ica's shareholder community. & TABLE OF CONTENTS Financial Highlights and Letter to Shareholders ... . . . . . 2 An Investment in St. Joe............................................... ......... 4 . Review of Operations................................................... ..... 6 Ten Year Sales Chart ................................................... 21 Balance Sheet................................................................. ........ 22 Statement of Income and Retained Earnings ...... ........ 24 Notes to Financial Statements.................................... ......... 25 V Product Statistics .......................................................... ........ 27 Ten Year Reviews.......................................................... . 28 & 30 Corporate Data............................................................ .. ........ 32 SXy? Wallace J. Cropper, a shareholder xjxj and mine geologist, has been . a St, Joe employee since 1951. Mr. Cropper, who earlier had Missouri \ and South American experience with St. Joe, was recently transferred from the BalmatEdwards Zinc Division in New York, to St, Joe's expanding corporate exploration group. The challenge of his new assignment is "getting involved in (he search." Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright jwner. Further reproduction prohibited without permission. HIGHLIGHTS Sales of metals, etc. Federal and state income taxes Net income Dividends: Cash Stock (2 for 1 split effected in the form of a stock dividend) , , . Shares of capital stock outstanding December 31 Net earnings per share Dividends per share * Ratio of current assets to current liabilities Number of employees (U.S.) . Number of shareholders T Shareholders' equity (book value) Shareholders' equity per share : y. 1969 $178,974,343 $ 18,304,371 $ 37,462,561 $ 14,139,309 8,587,891 $4.37 $1.65 5.51 to 1 4,057 20,957 $160,037,778 $18.64 1968 $150,811,758 $ 12,448,865 $ 24,973,475 $ 12,308,873 100% 8,533,800 $2.89 $1,425 3.63 to 1 4,032 20,472 $135,667,395 $15.90 TO THE SHAREHOLDERS: . St. Joe, benefiting from strong demand for its prod ucts and an expansion program that has made it the largest U.S. producer of lead and zinc, achieved rec ord production, sales and earnings in 1969. In August the Board of Trustees voted to raise the annual dividend rate to $1.80 from $1.50 a share. At its February 17,1970 meeting, the Board voted a fur ther increase in the quarterly dividend to $.50, equal to $2.00 per share on an annual rate. This is the eighth consecutive year of dividend increases. Earnings rose 50% to $37,462,561 in 1969, or $4,37 a share, from $24,973,475 or $2.89 a share in 1968. Both domestic and world demand for St. Joe's major products were strong over the twelve months and 1969 average U.S. prices of zinc and lead were at the levels of the middle sixties. Lead at year end was I6V2 cents per pound and zinc, 151/2 cents. American process grades of zinc oxide rose from 15V4 to I6V2 cents per pound over the year. All St. Joe's production facilities operated without interruption in 1969. A major contributor to earnings was record production of 233,160 tons of lead, includ ing 9,620 tons tolled by other smelters, This was up 33% from 1968. In areas of new operational activities, St. Joe in 1969: Commenced construction of the Brushy Creek mine and mill in Reynolds County, Missouri. Bottomed the new 3,225 foot mine shaft at the Balmat-Edwards Zinc Division in New York. 8 Completed a new 300 ton-per-day sulfuric acid plant at the Herculaneum Smelter. Opened a new lead alloy pilot plant and a mercury recovery unit at the Zinc Smelting Division. Initiated major exploration and research projects and expanded the budgets of existing programs. In connection with these and other projects, capital expenditures for 1969 totalled $11,319,108. Capital expenditures for 1970 are estimated at $25 million. At its May 1969 meeting, the Board of Trustees elected Peter B. Nalle a vice president, responsible for St, Joe's domestic mining and milling activities. In addition, Norman H. Donald, Jr., John W. Hanselman, 2 (, Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Joseph G. Sevick and Leroy K. Wheelock were elected assistant vice presidents and Edgar R. Lea was ap pointed manager of explorations, In January 1970 two new Trustees were elected; John Corcoran, president of Consolidation Coal Com pany, and Robert V Lindsay, senior vice president of Morgan Guaranty Trust Company of New York. These men fill vacancies created by the year end retire ments of Joseph Pursglove, Jr,, and Guido F.Verbeck, Jr., both of whom had substantial roles in St, Joe's growth over the past decade, In November of 1969 the Office of Emergency Pre paredness increased the strategic stockpile object tives for lead and zinc from zero to 530,000 tons for lead and 560,000 tons for zinc. The stockpile surplus is thus reduced to approximately 500,000 tons of each metal and industry-government discussions aimed at gradual, long term surplus disposal are in progress. Toward the end of the year and continuing into 1970 there has been increasing public and political attention devoted to the environmental aspects of automobile exhaust emissions, particularly in urban areas. Some of this attention has focused on the role of tetraethyl lead as an additive to most gasolines. Tetraethyl lead has been used as an additive because it is the most economic means now known to obtain the octane ratings required by high-performance automobile engines. For years the additive has been the key to smooth engine operation, quick start-up and efficient fuel utilization. Whether or not the addi tion of tetraethyl fluid, in the amounts used, presents a significant and separate health hazard is subject to wide debate, but its presence as an additive is re ported to coat the catalyst and reduce the effective life of an experimental catalytic system which auto mobile manufacturers have devised to control pollu tant levels in exhaust gases There are other control methods under development, and at this point, it is not clear that the solution to the total pollution prob lem of the automobile will result in either reduction or elimination of lead additives Any changes in auto motive fuel or the internal combustion engine would be a complex one foi the general public, the auto mobile, the petroleum and our own industries. As with other similar environmental problems under current discussion, solution involves full development of facts relating to existing technology and the economic impact of change. A sharp reduction or loss of the TEL market, should it occur over a short period of time, would of course, have a substantial adverse effect on the overall mar ket for lead. During 1969 less than 10% of St. Joe's total dollar sales of all products were to TEL manu facturers, but almost 25% of St. Joe lead shipments were to this industry. While we fully expect long term demand increases in other lead uses, these would not immediately offset a sudden loss of this market. St. Joe management efforts during the 1960s were aimed at achieving major extensions of ore re serves, expansion of productive capacity and im provement in operating efficiencies. In lead and zinc these objectives have been largely achieved, and we acknowledge sincere appreciation for the help and support of employees, shareholders and customers. In the new decade St. Joe will search for growth in three specific areas--acquisition of new activities, ex ploration for new metals and minerals and new prod uct development. The Company's current operational and financial position creates a far more favorable base for these efforts than has been the case in past years, and a great deal of attention was devoted to these objectives in 1969. Preliminary merger discus sions with The Hanna Mining Company, terminated in mid-year as a result of changing market and economic conditions, occupied much of the time of the corpo rate development group. The change already apparent in the general 1970 economy makes specific predictions of St. Joe per formance for the year extraordinarily difficult. The full effect of the late 1969 tax legislation has not been completely clarified and other economic and market changes may also have an impact. As outlined in the following pages, however, the past decade has been devoted to maximizing the earning capacity of the ex panded corporate resources under varying conditions. In summation, we believe that your Company will develop and prosper in the 1970s through diversified growth as successfully as it has ended the 1960s through operational expansion. CHAIRMAN PRESIDENT Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. AN INVESTMENT IN ST. JOE The beginning of a new decade is a good time for ally untapped debt capacity and 658,572 treasury stock taking. For St. Joe and its shareholders, the shares (including 65,600 shares acquired to mid- 1960s were outstanding years and the 1970s are February in 1970) which give it an excellent base for equally promising. financing new orebody development and other cor- Consider the 1960s. Pursuing a plan of resource porate expansion activities, and operational expansion adopted by management Future Growth Planned in Three Directions early in the decade, St Joe phased out three older, New directions of corporate development will be a less efficient mines, and brought three new mines into major thrust for the 1970s. While one objective is to production, introducing new technology in each oper- broaden the Company's base, acquisitions are ex- ation. More than 75% of the Company's domestic pected to develop logically from present skills in lead mine production originates from facilities opened mining, metallurgy and exploration. Moreover, all de- since 1960. The Company doubled productive capa- velopment possibilities will be examined to ensure city of its Herculaneum Missouri Lead Smelter and that they will meet the prime purpose--to enhance the added a new sulfuric acid plant. Through capital ex- value of an investment in St. Joe. pansion and technological improvements, the Zinc Exploration is the second major avenue for growth Smelter's capacity was increased 90%. in the 1970s. The expanding exploration effort is Annual Dividend Raised to $2.00 aimed at a wide variety of metals and minerals new to During this time per share earnings rose from 33 st. Joe, and its scope includes a number of projects cents a year to $4,37, an increase based on steady . conducted by St. Joe geologists, contract geologists operational growth. Reflecting this, dividends to and under joint venture agreements, it should be shareholders rose from 30 cents a year to an annual pointed out that St. Joe is in no danger of mineral rate of $1.80 per share. The latest increase voted by exhaustion. As a result of earlier exploration success the Board on February 17,1970 marks the eighth con- --aimed specifically at lead and zinc ore reserve ex- secutive year of dividend increases and raises the pansion--zinc reserves, at current production rates, annual rate to $2.00. ate estimated to be good for well over 20 years and Consequently, as a new decade begins, St. Joe's the Company's lead reserves should support existing foundations for further growth eie solid. The Company operations for more than 50 years. In Argentina, re is the nation's largest producer of lead and zinc-- serves represent more ore than has been mined since metals basic to the world economy. operations started nearly 40 years ago. Two new mine facilities, Brushy Creek, in southeast Development of new or improved uses of existing Missouri (lead) and Balmat, New York (zinc), are products is the third area of thrust for the 1970s. St. scheduled to begin operations in 1972. These will give Joe Dispersion Strengthened Lead (DSL), and the St. Joe the options of added tonnage or more efficient new lead alloy pilot plant built in 1969, initiated these mine production in lead and will radically increase the expanding efforts. Company's self-sufficiency in zinc production. Through these plans for improved operations, ac- St. Joe is also entering the 1970s in a strong posi- quisitions, exploration and new product research, tion for growth through exploration for new metals and St. Joe expects to move forward in new directions in minerals and through acquisition and joint venture. The the 1970s in a way that is consistent with its past Corporation has $69 million in working capital, virtu- . record and shareholder expectations. 4 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1964 1965 1966 1967 1968 1969 Tho abovo chart data has boon adiustod to reflect tho 10%* stock dividend; paid in l.p62 the three-tor-two stock split offretod in 1904 and the two for one stock split effected January 15 i960 , . <. ' 5 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. REVIEW OF OPERATIONS St. Joe's mines, located in Missouri (lead, zinc and copper), New York (zinc and lead), Argentina (lead, zinc and silver), and Peru (lead, zinc and silver) show striking differences from the producing mines of the early 1960s. More than 75% of the Missouri lead ore produced in 1969 came from mines opened since 1960. Im provements in technology, mine design and mining methods introduced in these operations permit effi ciencies, in terms of production, which far exceed earlier rates. Automated mills, St Joe designed, have not only reduced the degree of manual involvement, but have substantially increased mineral recovery levels with the introduction of instrumented metal lurgical control circuits. During the year, one older mine, operational since the early 1900s, was closed and the resulting excess mill capacity has been used to reprocess, profitably, the waste material from an earlier, less efficient metal lurgical process. Lead concentrate production in 1969 totalled 354,131 tons, up 35% from 1968. Copper concen trates, sold as such, totalled 22,725 tons and zinc recovery, from New York State and Missouri oper ations, resulted in 144,069 tons of concentrate. St. Joe's newest mine venture, Brushy Creek, was started in 1969 and will become operational in 1972; it will provide about 70,000 tons of lead concentrates annually, with by-products of copper and zinc. This mine, located between the existing St. Joe Viburnum and Fletcher facilities, will provide eventual replace ment tonnage for higher cost Missouri mine produc- ather and son represent a company F that is both a St. Joe shareholder and customer. William P. Wilke III is president of Hammond Lead Products, Inc., o/ Hammond, Indiana. His son, William P. Wilke IV is Hammond's design engineer. Hammond is a ma'tor manufacturer ol lead chemicals used in batteries, pigments, ceramics and chemicals. 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. tion. Over the nearer term, however, completion will permit greater total tonnages, reduced costs or a combination of the two. Zinc concentrate output from New York State's Balmat-Edwards Division totalled 110,671 tons, a re duction from 124,473 tons in 1968. The lower concen trate tonnage was attributable to changes in grade and ore tonnage, a shortage of experienced employ ees and development of the new mine. Higher con centrate production levels are schedued for 1970. By far the most dramatic change in St. Joe's zinc mining future is construction of the new mine and 4,300 ton-per-day mill, which will be fully operational in 1972. This project, which is progressing on sched ule, will move the major portion of the Division's facili ties and personnel to the new shaft site. The mine and the new surface plant will house and utilize equipment and control devices designed to achieve the greatest practical efficiencies. The facility now in use dates back to 1929 and the size of openings in the existing mine has prohibited introduction of many new mining techniques. Completion of the new facility will add approxi mately 61,000 tons of zinc concentrate which will con tinue to be shipped to the St. Joe zinc smelter in Pennsylvania. Part of the total project includes con struction of a railroad spur and, on completion, the Division will be able to supply 70% (it now supplies 40%) of the smelter's present level of concentrate requirements. These added Company concentrates will not only be of lower cost, but will ease pressures for obtaining sufficient raw material smelter input in a developing tight zinc concentrate supply situation. St. Joe smelter activities equaled the progress oland H. Escherich is president of Roland H. Escherich Construction. Inc., in Los Angeles. He terms himself a "good sized small contractor" and is shown here at one ol his construction projects. Mr. Escherich spends eight to ten hours a week keeping up with his investments. Both his company and his personal accounts include St. Joe shares. 8 V- - - ............. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission achieved by the mining operations. In October a new sulfuric acid plant rated at 300 Ions per day was started at the Herculaneum Lead Smelter. This plant produced 20,554 tons during the latter part of the year while facilities for Mississippi barge transport were being completed. Provisions for rail and truck transport were also included in the highly automated project. The net effect of recent capital expenditures and management effort aimed at increased efficiencies and by-product expansion is illustrated above. The chart indicates the rise in gross profit, per ton of lead and zinc produced, attributable to the scope of St Joe's domestic production of lead and zinc, and their by products, as a percentage change from 1966. Also charted on the same basis, is the percentage reduction, during the inflationary period, of total operating costs related to the production of these commodities. Adding significance is the percentage change in price, derived by totalling the average annual price for lead and zinc. This indicates the changing relationship between St. Joe's gross profit and metal prices, and highlights the contribution of cost reductions. aria Grauer's first birthday presentfrom her grandfather was three shares of St. Joe stock. Marla is now three and her St. Joe shares total six as a result of the stock split in 1968. Marla's mother, Mrs. Martin P. Grauer, of Queens, New York, is custodian of these and other shares in Marla's account. 10 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. In November a new in-line lead casting unit for the production of plumber's lead ingots was placed in operation at Herculaneum's refinery. Increasing de mand for this product surpassed the capacity of the older casting unit. Continuous operation of this smelter during 1969 and full utilization of the expanded capacity produced a record tonnage of 223,540 tons, up 31 % from the 1968 level and 86% above production in 1967, the year in which the expansion was completed. Zinc smelting operations were equally impressive and 215,572 tons of zinc metal were cast in 1969. Zinc oxide production increased to 35,162 tons, maintain ing the trend of continuously growing output over recent years. Capital expansion of St. Joe's zinc oxide productive capacity, which is now in progress, will permit annual production rates close to 50,000 tons in 1971. A prime example of the Zinc Smelting Division's efforts towards operational improvements was the completion of mechanized casting and stacking de vices designed by St. Joe engineers. As a replacement for a manual function, the machines have improved working conditions and have produced a more uni form product. Continuing interest in zinc product quality has re sulted in the Division's 1969 construction of a new metallurgical control center. The building contains a full complement of analytic laboratories and is uniquely designed to incorporate as many building materials containing zinc as possible. These include galvanized structural steel members, joists, roof decks, exterior walls, doors and door frames. Shipments of lead and zinc from St. Joe plants to consumers were regular during 1969. Heavy demand ontinental Corporation's investment > objectives as defined by its chairman, J. Victor Herd, focus on income and growth from stocks held on a long-term basis. Continental Corporation is the parent company of the Continental Insurance Group, the largest U.S. insurer in the lire and casualty field. Its holdings in Si. Joe date back to 1943. 12 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. for lead in overseas markets was a major factor in the reduction of 1969 imports, and work stoppages at East and Gulf Coast ports early in the year aggravated tight domestic supply. Increased domestic mine pro duction, largely in Missouri, and Congressional au thorization for the stockpile release of 100,000 tons of lead in mid-year relieved the situation, but 1969 con sumption increases of about 4% kept the U.S. market an exceptionally strong one. Zinc was affected by some of the same pressures, although late 1969 production reductions in the auto mobile industry--a major consumer of zinc--caused increases in producer meta! inventories in the fourth quarter. The relation of overseas factors to the domestic market for lead and zinc is an important one. Less than 50% of total U.S. lead and zinc metal output is pro duced from domestic mine production.To meet indus try's demands for the metals, additional raw materials are required and, in both cases, the U.S. metai price determines the ability of many domestic smelters to compete for overseas concentrates. Iron ore pellet production of Meramec Mining Company in Missouri increased to 1,549,326 long tons in 1969, 54,652 tons greater than in 1968. Pellet production was scheduled at 85% of plant capacity during the first half of 1969 but demand increased substantially in the second half with commensurate production increases. Pellet shipments totalled 1,566,427 long tons in 1969. Experimental mining by a modified sublevel caving method with trackless equipment is proceeding suc cessfully and stopes for which new development is being initiated are being designed for this more effi cient mobile system. 'istory and sentiment are two reasons , why Mr, and Mrs, Heber Fowler, of southern California, have had close ties to St. Joe. Mrs. Fowler is tlic granddaughter ot Charles B, Parsons, ' v. appointed first superintendent of the Company's Missouri lead mines in 1867, The Fowler family's holdings in St. Joe go back to those days 14 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Early in 1970 Meramec's underground crushing plant will be completed, greatly increasing the effi ciency of loading skips and handling ore. In South America production at both St. Joe's affiliates increased. Compania Minera Aguilar, S.A., in Argentina, utilized its expanded capacity to produce 67,914 tons of zinc concentrate and 46,860 tons of lead concentrate. The greatest bulk of the zinc concentrate was shipped to Compania Sulfacid, S.A. (which operates an electrolytic zinc plant near Rosario) and to Compania Metalurgica Austral's zinc smelter at Comodoro Rivadavia. Aguilar has 50% ownership of Sulfacid and a 43% interest in Austral. Both plants operated well during 1969, and the zinc metal produced was consumed by Argentine industry. In Peru, Compania Minerales Santander, Inc., continued development of its underground zinc-lead mine while shipping 81,222 tons of zinc concentrate and 7,932 tons of lead concentrate. Dividends from both Aguilar and Santander in creased in 1969, equaling $5,814,449. In 1968 divi dends received equaled $4,469,713 from the two affiliates. By-products of St. Joe's smelting and Meramec's pelletizing operations received increasing attention during the 1960s and by 1969 had an added impact on earnings. Meramec's high purity iron oxide con tinued on a regular production schedule with an ex pectation of considerably higher tonnages in 1970 than the 1,314 net tons bagged and shipped in 1969. In September Meramec commenced production of a magnetite concentrate for heavy media use in coal beneficiation. Shipments of this premium product could approximate 10,000 tons in 1970. r e'ike many independent colleges and ^ universities, Boston University is an investor in common stocks, Staton R. Curtis is the dean of student affairs for B, U. which has an enrollment ot almost 25,000 students, Fourteen of the University's 16 schools and colleges are located on the 48-acre Charles River , campus, where a $60 million development program was completed m the 1960s. 16 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. During 1969 St, Joe's Zinc Smelting Division com pleted installation of a mercury recovery pilot plant. Mercury input is contained largely in the zinc concen trate produced by the Company's New York mines. Additionally, St. Joe is installing a unit to produce agricultural limestone from mill tailings at its Viburnum mill. The unit consists of a pipeline equipped with cyclones (for size classification) at each discharge point and a railroad siding to handle the cars during loading. Exploration programs, both overseas and domes tic, were expanded greatly in 1969. St. Joe expenses connected with these programs totalled $1,608,192. There is a real difficulty in describing exploration ac tivities enthusiastically without revealing information best kept confidential, but the program includes eight projects involving current diamond drilling and several others in the reconnaissance stage. Overseas, the South American program, managed by Compania Minera Aguilar and headquartered in Mendoza, Ar gentina, doubled its expenditures and in Australia, the budget of St. Joseph Phelps Dodge Pty. Ltd. also increased. A new headquarters for the expanded St Joe staff of senior geologists is being established near the New York metropolitan area. New product research and review operated under an expanded budget in 1969. Work continued on St. Joe's DSL (Dispersion Strengthened Lead) and a substantial amount of the material was used in con struction of the Company's new acid plant in Missouri. A pilot plant for the developmental production of a new lead alloy was completed during the year. Based in Pennsylvania, it has facilities for alloying, casting, and rolling lead for commercial evaluation. St. Joe is < , < The R.I.C. Investment Club of Rochester, Pennsylvania, is one oi 60,000 in the United States. Anthony J. Anzio (leli), president; Car! A Anzio, treasurer; and Owen G. Bernhardt, secretary, representing the club's 37 members, guide a variety of club investments which include St. Joe shares. 18 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. working on the project with a number ot major battery manufacturers and the effort is aimed at an improved lead-acid battery which will have prolonged life and maintenance-free characteristics. The Company's product and market development staff is also re searching potential markets for the material in other than battery applications. At the end of the year the Company decided to terminate its examination of potential involvement in wollastonite production and wrote off the expenses which had been incurred. These totalled $654,424. During 1969 a number of samples of St. Joe ben tonite were shipped for commercial testing. The prod uct continues under review and its test success wilt determine the extent of exploitation of the mineral deposit. Environmental involvement by U.S. industry re ceived a great deal of attention in 1969 from various interest groups, and in this area St. Joe's progress over the decade has been good. Completion of the Herculaneum Smelter's sulfuric acid plant, at a capi tal cost of $4,500,000, will, for example, capture at a profit (despite recently declining acid prices) what were waste gases. The Southeast Missouri Mining and Milling Division has also been developing meth ods for the stabilization and beautification of mill tail ings ponds which have resulted in crops of various types of grasses and plants on what otherwise would be bare pulverized rock. This is in addition to continu ing reforestation which has been under way for many years. Other activities in 1969 included important con tinuations of existing "environmental" projects. As new technology becomes available, St. Joe con tinues to work on such problems, enlisting the aid of outside consultants and the academic community in its search for new solutions. Approved capital projects related to environmental control scheduled for the early 1970s total more than $4 million. In another field and aimed at the nation's grow ing shortage of technicians, the Zinc Smelting Divi sion, in 1966, established an employee technical training program in collaboration with Pennsylvania State University. The technical program incorporates ten hours of weekly classroom instruction and rotating plant assignments. The four year program will gradu ate its first class ir 970 with associate degrees in drafting and design i :hnology or materials technol ogy-metallurgy option. 4 20 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission (IN MILLIONS OF DOLLARS) 1960 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST, JOSEPH LEAD COMPANY and Consolidated Subsidiaries CONSOLIDATED BALANCE SHEET DECEMBER 31, 1969 AND 1968 ASSETS Current Assets; Cash.......... ...........................;....................... ............ Marketable securities, at cost (quoted market value, 1969, $31,629,847; 1968, $24,629,773) ................ . . Trade accounts receivable, less reserve, 1969 and 1968, $68,054 . .............................. ................. Other accounts receivable................ 1969 1968 $ 4,318,584 $ 2,411,351 31,810,794 25,653,924 19,905,879 1,755,379 16,091,064 1,486,936 Inventories (Note 1): Lead, zinc,; etc............................................... ............ Materials and supplies............ ........................ Total Current Assets........................ 16,886,447 9,471,506 84,148,589 16,217,702 8,663,615 70,524,592 Investment and Advances (at cost or below): Fifty-percent owned companies (Note 2).................. Subsidiaries not consolidated (Note 3).................... Other ................... ...................... .... j............................ Total Investments and Advances........ 13,784,559 899,072 118,083 14,801,714 14,321,574 1,062,072 49,511 15,433,157 Property (Note 4): Mining properties and mineral rights........................ Land, buildings, plant and equipment ......................... Mine development ....................................................... Total ......................................... Accumulated depletion, depreciation and : ; amortization............................... Property--Net ........ 44,605,283 148,251,340 13,558,365 206,414,988 112,922,579 93,492,409 44,573,153 138,527,664 11,995,063 195,095,880 108,955,488 86,140,392 Deferred Charges........................................................... 4,499,775 3,939,969 Other Assets: Security deposits................ Cash and marketable securities--Fire Insurance Fund.......... ............................ Other .................................................................... .... .. Total Other Assets ........................... 3,248,974 403,250 468,480 4,120,704 3,108,589 399,557 783,674 4,291,820 i Total.................. .... ................................. $201,063,191 $180,329,930 See Notes lo Financial Statements. t 22 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities*. Accounts payable and accrued liabilities ............... Long-term debt due within one year (Note 5) ...... Federal and state income taxes .....,............ .. Total Current Liabilities............... 1969 1968 $ 9,876,493 1,000,000 4,402,220 15,278,713 $ 11,313,916 1,000,000 7,092,694 19,406,610 Long-Term Debt (Note 5).................................................. 12,666,669 13,666,669 Deferred Federal Income Taxes--relating principally to accelerated depreciation and write-off of mine development expenditures as incurred for tax purposes 12,034,604 10,511,317 Reserves for Self Insurance................,...'.......... .f......... Shareholders' Equity (Note 6): Capital Stock, par value $10 per share: Authorized--10,000,000 shares Shares 1969 1968 Issued ............................ 9,188,406 9,188,406 In Treasury...................... 600,515 654,606 Outstanding ....:......... 8,587,891 8,533,800 1,045,427 91,884,067 6,005,157 85,878,910 1,077,939 91,884,067 6,546,067 85,338,000 Other Capital--representing principally excess of amount of stock dividends over par value of capital stock................................................................. Retained Earnings............................ .......... .... ............ Total Shareholders' Equity ...... -- 13,590,403 60,568,465 160,037,778 13,084,182 37,245,213 135,667,395 : Total .......................... ........ .u . See Notes to Financial Statements, .. $201,063,191 $180,329,930 23 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, 1969 AND 1968 Net Sales .................................... .................................... Cost of Sales........ ................. ................... .................... Other Income: Dividends from unconsolidated subsidiaries ....... Interest................................ ........................................ Royalty, Meramec Mining Company .............................. Sundry, net.............................. .................................... Total ......................................................... 1969 $178,974,343 118,296,373 60,677,970 1968 $150,811,758 109,386,665 41,425,093 5,814,449 2,268,318 1,399,028 144,774 70,304,539 4,469,713 1,397,397 1,250,000 263,499 48,805,702 Expenses: Administration and selling.................................. Research and exploration ....................................... ... Depletion, depreciation and amortization {Note 4) .. Interest.............. ....... ................ ........... ...................... Total....................................................... Income Before Income Taxes........ .............................. 4,378,944 3,201,537 6,321,501 635,625 14,537,607 55,766,932 3,691,600 982,100 6,029,037 680,625 11,383,362 37,422,340 Federal and State Income Taxes (Note 8): Current.................................... ................................ ... Deferred.......... ................................. .......................... Total....................................................... Net Income for the Year.............................. ................ 16,781,103 1,523,268 18,304,371 11,142,152 1,306,713 12,448,865 $ 37,462,561 $ 24,973,475 Per Share-based upon average shares outstanding during the year............................................................ $4.37 $2.89 STATEMENT OF CONSOLIDATED RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1969 AND 1988 Retained Earnings at Beginning of the Year............ Net Income for the Year......... 1.......................... Total .................................................... Cash Dividends Paid (1969, $1.65 per share; 1968, $1,425 per share) ...................................... ..... Transfer to Capital Stock (Note 6)............................ .. Total........................................................ Retained Earnings at End of the Year ......................... See Notes to Financial Statements. 1969 $ 37,245,213 37,462,561 74,707,774 1968 $ 67,247,711 24,973,475 92,221,186 14,139,309 -- 14,139,309 $ 60,568,465 12,308,873 42,667,100 54,975,973 $ 37,245,213 24 ~ Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. NOTES TO FINANCIAL STATEMENTS 1. 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, first-out (LIFO) method. Materials and supplies are valued at average cost. 2. Fifty-Percent Owned Companies Meramec Mining Company (50% owned by Bethlehem Steel Corporation) is a "cost company" whose income and expenses are included in the financial statements of its owners. At December 31, 1969 the Company's investment in Meramec, consisting principally of advances, amounted to $13,784,558. The investment in Mine La Motte Corpora tion (an inactive corporation, 50% owned by National Lead Company) is recorded at a nominal value of $1. 3. Subsidiaries Not Consolidated These investments comprise the following at December 31, 1969: Compania Minera Aguilar, S.A. (99% owned Argentine subsidiary)-- recorded at nominal value................... Compania Minerales Santander, Inc. (wholly-owned)--at cost ..................... $1 899,071 Total..................................................... $899,072 A balance sheet of Compania Minera Aguilar, S.A., as of December 31, 1969 and a related statement of income for the year then ended, both in summary form and stated in Argentine pesos, follow: BALANCE SHEET Argentine Pesos* Current Assets.................................... Investments ........................................ Capital Assets...................................... Deferred Charges................................ 2,392,768,912 357,140,248 4,781,734,852 25,419,153 Total Assets................................ 7.557,063,165 Current Liabilities............................... Long-Term Debt.................................. Reserves............................ Shareholders' Equity.......................... Total Liabilities and Shareholders' Equity................. 629,002,788 * 798,407,270 437,767,595 5,691,885,512 7,557,063,165 The above financial statements are in conformity with accounting principles generally accepted in Argentina, which differ in respect to the accounting for capital assets and related depletion and depreciation and for special ap propriations out of income for the replacement of capital assets from those generally accepted in the United States of America. The equity of the Company in the net income of the Argentine subsidiary exceeded dividends received by 227,207,053 pesos. Dividends received are recorded as they are converted into U.S, dollars or U.S. dollar bonds of the Argentine government. The net assets of Compania Minerales Santander, Inc. at December 31, 1969 totaled $5,156,470; its net income for the year then ended was $319,460; dividends received exceeded net income by $378,418. 4. Property 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. Buildings, plant and equipment (including the Com pany's share of Meramec capital assets) are depreciated principally on the straight-line method over their estimated service lives (ranging from 5 to 20 years) Mining proper ties and mineral rights are depleted on the unit-of-production method based on estimated recoverable ore reserves. Mine development expenditures are amortized on the straight-line method over 20 years. 5. Long-Term Debt Long-term debt at December 31, 1969, exclusive of amounts due within one year, comprises 4V2% Notes Payable to Bethlehem Steel Corporation, aggregating $12,666,669, due March 31, 1984. Under its Credit Agree ment 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 Notes. STATEMENT OF INCOME Argentine Pesos* Gross Profit from Sales....... 3,222,017,951 Other Income....................... 330,897,106 Total .............. 3,552,915,057 Expenses, Other Taxes, Depreciation, Depletion and other Deductions .. 1,013,923,103 Argentine Income and Emergency Taxes, Net......................... 379,458,153 Special Appropriation for Replacement of Capital Assets ,.. 140,090,890 Total ............................................ 1,533,472,146 Net Income for the Year....... 2,019,442,911 *The quoted free rate of exchange was approximately 345 pesos to the dollar at December 31,1969 and 1968. 6. Capital Stock and Stock Options On November 19,1968, the Board of Trustees declared a two-for-one stock split in the form of a 100% stock divi dend. On January 15,1969, the Company issued 4,594,203 shares of Capital Stock and transferred $42,667,100, rep resenting the par value of the shares issued (excluding 327,493 shares of Capital Stock added to Treasury) from Retained Earnings to Capital Stock, The accompanying financial statements for 1968 give effect to this transaction, Under the Company's Stock Option Incentive Plans adopted in 1958 and 1967, options have been granted to officers and other key employees under 60 years of age to purchase shares of the Capital Stock of the Company at Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 25 ST, JOSEPH LEAD COMPANY AND Consolidated Subsidiaries a price not less than the fair market value on the date the options were granted. The options are exercisable in equal annual instalments 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. A summary of the activity under the plans during 1969 and the status at December 31,1969 follow: Options outstanding, January 1, 1969 ___ Options granted, at $34.50 per share........ Options exercised...................................... Options cancelled or expired.................... Options outstanding at December 31,1969, at prices ranging from $18.81 to $34.50 per share.............. .................................. Shares available at December 31,1969 for future grants....................................... Shares 152,590 87,500 (54,091) ( 2,090) 183,909 312,500 The excess of the aggregate option price over the par value of shares issued upon exercise of options ($506,221) has been credited to Other Capital. 7. Retirement and Pension Plans The Company and its subsidiaries have several non contributory pension plans covering substantially all of their employees, including certain employees in foreign countries. The total pension expense for the years 1969 and 1968 was $2,006,962 and $1,696,749, respectively. The Company presently follows the policy of funding amounts accrued; accrual is made for all normal costs and amortization of prior service costs over a ten-year period. The actuarially computed value of the vested benefits for the plans does not exceed the total of the pension fund. 8. Provision for Federal Income Taxes The Provision for Federal Income Taxes is affected by taxJoehefits (which may fluctuate from year to year) relating principally to statutory depletion and investment and for eign tax credits. ACCOUNTANTS' OPINION . \ HASKINS & SfHLLS CERTIFIED PUBLIC ACCOUNTANTS \ " Two Broadway Now York To the Shareholders of St. Joseph Lead Company: We have examined the consolidated balance sheet of Si. Joseph Lead Company and its consolidated subsidiaries as of December 31, 1969 and the related statements of consolidated income and 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 retained earnings present fairly the financial position of St. Joseph Lead Company and its consolidated subsidiaries at Decamber 31,1969 and the results of their operations for the year then ended, in conformity with.generally accepted accounting principles applied on a basis consistent with that of the preceding year. February 20, 1970 j HASKINS & SELLS 26 '1 ' i : ` Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST. JOSEPH LEAD mmmmmics IN SHORT TONS Year Zinc Concentrate Produced From St, Joe Mines 1960 .... 1961 .... 1962 .... 1963 ..., 1964 .... 1965 .... 1966 .... 1967 .... 1968 .... 1969 .... 128,762 111,598 104,080 99,914 117,473 140,284 147,860 147,361 146,139 144,069 Net Zinc Raw Materials Purchased 166,613 123,882 170,281 153,053 214,772 229,958 250,413 231,283 264,818 303,269 ' Slab Zinc Equivalent of Production 148,788 141,309 153,968 174,089 193,444 202,657 216,910 212,338 233,454 243,882 Zinc Metal Purchased 26,730 8,511 4,709 6,726 15,538 21,058 9,874 1,118 2,591 7,762 Slab Zinc Equivalent Sold 158,276 162,005 152,258 178,515 211,731 221,329 214,189 208,150 244,883 256,104 Sulfuric Acid Sold 186,722 194,327 189,866 211,930 243,920 237,305 252,987 229,678 287,594 307,909 ST.. JOSEPH LEAD COMPANY LEAD STATISTICS IN SHORT TONS Lead Concentrate Produced From St. Joe Year Mines 1960 .... 1961 .... 1962 .... 1963 .... 1964 .... 1965 .... 1966 .... 1967 .... 1968 .... 1969 .... 147,879 139,817 86,375 113,801 170,704 189,962 189,225 224,233 262,079 354,131 . Net Lead Raw Materials Purchased 13,656 4,927 4,453 2,773 3,528 4,086 4,796 4,489 3,396 637 M Lead and Lead Alloy Production 98,447 116,148 77,156 81,319 117,643 133,601 118,354 124,480 175,717 233,160 Lead Metal Purchased 33,209 17 -- 10,357 8,724 9,135 69,301 18,996 13,989 932 Total Lead Sold 131,852 108,447 112,857 96,692 125,177 142,243 175,762 160,115 210,172 244,949 Sulfuric Acid Sold -- .-- -- -- -- -- ._ 20,554 IRON ORE PELLET STATISTICS IN LONG TONS (ST. JOE SHARE) Year Production , 1964 .... 1965 .... 1966 .... 1967 .... 1968 .... 1969 .... 407,814 791,439 869,239 900,683 747,337 774,663 ,, ; 27 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ST, JOSEPH LEAD COMPANY and Consolidated Subsidiaries COMPARATIVE FINANCIAL REVIEW 1960-1969 Average Metal Prices (Cents per pound) Lead, New York ...___ Zinc, St. Louis.............. 1969 14.895 14.600 1968 13,212 13.500 Sales ................................ Cost of Sales ................ Gross profit $178,974,343 118,296,373 60,677,970 $150,811,758 109,386,665 41,425,093 1967 14.000 13.843 $129,036,565 98,770,092 30,266,473 Other Income: Dividends................................ ............ Interest and other (net)...................... Royalty-Meramec Mining Company .. Total 5,814,449 2,413,092 1,399,028 70,304,539 4,469,713 1,660,896 1,250,000 48,805,702 4,523,185 1,899,387 1,250,000 37,939,045 Expenses: Administration, selling and ? research.......................................... Strike and shutdown expense............ Mine development and exploration*1*........ ............. Depletion, depreciation and amortization.................... .. Interest................................................ U.S. and foreign income taxes ...... Total 6,089,444 -- 1,491,037 6,321,501 635,625 18,304,371 32,841,978 4,332,484 227,722 113,494 6,029,037 680,625 12,448,865 23,832,227 4,153,225 -- 217,669 5,625,792 725,625 5,812,848 16,535,159 income Before Extraordinary Items ... 37,462,561 24,973,475 21,403,886 Extraordinary Items Net Income.......................... .. $ 37,462,561 $ 24,973,475 $ 21,403,886 (Sts (!) Includes mine develop ment 1960-62. In sub sequent years such expenditures were capi talized and the stated figures represent explora tion charges. *2* Adjusted to reflect the 10% stock dividend paid December 21, 1962, the three-for-two stock split effected September 30, 1964 and the two-for-one stock split effected Janu ary 15, 1969. (3) 1969-1966 stated at aver age shares outstanding during the year; prior years at shares outstand ing at end of the year. Per Share Outstanding*2*..................... Percent Gross Profits from Sales Applicable to: Lead.................................. .............. Zinc ........................................ .. Iron.................................... .................. Total Assets .............................. Current Assets........ ............................. Current Liabilities ........................... ..... Current Ratio (to 1)...................... .......... Shareholders' Equity: Amount .............................................. Per share outstanding at end of year*2* $4.37*3* $2.89*3* $2.38*3* 62 34 4 $201,063,191 84,148,589 15,278,713 5.51 47 48 5 $180,329,930 70,524,592 19,406,610 3.63 40 48 12 $172,101,486 69,233,758 14,228,072 4.87 $160,037,778 $18.64 $135,667,395 $15.90 $132,779,986 $14,80 28 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1966 1965 1964 1963 1962 1961 1960 15.100 14.500 $145,109,767 112,595,456 32,514,311 16.000 14.500 $136,156,901 96,979,226 39,177,675 13.596 13.568 $109,509,039 83,481,096 26,027,943 11.137 11.997 9.631 11.625 $ 75,598,525 57,932,666 17,665,859 $ 67,981,883 58,106,248 9,875,635 10.871 11.542 $ 71,008,301 58,063,668 12,944,633 11.948 12.946 $ 79,970,908 69,062,502 10,908,406 5,560,331 2,480,559 1,250,000 41,805,201 1,982,553 2,300,335 1,250,000 44,710,563 4,455,494 1,779,855 1,250,000 33,513,292 2,613,188 781,304 1,250,000 22,310,351 3,588,027 952,053 729,166 15,144,881 1,634,422 2,493,264 17,072,319 1,991,830 551,587 13,451,823 3,732,142 3,478,610 3,209,101 686,490 4,517,848 853,906 9,573,341 19,363,727 402,011 4,980,737 1,121,922 12,132,229 22,115,509 22,441,474 $ 22,441,474 22,595,054 14,610 $ 22,609,664 $2.46(3) $2.47 300,990 4,602,631 1,378,073 6,223,069 15,713,864 17,799,428 2,332,715 $ 20,132,143 $2,21 2,657,207 1,566,461 290,406 3,897,981 975,111 4,089,719 13,476,885 2,542,330 1,844,107 2,770,751 3,538,848 1,142,997 461,300 12,300,333 8,833,466 2,844,548 1,532,241 $ 8,833,466 $ 4,376,789 2,272,135 2,304,202 3,180,607 1,136,735 1,827,226 10,720,905 6,351,414 -- $ 6,351,414 2,322,476 2,880,829 3,766,920 1,172,042 333,898 10,476,165 2,975,658 -- $ 2,975,658 $.97 $.49 $.70 $.33 36 52 12 $166,766,587 68,814,652 17,768,371 3.85 50 43 7 $160,465,864 74,347,349 17,129,015 4.31 41 59 -- $155,502,831 70,071,803 14,222,293 4.91 29 71 -- $124,616,808 45,422,385 11,352,128 ; 3.98 6 94 $117,897,308 46,823,524 8,753,333 5.35 26 74 -- $120,298,163 54,787,270 11,276,912 4.86 26 74 '-- $110,545,876 45,178,167 7,485,650 6.04 $124,390,204 $13.67 $116,784,519 $12.78 $104,443,842 $11.45 $ 91,584,022 $ 85,427,260 $10.08 $ 9.53 $ 83,758,992 $ 9.34 $ 80,121,775 $ 8.94 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 29 ST, JOSEPH LEAD COMPANY and Consolidated Subsidiaries WORKING CAPITAL ANALYSIS 1960-1969 1969 1968 Source Net Income ........ .................. ................. Provision for Depreciation, Depletion and Amortization........ .. Long-term Borrowing........ ................. .. Sale of investments ............ ................. Other, Net........ .................. .................., Total $ 37,462,561 6,321,501 -- -- 426,249 $ 44,210,311 $ 24,973,475 6,029,037 $ 31,002,512 1967 $ 21,403,886 5,625,792 $ 27,029,678 Use Dividends Paid: Shares outstanding at end of yeai * .. Per share* ..................... ..................... Amount................................................. Capital Expenditures.............................. Investments .......................................... Repayment of Debt................................ Purchase of Company stock .......... Other, Net............................................... Total Working Capital at End of Year 8,587,891 $1.65 $ 14,139,309 11,319,108 __ 1,000,000 -- -- $ 26,458,417 $ 68,869,876 8,533,800 $1,425 $ 12,308,873 10,303,990 1,000,000 11,095,929 181,424 S 34,890,216 $ 51,117,982 8,971,276 $1.40 $ 12,568,349 8,316,355 484,871 1,000,000 507,813 192,885 $ 23,070,273 $ 55,005,686 Adjusted to reflect the 10% stock dividend paid December 21,1962, the three-for-two stock split effected GENERAL STATISTICS 1960-1969 Number of Shareholders............ .......... United States Employees: Number .............................................. Salary and wage costs........................ Pension and Retirement Plans: Members ................ ........................ Contributions...................... Pensioners........................................... Pension Payments................ Deferred Profit Sharing Plan: Eligible employees ....... v........... Contributions___ ___________ ...... 1969 20,957 4,057 $ 36,396,795 2,855 $ 1,985,326 1,182 $ 886,771 779 $ 902,070 1968 20,472 4,032 $ 33,983,700 2,796 $ 2,006,421 1,133 $ 781,714 746 $ 754,960 1967 18,585 3,959 $ 32,038,839 2,796 $ 1,967,573 1,097 $ 700,907 758 $ 649,042 30 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1966 1965 1964 1963 1962 1961 1960 $ 22,441,474 4,517,848 4,000 1,251,360 $ 28,214,682 $ 22,609,664 4,980,737 -- 5,724,028 603,060 $ 33,917,489 $ 20,132,143 4,602,631 18,000,000 197,213 1,834,237 $ 44,766,224 $ 8,833,466 $ 4,376,789 3,897,981 _ -- 376,409 $ 13,107,856 3,538,848 3,000,000 -- _ $ 10,915,637 $ 6,351,414 3,180,607 -- 8,549,758 160,211 $ 18,241,990 $ 2,975,658 3,766,920 -- -- -- $ 6,742,578 8,992,534 $1,325 $ 12,050,896 15,711,952 217,411 3,550,000 2,856,476 $ 34,386,735 $ 51,046,281 9,141,130 $1.15 $ 10,503,786 10,265,587 607,863 11,171,429 -- -- $ 32,548,665 $ 57,218,334 9,120,156 9,084,651 $.83 $.414 $ 7,588,828 $ 3,763,404 8,314,200 3,186,963 2,376,800 5,866,947 4,707,143 4,290,476 -- --. $ 22,986,971 $ 17,107,790 $ 55,849,510 $ 34,070,257 8,968,146 $.303 $ 2,717,622 3,750,014 4,634,987 4,290,476 -- 962,705 $ 16,355,804 $ 38,070,191 8,967,163 $.303 $ 2,717,247 2,445,243 3,554,516 3,707,143 -- - $ 12,424,149 $ 43,510,358 8,966,833 $.303 $ 2,717,222 5,912,656 1,891,994 850,000 -- 320,405 $ 11,692,277 $ 37,692,517 September 30,1964 and the two-for-one stock split effected January 15,1969. \, \\ . 1966 16,204 3,986 $ 30,098,896 2,910 $ 1,154,212 1,081 $ 624,676 675 $ 679,585 1965 11,792 3,820 $ 27,900,722 2,911 $ 2,384,779 1,047 $ 606,841 666 $ 636,135 1964 9,107 3,769 $ 24,926,760 2,788 $ 1,314,415 1,023 $ 537,621 669 $ 590,768 1963 1962________ 1961 8,772 8,986 3,621 $ 20,813,527 3,774 $ 19,781,411 2,628 2,777 $ 814,733 $ 939,017 937 920 $ '496,194 $ 457,701 687 $ 297,113 683 -. 9,740 3,871 $ 22,598,389 2,789 $ 944,152 886 $ 434,517 702 $ 189,966 1960 10,651 4,171 $ 24,803,687 2,690 $ 1,049,557 819 $ 355,782 698 -- Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 31 ST. JOSEPH LEAD COMPANY BOARD OF TRUSTEES (YEAR ELECTED) EXECUTIVE OFFICERS MANAGER OF EXPLORATIONS UNITED STATES DIVISION MANAGERS CIA. MINERA AGUILAR, S.A., ARGENTINA CIA. MINERALES SANTANDER, INC., PERU MERAMEC MINING COMPANY GENERAL COUNSEL TRANSFER AGENT AUDITORS REGISTRAR 32 Incorporated March 25,1864, under the laws of the State of New York Executive Office: 250 Park Avenue, New York, N.Y. 10017 David R. Calhoun, Chairman, 3s Louis Union Trust Company St, Louis, Missouri (1957) Francis Cameron*, Chairman of the Board (1953) John Corcoranl, President, Consolidation Coal Company, Pittsburgh, Pennsylvania (1970) Eli Whitney Debevoise*. Parlner, Debevotse, Plimpton, Lyons & Gates, New York, N.Y. (1954) Bernard F. Desloge, President, Minerva Oil Company, St, Louis, Missouri (1953) John R. Englehorn, Vice President--Marketing & Development (1969) Warren E. Fenzi*, Executive Vice President, Phelps Dodge Oorporatton, New York, N.Y. (1967) Andrew Fletcher, Honorary Chairman and Chairman of the Finance Committee (1921) Wing L. Lew, Executive Vice President, Cia Minera Aguilar, S A , Argentina (1968) Robert V LmdsayT, Senior Vice President, Morgan Guaranty Trust Company of New York, New York, N.Y. (1970) Plato Malozemoff*, President and Chairman, Newmont Mining Corporation, New York, N.Y. (1961) J Wesley Me Afee, Chairman, Union Electric Company, St, Louts, Missouri (1954) Joseph Pursglove, Jr.f, Consultant, Sewickley, Pennsylvania (1959) . Lawrason Riggs III*, President (1963) Guido F. Verbeck, Jr.f, Verbeck & Co , Lakeville, Connecticut (1961) `Member of Executive Committee -(-Resigned December 31,1969 ^Elected January 20,1970 , Francis Cameron Chairman ' ' ' i Malcolm Bonynge Vice President--Sales .' D, Broward Craig Vice President & Secretary John R, Englehorn Vice President-Marketing & Development Peter B Nalle Vice President Edward P. Merrell Treasurer William L Murphy, Jr Comptroller & Assistant Secretary Lawrason Riggs III President James L. Broadhead Assistant Secretary Norman H Donald, Jr. Assistant Vice President--Exploration John W. Hanselman Assistant Vice President-- Administration Frank J. Reldy Assistant Comptroller .Joseph G. Sevick Assistant Vice President-Operations Leroy K. Wheelock Assistant Vice President-Operations Edgar R. Lea Mines Lawrence W Casteel, Southeast Missouri Mark E. Riley, Balmat-Edwards, New York Smelters John W. Sherman, Herculaneum, Missouri Charles D. Henderson, Monaca, Pennsylvania i Wing L. Lew, Executive Vice President John E. Loser, Managing Director Clinton L Milter, Vice Presidents General Manager Robert G. Peels, Manager Debevoise, Plimpton, Lyons & Gates, 320 Park Avenue, New York, N.Y. 10022 Bankers Trust Company, 16 Wall Street, New York, N Y, 10015 Haskins & Sells, Two Broadway, New York, N.Y, 10004 The First National City Bank, 111 Wall Street, New York, N.Y. 10015 PRiNTfD Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. PHOTOGRAPHY BY MARVIN KONER / O J ^ ^ k J Y LEN PURY / CORPORATE ANNUAL REPORTS, INC A *,v .J \ * / . /'* 'f'\ *, . -- -- . ii , * . O'o ' ' t j, .. . .< ` . ' '* . / ' * A* >* ^y * ' !..u ' ,i ' , '' *i -- ' / ,/' rri .yb v-. .. v.'Tr-TT"'.;''1,'* yjv-' . :>,,/ ' 'V\;' T;.VST. TrV'!; 'TErT ' f -J. - : , ,, , / .' .. , " .. '' . 'iV,' - iV'/i . > -a<"*> - ` -!..'..' ->,'lev/eY(V.< ' ' ' 1 ;.>?'}(*, .. ** -.xi i >. . ` \ . : 1 ''-'v '!t 1 '' i ), t 'i ^ ` ',l* * 1' ' *F'* . * " " % * . / , J # ' . ` Vv'\-7A' **-` l'' m J ,* c- v-t. ** ST. JOSEPH LEAD COMPANY 250 PARK Ali^-UE NEW YORK, N, Y.10017 u ' < Reproduced with permission of the copyright owner. Further reproduction prohibited without permission Oi