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N11063
PNTC00005972
Anaconda Copper Mining Company
CAPITAL STOCK
December 31, 1927
Authorized, 6,000,000 shares, SS0 each...............................$300,000,000
Issued,
3,000,000 shares, $50 each...............................$150,000,000
OFFICERS
Chairman of the Board President .... Vice-President . Vice-President . Vice-President . . . Secretary and Treasurer General 'Auditor Assistant Secretary Assistant Treasurer
JOHN D. RYAN
CORNELIUS F. KELLEY BENJAMIN B. THAYER JAMES R. HOBBINS ROBERT E. DWYER ALBERT H. MELIN JAMES DICKSON RALPH D. COLE DAVID B. HENNESSY
DIRECTORS
Percy A. Rockefeller Benjamin B. Thayer George H. Church Nicholas F. Brady
Albert
John D. Ryan Cornelius F. Kelley John A. Coe Andrew J. Miller Melin
OFFICES
An a c o n d a, Mo n t a n a 25 Br o ad w a y , Ne w Yo r k
pNtC00005973
To the Shareholders of
Anaconda Copper Mining Company :
The year 1927 was not a particularly prosperous one for the non-ferrous metal industry as a whole or for your Company, due to the Very low metal prices that; obtained throughout the year. The Engineering and Mining Journal reports the following average prices: copper, 12.92c; lead, 6.755c; zinc at St. Louis, 6.242c; silver, S6.370c--a decrease in each case from the prior year's average quotations of copper, 13.795c; lead, 8.417c; zinc, 7.337c, and silver,' 62.107c.
The recession in the volume of domestic business from high level of 1926 was not met by producers with a curtailment of production adequate to meet the situation, until stocks had accumulated to a large total and prices had declined to a very low level, During the last half of tile year copper production was somewhat curtailed, and the price of the metal made an advance of about 1.5c per pound. The export business: during the year showed a satis factory increase in volume, the total shipped from North and South America being 641,865 tons as compared with 525,861 tons for the previous year.
The decrease in the (ticoffie of your Company from that of the previous year was due to its curtailed operations and the low prices received for its products.
Construction
Construction expenditures during the year, including items authorized during previous years, totalled $7,339,389.09, and are summarized as follows -.
Butte Mines--Mainly on completion of installations of electric hoists at the Badger State, Mountain Con and Belmont Mines$1,239,367.89
Reduction Works, Anaconda--Construction of new electrolytic zinc plant and remodelling of copper concentrator and crushing plant 3,576,980.83
Reduction Works, Great Falls--Installation of Secondary Purification Plant at electrolytic zinc plant and miscellaneous construction 385,164.78
Slag Treating Plant, East Helena--Construction of plant for treatment of East Helena slag_______________.
The American Brass Company--Improvements to buildings and machinery_____
Raritan Copper Works--Mainly on Power Plant improvements 442,173.17
International Smelting Company--Mainly on mill improvements and Cottrell Treater at Tooele Plant 205,405.13
Miscellaneous Construction Items____________
474,304-28 774,030.31
241,962.70
3
Results of Operations
Following is a summary of the results of. the operations of your Company, its depart ments and its subsidiary and affiliated companies, during the year.
Butte Mines Development
During the year 1927, drifts, cross-cuts, raises, winzes and shafts in the development work of the Company were extended 30.67 miles, as compared with 34.41 miles during the year 1926, a decrease of 10.87 per cent.
Mine Production
The various mining properties owned by the Company produced the following tonnage! during the year:
Copper Ore and Precipitates
Utah-Delaware Leasers _
2,910,519.71 45^483.46
1,855.84 30233.17
Zinc Ore
13,234.59 3,284.04
Lead-Zinc Ores
148,990.94 17,872.65
Phosphate Rock
18,086.80 27,264.40
Washoe
................................ ..................................................
Coal
326,383.91 181,943.51
Production of zinc ore was limited to the amount necessarily extracted in the course o development work, because of the low price which prevailed for zinc throughout the year an< the available tonnage of custom concentrates.
Miscellaneous Products
Miscellaneous production consisted of:
90,627,370 119
.23,305 1,353
34,107 6,957
feet.
tons,
"
u u
a
lumber. phosphoric arid. Anaconda Treble Superphosphate. ammonium phosphate. sulphuric arid. arsenic.
4
p*YC00005975
46,341,514 pounds, zinc oxide.
12,916,594
" white lead.
376,967
" cadmium.
28,765
" selenium.
1,036
" tellurium:
577,150
" nickel sulphate.
598,651
" copper sulphate.
125.36 ounces, platinum.
639.80 " palladium.
Successful experiments for granulating arsenic for use as a wood preservative were conducted and production is now on a commercial scale.
Slag Treating Plant--East Helena, Montana
During the year a contract with the American Smelting and Refining Company was entered into for the treatment of waste slag from the blast furnaces at their plants in Montana and Utah, to recover zinc contained in the slag. An experimental plant consisting of a coal dust fired water jacketed furnace, brick flue, steel cooling Sue, fans and bag house was built on the slag dump of the East Helena plant and put into operation at the end of the year. This plant will recover the zinc as a fume which will be sent to the electrolytic zinc plant at Great Falls for final treatment.
Reduction Worki
The plants of the Company treated the following tonnages: Concentrators
Anaconda Copper Concentrator Anaconda Zinc Concentrator___ Tooele Concentrator __________ Rico Concentrator ____________ Anaconda Smelter ___________ Tooele Smelter_______________ Miami Smelter_______________
Ore
2,866,785.04 480,165.67 395,683.00 58,942.25
_________Smelters________
Cupreous Material
Lead Material
906,534.55 116,909.86 237,810.80
................ 288,300.09 ................
Work of remodelling the Anaconda concentrator to treat ore by Selective Flotation was completed in August, materially increasing the grade of concentrates, and reducing smelting costs. A Central Crushing Plant was completed during December, feeding two sections by the end of the year, and will be extended to other sections in 1928.
Production, including purchased and toll material, was as follows:
Copper, Lbs.
Lead, Lbs.
Silver, Ozs.
Gold, Ozs-
Anaconda Tooele__ Miami __
221,300,270 20,119,391 125,415,476
146,073,315
6,638,126.86 8,001707.37
344,699.60
32,674.091 56349.889
9,003.570
5
PNYC00005976
Refinerie* Copper
The output of the copper refinery at Great Falls was 245,402,154 pounds of cathodes, of which 256,035,761 pounds were melted into shapes.
Improvements to the power system at Raritan Copper Works have been completed. These include two 5,100 and one 3,125 KVA turbo-generators obtaining steam from three 1,200 BHP boilers: operating at 360 pounds pressurej Power costs have been reduced and ampere efficiency increased. The Coal pulverizing plant has been enlarged and powdered coal has been substituted' for oil as a fuel' throughout the plant.
The metal output of the plant: was 378,099,665 pounds of fine copper, 18,896,528.33 ounces of silver, and 147,437.949 ounces of gold.
Zinc The zinc plants treated 12,913.32 tons of ore produced by the mines of the Company and 587,440.31 tons of ores and concentrates purchased from other producers located in Montana, Utah and Idaho, a total of 600,353,63 tons. The electrolytic zinc plant produced 225,133,444 pounds of zinc, 12,403,407 pounds of zinc in dross, and residue from which there were recovered 20,438,939 pounds of lead, 2,037,910 pounds of copper, 3,008,125.81 ounces of silver, and 7,307.887 ounces of gold. Construction at Anaconda of a new electrolytic zinc plant of 150 tons daily capacity was begun in May, 1927, and was completed. Production therefrom began in February, 1928.
Lend The International Lead Refining Company at East Chicago, Indiana, treated 86,560.93 tons of lead bullion, from which there were produced 162,012,930 pounds of common lead, 6,519,910 pounds of antimonial lead, 7,433,720.00 ounces of silver, and 32,821.063 ounces of gold.
Rod and Wire Mill The mill at Great Falls rolled into rods 165,954,810 pounds of copper; 36,940,088 pounds of rods were drawn into wire, of which 19,839,667 pounds were made into strand. 45,926,821 pounds of rods were shipped from this null to the Kenosha plant of The American Brass Company to be drawn into wire.
PNHC00005977
The American Brat* Company
The constantly increasing demand for copper and brass products at and in the vidnity of Detroit, Michigan, made it desirable to enter the manufacturing business in that locality.
Accordingly, negotiations were opened with the Detroit Copper & Brass Rolling Mill, a company with well established, plants and business, which resulted in the acquisition of the property ar.d plants of the ^Detroit Company at a price of: S12,600,000.00. This purchase was financed in, part by short term notes shown on Balance Sheet as "Notes Payable."
These plants, with the improvements that are being made, will enable The American Brass Company to adequately meet the requirements for copper and brass products in this important industrial locality.
Manufactured production, although less than the high record established in 1926, con tinued at a satisfactory race, distributed among the various plants as follows:
Ansonia _____.----------------152,349,539 pounds
Buffalo __ , 78,694,940
"
Detroit ___!-___ 28,931,978 "
Hastings --_____________ 96,415,118
Kenosha __ - 117,399,303
Torrington------------
61,515,019
Waterbury -------------------- 89,603,528
Toronto 18,001,753
" "
"
642,911,178 pounds
Particularly gratifying growth was noted in the output of the Company's Anaconda Brass Pipe and its special patented alloys--Anaconda Phosphor Bronze, Tobin Bronze Weld ing Rods, Ambrac Metal and Everdur, a manganese-silicon bronze having the strength of steel and which resists rust.
Railway*
Butte, Anaconda & Pacific Railway Company 5,020,046 Tooele Valley Railway Company_________________ 831,559
Tons Freight
Passengers Carried
13,060 538,119
Companies Controlled But Not Wholly Owned North Lily Mining Company
Development in the North lily mine was continued during the year and has been most encouraging. A four compartment shaft was sunk to a depth of 954 feet. The shaft was connected with the 700 haulage level of the Tintic Standard Mining Company early in Janu ary, 1928. Further shaft sinking and development work will be continued, together with surface improvements consisting of change house, warehouse, hoists and compressor with ore
7
PNYC000Q5978
bins* and aerial tramway to connect with the D. & R. G. Railway. In the course of develop ment 21,485.945 tons of ore, averaging 25.5% lead, 16.17 ounces silver, arid .1098 ounces gold were extracted and shipped to International. The improvements should be completed by May 1, 1928, after which the mine will be ready for production.
Walker Mining Company Operations at the Walker mine were conducted throughout the year. 385,819 tons of ore were broken. T*he concentrator made an average recovery of 92.696%. 340,156 tons of ore, averaging 1.49% copper were treated* from: which 19^68.41 tons of concentrates, averaging 24;388% copper were produced. There were sold to the smelter 19,406.62 tons of ore and concentrates yielding 8,701,138 pounds of copper, 180,950.32 ounces of silver, and 12,410.83 ounces of gold.
Arizona Oil Company Operations of the Arizona Oil Company during the year resulted in the production of 254,185 barrels of oil.
Foreign Companies Silesian-American Corporation A dividend of 7% on the preferred stock of this company was paid during the year. The properties of its subsidiary, Giesche Spolka Akcyjna, Katowice, Poland, operated satisfactorily throughput the year. The company produced approximately 123,800,000 pounds of zinc, 10,800,000 pounds of lead and 2,568,000 metric tons of coal. Various testing units were erected and operated during the year. Modernization of old plants and construction of new plants for flotation concentration, Are concentration of low grade material, roasting, sintering and electrolytic zinc were begun and should be 'completed during 1928.
Santiago Mining Company There was no change in the condition of Santiago Mining Company's affairs.
Andes Copper Mining Company Chile Copper Company
The Andes Copper Mining Company completed part of its plants and began opera tions during the year. A separate report of its activities will hereafter be issued. Copies of
8
PHYC00005979
--
the annual reports, of Andes Copper Mining Company and of Chile Copper Company are attached hereto for your information.
Financial
There is attached hereto a Consolidated Balance Sheet, including Andes Copper Min ing Company, showing the financial condition of the Company and its subsidiary companies at the dose of business December 31, 1927, together with an Income Statement for the year, certified to by Messrs. Pogson. -Peloubet & Company, Certified Public Accountants.
JOHN D. RYAN, Chairman of the Board.
' New York, N. Y., May 1, 1928.
CORNELIUS F. KELLEY, President.
9 c.tcoo^"80
ANACONDA COPPER MINING COMPANY and Subsidiary Companies
Consolidated Balance Sheet--31st December, 1927
Fix e d :
ASSETS
Mines and Mining Claims, Coal Mines, Timber Lands, Phosphate Deposits, Water Rights and Lands for Reduction Works, Refineries and Manufacturing Plants------------- --------------------------------------------- $136,478,852.95
Buildings and Machinery at Mines, Reduction Works, Refineries, Manufacturing Plants, Saw-mills, Foundries, Waterworks and Railroads_________ 172,775,604.98
Investments in sundry companies 98,115,866.76
$407,370,324.69
Def er r ed Ch a r g es and discount on bonds_
13,568,010.94
Cu r r e n t :
Supplies on hand, advances on Ores and Expenses
prepaid .
$ 19,573,140.60
Metals and Manufactured Products in process and on hand--at cost, less reserve 53,323,615.93
Accounts Receivable ... Marketable Securities
16,232,691.28 7,238,250.64
Cash . 10,822,239.24
107,189,937.69 $528,128,273.32
We have examined into the affairs of Anaconda Copper Minins Company and of its Subsidiary
Companies and have verified the Assets, Liabilities and Income shown above The Net Income is after deduct*:c all Development expenditure of the year. Depiction of Cool and Timber Lands and Depreci
ation of Plants and Equipment.
We hereby certify that this Balance Sheet shows the financial condition at 31st December, 1927, of
the Companies as an aggregate whole and that the accompanying Income Account for the year ending that
date is correct aa stated.
POGSON, PELOUBET & CO,
Certified Public Accountants.
New York and Butte, 9th April 1928.
10
N11063.01
PNTC0000598.
ANACONDA COPPER MINING COMPANY and Subsidiary Companies
Consolidated Balance Sheet---31st December, 1927
LIABILITIES
Ca p it a l St o c k of Anaconda Copper Mining Company:
Authorized, 6,000,000 shares of $30.00 each Issued, 3,000,000 shares______ ___
1
Min o r it y In t e r e s t in Subsidiary Companies___ ,
Bo n d s . Ou t s t a n d in g :
First Consolidated Mortgage Series A 6% Sinking
Fund Gold Bonds, due, 1953$104,731,000.00
Fifteen Year 7% Convertible Debentures, due 1938_ 50,000,000.00
Ten Year Series A 6% Secured Gold Bonds, due 1929 16,933,000.00
Butte, Anaconda & Pacific Railway Co. First Mort gage 5% Sinking Fund Gold Bonds, due 1944_
2,316,000.00
Co n v e r t ib l e 7% De b e n t u r e s of Andes Copper Mining Co., due 1943__
Res er v e f o r De p r ec ia t io n ______ _______________
Cu r r e n t : Notes payable--------------------------------------------------------$ 12,000,000.00 Interest and Taxes accrued 6,809,348.66 Accounts and Wages payable ___________________ 8,869,945.76 Dividend No. 98 payable 20th February, 1928______ 23250,000.00
Su r p l u s :
Balance 31st December, 1926-$ 84,925,111.12 Net Income of the year 1927, per Income Account
annexed--------------------------------------------------------- 10,123,258.45
$150,000,000.00 1,909,244.41
173.980.000.00 39.890.000.00 46,371,364.92
29,929,294.42
$ 95,048,369.57 Deduct, Dividends Nos. 95, 96, 97 and 98___________ 9,000,000.00
86,048,369.57
$528,128,273.32
No t *--In order to comply with the Government Income Tax requirements for the purpose of com puting depletion, an additional valuation of die mining property as of 1st March, 1913, has been recorded upon the books of the Cbmpany; bnt, for the sake of uniformity, the result of those entries has been omitted from the current statements.
11
PNYC00005982
ANACONDA COPPER MINING COMPANY and Subsidiary Companies
Consolidated Income Account--Year Ending 31t December, 1927
EXPENSE
Metals and Manufactured Products in process and on hand at beginning of year_________:----------------- :----------- -------- :^,________________________
Ores and Concentrates and Metals purchased.___________________________
Mining, Reduction and Refining of Metals_________________________
Manufacturing Expenses, including Selling
63,762,787.78
Cost of Merchandise sold and Operation of Public Service Companies____
Administration Expense and Federal taxes------------------------------------ -----------
Balance from Operations carried down--------------------------------------- !________
$ 46,144,207.59 62,140,682.60 49,579,685.63
2,030,341.59 1,737,195.28 21,287,960.49 $246,682,860.96
Amount charged off this year for Depreciation and Obsolescence$ 4,765,671.92
Interest, including discount on bonds, less income from marketable secur ities
13,382,540.91
Balance, Net Income: Carried to foregoing Balance Sheet$ 10,123,258.45 Apportioned to Minority Interest (loss)____________
2,117.15 ' 10,121,141.30
$ 28,269,354.13 12
PNYC00005983
a n a c o n d a c o p p e r min in g c o mp a n y
and Subidiary Companies
Consolidated Income Account;--Year Ending 3It December, 1927
INCOME
Sales of Metals and Manufactured Products Tolls, Royalties, Rentals, etc._______________________________ Sales of Merchandise and Revenue from Public Service Companies____ _ Metals and Manufactured Products in process and on hand at end of year
$180,894,558.31 9,333,241.84 3.131,444.88
53,323,61533
$246,682,860.96
Balance from Operations brought down $ 21,287,960.49 Income from Investments in sundry companies__________________________
6,981,393.64 "
$ 28,269,354.13 13
PNYC00005984
Andes Copper Mining Company
CAPITAL STOCK
December 31, 1927
No Par Value Authorized, 3,600,000 Shares
Issued, 1,762,219 Shares
OFFICERS
Chairman of the Board President . . Vice-President . ... Vice-President . Secretary and Treasurer General Auditor Assistant Secretary and
Assistant Treasurer .
JOHN D. RYAN CORNELIUS F. KELLEY BENJAMIN B. THAYER WILLIAM WRAITH DAVID B. HENNESSY JAMES DICKSON
W. KENNETH DALY
DIRECTORS
Percy A. Rockefeller
John D. Ryan
Benjamin B. Thayer
Cornelius F, Kelley
William Wraith
Albert H. Melin
Nicholas F. Brady
` Robert E. Dwyer
Junes Dickson
Office at 25 Br o a d w a y , Ne w Yo r k Mines at Po t r er iu o s , Ch il i
N11063.02
PNYC0a00598s
To the Shareholders of Andes Copper Mining Company:
As this is the first annual report of the operations of your Company, it is pertinent to give a resume of its development and activities. From January 20, 1916, the date of acquisition by your Company of the mining properties at Potrerillos, Chile, to January 1, 1925, the following work was performed; Construction of 57,80 miles of railroad with the necessary port facilities at the seacoast; drilling of 168 churn-drill holes having an aggregate depth of 17.90 miles; driving of drifts, crosscuts, raises and winzes aggregating 17.75 miles, including the main haulage tunnel ; erection of 79.49 miles of temporary transmission line and a temporary: 3,000-kilowatt power plant; installation; of 124 miles of pipe lines to carry potable water; driving of 1.85 miles of tunnels on the metallurgical water supply line, and erection of 237 dwellings.
The years 1921-2-3 were marked by curtailment of development and construction work by reason of the condition of the coppier market. With the exception of a small amount of aqueduct tunnelling a complete suspension of work occurred in the year 1924. In 1925, construction of the metallurgical plant was started and preparation of the mine for produc tion was resumed. A metallurgical plant, having a capacity of 12,500 tons per day, for the treatment of sulphide ores, the preparation of the mine for the production of this tonnage, the construction of the pipe line to carry water for metallurgical purposes, and the construc tion of dwellings to house the employees necessary for the operation of this plant were com pleted in the year 1926. Construction of a metallurgical plant, having a daily capacity of 7,500 tons, for the treatment of oxide ores was started in 1926, and it is expected that this plant will be completed by May, 1928.
The following figures indicate the volume of work that will have been performed dur ing the period F^bniary lO, 1925, to May 1, 1928: Structural steel erected 18,602 tons, concrete poured 192,086 cubic yards, excavation performed 901,300 cubic yards, brick laid 10,590,000, houses erected 743, permanent transmission line erected 89.6 miles, and the installation of 107 miles of pipe lines for the delivery of potable water.
Your attention is called to the Consolidated Income Account for the year 1927. You will note that on the sale of 52,703,695 pounds of copper the igross iincome before the deduc tion of depredation* bond interest and discount and, miscellaneous charges was $3,424,966.86. Interest and discount on debentures amounted to $2,952;670.16. Considering the magnitude of this enter^risjt and that this was,die first year of its operation iqt part, the results are very satisfactory; and have demonstrated not only the importance and value of the property as a great low cost : copper producer with an; ability to earn substantial returns at any probable price for copper when conditions permit its being fully icperated,; but also that the estimates as to the productive capacity of the plants were conservative and that an output of 225,000,000 pounds of copper per annum can be made.
* 16
pNY 000005*5 86
Mining
According to, estimates made in 1924 the ore reserves at that tone were calculated to yield, in tonnage to the metallurgical plants, 137,400,000; tons having an average content of 1.51% copper.
The ore mined in December, 1926 and the year 1927 was as follows:
Short Tons.
Sulphide Ore to the Reduction Plant ___ . 2,142,027
Oxide Ore removed and stored,_______
2,125,793
Oxide Ore to the Converter Plant. *___... ____ 14,903
Cu.
1.517 2.487 5.909
Total _
___ 4,282,723
2.014
In addition to this, waste material overlying the Central Oxide Orebody was removed to the extent of 977,071 tons. There were driven in all classes of underground
Openings --------------------------------------------------------------- 77,748.6 feet Diamond drilling performed 9,940 feet
South Oxide Orebody
Work in this orebody has been confined to the removal and storage of oxide ore to prevent its loss by caving resulting from the removal of ore from the South Sulphide Orebody. The ore removed, as stated elsewhere, amounted to 2,125,793 short tons assaying 2.487% copper. This ore will be available for treatment in the oxide metallurgical plant at any time.
South Sulphide Orebody
Preparatory work in Block No. 1 of Stope "A" was completed during the year and 68% of the calculated ore in the block was extracted. The total sulphide ore production came from this area. Preparations for mining Block No. 3 of Stope "A" were completed but no under cutting of ore was started. It is expected that production from Block No. 3 will start in February, 1928. In Stope "B" preparations for mining were carried on with the expecta tion that the block will be ready for production in 1928.
Central Oxide Orebody
Preparatory work for mining oxide ore from this area was actively prosecuted during the year. It is expected that ore extraction in this area will start in April, 1928.
Main Haulage Adit
The driving of the Main Adit to the north of the Oxide Ore Bin system was com pleted during the year. Driving of the Main Adit to the south to provide room for handling ore trains is in progress.
17
PHti
Coo,OoS
Oxide Ore Bin System Of the six ore bins planned, two have been completed, the third is almost completed, and excavation on two of the others is well under way- All concrete work in the Main Adit. station under these bins has been completed. The driving of four ore passes serving the ore bins has been completed, and three more are partially driven. Placing of the steel lining in the ore passes was started in December and will be completed by the time that oxide ore is to be mined.
Concentrator At the concentrator there were treated 2,120,762 tons of ore having an average content of 1.517% copper. This includes tonnage treated in the starting-up period in the'latter part of December, 1926. Concentrates produced amounted to 107,155.63 tons, having an average content of 26.232% copper. The recovery was 87.35 % of the total copper and 92.46% of the sulphide copper.
Smelter The smelter produced 54,377,048 pounds of copper, 133,621.02 ounces of silver and 7,124.574 ounces of gold. Of the above copper production, 587,841 pounds were used in the plants of the Company.
Power Plant The Barquito Power Plant generated 37,778,121 kilowatt-hours; the hydroelectricpower plant, known as the Montandon station, produced 11,994,800 kilowatt-hours, and 13,193,620 kilowatt-hours were generated at the Smelter Power House from waste heat steam.
Water Supply The first year's operation of La Ola pipe line, which carries die water for met allurgical purposes, was interrupted by but one shut-down which was of four hours duration. The fresh water supply was increased 430 tons per day by the installation of 8.7 miles of pipe line to additional sources of supply.
Construction The major construction work for die year was that in connection with the met allurgical plant for the treatment of oxide ores. During the year the following work was done: Excavation 309,617 cubic yards; concrete poured 62,500 cubic yards; steel erected
18
PNYC00005988
4,559 tons; dwellings erected 29; one 7,500 KVA turbine and one 1,000-horsepower boiler erected at. the Barquito Power Plant.
Six 60-ton lightens, and one steam tug were added to the port equipment at Barquito. Land
During the year two parcels of land containing fresh water springs were purchased, bringing (he total acreage held by the Company to 290,376.77 acres.
Potrerillo* Hallway Company During the year there were shipped from Barquito to Potrerillos 121,017 short tons of freight, from Pueblo Hundido to Potrerillos 12,606 tons, from Potrerillos to Barquito 27,297 tons of copper, making a totpl of 160,920 tons of material shipped. The following additions were made to the rolling stock: One Consolidation and one Mikado locomotive; 10 fiat cars; 3 passenger cars, and 5 tank cars.
Expenditure* The expenditures made during the year on mine development, metallurgical plant, railway and miscellaneous equipment, amounted to $10,028,797.66.
Financial Attached hereto is a Balance Sheet and Income Account for the year 1927, certified to by Messrs. Pogson, Peloubet & Company, Certified Public Accountants.
JOHN D. RYAN, Chairman of the Board.
CORNELIUS F. KELLEY, President.
New York. N- Y., May 1, 1928.
19
PNYC00005989
ANDES COPPER MINING COMPANY (Including Assets and Liabilities of Potrerillos Railway Company)
Consolidated Balance Sheet:--31st December, 1927
ASSETS
Fix e d :
Mines, Mining Claims, Lands and Railway Conces
sions, including Development-_____________
$ 36,274,333.91
Buildings and Machinery at Mines. Reduction Works,
Power Plants, Railways and Port Equipment..... 43,201,948.33
25:309.03
Def er r ed Ch ar g es and discount on Debentures......... 1.845,439,95
Cu r r e n t :
Supplies on hand and Expenses prepaid-- ----------- $ Metals in process and on hand--at cost------------------Accounts Receivable ----------------- ------------ ----------------Cash______ ____ ____.-------------------------------------------
3,980,334.43 277,739.76 307,305.22
1,708,725.65
$ 79,501,591.27
6,274,105.06 $ 87,621,136.28
LIABILITIES Ca p it a l St o c k :
Authorized, 3,600,000 shares--no par value Issued, 1,762,219 shares___________________
Co n v e r t ib l e 7% De b e n t u r e s , due 1943_______
Res er v e f o r De p r e c ia t io n _____:----------------------
$ 44,055,475.00 39,890,000.00 250,000.00
Cu r r e n t :
Interest and Taxes accrued_________________ ______ $ 1,400,169.09 Accounts and Wages payable--------------------------------- 1,774,847.72
3,175,016.81
Su r p l u s :
Surplus of Potrerillos Railway Company, 31st De cember, 1926__________ ______________________ $
Net Income of the year 1927, per statement annexed
70,694.19 179,950.28
250,644.47
$ 87,621,13628
We have examined into the affairs of Andes Copper Mining Company and Potrerillos Railway Com pany and have verified the Assets, Liabilities and Income shown above. We hereby certify that this Balance Sheet shows the financial condition of the combined companies at 31st December, 1927, and that the accom panying Income Accoant for the year ending that date is correct as stated.
New York, 9th April, 1928.
POGSON, PELOUBET 4 CO., Certified Public Accountants.
20
N11063.03
PNrC0C005990~
f
,c
ANDES COPPER MINING COMPANY (Including Income of Potrerillo* Railway Company)
Consolidated Income Account--Year Ending 31ft December, 1927
Op e r at in g Re v e n u e :
Copper sold--52,703,695 pounds at an average of 13.3667 cents per pound--_____ ________________
$ 7,044,734.23
Pr o d u c t io n Co s t , less value of silver and gold__________ Op e r a t in g Pr o f it ___________ ________________________
3,814,451.21 $ 3,230,283.02
Ot h e r In c o me ______ _
194,683.84
$ 3.424,966.86
Ch a r g e s Ag a in s t In c o me :
Miscellaneous charges:_______________________ _____$
42,346.42
Interest, including discount on Debentures___________ 2,952,670.16
For Depreciation of Plant and Equipment.__ ;_______ Ne t In c o me, carried to Balance Sheet$
250,000.00
3,245,016.58 179,950.28
c
21
PNYC00005991
Chile Copper Company
CAPITAL STOCK
December 31, 1927
Authorized, 5,400,000 shares, $25 each.....................................$135,000,000
Issued,
4,415,497 shares, $25 each.................................... $110,387,425
Chile Copper Company and Chile Exploration Company
OFFICERS
Chairman of the Board .
JOHN D. RYAN
President...............................CORNELIUS F. KELLEY
Vice-President........................ BENJAMIN B. THAYER
Vice-President........................ HERMAN C. BELLINGER
Secretary and Treasurer . . CHARLES W. WELCH
DIRE : T O R s
John D. Ryan
Percy A. Rockefeller
Cornelius F. Kelley
Nicholas F. Brady
Benjamin B. Thayer
Andrew J. Miller
George H. Church
Herman C. Bellinger
Robert Dwyer
Alfred Houston, Resident Dirt tor, Chile Exploration Company
Office at 25 Br o a d w a y , Ne w Yo r k Mines at Ch u q u ic a mat a, Ch il e
N11063.04
Pn ^q o o Q5992
To the Shareholders of Chile Copper Company :
During 1927, the operating company, Chile Exploration Company, maintained pro duction on approximately the same level as for the two prior years, producing 219,600,465 pounds of electrolytic copper. The cost of producing Copper for the year 1927 was 8.738c per pound, including in cost, depreciation, taxes, interest and bond discount, but excluding depletion.
The Plant Extension Program, commenced in 1925, and which called for rounding out mining and reduction capacity to a total of 375,000,000 pounds of copper per annum, was, completed during 1927, as contemplated, except for minor details.
Expenditures on construction during the year amounted to $5,110,273.77. Charges to obsolescence, profit and loss; etc., totalled $2,377,915.25. The book value of property accounts was increased from $157,934,523.42 at the beginning of the year to $160,666,881.94 at the close, a net increase of $2,732,358.52.
Due to the market conditions which prevailed during the year your Company did not utilize the increased productive capacity.
Financial Result* Sales of copper during the year amounted to 235.291,177 pounds, at an average of l3.294c.per pound, as compared with sales for the year 1926 of 215,286,183 pounds, at an average of 14.11c per pound. The operating profit for the year was $18,050,608.87, as against $18,234,744.66 for the previous year. After including other income and deducting charges against income, taxes, interest and discount on bonds, depredation, etc., there remained a net income for the year of $11,085,537,1:3 as against $11,655,997.43 for the previous year.
Mining Claims During the year 1927, the Chile Exploration Company acquired two additional mining claims and one miscellaneous claim; four miscellaneous daims were abandoned.
Mine The length of the faces of the 13 operating benches as of December 31, 1927, was 53,001 feet (10.04 miles).
23
PNYC00005993
During the year, a total of 7,678,940 tons of ore was, mined, averaging 1.39% copper. In'addition, 30,519 tons of ore, averaging 2.16% copper, were loaded from the old Emilia Mine dump, making a grand total of 7,709,459 tons, averaging 1.595% copper, shipped to the mill; also 107,385 tons of ore, averaging 1.07% copper, were stock-piled. The total totwagc ot ore shipped to the mill since the beginning of operations up to and including December 31, 1927, amounts to 60,358,168 short tons, averaging 1.626% Copper,
Waste removed! during the year totalled 4,824,332 short tons, averaging 0.39% copper.
During the year a total of 11,964 feet of tunnels and 467,508 feet of chum drill holes were blasted.
The construction of the "S-Loop" cut-off line and the South Approach was completed early in, the year. The North entrance line to Bench C-l and South connections to Benches D-i and C-3 were placed in operation, as were the E-2 and E-3 trackage and waste spur.
The electrification of the mine railway system was inaugurated in February, 1927, by the installation of four 76-ton locomotives equipped to operate either from 600-volt elec trified third rail or on storage batteries; the latter for use principally, for serving shovels on die benches where itiis no* feasible to install electric third || rail. The elimination of steam locomotives for this service,: by the:'substitution of iel^ctric^|s:,ishowing a saving of about 50% in the cost per ton kilometer of pt;e .lintiligi!* THeijSbUtfi Approach system from Bench D-2 down is already electrified and the work of electrifying the C-D Loop and D-l Approach is under way.
Liquid Oxygen for blasting was introduced in June. Up to the end of the year a total of 1,329,300 tons of ground had been broken by this explosive. The present Liquid Oxygen Plant has a capacity of 70 liters per hour, and plans are under way to increase this to a total of 210 lifers per hour.
Plant
A total of 7,711,952 short tons of ore was crushed during the year. The average leaching extraction obtained from the treatment of 709 charges was 88.85%, compared with 88.83% for 1926. During the year 219,600,465 pounds of electrolytic copper were produced. The following tabulation shows a comparison of results by quarters;
Period
1st Qr. 2nd Qr. 3rd Qr. 4th Qr.
Ore Crushed Short Tons
2,329,927 1,969,286 1,724,893 1,687,846
Average Per Day
29,493 25,575 23,957 24,821
Per Cent Copper in Ore Leached
1.512
1.628
1.642 1.622
PerCent Ampere Efficiency
83.33 81.49
87.16 86.42
PerCent Net
Recovery
86.78 87.51 91.07 91.14
Pounds Copper Produced
56,275,993 55278,560 53,949,028 54,096,884
Year
7711,952
26,054
1.595
84.40
89.05
219,600,465
During the year, the Smelter melted 223,090,000 pounds" of electrolytic copper into marketable shapes.
24
PNYC0Q0Q5999
Con*traction The construction of the additional units to the Plant required to bring the capacity up to 375*000,000 pounds of copper per year was completed, with the exception of the Dust Exhaust Plant which was finished early in 1928. The additional units to the Power Plant at Tocopilla necessary for the above rated capacity were also completed.
Census The average number of inhabitants in Chuquicamata during 1927 was 15,855, com pared with 18,039 for the year 1926. At Tocopilla the average number of inhabitants housed by the Company during the year was 638, compared with 641 for 1926. The average working force at Chuquicamata for the year was 5,594 men, of whom 5,059 were on operation, and 535 on construction. At Tocopilla die average working force for 1927 was 613 men, of whom 478 were on operation and 1,35 on construction.
Tocopilla Power Station An average of 40,274 KW was generated. Fuel oil consumption at Tocopilla amounted to 1,089,077.22 barrels, which represents an oil factor of 1.0319 pounds per KW hour generated, or conversely, 323.9 KW hours per barrel (42 gallons) of fuel oil.
Financial Attached hereto you will find the Consolidated Balance Sheet at the close of business December 31, 1927, together with Income Statement for the year, certified to by Messrs. Pogson, Peloubet & Company, Certified Public Accountants. The increase of "Def er r ed Ch ar g es including discount on bonds" represents cost of calling 6% Convertible Bonds and financing new issue of 5Jo Gold Debentures, whereby interest charges are reduced $350,000 per year.
JOHN D. RYAN, Chairman of the Board.
CORNELIUS F. KELLEY, President.
New York, N. Y., May 1, 1928.
25
PNVC00005995
CHILE COPPER COMPANY and Subsidiary Companies
Consolidated Balance Sheet--31st December, 1927
Fix e d :
ASSETS
Property Investment__ ,__________________$ 99,322,590.69 Plant and Equipment at Mines, Reduction Works,
Power, Plants,, Railroads, Steamships, etc__,____ 61,344,291.25
$160,666,881.94
Less, Reserve or Depreciation of Plant and Equip
ment __----- ,__ _^
23,357,477.97
Def er r ed Ch ar g es including discount on bonds_____ ___
Cu r r e n t : Supplies on hand and Expenses prepaid_____________$ Copper in process and on hand: at cost-_______. Accounts Receivable______________________________ Cash and Call Loans,_____________ ______ _
7,433,396.63 1,733,054.79 4,903,393.67 2,367,614.93
$137,309,403.97 9,886,907.52
16,437,460.02 $163,633.771JS1
LIABILITIES Ca p it a l St o c k :
Authorized--5,400,000 shares of $25.00 each Issued--4,415,497 shares,___________________________
Tw e n t y -Ye a* 5% Go l d De b en t u r e s , due 1947: Authorized---$35,000,000.00 Issued and outstanding_____________________________
Res er v e for Renewals and Replacements, Insurance, etc.
Cu r r en t : Notes Payable___ $ 4,000,000.00 Interest and Taxes accrued________________________ Accounts and Wages payable 3,822,288.53
262,995.66
Su r pl u s :
Surplus 31st December, 1926_______________ $ 8,802,929.40
Premium on capital stock issued for convertible bonds
241,714.29
$ 9,044,643.69 Net Income of the year 1927, per statement annexed- 11,085,537.13
Distributions to stockholders 11,023,645.01
$ 20,130,180.82
$110,387,425.00 35,000,000.00 1,054,526.51
8,085,284.19
9,106,535.81 $163,633,771.51
We have examined into the affairs of Chile Copper Company and of its subsidiary companies and have verified the Assets, Liabilities and Income shown above. We hereby certify that this Balance Sheet shows the financial condition at 31st December, 1927, of the companies as an aggregate whole and that the accompanying Income Account for the year ending that date is correct as stated.
POGSON, PELOUBET & CO.,
New York, 6th March, 1928.
. Certified Public Accountants.
26
N11063.05
PNYC00005996
CHILE COPPER COMPANY and Subsidiary Companies
Consolidated Income Account--Year Ending 31st December! 1927
Op e r a t in g Re v e n u e :
Copper soldi--235,291,177 pounds at an average of 13.294 cents per pound................. ..... ........... ......
Pr o d u c t io n Co s t ___________________________ ____ _ Oper at in g Pr o f it -------------------------- ----------------------Ot h e r In c o me_____________________________________
$ 31,279,528.55 13,228,919.68
$ 18,050,608.87 811,982.55
$ 18,862,591.42
Ch a r g e s Ag a in s t In c o me :
Taxes and Miscellaneous Charges$ Interest and Discount on Bonds For Depreciation and Obsolescence of Plant and
Equipment__________________________ _
Ne t In c o me , carried to Balance Sheet
2,754,410.88 2,363,291.76
2,659,351.65
7,777,054.29
$ 11,085,537.13
No t e--In order to comply with the Government Income Tax requirements for the purpose of com puting depletion, an additional valuation of the mining property as of 1st March, 1913, has been recorded
upon the books of the Company; but, being made for tax purposes only, the result of those entries has been omitted from the current statements.
27
PNYC00005997