Cassiar Asbestos Corporation Limited

STATEMENT OF EXPLORATION AND DEVELOPMENT — DEFERRED

For the Period October 1, 1953 to June 30, 1954
Balance: @ctobesr sol 9 53 ties esata eae tear ed eres
Add: (Note 1)

Salesvofiiasbestoss fib te peste eat ete sna nO me nS $ 1,156,450.08
Less:
Gost*ofsproduction: == aaa nse meas $ 1,034,579.38
Shipping and marketing costs 198,016.93 1,232,596.31
$ 76,146.23
Interest earned and miscellaneous income (net) _. 15,448.39

$ 60,697.84

General and administrative expenses —

DIFC CEO TS aL CES foe a ee $ 1,250.00
Weel fees cea Oe ae a ees oe een 1,575.42
Remuneration of executive officers 10,875.00
Administrative expense 29,048.60 42,749.02

Balance June 30, 1954

STATEMENT OF OPERATIONS
For Three Months Ended September 30, 1954
Sales of asbestos fibre

Less:
WostsOP ped tt CEG tse eee ek ee $ 408,445.67
Shipping and marketing costs 224,483.02
General and administrative expenses —
Directors) fees cent a renee ee ee cy
Recallifcesy sxe a siclema ean ees = 3 ahs 920.00
Remuneration of executive officers 4,875.00
dS eas 5 anya ter, ln alte ye Yarn Mavala amet ero eA We ee Sein CO) Fs ayn 3,388.68
Administrative expetises -2a 22 Satin oy 2 ee ed 13,863.87

Net: profitsbefore: depreciation: == ase se. wares ter eee
Depreciation of plant and equipment i(INotes Z)) essere ere nee

Net profit transferred to earned surplus=(INote-3)) 222 eee

NOTES ON FINANCIAL STATEMENTS:

$ 488,022.22

103,446.86

$ 591,469.08

$ 1,241,597.99

632,928.69

$ 608,669.30

23,047.55

$ 585,621.75
72,000.00

$ 513,621.75

(1) A temporary experimental mill was operated from October Ist, 1953 to April 6th, 1954 and costs of operation
during this period were charged to Exploration and Development — Deferred. Costs incurred between
April 6th, 1954 and June 30th, 1954 have been allocated between Plant and Exploration and Development

— Deferred.

(2) In addition to the depreciation set out in the Statement of Operations, Depreciation of Automotive and other
portable equipment has been charged to Mining and Transportation Costs, in the amount of $174,496.91

during the year.

(3) Under the Income Tax Act, the Company is exempt from taxation for three years after coming into production.
(4) The Company has a commitment outstanding for purchase of an aerial tramway of approximately $240,000.00.

(5) No provision has been made for amortization of Exploration and Development — Deferred during the three
months ended September 30, 1954 as the amount chargeable to such period would not be material.

Pace E1cut