Cassiar Asbestos Corporation Limited

Report of the Directors

To the Shareholders,

Cassiar Asbestos Corporation Limited.

Your directors submit herewith the fifth annual report on the operations of your
company, including financial statements prepared as at September 30, 1956, your auditors’

report thereon and a report by Mr. J. D. Christian, General Manager.

During the year your company earned a net profit of $2,225,088 after providing
depreciation aggregating $719,887 and amortization of deferred development in amount of

$25,785.

Sales were well maintained and prices for fibre remained firm. Mining and milling
costs have shown satisfactory improvement and further reductions particularly in mining
costs are expected as development of the mining area permits more efficient operations and

use of larger equipment.

Expenditure on account of plant and equipment amounted to $1,259,432 and on
account of exploration and development deferred, $390,255. You will note that after
providing for the capital expenditure for the year, current assets amounted to $3,129,494
and current liabilities amounted to $819,044 or net working assets of $2,310,450 as compared

with net working assets at September 30, 1955 of $939,544.

A long range programme of mine development which will prepare large tonnages of
ore for mining in future years was started during the year. Cost of the work is being

charged to operations on a uniform basis over a number of years.

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