Cassiar Asbestos Corporation Limited

Report of the Directors

To the Shareholders,
Cassiar Asbestos Corporation Limited:

Your directors present herewith the twenty-third annual report on the affairs of your Company
including the Consolidated Balance Sheet as at December 31, 1974, Consolidated Statements of Opera-
tions, Retained Earnings and Consolidated Statement of Changes in Financial Position for the year
ended on that date and your Auditors’ report thereon.

FINANCIAL

During the year the Company incurred a net loss of $2,145,780 compared to the restated net
profit of $2,868,474 in 1973.

The following summary of the operating statement includes a comparison of the results for the
year with those of the previous year, taking into account the provision of non-recurring additional
depreciation required for the Clinton Mine in anticipation of the probable closing of that Mine in late
1977. You will note that the net consolidated profit before deducting these adjustments, provision for
taxes under the British Columbia Mineral Land Tax Act and the cost of Pyke Asbestos exploration
amounted to $1,357,630 compared to $2,868,474 in 1973 and compared to $874,356 reported for the
nine months ended September 30, 1974.

Comparative Summary of Operating Statement

Years ended: December 31, 1974 December 31, 1973
Sales of fibre:
Tons
Gassiare Vine wee eee ee ee 91,315 116,393
GlintoneMinewe te ee 92,667 183,982 401,728 218,121
Value
@assiangMine= 2 co ee $29,960,045 $29,472,624
ClintongMincweer ee ee 23,227,381 $53,187,426 20,139,185 $49,611,809
Profit before following deductions ....... $ 9,659,099 $10,054,062
Deduct:

Interestepald =e tar ee eer ec cr $ 1,434,882 $ 857,411

Provision for depreciation at normal

TALCS ese terete Ce ent en ee 5,706,587 4,768,177
PLOVISIONSLORtAXeS= oer ee eee 1,160,000 8,301,469 1,560,000 : 7,185,588

Net Profit before adjustments arising out of
projected closure of Clinton Mine in
1977, provision for assessment under
the B.C. Mineral Land Tax Act and

non-recurring charges ............. 1,357,630 2,868,474
Deduct:
Non-recurring adjustment of deprecia-
tion — Clinton’; Mine — 5-2-2. 4,000,000
Less related adjustment of taxes deferred 1,400,000
2,600,000
Provision for B.C. Mineral Land Tax
INCI ss sn RE OS MS ge 200,060
Cost of Pyke Asbestos exploration ... 703,410 3,503,410
Consolidated net profit (loss) .......... ($ 2,145,780) $ 2,868,474

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