Consolidated Statement of Changes
in Financial Position forthe year ended December 31

1978 Igy
Source of working capital:
Operations —
Net income for the year $11,825,204 $19,565,945
Add (deduct) items not involving a
current flow of working capital:
Waste removal costs amortized 8,817,716 18,745,169
Depreciation 6,785,619 6,355,747
Exploration and development
costs amortized 478,622 1,145,039
Disposals of surplus assets
(Note 3) (3,578,766) —
Deferred taxes 3,800,000 2,563,000
Working capital provided by operations 28,128,395 48,374,900
Proceeds from disposals of fixed assets 3,793,717 974,748
31,922,112 49,349,648
Application of working capital:
Plant and equipment, Cassiar Mine 15,275,880 13,390,087
Transportation facilities 2,171,964 —_—
Other 582,091 567,139
Waste removal costs —
Cassiar Mine 10,374,869 15,358,965
Clinton Mine 478,532 1,447,771
Dividends 3,025,000 3,025,000
Exploration and development 1,794,054 647,141
Employees’ home purchase agreements (204,923) 1,109,695
Investments —_ 25,812
Reduction in term bank loan _— 5,000,000
33,497,467 40,571,610
Increase (decrease) in working capital
during year (1,575,355) 8,778,038
Working capital at beginning of year 13,727,343 4,949,305
Working capital at end of year $12,151,988 $13,727,343

*Certain amounts have been reclassified for comparative purposes.