Braden

BRADEN, the most southerly of the three big Porphyries in Chile and the first to start production (in 1910), is a remarkable mine. It would be interesting to know just how much it has contributed, and will contribute, to the earnings of the Kennecott Copper Corporation, which acquired 95 per cent of Braden stock in 1915 by an exchange of shares and which subsequently obtained the remainder. Because of this complete ownership no separate annual report is published (as is the case with Anaconda's South American subsidiaries, Chile and Andes). Income, taxes, operating costs, earnings, and other financial data, including the balance sheet, are consolidated with corresponding items applying to Kennecott's manifold operations in the United States and other foreign countries. If Braden were in the United States it would be possible to arrive at a pretty accurate estimate of revenue realized each year from the sale of copper simply by applying the average published market price to the production as reported by the company. However, because of the restrictions on sales imposed by the Chilean Government and the almost fantastic regulation of exchange rates in the past, no estimate of the sort would be reliable. This point is illustrated by the following comparison made by Charles R. Cox, president, in Kennecott's report for 1955: In each year, 1954 and 1955, Braden supplied about 30 per cent of Kennecott's total copper deliveries; but Braden's operations contributed 16.7 per cent of consolidated net income in 1955 against only 6.2 per cent in 1954. More will be said later about exchange rates, taxes, and restrictions, and the recent improvement in the situation. Of course another element of