-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, syemcpVB2xHoHYUy2CL8nECqWIiaYv1rdB5qptGmZ3ZNRyWa4pvmJTHkesOnwWO6 MQByKyYmIIwTsdXxP6rbjw== 0000315523-95-000004.txt : 19950516 0000315523-95-000004.hdr.sgml : 19950516 ACCESSION NUMBER: 0000315523-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: USMX INC CENTRAL INDEX KEY: 0000315523 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 841076625 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-09370 FILM NUMBER: 95538735 BUSINESS ADDRESS: STREET 1: 141 UNION BLVD STE 100 CITY: LAKEWOOD STATE: CO ZIP: 80228 BUSINESS PHONE: 3039854665 MAIL ADDRESS: STREET 1: 141 UNION BLVD SUITE 100 CITY: LAKEWOOD STATE: CO ZIP: 80228 FORMER COMPANY: FORMER CONFORMED NAME: U S MINERALS EXPLORATION CO DATE OF NAME CHANGE: 19880222 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X]Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 1995 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________________ to_________________ Commission File Number 0-9370 ____________________ USMX, INC. (Exact name of registrant as specified in its charter) ____________________ Delaware 84-1076625 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 141 Union Boulevard, Suite 100 Lakewood, Colorado 80228 (Address of principal executive offices) (Zip Code) (303) 985-4665 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class of Common Outstanding at Stock May 12, 1995 ---------------- --------------- $.001 par value 14,747,019 PART I -- FINANCIAL INFORMATION Item 1. Financial Statements USMX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (Amounts in Thousands)
March 31, December 31, 1995 1994 --------------------- --------------- ASSETS Cash and equivalents $ 10,365 $ 12,014 Deferred mining and processing costs 2,414 2,344 Federal income taxes receivable 459 274 Other current assets 237 291 --------------------- --------------- Total current assets 13,475 14,923 --------------------- --------------- Property, plant & equipment 11,915 11,210 Accumulated depreciation, depletion and amortization (3,431) (3,418) --------------------- --------------- Net property, plant and equipment 8,484 7,792 Other assets 1,617 1,475 --------------------- --------------- Total assets $ 23,576 $ 24,190 ===================== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 161 $ 197 Accrued salaries 53 32 Accrued reclamation 441 493 Other accrued liabilities 73 96 --------------------- --------------- Total current liabilities 728 818 Estimated reclamation liability 361 361 Stockholders' equity Common stock 15 15 Additional paid-in capital 15,792 15,844 Retained earnings 6,680 7,152 --------------------- --------------- Total liabilities and stockholders' equity $ 23,576 $ 24,190 ===================== =============== The accompanying notes are part of the condensed consolidated financial statements.
USMX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in Thousands, Except Per Share Amounts)
Three Months Ended March 31, --------------------------------------------- 1995 1994 ------------------- ------------------ Sales $ 386 $ 1,872 Cost applicable to sales 453 1,749 ------------------- ------------------ Gross profit (67) 123 General and administrative expenses 560 509 Prospecting costs 246 166 Mineral property abandonments 28 - ------------------- ------------------ Loss from operations (901) (552) Royalty income 180 180 Other income, net 187 103 ------------------- ------------------ Loss before income tax provision (534) (269) Income tax provision (61) 10 ------------------- ------------------ Net loss $ (473) $ (279) ------------------- ------------------ Loss per common share $ (0 03) $ (0 02) =================== ================== Weighted average common and common equivalent shares outstanding 14,820 14,857 =================== ================== The accompanying notes are part of the condensed consolidated financial statements.
USMX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in Thousands)
Three Months Ended March 31, ------------------------------------------- 1995 1994 ----------------- ------------------- Net cash used in operations $ (856) $ (588) ----------------- ------------------- Net cash provided by (used in) investing activities: Capital additions and property acquisitions (724) (870) Proceeds from sale of property plant and equipment (17) - Other - (37) ----------------- ------------------- (741) (907) ----------------- ------------------- Net cash provided by (used in) financing activities: Repurchase of common stock (52) (3,200) Proceeds from issuance of common stock - 24 ----------------- ------------------- (52) (3,176) ----------------- ------------------- Increase (decrease) in cash and equivalents (1,649) (4,671) Cash and cash equivalents at beginning of year 12,014 15,720 ----------------- ------------------- Cash and cash equivalents at end of period $ 10,365 $ 11,049 ================= =================== Three Months Ended Supplemental Disclosures of Cash Flow Information March 31, ------------------------------------------- 1995 1994 ----------------- ------------------- Cash paid during the period for: Interest $ - $ - Income taxes $ 123 $ - The accompanying notes are part of the condensed consolidated financial statements.
USMX, INC. AND SUBSIDIARIES - --------------------------- NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ---------------------------------------------------- Note 1 - General The accompanying interim condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included. Operating results for the three month period ended March 31, 1995 are not necessarily indicative of the results which may be expected for the year ending December 31, 1995. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended December 31, 1994. Certain 1994 amounts in the accompanying financial statements have been reclassified to conform to classifications used in 1995. Note 2 - Deferred mining and processing costs Deferred mining and processing costs in the accompanying consolidated balance sheets represent mining, crushing, pad loading and processing costs associated with ounces in various stages of production as follows:
Ounces of Gold at ------------------------------------ March 31, December 31, 1995 1994 ------------ ------------ Gold bullion and dore 2,200 1,200 Gold in process 7,100 9,100 ------------ ------------ Total estimated ounces in process 9,300 10,300 ============ ============
Note 3 - Income Taxes The income tax provisions were computed using the expected annual effective income tax rate. The effective income tax rate varies from the statutory rate primarily due to differences in tax and book treatment of statutory depletion on mining properties. Note 4 - Commitments and Contingencies Reclamation Surety - ------------------ Pursuant to the mining reclamation and bonding regulations of the State of Utah, Department of Natural Resources and the Bureau of Land Management, the Company has provided reclamation surety for the Goldstrike Mine in the amount of $2,251,000. The required surety is in the form of a certificate of deposit in the amount of $1,000,000 and a letter of credit in the amount of $1,251,000. The certificate of deposit is reflected in Other assets in the accompanying condensed consolidated statements of financial position. USMX, INC AND SUBSIDIARIES - -------------------------- NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - ---------------------------------------------------- Hedging - ------- As part of its gold hedging program, the Company has entered into agreements with several major financial institutions to deliver gold. Realization under these agreements is dependent upon the ability of the counterparties to perform in accordance with the terms of the agreements. As of March 31, 1995, the Company had entered into forward sales contracts for 1,000 ounces of gold for delivery on April 13, 1995 at an average selling price of $390 per ounce. Delivery under these spot deferred contracts can be deferred at the Company's option from twelve months to thirty months depending on the individual contract. The aggregate unrealized excess of the spot gold price of $392 per ounce as of March 31, 1995, over the net market value of the Company's forward sales contracts, amounted to approximately $2,000. Further, the Company had written short-term call options expiring April, 1995, which, if exercised, would become spot deferred contracts with delivery deferred as previously described. At March 31, 1995, the Company had sold 1,000 ounces of gold call option contracts at a strike price of $415 per ounce expiring April 26, 1995. All gold sales have been made to one unaffiliated customer. The Company does not believe the loss of this customer would affect its business. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Financial Condition - ------------------- Liquidity - --------- The Company remains in strong financial condition with working capital at March 31, 1995 of $12,747,000. Cash and cash equivalents decreased during the first three months of 1995 by $1,649,000 primarily as a result of cash invested in property, plant and equipment (principally exploration of undeveloped mineral properties) of $741,000 and net cash used in operating activities of $856,000. Net cash used in operations during the first three months of 1995 is the result of reduced gold sales during the period. The Company sold 1,000 ounces of gold for $386,000 during the first quarter of 1995. At March 31, 1995 the Company had on hand 2,200 ounces of gold bullion and dore valued at approximately $860,000. Based on the current status of the Company's properties and development plans, management believes that cash and cash equivalents on hand, refined gold available for sale, anticipated cash flow from operations and the unused portion of its bank line of credit should be adequate to fund internally exploration, development and currently scheduled capital requirements for the next 12 months. The Company is engaged in feasibility studies with respect to three mining properties. Each of these properties would require a significant amount of capital to develop. In addition, the Company engages in on-going active evaluations of various opportunities in the mining business which may require significant amounts of capital. Accordingly, it may be necessary for the Company to use its existing internal resources, as well as external sources of capital. Capital Investment - ------------------ During the first three months of 1995 the Company invested $351,000 in exploration activities primarily on its Mexico properties. In addition the Company invested approximately $395,000 to further develop the Illinois Creek, Alaska property, the Cala Abajo, Puerto Rico property and the Thunder Mountain, Idaho property. Over the next 12 months, the Company plans to invest approximately $4.0 million in exploration and development activities, including approximately $1,000,000 in Mexico, $2,000,000 at Illinois Creek, Alaska, $500,000 at Thunder Mountain, Idaho and $300,000 at Cala Abajo, Puerto Rico. Results of Operations - --------------------- The Company sustained a net loss for the first quarter of 1995 of $473,000, compared with a net loss of $279,000 for the same period of 1994. Fluctuations in the Company's results of operations arise primarily from four factors: (1) changes in the volume of gold sold and the selling price of gold, (2) changes in the cost of gold sold, (3) the cost of mineral properties abandoned during any given period and (4) asset dispositions. Change in the Volume of Gold Sold and Selling Price of Gold - ----------------------------------------------------------- The following table analyzes the variance in gold sales revenue for the quarter ended March 31, 1995 and 1994:
--------------------------------------------------------------------- Revenue Variance Analysis Quarter Ended March 31, 1995 1994 --------------------------------------------------------------------- Ounces of gold sold 1,000 5,000 Average price realized per ounce $386 $374 Variances Lower volume ($1,498,000) ($649,000) Higher prices 12,000 205,000 --------------------------------------------------------------------- Decrease in gold sales revenue over the comparable period of the preceding year ($1,486,000) ($444,000) ---------------------------------------------------------------------
The 1995 increase in the average price realized per ounce is attributable to the general increase in the price of gold over the last year. The decrease in ounces sold is the result of reduced production from the Company's Goldstrike Mine and management's decision not to sell all available gold production. At March 31, 1995 the Company had on hand 2,200 ounces of gold bullion and dore valued at approximately $860,000. Change in Cost Applicable to Sales - ---------------------------------- Cost applicable to sales was $453,000 or approximately $453 per ounce, net of silver credits, for the first quarter of 1995, compared to $1,749,000 or $349 per ounce for the same period of 1994. The fluctuation in the cost of gold sold is a result of the change from period to period in the mix of production from the Company's mines and the change in production throughout the life of each mine as illustrated in the following table.
Quarter Ended March 31, 1995 1994 - -------------------------------------------------------------- ------------------------------ Goldstrike Mine ------------------------------ Ounces of gold produced 2,168 8,171 Ounces of gold sold 1,000 5,000 Per ounce statistics: Cash production costs incurred $ 186 $ 297 Depreciation, depletion, amortization and reclamation accruals 1 49 - ------------------------------------------------------------------------------------------------ Production cost per ounce produced $ 187 $ 346 ================================================================================================ Gold sales revenue $ 386 $ 374 - ------------------------------------------------------------------------------------------------ Production cost per ounce sold 405 566 Change in inventories (78) (261) Mining Taxes 3 5 Production royalties 124 39 - ------------------------------------------------------------------------------------------------ Costs applicable to sales 453 349 - ------------------------------------------------------------------------------------------------ Gross profit $ (68) $ 25 ================================================================================================
Mineral Property Abandonments - ----------------------------- Property abandonments, charged to operations, amounted to $28,000 for the first three months of 1995. No property abandonments were charged to operations for the same period of 1994. Asset Dispositions - ------------------ During the first three months of 1995, a $3,000 gain was recorded as the result of asset disposals. For the same period of 1994, no gains or losses were recorded. Other Factors - ------------- As the result of high precipitation during the first three months of 1995, gold production was adversely affected at the Company's Goldstrike Mine. Management expects the lost production to be recovered during the remaining life of the mine. PART II -- OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits - None (b) Reports on Form 8-K No reports on Form 8-K were filed during the quarter ended March 31, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. USMX, INC. (Registrant) Date: May 15, 1995 By: /s/ Donald E. Nilson ------------ ----------------------------------------- Donald E. Nilson, Vice President - Finance, Secretary, Chief Financial Officer Date: May 15, 1995 By: /s/ Daniel J. Stewart ------------ ------------------------------------------ Daniel J. Stewart, Controller, (Principal Accounting Officer) EX-27 2 ART. 5 FDS FOR 1ST QUARTER 10-Q
5 1,000 3-MOS DEC-31-1995 MAR-31-1995 10,365 0 459 0 2,414 13,475 11,915 3,431 23,576 728 0 15 0 0 22,472 23,576 386 753 327 453 834 0 0 (534) (61) (473) 0 0 0 (473) (0.03) 0
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