-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ec+lLk8cQrppFWHPzHoZP6Cxbk5wbDSj2KcssjIRgA/A3wqLojtOj7VR8zaApLPR W8aFcZl5h1SktEKLaVJ7qQ== 0000914233-98-000127.txt : 19981120 0000914233-98-000127.hdr.sgml : 19981120 ACCESSION NUMBER: 0000914233-98-000127 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LA TEKO RESOURCES LTD CENTRAL INDEX KEY: 0000357281 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 870483319 STATE OF INCORPORATION: A1 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-10104 FILM NUMBER: 98755278 BUSINESS ADDRESS: STREET 1: 625 HOWE ST STREET 2: STE 500 CITY: VANCOUVER, B.C. STATE: A1 ZIP: 84101 BUSINESS PHONE: 6046880833 MAIL ADDRESS: STREET 1: 180 EAST 2100 SOUTH STREET 2: STE 204 CITY: SALT LAKE CITY STATE: UT ZIP: 84115 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q {X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1998 Commission file number 0-10104 LA TEKO RESOURCES LTD. -------------------------------------------------- (Exact name of Registrant as specified in its charter) British Columbia, Canada 87-0483319 ----------------------------- ---------------------------------- (State or other Jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 625 Howe St., #500 Vancouver, B.C. V6C 2T6 -------------------------------------- ---------- (Address of principal executive offices) (Zip Code) (604) 688-0833 -------------------------------------------------- (Registrant's telephone number, including area code) N/A -------------------------------------------------- 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 As of September 30, 1998, the registrant had 25,775,358 shares of its common stock issued and outstanding. LA TEKO RESOURCES LTD. Part 1. Financial Information ITEM 1- FINANCIAL STATEMENTS The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 1997. The accompanying financial statements have not been examined by independent accountants in accordance with generally accepted auditing standards, but in the opinion of management such financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations. LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (EXPRESSED IN U.S. DOLLARS) Three months ended September 30, 1998 and 1997 Unaudited 1998 1997 --------- -------- EXPENSES Operating and mine maintenance costs $184,414 116,929 General and administrative expenses 148,760 129,864 Royalty and lease 37,500 37,500 Depreciation 3,572 14,247 New prospect evaluation 226 - --------- -------- 374,472 298,540 --------- -------- Loss from operations before other items (374,472) (298,540) OTHER ITEMS Interest income (net) 21,034 12,569 Loss on sale of investments (84,840) - Unrealized loss on investments (72,601) - --------- -------- NET LOSS (510,879) (285,971) ========= ======== NET LOSS PER SHARE $ (0.020) (0.012) ========= ======== (The accompanying notes are an integral part of these financial statements) LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (EXPRESSED IN U.S. DOLLARS) Nine months ended September 30, 1998 and 1997 Unaudited 1998 1997 --------- -------- EXPENSES General and administrative expenses $ 549,160 691,340 Operating and mine maintenance costs 221,484 218,215 Royalty and lease 112,500 112,500 Depreciation 10,855 42,811 New prospect evaluation 1,319 - --------- --------- 895,318 1,064,866 --------- --------- Loss from operations before other items (895,318) (1,064,866) OTHER ITEMS Interest income (net) 24,357 58,870 Unrealized loss on investments (191,661) - Loss on sale of investments (135,708) - Loss on sale of equipment - (2,924) NET LOSS (1,198,330) (1,008,920) ========= ========= NET LOSS PER SHARE $ (0.042) (0.043) ========= ========= (The accompanying notes are an integral part of these financial statements) LA TEKO RESOURCES LTD. CONSOLIDATED BALANCE SHEETS (EXPRESSED IN U.S. DOLLARS) September 30, 1998 and December 31, 1997 Unaudited September 30, December 31, 1998 1997 ----------- --------- CURRENT ASSETS Cash and short-term deposits $ 1,291,750 613,304 Accounts receivable 11,228 93,891 Prepaid expenses 39,500 160,090 ----------- --------- Total current assets 1,342,478 867,285 Mineral properties and deferred costs 11,551,687 10,985,135 Plant and equipment 46,532 57,593 Investments 366,879 750,913 ----------- ---------- $13,307,576 12,660,926 =========== ========== CURRENT LIABILITIES Bank demand loan $ - 150,000 Accounts payable and accrued expenses 208,567 84,462 ----------- --------- 208,567 234,462 SHAREHOLDERS' EQUITY Common capital stock; no par value; authorized: 100,000,000 shares; issued and outstanding: 25,775,358 (1997: 23,467,358) 20,053,092 18,182,217 Accumulated deficit (6,954,083) (5,755,753) ----------- ----------- 13,099,009 12,426,464 ----------- ----------- $13,307,576 12,660,926 =========== =========== (The accompanying notes are an integral part of these financial statements) LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (EXPRESSED IN U.S. DOLLARS) For the years ended December 31, 1996 and 1997 and nine months ended September 30,1998 Unaudited [CAPTION] Common Stock Accumulated Shares Amount Deficit TOTAL ---------- ---------- ----------- ------------- Balance, December 31, 1995 36,729,449 24,064,475 (5,249,313) $ 18,815,162 1996 Common stock issued for: Exercise of options 138,780 222,048 - 222,048 Compensatory stock options - 188,125 - 188,125 Net income - - 955,785 955,785 Balance, December 31, 1996 36,868,229 24,474,648 (4,293,528) 20,181,120 1997 Common stock issued for: Exercise of options 5,000 8,000 - 8,000 Other 5,100 - - - Compensatory stock options (reduction) - (43,125) - (43,125) Net loss - - (1,462,225) (1,462,225) Balance, December 31, 1997 36,878,329 24,439,523 (5,755,753) 18,683,770 NINE MONTHS ENDED SEPTEMBER 30, 1998 Common stock issued for: Cash, net of financing costs 2,200,000 $ 1,767,200 - 1,767,200 Mineral properties 43,000 38,675 - 38,675 Employee termination payment 65,000 65,000 - 65,000 Net loss - - (1,198,330) (1,198,330) Balance, September 30, 1998 39,186,329 26,310,398 (6,954,083) 19,356,315 Less treasury shares (13,410,971) (6,257,306) - (6,257,306) BALANCE, SEPTEMBER 30, 1998 25,775,358 20,053,092 (6,954,083) $ 13,099,009
(The accompanying notes are an integral part of these financial statements) LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (EXPRESSED IN U.S. DOLLARS) Nine months ended September 30, 1998 and 1997 Unaudited 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES ----------- ---------- Net loss $(1,198,330) (1,008,920) Charges (credits) to operations not affecting cash: Unrealized loss on marketable securities 191,661 - (Gain) / loss on sale of investments 135,708 2,924 Shares issued for employee termination payment 65,000 - Depreciation 10,855 42,811 Loss on abandonment of furnishings and equipment - - ---------- -------- (795,106) (963,185) Net changes Decrease in accounts receivable and pre-paid expenses 203,458 121,897 Decrease in accounts payable and accrued expenseS 124,105 (99,090) ---------- --------- Net cash used in operating activities (467,543) (940,378) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments 58,304 - Proceeds on sale of partial interest in mineral property 11,638 - Exploration costs capitalized (334,154) (406,326) Investment in mineral properties (244,036) (199,818) Acquistion of investments (1,638) - Purchase of plant and equipment - (65,464) Proceeds from sale of equipment - 3,456 ---------- --------- Net cash used in investing activities (509,886) (668,152) ---------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Reduction of principal on debt - (372,500) Common stock issued: For cash, net of financing costs 1,767,200 8,000 For mineral properties 38,675 - ---------- --------- Net cash used in financing activities 1,805,875 (364,500) ---------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 828,446 (1,973,030) Cash and cash equivalents, beginning of period 463,304 3,041,205 ---------- --------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,291,750 1,068,175 ========== ========= (The accompanying notes are an integral part of these financial statements) LA TEKO RESOURCES LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (EXPRESSED IN U.S. DOLLARS) Nine months ended September 30, 1998 and 1997 Unaudited 1998 1997 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION ---------- -------- Cash paid during the period for interest $ - 2,562 Cash paid during the period for income taxes $ - - SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES Depreciation capitalized into deferred costs $ - - Stock issued as bonus compensation $ - - (The accompanying notes are an integral part of these financial statements) LA TEKO RESOURCES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (EXPRESSED IN U.S. DOLLARS) Nine months ended September 30, 1998 and 1997 Unaudited 1. BASIS OF PRESENTATION These financial statements have been prepared in accordance with U.S. generally accepted accounting principles and are expressed in U.S. dollars. 2. SHARE CAPITAL AUTHORIZED - 100,000,000 shares having no par value ISSUED - 25,775,358 DURING THE PERIOD SHARES ISSUED ARE AS FOLLOWS: Number of shares Price ---------------- -------- Cash net of financing costs 2,200,000 $0.85 $1,767,200 Mineral properties 43,000 $0.8994 38,675 Employee termination payment 65,000 $1.00 65,000 --------- ---------- 2,265,000 $1,870,875 OPTIONS OUTSTANDING AT SEPTEMBER 30, 1998: Number Price Expire ------- ----- ------------- 300,000 $1.60 11/16/2000-03 100,000 $2.50 03-14-2001 200,000 $2.41 06/05/2001-04 500,000 $1.85 12-10-2001-04 24,000 $1.60 08/17/1999 100,000 $1.50 07/16/2002-05 50,000 $1.60 12/31/1998 150,000 $1.05 10/08/2002-05 WARRANTS OUTSTANDING AT SEPTEMBER 30, 1998: Number Price Expire ------- ----- ------------- 2,133,000 $1.05/$1.25 May 1, 1999/2000 200,000 $1.05/$1.25 June 18, 1999/2000 3. SUBSEQUENT EVENT The Company has agreed to enter into a business combination with Kinross Gold Corp. whereby shareholders of La Teko will receive one share of Kinross for each 2.65 of La Teko shares. The proposed transaction is subject to shareholder and regulatory approval. LA TEKO RESOURCES LTD. ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL The Company is in the business of exploration and development of mineral properties, with two advanced-stage projects, True North and Ryan Lode, one mid stage project, Scheelite Dome, and three early stage exploration projects. The Company has provided for recent years' operations primarily from the receipt of funds from a wholly owned subsidiary of Newmont Mining Corporation ("Newmont") pursuant to the True North JV Agreement and the cash proceeds from issuance of common stock. It is anticipated that the $1,290,000 cash on hand September 30, 1998 is sufficient to cover expenditures required for the balance of 1998 and into 1999. Subsequent to the end of the third quarter La Teko and Kinross Gold Corporation ("Kinross") announced that they have agreed to enter into a business combination whereby shareholders of La Teko are to receive one Kinross share for each 2.65 La Teko shares they hold. The proposed merger is subject to La Teko shareholder approval, the execution of a definitive agreement and regulatory approval. All dollar amounts included herein respecting Management's Discussion and Analysis are in U.S. dollars except where noted otherwise as Canadian dollars (CAN). CAPITALIZED COSTS Costs of acquisition and deferred exploration expenditures associated with the Company's mineral properties are summarized as follows: PROJECT BALANCE CAPITALIZED ADDITIONS BALANCE DECEMBER 31, 1997 (DELETIONS) 1998 09/30/98 --------------------- ---------------- -------- True North 225,465 99,416 324,881 Ryan Lode 9,770,530 - 9,770,530 Margarita 430,652 3,766 434,418 Juniper 231,762 13,436 245,198 Twin Buttes 227,671 103,122 330,793 Discovery Gulch 99,055 14,828 113,883 Scheelite Dome - 318,859 318,859 Ogopogo - 13,125 13,125 Total Mineral Properties ---------- ------- ---------- And Deferred Costs 10,985,135 566,552 11,551,687 ========== ======= ========== The Company's mineral properties and deferred costs are recorded at the lower of cost or the present value of estimated recoverable amounts applicable thereto. Exploration and development expenses are deferred until the mineral properties are brought into production, at which time, they are amortized on a units-of- production basis, or until the properties are abandoned or sold; at which time, the deferred costs are written off or charges against sales proceeds. Capitalized costs and deferred exploration are evaluated at least annually to determine the probability of recovery and the requirement for periodic adjustments. Certain properties are in the exploration or development stage. The ultimate realization of capitalized costs is dependent upon the determination of economically recoverable reserves, the ability of the Company to obtain necessary financing to complete development, future profitable production and/or proceeds from sale of these properties. When a property is determined not to be commercially productive or its value impaired, the accumulated costs are charges to operations to the extent that costs exceed estimated net realizable value. In accordance with generally accepted accounting principles, the Company records an impairment expense to the extent that capitalized acquisition and deferred costs exceed estimated net realizable value if the Company determines that the realization of such capitalized costs associated with any property is impaired. As of September 30, 1998, the Company had capitalized costs of $9,771,000 associated with its Ryan Lode property. The Company believes that completion of the possible transaction with Kinross described in Note 5 to the consolidated financial statements on the terms proposed would enable the Company to realize the recorded capitalized costs of the Ryan Lode property. Subsequent to this reporting period the Company learned of contamination which occurred a number of years ago at the Ryan Lode site that could expose the Company to certain liabilities. The Company is investigating the events and analyzing the material to determine the extent of the contamination and appropriate actions. The Company may be liable to sanctions and be responsible for costs of cleanup and disposal of the material. The Company is in the process of establishing a sampling and clean-up plan and reporting the situation to the appropriate governmental authorities and anticipates that discussions will follow regarding, if applicable, any sanctions and the cleanup and disposal measures required. Based on the nature and extent of mineralization, current gold prices, ongoing environmental remediation obligations, the recently discovered contamination, and other factors, in the absence of the proposed Kinross transaction the Company would need to consider recording an impairment expense associated with the Ryan Lode property that could significantly reduce its net realizable value. RESULTS OF OPERATIONS INCOME The Company has not received operating revenues during any of the last three years and will not have income from sales of mineral product in 1998. EXPENSES During the first nine months of 1998, the Company expended $567,000 for capitalized costs associated with the acquisition, exploration and development of its mineral properties compared to $606,000 which was expended during the comparable period of 1997. Of this $294,000 was expended in the third quarter, compared to $385,000 expended in the third quarter of 1997. The expenditure is a result of the increased activity on the properties that typically occurs in the second and third quarters. Scheelite Dome and Twin Buttes were the principal properties on which capitalized expenditures were incurred. In the third quarter geophysical and drilling programs were completed at Scheelite Dome, while an auger sampling program was completed at Twin Buttes. General and administrative expenses, including corporate and project overhead decreased to $549,000 for the first nine months of 1998 as compared to $691,000 for the same nine month period for 1997. The decrease reflects the closure the Fairbanks office, the absence of costs incurred in transferring the head office functions from Salt Lake City to Vancouver, which occurred in the first quarter of 1997, and a focused effort to minimize costs. The general and administrative expenses for the third quarter were $184,000 compared to $130,000 in the comparable period in 1997. The higher costs versus the comparable period in 1997 are due in part to activity associated with the proposed business combination with Kinross Gold Corporation, the completion of the two private placements and the additional listing on the Toronto Stock Exchange. Operating and mine maintenance costs were $221,000 for the first nine months of 1998 as compared to $218,000 in the first nine months of 1997. During the third quarter 1998 the costs were $149,000 compared to $117,000 in 1997. The major costs for the reclamation and environmental monitoring activities at the Ryan Lode project have been incurred in the second and third quarters of 1998, as reflected in these expenditures. The total costs in 1998 are expected to be lower than were incurred in 1997 reflecting the planned reduction in reclamation and environmental monitoring activities at the Ryan Lode project following a major effort last year. Royalty and lease payments were identical at $112,500 and $37,500 for the nine month periods and third quarters. Net interest income for the first nine months of 1998 was $24,000 compared with $59,000 for the comparable nine months of 1997. In the third quarter 1998 net interest income was $21,000 compared with $13,000 in the comparable period in 1997. The interest income reflects the changes in term deposits. The Company currently has no debt, having completed the repayment of its outstanding debt last year. Depreciation declined to $11,000 from $43,000 for the nine months as some of the equipment required for the Ryan Lode and Fairbanks office was disposed of in 1997. LIQUIDITY AND CAPITAL RESOURCES During the first nine months of 1998, the Company has relied on its December 31, 1997 cash on hand of $613,000 and private placements with gross proceeds of $1,870,000 to fund its requirements for general and administrative costs and ongoing exploration and development projects. At September 30, 1998, the Company had working capital of approximately $1,134,000 compared with $633,000 for the comparable period in 1997. The Company believes that it has sufficient working capital to cover expenditures required for the balance of 1998 and into 1999. During the nine months of 1998, cash flows from operating activities used approximately $468,000 and investing activities $510,000, primarily respecting capitalized exploration costs and investments in mineral properties offset to a limited extent by the proceeds from the sale of investments. During the nine months of the comparable period in 1997, cash flows from operating activities used approximately $940,000 and investing activities $668,000, again primarily respecting capitalized exploration costs and investments in mineral properties. Remaining cash requirements for 1998 will be provided for from current cash reserves. The Company will receive no further cash payments from Newmont under the True North JV Agreement. Beyond 1998, the Company may require additional capital for ongoing administrative, exploration, development and acquisition activities. In order to meet such long-term needs, it will be necessary to obtain required capital from the sale of securities, possible new joint ventures or similar arrangements, project financing or other sources. There can be no assurance that any required additional funds will be available or can be obtained on terms favorable to the Company. The Company has outstanding options to purchase an aggregate of 1,424,000 shares of common stock at an average exercise price of $1.80 per share, for a total of $ 2,562,900; and outstanding warrants to purchase an aggregate of 2,333,000 shares of common stock at an exercise price of $1.05 per share in 1999 for a total of $ 2,449,650 or $1.25 per share in 2000 for a total of $2,916,250; but cannot predict whether any material number of either options or warrants will be exercised. PROJECTED 1998 REQUIREMENTS The Company has budgeted approximately $1,600,000 to continue with the True North project under joint venture with Newmont, fund the continuation of basic activities at the Ryan Lode property and other prospects and to meet other ongoing operating expenses. Notwithstanding Newmont's announcement of its intent to continue with the True North Joint Venture the decisions by Newmont respecting its True North activities are beyond the ability of the Company to predict or control. Newmont planned substantial additional exploration and development work during 1998, including $2.1 million for pre-feasibility studies through the full year and $1.5 million for exploration through the end of June. Subsequent to the third quarter Newmont indicated, having completed the metallurgical work on the bulk samples, that it has put further development work on indefinite hold and will not proceed with the planned prefeasibility study at this time. Provisions of the joint venture agreement are such that Newmont may withdraw from the joint venture at its sole discretion. In the event of termination by Newmont, the Company will re-acquire, at no cost, Newmont's 65% interest in the True North project, including subsequently acquired acreage, together with all exploration data, and the Company will then become obligated for the continuing carrying costs and expenses of the True North project. Newmont may also elect to attempt to sell an interest in the joint venture agreement, in which case the Company has the right of first opportunity to acquire Newmont's interest. Under the terms of the private placement with Kinross Gold Corporation ("Kinross") La Teko has granted Kinross a right of first refusal to finance the purchase of Newmont's interest in the True North Project in the event such interest is offered to La Teko through La Teko's right of first opportunity as defined under the terms of the joint venture agreement between La Teko and Newmont. Under the agreement between La Teko and Kinross, if Newmont elects to sell all or part of its 65% interest in True North (the "Newmont Interest") and if Kinross elects to finance La Teko to acquire the Newmont Interest, Kinross will advance the funds necessary for La Teko to acquire the Newmont Interest by means of a 120 day interest-free loan (the "Loan"), secured by the Newmont Interest. At the election of either La Teko or Kinross, La Teko would repay the Loan by conveying the Newmont Interest to Kinross, provided that La Teko may elect to retain 15/65ths of the Newmont Interest. In such case, La Teko would repay the remainder of the Loan in cash or, at La Teko's option, by issuing shares to Kinross at a 10% premium to market. As discussed earlier under the "General" section, La Teko has entered into an agreement to merge with Kinross. La Teko has adequate resources to meet the 1998 and 1999 requirements to complete this transaction. COMMITMENTS AND CONTINGENCIES Operations are subject to certain lease and royalty obligations. The Company carries insurance against property damage including insurance on its machinery and equipment and motor vehicles and also comprehensive general liability and liability policies applicable to motor vehicles. The Company has elected not to insure against business interruption. The Company cannot insure for environmental pollution and has elected not to insure for mine cave-ins, flooding, earthquake and other possible natural hazards consistent with industry practice. The Company may in the future be exposed to contingencies and liabilities relating to the foregoing that may arise under governmental regulations relating to the environment. Subsequent to this reporting period the Company learned of contamination which occurred a number of years ago at the Ryan Lode site that could expose the Company to certain liabilities. The Company is investigating the events and analyzing the material to determine the extent of the contamination and appropriate actions. The Company may be liable to sanctions and be responsible for costs of cleanup and disposal of the material. The Company is in the process of establishing a sampling and clean-up plan and reporting the situation to the appropriate governmental authorities and anticipates that discussions will follow regarding, if applicable, any sanctions and the cleanup and disposal measures required. The Company has implemented procedures to minimize the possibility of chemical spills, especially in its drilling and Ryan Lode operations. CHANGING PRICES, CURRENCY EXCHANGE RATES AND INFLATION The value of the Company's properties and its proposed operations have been and will continue to be affected generally by changes in gold prices and general market conditions. The Company's ability to obtain exploration capital through joint ventures or other arrangements with other mining firms and attract additional capital, if required, through the sale of securities or borrowings on attractive terms are also affected by gold prices and general market conditions. Such prices are subject to substantial fluctuations that are beyond the ability of the Company to control or predict. Although certain of the Company's costs and expenses are affected by the level of inflation, inflation has not had a significant effect on the Company's operations. Similarly, the Company's operations, all of which except for its executive offices are located in the United States, are not materially affected by fluctuations in the exchange rate between Canadian and US dollars. OTHER The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on the results of operations or financial position of the Company. Based on that review, the Company believes that none of these pronouncements will have significant effects on current or future operations. ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K (A) EXHIBITS The following exhibits are included a part of this report: Exhibit No. SEC Reference No. Title of Document Location - ----------- ----------------- --------------------- ----------- 27.01 27 Financial Data Schedule This filing (B) REPORTS ON FORM 8-K During the quarter ended September 30, 1998 the Company filed the following reports on Form 8-K: Date of event reported Item reported - ---------------------- -------------------- July 6, 1998 Item 5.Other events July 7, 1998 Item 5.Other events July 17, 1998 Item 5.Other events September 2, 1998 Item 5.Other events September 10, 1998 Item 5.Other events SIGNATURES In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LA TEKO RESOURCES LTD. (Registrant) Date: November 19, 1998 By /s/ Gerry G. Carlson 24 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF SEPTEMBER 30, 1998, AND STATEMENTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 1,291,750 0 50,728 0 0 1,342,478 11,621,687 (23,468) 13,307,576 208,567 0 20,053,092 0 0 (6,954,083) 13,099,009 0 0 0 (895,318) (327,369) 0 24,357 (1,198,330) 0 (1,198,330) 0 0 0 (1,198,330) (0.042) (0.042)
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