-----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, WYXXPLw4qMJr00PGgQcpVqiBT9aCY0h1dRrg5iXDq4XZ1rH0iBxYypQu3I6aHsyQ SnWi5mFAPaH3Rw47gdZF5Q== 0000074925-96-000005.txt : 19960430 0000074925-96-000005.hdr.sgml : 19960430 ACCESSION NUMBER: 0000074925-96-000005 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960401 SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ORIGINAL SIXTEEN TO ONE MINE INC /CA/ CENTRAL INDEX KEY: 0000074925 STANDARD INDUSTRIAL CLASSIFICATION: 1040 IRS NUMBER: 940735390 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10156 FILM NUMBER: 96543104 BUSINESS ADDRESS: STREET 1: P O BOX 1621 CITY: ALLEGHENY STATE: CA ZIP: 95910 BUSINESS PHONE: 9162873223 MAIL ADDRESS: STREET 2: PO BOX 1621 CITY: ALLEGHANY STATE: CA ZIP: 95910 10-K 1 FORM 10-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended:December 31, 1995 Commission file number:001-10156 Original Sixteen to One Mine, Inc. (Exact name of registrant as specified in its charter) California 94-0735390 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Post Office Box 1621, Alleghany, CA 95910 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code:(916) 287-3223 Securities registered pursuant to Section 12 (b) of the Act: Title of each class Name of each exchange on which registered Common stock, par The Pacific Stock Value $.10 per share Exchange Incorporated Securities registered pursuant to Section 12 (g) of the Act: None (Title of Class) 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 . The aggregate market value of voting stock held by non-affiliates of the registrants $14,491,380 as of March 20, 1996. PART I ITEM 1. BUSINESS Description of Business The Company is a California corporation formed on October 11, 1911. It is in good standing and has never been in bankruptcy, receivership or similar proceedings. It has one class of stock; common. The Company's business is mining for gold on properties it owns or leases or on which it has claims. Properties of the Company are located in both the Alleghany and the French Gulch mining districts. These districts are in Northern California. The Alleghany district mineral deposit is a high-grade gold found underground in a system of quartz veins. The French Gulch district mineral deposit is in an underground quartz vein. The Company has three main products. One is rare high-grade gold and quartz specimens, which are sold at a premium to museums, collectors, and producers of fine jewelry. One is refined bullion sold to gold buyers and investors. One is jewelry and mine bars made from Sixteen to One gold. All types of gold are sold directly to a variety of purchasers by the Company. There are no major customers on whom the Company depends. The operation relies more on labor than on machinery or supplies. The Company has never experienced a shortage of supplies or workers, except during WW II when steel, explosives and labor for the mines were difficult to find. The current economic climate has created no shortage of available skilled personnel. The Company's bonus policy for its mine crew makes it very competitive in the labor market. Its current use of hand held metal detectors to locate gold has contributed to the profitable production of gold the past three years. The Company operates its underground and milling facilities in compliance with county, state and federal regulations. The estimated cost of compliance with environmental laws is approximately $5,000 per month. These expenditures reduce the cash available for development necessary to extend the life of the mine. The Company has thirty-seven full time employees and four part time workers. The Company's executive offices are located at 527 Miners Street, Alleghany, California 95910. The Company's phone number is (916) 287-3223. PART I ITEM 2. PROPERTIES Properties The Alleghany properties held by the Company consists of 28 patented claims (fee title land), 49 unpatented claims (paramount title held by the Bureau of Land Management, {BLM}, of the Department of Interior) including 5 claims leased by the Company. On an acreage basis, the Company owns 412 acres of real property and has the mineral and limited surface rights to an additional 1300 acres. On January 4, 1994, the Company closed escrow on the purchase of The French Gulch (Brown Bear) properties which consists of 34 patented claims and 22 unpatented claims. On an acreage basis, the Company owns 550 acres of real property and has approximately 400 additional acres of mineral and limited surface rights. The original mining property of the Company is carried on the books at its March 1, 1913, value of $379,000 as determined for depletion purposes in connection with Federal income taxes. This value, together with the cost of mining properties acquired in 1920 and 1924 for the aggregated sum of $145,145 has been fully amortized through depletion charges. No current provision for depletion with respect to mining properties acquired in later years costing $105,517 has been made as estimates of depletable reserves cannot be determined. A 200 ton/day mill was refurbished and upgraded in 1977 and 1987 by a lessee. The Company purchased the mill from the lessee in 1991. Other buildings include a mine office and complete mine shop. All Federal, State, County and local permits have been granted for a mining and milling operation. Also included in this category are its established water rights, high voltage power, and sewer system. ALLEGHANY DISTRICT: PATENTED MINING CLAIMS OWNED 100% BY THE COMPANY Name of Claim Name of Claim Belmont Rainbow Fraction Number Three Twenty-One Eclipse Quartz Eclipse Extension Tightner Extension Contract Alene Valentine Red Star Bartlett Farnham Gold Quartz Mine Belmont #2 Contract Extension Hanley Quartz Mine Noble Sixteen to One Groves Gold Quartz Mine Denver Happy Jack Extension Ophir Rainbow Extension Happy Jack UNPATENTED MINING CLAIMS OWNED 100% BY THE COMPANY Name of Claim Name of Claim La Jard Lode Tightner No. 4 Lode Tagalog Lode Bald Mountain Placer #2 Tightner No. 5 Lode Cumberland Lode Oversight Lode Tightner No. 6 Lode Aurora Lode Tightner No. 1 Lode East Bartlett Lode Copeland Two Lode Tightner No. 2 Lode Red Star Ext Placer Antique Lode Tightner No. 3 Lode Buckeye Placer Bullion Lode Alene Ext Lode Amethyst Lode Lava #1 Lode Bartlett Ext Lode Amethyst Ext Lode Lava #2 Lode Illocano Lode Mabel Lode Lava #3 Lode Bal Lode Margaret Lode Alling One Lode Verde Lode Phoebe Lode Alling Two Lode Butterfly Lode North Star Lode Triple M Lode Lady Bug Lode Blue Jay Lode South Fork Placer Honey Bee Lode Mayflower Lode Copeland One Lode Bald Mountain Placer Parkman Placer Oregon Creek Placer PATENTED MINING CLAIMS LEASED BY THE COMPANY Name of Claim Name of Claim Osceola Colorado Yellow Jacket Colorado Extension UNPATENTED MINING CLAIM LEASED BY THE COMPANY Name of Claim Osceola Fraction Lode FRENCH GULCH DISTRICT: PATENTED MINING CLAIMS OWNED 100% BY THE COMPANY Name of Claim Name of Claim Dreadnaught Quartz Lode Coon Dog Quartz Lode North Fork Quartz Lode Madison Quartz Lode North Fork No. 2 Quartz Mine Martin Quartz Lode Gem Quartz Lode Slide Quartz Lode Red Diamond Quartz Lode Abernathy Quartz Lode New World Quartz Lode New World Quartz Lode Enterprise Gold Quartz Lode North Pole Quartz Lode Cube Quartz Lode White Bear Quartz Lode Highland Mary Quartz Lode Comet Quartz Lode Dead Horse Quartz Lode Monte Cristo Gold Lode Belmont Quartz Lode Rising Sun Quartz Lode Capital Gold Quartz Lode Last Chance Gold Lode Black Bear Gold Lode Barted Gold Quartz Mine Queen Gold Quartz Gold Watt Quartz Lode Melton Quartz Lode Shoofly Gold Mining Claim Brown Bear Extension Quartz Lode Brown Bear Gold Quartz Mine Sebastian Placer Quartz Lode Deadwood Placer Mining Lode UNPATENTED MINING CLAIMS OWNED 100% BY THE COMPANY Name of Claim Name of Claim Lost Hope Cardinal NO. 1 Cardinal NO. 2 Cardinal NO. 3 Cardinal NO. 4 Cardinal NO. 5 Cardinal Fraction NO. 1 Cardinal Fraction NO. 2 Cardinal Fraction NO. 3 Cardinal Fraction NO. 4 Cardinal Fraction NO. 5 Cardinal Fraction NO. 6 Cardinal Fraction NO. 7 Cardinal Fraction NO. 8 Cardinal Fraction NO. 9 Cardinal Fraction NO.10 Coon Dog Extension Golden Bear NO. 1 Golden Bear NO. 2 Lucky Boy Sunny Point Sunny Point NO. 2 Milling Ore and Processing Gold Dore is produced at the mine and shipped to a refiner. The refiner purifies the gold into a .9999 fine commodity. When the refiner has properly computed the final weight of the shipment, it credits the Company's account. The Company determines when and how to sell its metal credits. Currently the Company orders the gold sold at the spot price and funds are wired to the bank immediately. In 1993, the Company established a program to market gold specimens, quartz and gold slabs (rock that is cut into thin sheets and used as a precious stone in jewelry) and mine bars (native unrefined gold approx. 22 karat). The purpose is to increase the sale price of gold and profit from the sale. Governmental Regulation Mining is generally subject to regulation by state regulatory authorities. In most states, the production of gold is regulated by conservation laws and regulations. State and federal statutes regulate environmental quality, safety, exploration procedures, reclamation, employees health and safety, use of explosives, air quality standards, pollution of stream and fresh water sources, noxious odors, noise, dust, and other environmental protection controls as well as the rights of adjoining property owners. While laws may change preventing or delaying the commencement or continuance of given operations, no material expenditures for environmental control facilities are foreseen in the near future. ITEM 3. LEGAL PROCEEDINGS 1. Original Sixteen to One Mine, Inc., Michael M. Miller, individually and dba Morning Glory Gold Mine, v. Hon. Reginald Littrell, Judge of the Superior Court in His Capacity as Trustee of Townsite of Alleghany, County of Sierra, California and DOES 1 through 20, inclusive. (Sierra County Superior Court Case No. 4055.) Case filed: June 27, 1986 - Complaint for Declaratory Relief and Preliminary and Permanent Injunction. Description: This action seeks to quiet title to certain townsite deeds purporting to grant rights to property overlying certain unpatented lode mining claims owned by the Company. Outcome: The Company did not prevail and lost the decision. An appeal was filed on February 26, 1994 with the Sierra County Superior Court. The appeal was heard in the Court of Appeal of the State of California Third Appellate District. The decision was filed on August 25, 1995, which overturned two of the three lower court decisions and ownership of the mining claims in dispute was restored to the Company. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matters were submitted to a vote of the Company's security holders during the last quarter of its fiscal year ended December 31, 1995. PART II ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Market Information The common stock is traded on the Pacific Stock Exchange under the symbol OAU. Trading began on May 19, 1989. 1995 1994 Price range High Low High Low 1st quarter 3 15/16 3 1/4 7 1/2 4 3/4 2nd quarter 3 3/4 2 5/8 6 1/4 5 1/2 3rd quarter 5 1/4 3 1/8 5 3/4 4 1/2 4th quarter 4 7/8 3 3/4 4 3/8 3 3/8 The amount of common stock that is subject to outstanding options to purchase is 30,000. The shares of common stock that can be sold pursuant to Rule 144 under the Securities Act is 551,306. Holders As of December 31, 1995, there were 731 holders of common stock. Dividends The Company declared a special dividend of $.05 per share on August 7, 1995. The payment of future dividends will be dependent upon gold production and planned expenditures for mining or acquisitions. ITEM 6. SELECTED FINANCIAL DATA For the Years Ended December 31, 1995 1994 1993 1992 1991 Revenues 2,655,575 1,200,913 3,394,216 1,554,072 59,620 Net Income (loss) 732,124 157,673 1,313,869 441,591 (456,090) PART II ITEM 6. SELECTED FINANCIAL DATA (Continued) For the Years Ended December 31, 1995 1994 1993 1992 1991 Net Income (loss) $ 0.21 $ 0.04 $ 0.38 $0.13 $(0.14) per share of common stock Total assets $4,087,068 $3,200,899 $2,993,743 $979,768 $527,390 Long-Term Obligations $15,823 $------ $------ $------- $------ ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Revenue Gold sales increased in 1995 from 1994 by $1,454,662. This is partially attributed to the change in direction from infrastructure repairs and maintenance to small block mining in favorable areas for gold deposition. The new 2600 foot level was extended north and south from the 2483 winze (an inclined excavation below a horizontal level) 300 feet during the year. A small amount of gold was produced during the work; however, emphasis was on development of the level, not production. Revenues for the year ended December 31, 1995, were $2,655,575 compared with $1,200,913 for the year ended 1994. Total gold production for 1995 was 6,505 troy ounces, an increase of 3,312 troy ounces or 96% compared to year ended 1994. Net income was $732,124, or $.21 a share, for the year ended December 31, 1995, compared with $157,673, or $.04 a share for the year ended December 31, 1994. This increase was due to higher production and gold prices in 1995. Expenses The change in direction from infrastructure repairs and maintenance to mining during 1995 previously described contributed to a $670,025 increase in operating expenses. Operating expenses for the year ended December 31, 1994 decreased $281,087 compared to the year ended December 31, 1993. This decrease is attributable to the decision to concentrate on repairs to the infrastructure and development work not directly associated with gold production. Gold sales were down resulting in a $300,139 decrease in salaries and wages attributable to decreased bonuses related to gold production. The Company's principal operating expenses for 1995 were compensation to its employees, contracted labor and supplies and taxes associated with operating the Sixteen to One Mine. An increase in contracted labor over the past two years is due to production costs of the jewelry department. The decreases in legal and accounting expenses for the year ended December 31, 1995, was due to the completion of legal actions that protected the Company's mining claims from the encroachment of a townsite patent. Significant Changes on Balance Sheet Inventory increased $460,620. This amount is determined by multiplying the number of fine troy ounces of gold in the bank by the spot price of gold on December 31, 1995 ($386.85 ). In 1995 development costs increased $347,848 from 1994. Costs included labor for drilling, blasting and removing the broken rock in the 2483 winze as well as utilities and supplies associated with the project. Assets increased $886,169 to $4,087,068. Notes payable increased $114,452. During 1995 the Company increased its inventory of quartz and gold specimens suitable for future sales in the jewelry department. Lines of credit (notes) were utilized to meet cash flow demands. Current Condition and Future Trends In February 1994, the Company began development of a new winze into unexplored ground. In June 1995, the winze extended downward about 220 feet and management decided to begin constructing the new 2600 foot level. To date this level extends 250 feet south and 50 feet north. Gold was encountered at six locations along the new level; however, mining for gold at this time is a secondary objective to the completed development of the level.. In May miners will return to the winze and continue its extension downward in order to develop a new 2800 foot level some time during the third quarter of 1996. In 1995, the Company formalized the division of the miners into separate crews with specific and on going task designations. The MD (metal detection) crew examines accessible small blocks of quartz throughout the mine with the latest metal detection equipment. These miners extract all visible gold, evaluate the potential of any discovery and turn the heading over to production crews for further development. In March 1996, the Eureka crew completed work in the 1719 stope. (A stope is a free form excavation that primarily follows the ore. The first two numbers refer to the level; the second two refer to the location from the winze.) This area yielded 8,500 ounces of gold during 1995 and 1996. The crew then moved to the 1529 stope, where a large expanse of quartz is displayed. Prior metal detection produced 150 ounces of gold from this area, which appears to have gold potential similar to the 1719 stope directly below. Another production crew is working on the 1900 foot level in an area below the productive 1719 stope, to determine whether the pay shoot continues downward into this area of the mine. Miners continue to break quartz in the 1571 stope, a target too promising to leave but one that has been disheartening as to gold produced to date. The fine ore bin of the mill is under construction. Instead of replacing the wooden bin, which burned last year, a new steel bin has been designed. It is anticipated that the mill will be operating in the second or third quarter. Results of the gold jewelry and specimen sales in 1994 encouraged the Company to expand the merchandise and marketing program in 1995. The Company has continued to expand its production and sales of jewelry. While 1995 jewelry sales accounted for only 6% of total revenue, the growth in jewelry sales was over 300%. The 1996 year will mark the 100 year anniversary of the location of the Sixteen to One mining claim. Several special items including a silver and gold medallion have been designed and minted to honor this significant event in the history of the Company. The Company currently employs thirty-seven full-time employees; three in the corporate office, three in the expanded gold sales department and the balance in the mine. Events That May Have a Material Effect on Future Operations, Liquidity and Capital Resources TECHNOLOGY The Company continues to test various technologies for underground gold location. Should one of the technologies prove to more effectively detect high grade pockets beyond the Company's current capabilities, the Company's ability to produce gold at a low cost would be enhanced. PRICE OF GOLD Of material effect on the Company's financial operations is the price of gold. The Company's primary income is based upon current and future prices of gold. A decrease in the spot price of gold per ounce will decrease income. Conversely, an increase in the spot price per ounce increases the Company's income. The December 31, 1995, spot price for gold was $386.85 per troy ounce. The Company makes no projections on either the future price of gold, deflation or inflation. While any decrease of the spot price of gold is definitely a negative factor, deflation and inflation can arguably be positive occurrences for the Company. WORKING CAPITAL The Company may seek to supplement its internally generated funds with funds raised externally through a registered public offering of its common stock. TIMBER In 1994, the Company filed a Timber Harvest Plan and harvested trees in Sierra County. Receipts in 1994, were approximately $125,000. Logging operations were suspended due to early snow storms. The remaining acreage under the timber harvest plan was logged in 1995. Revenue was approximately $144,000. LACK OF PROVEN OR PROBABLE RESERVES OF COMMERCIAL ORE The Company is engaged in production of gold, and continues to explore and develop ore zones in the mine. While over 24,408 ounces of fine gold have been recovered since January 1992, there are no assurances that the Company will continue to find gold, or that if gold is found that it can be mined at a profit. The Company has no proven (measured) reserves or probable (indicated) reserves of gold at the mine as those terms are defined under Federal securities regulations. However, the vein system owned and operated by the Company has yielded over 1 million ounces of gold, thereby establishing it as a proven gold deposit. GOVERNMENTAL REGULATION All mining operations are subject to substantial governmental regulation, including Federal, state and local regulations concerning mine safety and environmental protection. Compliance with these regulations may cause significant delays in the operations of the Company and substantial capital expense. The Company believes it is currently operating in compliance with all known safety and environmental standards and regulations. However, amendments or additions to or future interpretations of current regulations could have an adverse effect on the Company's mining operations. DIVIDENDS Currently, the Company will continue to retain its earnings to expand its underground mining developmental headings, fund ongoing mining operations and provide capital for other activities deemed relevant by the Board of Directors. A special dividend of $.05 per share was declared and paid in 1995. No assurances can be given that gold production will be sufficient to allow payment of future dividends. LIQUIDITY The Company has, in the past, experienced a lack of liquidity and working capital. Although the Company held gold inventory of over $2.2 million and had little long term debt as of December 31, 1995, there can be no assurance that current gold production or gold inventory can be maintained or that the costs of mine exploration and development will not exceed revenues and deplete current assets of the Company. Management believes that the liquidity needs of the Company in the near term will be met from the sale of existing inventory and the production of gold. PROPOSED CHANGES TO MINING LAWS Congress is currently reviewing the 1872 Mining Law which controls unpatented mining claims. One proposal would replace the current annual assessment work requirement ($100 per claim) with an undetermined royalty payment. Although the Company's current production comes from patented (rather than unpatented) claims, any future production from the Company's unpatented mining claims may be subject to an additional royalty payment or other costs, if revisions to the 1872 Mining Law are implemented. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Page Independent Auditor's Report 15 Balance Sheet 17 Statement of Income 19 Statement of Stockholders' Equity 21 Statement of Cash Flows 22 Notes to Financial Statements 24 Schedules 31 ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ORIGINAL SIXTEEN TO ONE MINE, INC. FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993 and INDEPENDENT AUDITOR'S REPORT PERRY-SMITH AND CO. The Board of Directors Original Sixteen to One Mine, Inc. We have audited the accompanying balance sheet of Original Sixteen to One Mine, Inc. as of December 31, 1995 and 1994, and the related statements of income, stockholders' equity and cash flows for each of the three years in the period ended December 31, 1995. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Original Sixteen to One Mine, Inc. at December 31, 1995 and 1994, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 1995 in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. Schedules V and VI listed under Item 14(a)(2) herein are presented for purposes of complying with the Securities and Exchange Commission's rules and are not a part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, fairly state in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole. As discussed in Notes 1 and 5 to the financial statements, the Company changed its method of accounting for income taxes in 1993 to conform to the provisions of Financial Accounting Standards Board Statement No. 109. Perry Smith And Co. Certified Public Accountants Sacramento, California March 1, 1996 ORIGINAL SIXTEEN TO ONE MINE, INC. BALANCE SHEET December 31, 1995 and 1994 1995 1994 ASSETS Current assets: Cash $180,618 $146,713 Accounts receivable 13,370 17,060 Inventory 2,228,192 1,767,572 Other current assets 9,552 27,783 --------- ---------- Total current assets 2,431,732 1,959,128 Mining property (Note 2): Real estate and property rights, net of depletion of $524,145 105,517 105,517 Mineral property 415,263 415,263 Development costs 714,037 366,189 ---------- ---------- 1,234,817 886,969 Fixed assets, at cost: Equipment 693,703 545,440 Buildings 143,250 143,250 Vehicles 118,011 77,272 ------------ ---------- 954,964 765,962 Less accumulated depreciation (568,689) (451,156) ---------- ---------- Net fixed assets 386,275 314,806 Other assets, net of accumulated amortization of $35,256 and $29,504 in 1995 and 1994, respectively 34,244 39,996 ----------- ---------- $4,087,068 $3,200,899 ========== ========== 1995 1994 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued compensation $56,038 $65,482 Note payable due within one year (Note 3) 264,452 150,000 Income taxes payable (Note 5) 84,000 28,200 Deferred income tax (Note 5) 632,000 524,000 --------- ---------- Total current liabilities 1,036,490 767,682 Notes payable due after one year (Note 3) 15,823 --------- --------- Total liabilities 1,052,313 767,682 Stockholders' equity (Note 4): Common stock, par value $.10; 10,000,000 and 4,000,000 shares authorized in 1995 and 1994, respectively; 3,513,062 and 3,507,994 shares issued and outstanding in 1995 and 1994, respectively 351,306 350,799 Additional paid-in capital 1,369,318 1,325,011 Notes receivable from employees (52,000) (52,000) Retained earnings 1,366,131 809,407 --------- --------- Total stockholders' equity 3,034,755 2,433,217 ========== ========== $4,087,068 $3,200,899 The Accompanying Notes are an integral part of these financial statements. ORIGINAL SIXTEEN TO ONE MINE, INC. STATEMENT OF INCOME For the Years Ended December 31, 1995, 1994 and 1993 1995 1994 1993 Revenues: Gold and Jewelry sales $2,655,575 $1,200,913 $3,394,216 Operating expenses: Salaries and wages 804,368 505,029 805,168 Depreciation and amortization 123,285 102,150 84,826 Contract labor 75,791 36,025 16,661 Telephone and utilities 110,415 57,815 75,720 Taxes - property and payroll 117,214 107,820 86,623 Insurance 125,052 70,915 90,516 Supplies 250,163 72,386 113,288 Small equipment and repairs 72,735 39,309 43,269 Drayage 45,376 22,362 21,130 Promotion 23,525 23,819 16,450 Office expenses 13,341 11,602 8,748 Legal and accounting 57,554 99,192 67,786 Other expenses 64,762 65,132 64,458 --------- --------- --------- Total operating expenses 1,883,581 1,213,556 1,494,643 --------- --------- --------- Income (loss) from operations 771,994 (12,643) 1,899,573 Other income 181,130 155,316 16,569 --------- --------- --------- Income before income taxes and cumulative effect of required change in accounting principle 953,124 142,673 1,916,142 Income tax (expense) benefit (Note 5) (221,000) 15,000 (750,273) For the Years Ended December 31, 1995, 1994 and 1993 1995 1994 1993 Income before cumulative effect of required change in accounting principle $732,124 $157,673 $1,165,869 Cumulative effect of required change in accounting principle (Note 5) 148,000 --------- --------- --------- Net income $732,124 $157,673 $1,313,869 ========= ========= ========== Earnings per share: Income per share before cumulative effect of required change in accounting principle $.21 $.04 $.34 Cumulative effect of required change in accounting principle .04 Net income per share $.21 $.04 $.38 ========= ========= ========= Weighted average number of shares outstanding 3,508,291 3,507,994 3,455,869 ========= ========= ========= ORIGINAL SIXTEEN TO ONE MINE, INC. STATEMENT OF STOCKHOLDERS' EQUITY
For the Years Ended December 31, 1995, 1994 and 1993 Balance, January 1, 1993 3,459,494 345,949 1,244,493 (662,135) 928,307 Common stock repurchased (50,000) (5,000) (67,500) (72,500) Options exercised (Note 4) 97,000 9,700 89,668 99,368 Common stock issued 1,500 150 4,350 4,500 Notes receivable from options exercised (Note 4) (52,000) (52,000) Tax benefit from non-qualified stock option deduction (Note 5) 54,000 54,000 --------------------------------------------------------------- Net income 1,313,869 1,313,869 Balance, December 31, 1993 3,507,994 350,799 1,325,011 651,734 (52,000) 2,275,544 Net income 157,673 157,673 ---------------------------------------------------------------- Balance, December 31, 1994 3,507,994 350,799 1,325,011 809,407 (52,000) 2,433,217 Retired common stock (16,300) (1,630) (53,556) (55,186) Conversion of note payable to common stock (Note 3) 21,368 2,137 97,863 100,000 Dividends paid (175,400) (175,400) Net income 732,124 732,124 ----------------------------------------------------------------- Balance, December 31, 1995 3,513,062 351,306 1,369,318 1,366,131 (52,000) 3,034,755
The accompanying notes are an integral part of these financial statements. ORIGINAL SIXTEEN TO ONE MINE, INC. STATEMENT OF CASH FLOWS For the Years Ended December 31, 1995, 1994 and 1993 1995 1994 1993 Cash flows from operating activities: Net income $732,124 $157,673 $1,313,869 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 123,285 102,150 84,826 Decrease (increase) in accounts receivable 3,690 (6,831) (6,327) (Increase) decrease in inventory (460,620) 494,316 (1,836,332) Decrease (increase) in other current assets 18,231 (18,692) (8,991) (Decrease) increase in accounts payable and accrued compensation (9,444) (84,717) 119,465 Increase (decrease) in income taxes payable 55,800 28,200 (20,727) Increase (decrease) in deferred income taxes 108,000 (44,000) 622,000 --------- --------- --------- Stock issued in lieu of compensation 4,500 Net cash provided by operating activities 571,066 628,099 272,283 --------- --------- --------- Cash flows from investing activities: Purchase of fixed assets (189,002) (105,575) (32,870) Capitalization of development costs(347,848) (366,189) Capitalization of legal costs (86,633) Deposit on property to be acquired (10,000) (40,000) --------- --------- --------- Net cash used in investing activities (536,850) (568,397) (72,870) --------- --------- --------- Cash flows from financing activities: Proceeds from issuance of common stock $47,368 Common stock repurchased $(55,186) (72,500) Repayment of notes payable (51,371) (100,000) Issuance of notes payable 281,646 Dividends paid (175,400) --------- --------- --------- Net cash used in financing activities (311) (100,000) (25,132) --------- ---------- --------- Increase (decrease) in cash 33,905 (40,298) 174,281 Cash at beginning of year 146,713 187,011 12,730 ---------- ---------- --------- Cash at end of year $180,618 $146,713 $187,011 ========== ========== ========= Supplemental schedule of noncash investing and financing activities: Cash paid during the year for: Interest expense $29,493 $4,515 Income taxes $57,200 $800 $800 Stock options exercised through issuance of promissory notes $52,000 Future tax benefit from non-qualified stock option deduction $54,000 Purchase of mineral property: $300,000 through issuance of a $250,000 promissory note and a $50,000 deposit. $100,000 of the note was paid during 1994. $150,000 Issuance of 21,368 shares of the Company's common stock to repay promissory note. $(100,000) The accompanying notes are an integral part of these financial statements. ORIGINAL SIXTEEN TO ONE MINE, INC. NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Original Sixteen to One Mine, Inc. (the Company) was incorporated in 1911 and is actively involved in operating gold mines in Alleghany, California. Inventory Inventory consists of gold bullion, specimens and jewelry recorded at the quoted market price for gold bullion. Gold bullion held in the Company's name by the smelter is accounted for using the FIFO method. All other gold inventory is accounted for using the specific identification method. Fixed Assets Fixed assets are stated at historical cost. Depreciation is calculated using straight-line and accelerated methods over the following estimated useful lives: Vehicles 3 to 5 years Equipment 5 to 7 years Buildings 18 to 31.5 years Mine Rehabilitation The costs of mine rehabilitation are expensed as incurred. Depletion Policy Because of the geological formation in the Alleghany Mining District, estimates of ore reserves currently cannot be calculated, and accordingly, a cost per unit depletion factor cannot be determined. Should estimates of ore reserves become available, the units of production method of depletion will be used. Until such time, no depletion deduction will be recorded (see Note 2). Development Costs In February 1994, the Company began development of a new winze into unexplored ground. The winze was extended 200 feet downward to the 2,600 foot level. Costs associated with the development have been capitalized. During 1996 the winze will be extended another 200 feet to establish the new 2,800 foot level. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Other Assets Other assets include payments for lease rights to certain mineral property which is being amortized over their estimated useful lives of ten years. Income Taxes Effective January 1, 1993, the Company adopted Statement of Financial Accounting Standards No. 109 (SFAS 109), Accounting for Income Taxes. The adoption of SFAS 109 changed the Company's method of accounting for income taxes from the deferred method to an asset and liability approach. Under this approach, deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the financial statement and tax basis of existing assets and liabilities. The principle items causing these temporary differences are as follows: * Net operating loss carryovers * Tax recognition of gold sales The adjustments to the January 1, 1993 balance sheet to adopt SFAS 109 are reflected in 1993 net income as the cumulative effect of a change in accounting principle. Gold Sales Gold sales consist of actual cash sales during the reporting period and include both gold bullion held by the smelter and marketable ore held in inventory which are recorded at the spot price per ounce. Earnings Per Common Share Earnings per common share are computed on the weighted average number of common shares outstanding each year. Outstanding stock options are considered common stock equivalents but are excluded from earnings per common share computations due to immateriality. 2. MINING PROPERTY The original mining property is carried on the books at its March 1, 1913 value of $379,000 as determined for depletion purposes in connection with Federal income taxes. This value, together with the cost of mining properties acquired in 1920 and 1924 for the aggregated sum of $145,145 has been fully amortized through depletion charges. During 1994, the Company purchased mining properties at a cost of $300,000 and capitalized $86,633 in legal costs. These legal costs were incurred in defense of certain mining claims. 3. NOTES PAYABLE Notes payable at December 31, 1995 and 1994 are as follows: 1995 1994 Unsecured notes payable to bank; interest due monthly at the bank's prime rate plus 2% (10.75% at December 31, 1995) $260,921 9.95% secured note payable; secured by an automobile; monthly installments of $442 due through July 27, 2000. 19,354 6% unsecured note payable issued in connection with the acquisition of mining properties. Paid in full by a $50,000 cash payment on March 1, 1995 and on issuance of 21,368 shares of common stock on September 1, 1995 $150,000 ---------- --------- 280,275 150,000 Less current portion (264,452) (150,000) --------- --------- Notes payable due after one year $15,823 $ - Under the terms of the unsecured notes payable to bank, the Company may borrow up to $275,000. Advances under the credit lines mature on July 1, 1996. Notes payable mature as follows: Year Ending Future December 31, Payments 1996 $ 264,452 1997 3,898 1998 4,305 1999 4,753 2000 2,867 ------------------- $ 280,275 =================== 4. STOCK OPTIONS The following is a summary of activity, including the range of per share prices, for the Company's stock options during the three years ending December 31, 1995: Shares Under Option Balance, January 1, 1993 127,000 Exercised (at $.5775) (37,000) Exercised (at $1.30) (60,000) ----------- Balance, December 31, 1993, 1994 and 1995 30,000 =========== All shares under option were granted to a director in 1992, and are currently exercisable at an option price of $1.30. Stock options were exercised by the President in 1993 at $.5775 per share. Three employees exercised their stock options in 1993 at a price of $1.30 per share. Two of these employees exercised their options through the issuance of promissory notes totaling $52,000. These promissory notes bear interest of 7% and are collateralized by the stock issued. 5. INCOME TAXES As discussed in Note 1, the Company adopted SFAS No. 109 as of the beginning of 1993. The cumulative effect on prior years of this change in accounting principle increased 1993 net income by $148,000, and is reported separately in the Statement of Operations for the year ended December 31, 1993. Prior year financial statements have not been restated to apply the 1994. provisions of SFAS No. 109. The income tax expense (benefit) for the years ended December 31, 1995, 1994 and 1993 consisted of the following: Federal State Total 1995 Current $73,000 $40,000 $113,000 Deferred 91,000 17,000 108,000 ---------- --------- --------- Income tax expense $164,000 $57,000 $221,000 1994 Current $4,000 $25,000 $29,000 Deferred (44,000) (44,000) Income tax expense (benefit) $4,000 $(19,000) $(15,000) 1993 Current $(19,727) $(19,727) Deferred $574,000 196,000 770,000 -------- --------- --------- Income tax expense $574,000 $176,273 $750,273 ========= ========= ========= 5. INCOME TAXES (Continued) Deferred tax assets (liabilities) are comprised of the following: 1995 1994 Deferred tax assets: Net operating loss carryovers $134,000 $208,000 Accounts payable and other liabilities 67,000 76,000 Alternative minimum tax credit 118,000 29,000 State tax benefit 75,000 --------- --------- Total deferred tax assets 394,000 313,000 --------- --------- Deferred tax liabilities: Tax recognition of gold sales (965,000) (765,000) Book basis of mineral property (46,000) (46,000) Accelerated depreciation (11,000) (12,000) Accounts receivable and other assets (4,000) (14,000) --------- --------- Total deferred tax liabilities (1,026,000) (837,000) --------- --------- Net deferred tax liabilities $ (632,000) $(524,000) ========= ========= A reconciliation of the income tax expense (benefit) on income per the U.S. Federal statutory rate to the reported income tax expense follows: 1995 1994 1993 U.S. Federal statutory rate applied to pre-tax income $324,062 $48,509 $651,488 Depletion deduction (83,183) (98,564) (18,839) Tax benefit of net operating loss (85,182) Alternative minimum tax 73,000 29,000 State income taxes (net of U.S. Federal income tax benefit) 26,400 8,757 116,340 Other (34,097) (2,702) 1,284 --------- --------- --------- Income tax expense (benefit) $221,000 $(15,000) $750,273 ========= ========= ========= 5. INCOME TAXES (Continued) For Federal income tax purposes, the Company has operating loss carryforwards which may provide future tax benefits, expiring as follows: Year of Expiration 2006 $ 345,753 2007 48,562 ---------- $ 394,315 ========= 6. 401(k) PLAN During 1993, the Company adopted a qualified 401(k) Plan available to all employees who meet the Plan's eligibility requirements. This Plan permits participants to make contributions by salary reduction up to the maximum limits allowed by Internal Revenue Code Section 401(k). 7. FINANCIAL INSTRUMENTS The Company adopted SFAS 107, Disclosures About Fair Value of Financial Instruments, on January 1, 1995. SFAS 107 requires that the Company disclose estimated fair values for certain financial instruments. The carrying amounts of financial instruments including cash, accounts receivable, accounts payable and accrued compensation, notes payable and notes receivable from employees approximated fair value as of December 31, 1995, because of the relatively short maturity of these instruments. The carrying value of inventory is based upon quoted market prices (Note 1). ORIGINAL SIXTEEN TO ONE MINE, INC. SCHEDULE V - MINING PROPERTY AND FIXED ASSETS For the Years Ended December 31, 1995, 1994 and 1993 Balance at Beginning Retirements Balance at of Year Additions or Sales End of Year 1995 Mining property $1,044,925 $1,044,925 Development 366,189 $347,848 714,037 Buildings 143,250 143,250 Equipment 545,440 148,263 693,703 Vehicles 77,272 40,739 118,011 --------- --------- --------- --------- $2,177,076 $536,850 $ - $2,713,926 1994 Mining property $658,292 $386,633 $1,044,925 Development 366,189 366,189 Buildings 143,250 143,250 Equipment 443,365 102,075 545,440 Vehicles 73,772 3,500 77,272 --------- --------- --------- --------- $1,318,679 $858,397 $ - $2,177,076 ========= ========= ========= ========== 1993 Mining property $658,292 $658,292 Buildings 143,250 143,250 Equipment 414,295 $29,070 443,365 Vehicles 69,972 3,800 73,772 --------- --------- --------- --------- $1,285,809 $32,870 $ - $1,318,679 ========== ========= ========= ========== ORIGINAL SIXTEEN TO ONE MINE, INC. SCHEDULE VI - ACCUMULATED DEPRECIATION AND DEPLETION OF MINING PROPERTY AND FIXED ASSETS For the Years Ended December 31, 1995, 1994 and 1993 Balance at Additions Beginning Charged to Retirements Balance at of Year Operations or Sales End of Year 1995 Mining property $524,145 $524,145 Buildings 90,945 $1,608 92,553 Equipment 310,402 99,614 410,016 Vehicles 49,809 16,311 66,120 --------- --------- --------- --------- $975,301 $117,533 $ - $1,092,834 1994 Mining property $524,145 $524,145 Buildings 89,335 $1,610 90,945 Equipment 228,663 81,739 310,402 Vehicles 36,760 13,049 49,809 --------- --------- --------- --------- $878,903 $96,398 $ - $975,301 ========= ========= ========= ========= 1993 Mining property $524,145 $524,145 Buildings 81,340 $7,995 89,335 Equipment 169,613 59,050 228,663 Vehicles 24,731 12,029 36,760 --------- --------- --------- --------- $799,829 $79,074 $ - $878,903 ========= ========= ========= ========= PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT Officers and Directors The following table sets forth the Officers and Directors of the Company. The directors listed below will serve until the next annual shareholders meeting to be held on June 22, 1996. All of the officers of the Company serve at the pleasure of the board of directors. Officer Name Age Position Since Director Since Charles I. Brown 64 Treasurer & Director 1990 1986 Leland O. Erdahl 67 Director ---- 1992 Michael M. Miller 53 President & Director 1983 1977 Johan Raadsma 38 Vice President 1992 ---- Richard C. Sorlien 73 Secretary & Director 1990 1986 Charles I. Brown-Director and Treasurer Mr. Brown has served as the Executive Vice President and Chief Financial Officer of Integrated Medical Systems, Inc. ("IMS"), of Golden, Colorado, a healthcare communications company, since 1995 and as a Director of IMS since 1992. From 1992 to March 1995, Mr. Brown was a Senior Vice President and the Chief Financial Officer IMS. From 1983 to 1992, he was active as a financial consultant to, and a director of, several banks and corporations. He was formerly Chairman of the Board of American National Bank-Laramie, Laramie, Wyoming, from 1986 to 1992, the Chairman of the Rawlins National Bank, Rawlins, Wyoming, from 1983 to 1991, and the Chairman of the Board of Prudential Bank of Denver, Colorado from 1984 to 1986. He is also a Director of Izzo Systems, Inc., Denver, Colorado, a private manufacturer of gold bags and related products. From 1974 to 182, he served as Senior Vice President and Director of Energy Fuels Corporation, a Denver-based, privately owned mining company. From 1959 to 1974, he served as Vice President/Finance and Director of Western Nuclear, Inc., a publicly-owned mining company listed on the American Stock Exchange prior to its acquisition by Phelps Dodge Corporation in 1970. Since 1978, he has served as a Trustee of the Colorado State University Research Foundation, Fort Collins, Colorado, and since 1974, he has served as a Trustee of the Colorado Outward Bound School. He is a member of the American Alpine Club. Mr. Brown received a master of business administration degree with distinction from Harvard Graduate School of Business Administration in 1959 and a bachelor of arts in geology from William College in 1954. He was born in Bombay, India. Leland O. Erdahl-Director Mr. Erdahl is a director of Freeport McMoRan Copper and Gold Inc., Canyon Resources Corporation, Uranium Resources, Inc. and Hecla Mining Company. He is also a trustee for a group of John Hancock Mutual Funds. He is also a director of Santa Fe Ingredients Co., Inc. and Santa Fe Ingredients Co. of California, Inc., private food processing companies. Mr. Erdahl has been an active participant in the mining industry most of his life. From 1970 until 1984 he held executive offices including President and Chief Executive Officer with Ranchers Exploration and Development Corporation, a diversified mining company. From 1987 to 1992, Mr. Erdahl was President and Chief Executive Officer of Stolar, Inc., a company active in using underground radio communications and geologic imaging to assist mine operators. Mr. Erdahl is a graduate of the college of Santa Fe with a degree in business administration, and is a certified public accountant. He was born in Doland, South Dakota. Michael M. Miller-Director, President and CEO As President and Chief Executive Officer , Mr. Miller is responsible for the day-to-day operations of the Company. In 1975, Mr. Miller became the sole proprietor of the Morning Glory Gold Mines. Prior to that, he was self-employed in Santa Barbara County, California from 1965 to 1974. Mr. Miller served as a trustee and President of the Sierra County Board of Education (1979 to 1983 trustee) (President in 1983). Since 1991 he has served as a member of the Sierra County Planning Commission (Chairman 1992 and 1993). Mr. Miller is licensed as a California Class A general engineering contractor. He is a member of the American Institute of Mining Engineers. In 1965, Mr. Miller received a B.A. from the University of California at Santa Barbara in combined Social Sciences-Economics. He was born in Sacramento, California. Johan M. Raadsma-Vice President of Operations Mr. Raadsma is the mine manager and responsible for the day to day mining operations in which he manages thirty-one employees. He has been employed by the Company since 1984. Mr. Raadsma graduated from the University of New South Wales, Sydney, Australia in 1979 with a B.E. in mining engineering. Mr. Raadsma has worked in mines in California, Washington, Nevada, Sierra Leone, and Australia. He is a registered environmental assessor and a civil engineer. He was born in Dar-Es-Salaam, East Africa. Richard C. Sorlien-Director and Secretary Mr. Sorlien served as a partner for 33 years and of Counsel for five years with the Philadelphia, Pennsylvania law firm of Pepper, Hamilton and Scheetz. Mr. Sorlien served 22 years as a Director of the Glenmede Trust Company in Philadelphia. He also served as a Director and Corporate Secretary of the Cressona Aluminum Company of Cressona, Pennsylvania from 1979 until January 1996. He is a Director of the International Lawn Tennis Club of the United States. He owns the Alaska Mine and Tree Farm in Pike, California. Mr. Sorlien received a Bachelors of Arts degree (A.B.) from Harvard University in 1947, and earned his law degree (L.L.B.) from Harvard Law School in 1949. He was born in Minneapolis, Minnesota. ITEM 11. EXECUTIVE COMPENSATION Remuneration of Directors and Executive Officers Total compensation for each Director, excluding the President, consists of $750 per meeting attended and a $2,000 retainer effective January 1, 1994. The Company has not paid or distributed and does not pay or distribute cash or non cash compensation to officers, directors or employees under any retirement, pension or other plans, and has no intent to do so in the future. Management Remuneration for the Period Ended December 31, 1995. Name and Other Principal Annual Position Year Salary Bonus Compensation Securities Michael Miller 1995 $ 99,840 - - - President & CEO 1994 $ 98,544 - - - 1993 $ 104,000 $25,000 - - Johan Raadsma 1995 $ 75,000 - - - Vice-President 1994 $ 73,919 - - - 1993 $ 79,800 $15,000 - - Current Management Remuneration Effective January 1, 1994 Mr. Miller received an increase in salary from $96,000 to $100,000. In addition to this increase he was awarded a $25,000 bonus. In March 1992, at the board of directors' direction, Johan M. Raadsma, the mine manager, was promoted to Vice President. His compensation was $72,000 per year. In December 1993 the board of directors voted to increase the salary of Johan Raadsma, effective January 1, 1994, from $72,000 to $75,000. In addition to this increase he was awarded a $15,000 bonus. There were no increases or bonuses granted to the officers during 1995. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT Security Ownership of Certain Beneficial Owners and Management Title of Name and Address Amount and Nature Percent Class of Beneficial Owner of Beneficial Owner of Class Common M. Blair Hull 492,750 14% Hull Trading Co. 401 So. LaSalle, Ste. 505 Chicago, IL 60605 Common Kathy N. Hull 500,750 14% 11 Sierra Ave. Piedmont, CA 94611 Common Michael M. Miller 344,750 10% P.O. Box 941 Alleghany, CA 95910 Common Charles I. Brown 160,000 4% Family Partnership, LTD 2691 Pinehurst Drive Evergreen, CO 80439 Common Richard Sorlien 87,250 2.5% 3000 Two Logan Square 18th & Arch Street Philadelphia, PA 19103 Common Johan Raadsma 20,000 0.5% 15903 Shannon Way Nevada City, CA 95959 Security Ownership of Management Including Officers and Directors Title of Percent Class Name Amount of Class Common Charles I. Brown 160,000 4% Officer and Director Common Michael M. Miller 344,750 10% Officer and Director Common Richard C. Sorlien 87,250 2.5% Officer and Director Common Johan Raadsma 20,000 0.5% Common All Officers and 612,000 17% Directors as a group PART III ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS None PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K (a) 1 and 2. Financial statements The financial statements and schedules listed in the accompanying index to financial statements and financial statement schedules are filed as part of this report. 3. Exhibits The exhibits listed on the accompanying index to exhibits are filed as part of this annual report. (b) Reports on Form 8-K No reports on Form 8-K were required to be filed. THE ORIGINAL SIXTEEN TO ONE MINE, INC. INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES (ITEM 14 (a) 1 and 2) Page Balance sheet at December 31, 1995 and 1994 17 Statement of income for each of the three years in the period ended December 31, 1995 19 Statement of stockholders' equity for each of the three years in the period ended December 31, 1995 21 Statements of cash flows for each of the three years in the period ended December 31, 1995 22 Notes to financial statements 24 Schedules for each of the three years in the period ended December 31, 1995: V - Mining property and fixed assets 31 VI - Accumulated depreciation 32 All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the financial statements and notes thereto. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized. ORIGINAL SIXTEEN TO ONE MINE, INC. Registrant By: Richard C. Sorlien Secretary and Director, March 15, 1996 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: Michael M. Miller President and Director, March 15, 1996 Charles I. Brown Treasurer and Director, March 15, 1996 Leland O. Erdahl Director, March 15, 1996 INDEX TO EXHIBITS Method of Exhibit No. Filing 3 Articles of Incorporation Incorporated by reference 4 Stock Certificate Incorporated by reference -----END PRIVACY-ENHANCED MESSAGE-----