-----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, G8OMaTg39WbDZ8beyPhSNGx96xM6eHvEghuKiZoHSDJcYYtaXm7YcBvrWkttkeKT axwKXU1trY5tfrlhUhBDfw== 0000950134-96-003747.txt : 19960730 0000950134-96-003747.hdr.sgml : 19960730 ACCESSION NUMBER: 0000950134-96-003747 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960729 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNSHINE MINING & REFINING CO CENTRAL INDEX KEY: 0000833376 STANDARD INDUSTRIAL CLASSIFICATION: PRIMARY SMELTING & REFINING OF NONFERROUS METALS [3330] IRS NUMBER: 752231378 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10012 FILM NUMBER: 96600289 BUSINESS ADDRESS: STREET 1: 877 WEST MAIN STREET STREET 2: SUITE 600 CITY: BOISES STATE: ID ZIP: 83702 BUSINESS PHONE: 2083450660 MAIL ADDRESS: STREET 1: 877 W MAIN STREET SUITE 600 CITY: BOISE STATE: ID ZIP: 83702 FORMER COMPANY: FORMER CONFORMED NAME: SUNSHINE MINING CO /DE DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: SUNSHINE HOLDINGS INC DATE OF NAME CHANGE: 19880915 10-Q 1 FORM 10-Q PERIOD ENDING JUNE 30, 1996 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 1996 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 1-10012 SUNSHINE MINING AND REFINING COMPANY - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 75-2618333 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 877 W. Main, Suite 600, Boise, Idaho 83702 - -------------------------------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number including area code (208) 345-0660 --------------- - -------------------------------------------------------------------------------- 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 --- --- Number of Shares Outstanding Title of Each Class of Common Stock at July 22, 1996 - ------------------------------------ --------------------- Common Stock, $.01 par value 237,944,037 Page 1 of 11 2 SUNSHINE MINING AND REFINING COMPANY CONSOLIDATED BALANCE SHEETS JUNE 30, 1996 and DECEMBER 31, 1995 (In Thousands)
June 30 December 31 1996 1995 ----------- ------------ ASSETS Current assets: Cash and cash equivalents $ 30,192 $ 12,837 Silver bullion 8,375 8,976 Accounts receivable 1,718 1,583 Inventories (Note 2) 2,063 1,477 Marketable securities 7 13 Other current assets 1,408 1,592 ----------- ------------ Total current assets 43,763 26,478 Property, plant and equipment, at cost 140,567 140,886 Less accumulated depreciation, depletion and amortization (69,947) (69,967) ----------- ------------ 70,620 70,919 Other noncurrent assets and deferred charges 6,059 3,737 ----------- ------------ Total assets $ 120,442 $ 101,134 =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 870 687 Accrued expenses 4,328 2,241 ----------- ------------ Total current liabilities 5,198 2,928 Long-term debt 31,515 1,519 Accrued pension and other postretirement benefits 6,465 6,387 Other long-term liabilities and deferred credits 5,943 5,218 Stockholders' equity: Cumulative redeemable preferred stock-- aggregate redemption value: December 31, 1995 - $128,203 - 82,268 Common stock--$.01 par value; 400,000 shares authorized; shares issued: June 30, 1996 - 242,588 December 31, 1995 - 196,760 2,425 1,968 Paid-in capital 704,303 623,337 Deficit (634,107) (622,454) ----------- ------------ 72,621 85,119 Less treasury stock, at cost: June 30, 1996 - 4,644 shares December 31, 1995 - 3,664 shares 1,300 37 ----------- ------------ 71,321 85,082 ----------- ------------ Total liabilities and stockholder's equity 120,442 101,134 =========== ============
See accompanying notes. - 2 - 3 SUNSHINE MINING AND REFINING COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (In Thousands, Except Per Share Amounts) (Unaudited)
QUARTER SIX MONTHS 1996 1995 1996 1995 --------- --------- ---------- --------- Operating revenues $ 4,025 $ 4,121 $ 7,352 $ 7,749 Mark to market gain (loss) (1,074) (655) (604) 281 --------- --------- ---------- --------- 2,951 3,466 6,748 8,030 --------- --------- ---------- --------- Costs and expenses: Cost of sales 4,580 4,935 8,205 9,970 Depreciation, depletion and amortization 1,061 818 2,021 1,677 Exploration 1,950 1,227 4,474 2,344 Selling, general and administrative expense 1,367 1,427 2,619 2,878 --------- --------- ---------- --------- 8,958 8,407 17,319 16,869 --------- --------- ---------- --------- Operating loss (6,007) (4,941) (10,571) (8,839) Other income (expense): Interest income 429 390 611 734 Interest expense (990) (208) (1,286) (343) Other, net 25 178 83 242 --------- --------- ---------- --------- (536) 360 (592) 633 --------- --------- ---------- --------- Net loss (6,543) (4,581) (11,163) (8,206) Retirement of preferred stock 40,124 - 40,124 - Preferred stock dividend requirements - (2,558) (2,622) (5,117) --------- --------- ---------- --------- Income (loss) applicable to common shares $ 33,581 $ (7,139) $ 26,339 $ (13,323) ========= ========= ========== ========= Income (loss) per common share: Primary $ 0.16 $ (0.04) $ 0.13 $ (0.07) ========= ========= ========== ========= Fully diluted $ 0.15 $ (0.04) $ 0.12 $ (0.07) ========= ========= ========== ========= Average common shares outstanding 212,471 193,040 202,230 193,017 ========= ========= ========== =========
See accompanying notes. -3- 4 SUNSHINE MINING AND REFINING COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (In Thousands) (Unaudited)
1996 1995 ------------- --------------- Cash used by operating activities: Net loss $ (11,163) $ (8,206) Adjustments to reconcile loss from operations to net cash used by operations: Depreciation, depletion and amortization 2,021 1,677 Exploration expenditures 4,474 2,344 Amortization of debt issuance costs 195 - Realized and unrealized gains on marketable equity securities (60) (25) Net (increase) decrease in: Silver bullion 601 (96) Accounts receivable (135) (1,607) Inventories (586) 1,228 Other assets and deferred charges (340) (163) Net increase (decrease) in: Accounts payable and accrued expenses 1,862 83 Accrued pension and other postretirement benefits 79 (224) Other liabilities and deferred credits (749) 283 ------------- ------------- Net cash used by operations (3,801) (4,706) ------------- ------------- Cash provided (used) by investing activities: Additions to property, plant and equipment and exploration expenditures (6,197) (2,452) Proceeds from investments 700 597 ------------- ------------- Net cash used by investing activities (5,497) (1,855) ------------- ------------- Cash provided by financing activities: Retirement of preferred stock (1,028) - Proceeds from issuance of common stock upon exercise of stock options and warrants 1 102 Proceeds from issuance of long term debt 30,000 - Debt issuance costs (2,320) - ------------- ------------- Net cash provided by financing activities 26,653 102 ------------- ------------- Increase (decrease) in cash and cash equivalents 17,355 (6,459) Cash and cash equivalents, January 1 12,837 26,581 ------------- ------------- Cash and cash equivalents, June 30 $ 30,192 $ 20,122 ============= ============= Supplemental cash flow information - Interest paid in cash $ 876 $ 63 ============= =============
See accompanying notes. -4- 5 SUNSHINE MINING AND REFINING COMPANY NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 1996 1. BASIS OF PRESENTATION The accompanying unaudited consolidated condensed financial statements of Sunshine Mining and Refining Company ("Sunshine" or the "Company") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain previously reported amounts have been reclassified to conform to the June 1996 presentation. Operating results for the six month period ended June 30, 1996 are not necessarily indicative of the results that may be expected for the year ended December 31, 1996. For further information, refer to the consolidated financial statements and footnotes thereto included in Sunshine's report on Form 10-K for the year ended December 31, 1995. 2. INVENTORIES The components of inventory consist of the following:
June 30 December 31 Metals inventories: 1996 1995 --------- ----------- Work in process $ 900 $ 512 Finished goods 321 264 Materials and supplies inventories 842 701 -------- -------- $ 2,063 $ 1,477 ======== ========
3. LONG-TERM DEBT During the first six months, the Company, through its subsidiary SPMI, issued $30 million in 8% Senior Exchangeable Notes to non-U.S. persons pursuant to Regulation S promulgated under the Securities Act of 1933, as amended. See "Management's Discussion and Analysis of Financial Condition." 4. SIGNIFICANT ACCOUNTING POLICIES The Company adopted the Financial Accounting Standards Board ("FASB") Statement No. 121, "Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of ("FAS 121")," in the first quarter of 1996. The adoption of FAS 121 had no impact on the Company's financial condition as the Company's methodology for evaluating its mining properties for impairment is consistent with FAS 121. FASB Statement No. 123, "Accounting for Stock Based Compensation ("FAS 123")" establishes an alternative method of accounting for stock based compensation to the method set forth in Accounting Principles Board Opinion No. 25 ("APB 25"). The Company will continue to account for stock option grants under the provisions of APB 25 and has adopted the disclosure -5- 6 provisions of FAS 123. Accordingly, the adoption of FAS 123 in 1996 had no effect on the Company's financial statements. 5. PREFERRED STOCK During the first six months, Common and Preferred stockholders approved the merger on May 22, 1996, of Sunshine with and into its wholly-owned subsidiary, Sunshine Merger Company, pursuant to which Sunshine Merger Company (which was renamed Sunshine Mining and Refining Company) was the surviving entity. The merger resulted in the retirement of all of Sunshine's outstanding $11.94 (Stated Value) Cumulative Redeemable Preferred Stock (the "Preferred Stock") in exchange for approximately 46 million shares of Common Stock and approximately 8 million Warrants to purchase one share of Common Stock at $1.92, and the recognition of a $40.1 million gain applicable to Common shares. See "Management's Discussion and Analysis of Financial Condition." 6. EARNINGS (LOSS) PER COMMON SHARE Earnings (loss) per common share is computed by dividing the loss applicable to common stockholders by the weighted average number of common shares and common share equivalents, represented by options and warrants, if such common share equivalents have a dilutive effect. Fully diluted earnings per common share computations also assume conversion of outstanding Convertible Subordinated Reset Debentures and 8% Senior Exchangeable Notes, if such conversion has a dilutive effect. For the periods presented, the common share equivalents did not have a dilutive effect on the loss per share calculations. In addition, the assumed conversions of debt did not have a dilutive effect on the loss per share calculations for the three and six months ended June 30, 1995. Accordingly, the loss per share calculations for such periods are based on the weighted average number of common shares outstanding during each period. The number of common shares used in the computation of fully diluted earnings per common share for the three and six months ended June 30, 1996, were 234,253 and 224,012, respectively. SUNSHINE MINING AND REFINING COMPANY Management's Discussion and Analysis of Financial Condition and Results of Operations for the Six Months Ended June 30, 1996 and 1995 LIQUIDITY AND CAPITAL RESOURCES The Company, through Sunshine Precious Metals, Inc. ("SPMI"), its wholly-owned subsidiary, concluded an offering (the "Notes Offering") in March, 1996, conducted in Europe only to non-U.S. persons pursuant to Regulation S promulgated under the Securities Act of 1933, as amended. SPMI issued $30 million aggregate principal amount of Senior Exchangeable Notes due 2000 (the "Notes") pursuant to the Notes Offering. The net proceeds from the Notes Offering (approximately $27 -6- 7 million) will be used to fund development and exploration opportunities of the Company, and for working capital requirements of the Company. The Company's working capital totaled $38.6 million at June 30, 1996, which will be adequate to fund the Company's anticipated cash requirements for several years. Set forth below are certain terms and provisions of the Notes and the Notes Offering. The Notes bear interest at 8% per annum and will mature four years after their issuance (March 21, 2000). The Notes are exchangeable into a specified number of shares of Common Stock of the Company at an exchange price of $1.4375 per share, subject to reset and adjustment in certain events. At any time after one year from the date of issuance and prior to maturity, SPMI may force the exchange of the Notes, in whole or in part, subject to certain restrictions. SPMI may redeem the Notes at any time at the principal amount if United States withholding taxes are imposed on payments in respect of the Notes. The Notes will be guaranteed by Sunshine (and any successors thereof) and the guarantee will rank senior to all of its unsecured and subordinated obligations, including the currently outstanding Convertible Subordinated Reset Debentures due July 15, 2008. Historical Losses As the price of silver since 1985 has been only slightly in excess of, or less than, the Company's cash cost to produce an ounce of silver, the Company's operations have not been able to generate cash flow sufficient to cover its costs of exploration, research, general and administrative expenses, and interest, as well as non-cash charges such as depreciation, depletion, and amortization. Until such time as the price of silver increases significantly or higher production is achieved at a lower cost, the Company will continue to generate a negative cash flow from operations. Exploration and Development Activities The Company anticipates capital expenditures in 1996 at the Sunshine Mine to be approximately $3 million, including $1.7 million expended in the first six months. In addition, the Company currently projects exploration expenditures for the year will total approximately $10 million at the Sunshine Mine, the Pirquitas property in Argentina, and other projects. Exploration expenditures for the first six months of 1996 totaled approximately $4.4 million. The Company has steadily increased its level of exploration expenditures in recent years as it has identified and acquired a growing list of prospects that it felt had the potential to add significantly to operating income, cash flow, and mineral resources and reserves. The acquisition and successful development of such prospects is central to the Company's plan to return to profitability. -7- 8 Preferred Stock Retirement Effective May 22, 1996, Common and Preferred stockholders of Sunshine approved the merger (the "Merger") of Sunshine with and into its wholly-owned subsidiary, Sunshine Merger Company, pursuant to which Sunshine Merger Company was the surviving entity and renamed Sunshine Mining and Refining Company, resulting in the retirement of all of Sunshine's outstanding Preferred Stock in exchange for approximately 46 million shares of Common Stock and 8 million Warrants to purchase one share of Common Stock at $1.92. As a result, the Company recognized a $40.1 million gain applicable to Common Shares representing the excess of the aggregate redemption value of the Preferred Stock (including cumulative dividends in arrears of $44.8 million) over the sum of the value of securities issued and related transaction costs. Terms of the Merger include a formula whereby, if the average closing price of the Common Stock as reported on the New York Stock Exchange Composite Transactions for the first 120 NYSE trading days after May 22, 1996 is less than $1.75, up to a maximum of 17.2 million additional shares of Common Stock may be issued and the exercise price of the Warrants would be reduced to 110% of such average closing price. Operating, Investing, and Financing Activities Cash used in operating activities in the first six months of 1996 was $3.8 million compared to $4.7 million in the first six months of 1995. Cash operating losses increased in the first six months of 1996 by $300 thousand, primarily due to increased interest expense, partially offset by changes in working capital components. Approximately $5.5 million of cash was used by investing activities in the first six months of 1996 compared to $1.9 million in the 1995 period. The $3.6 million increase was primarily due to increased exploration expenditures of $2.1 million and $1.6 million increase in additions to property, plant and equipment partially offset by the sale of certain marketable securities. Cash provided by financing activities was $26.3 million in the first six months of 1996 including $27.7 million from the Company's Notes Offering, partially offset by the costs associated with the Merger. There was no cash provided by financing activities in the first six months of 1995. RESULTS OF OPERATIONS THE THREE MONTHS ENDED JUNE 30, 1996 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 1995 Consolidated operating revenues decreased approximately $100 thousand for the second quarter of 1996 compared to the second quarter of 1995 primarily due -8- 9 to a decline in average silver prices received from $5.36 in 1995 to $5.14 in 1996. Sales volumes for both quarters were approximately 660 thousand ounces as increased sales resulting from a 265 thousand ounce (67%) increase in production in the 1996 quarter offset the additional sales in the 1995 quarter due to a drawdown in work-in-process inventories. The 1995 drawdown resulted from the suspension of operations of the Company's silver refinery during the first quarter of 1995, which resulted in shorter processing time before sales recognition of silver and copper concentrates to a third party smelter. Mark to market loss on investment bullion and work in process inventories increased $419 thousand as a result of silver prices declining from $5.52 at March 31, 1996 to $4.98 at June 30, 1996 compared to a decline from $5.29 to $5.01 for the corresponding 1995 dates. Cost of sales decreased $355 thousand (7.2%) (from $4.9 million in the second quarter of 1995 to $4.6 million in the second quarter of 1996) due to the drawdown in inventories in 1995, as discussed above, and lower unit production costs in 1996. Unit production costs decreased primarily due to a 67% increase in silver production and a 51% increase in average grades from 1995 to 1996 (659 thousand ounces produced from 28,077 tons at 24.17 ounces per ton in 1996 versus 394 thousand ounces from 25,435 tons at 15.96 ounces per ton in 1995). This was partially offset by development costs, which added approximately $500 thousand to such costs in 1996 versus 1995, largely devoted to ramping in the West Chance area of the Sunshine Mine from which no production benefit has yet been received. [Such ramping will provide access to the West Chance area for the Company's newly acquired LHD units, which is the basis for the Company's plan to return the Mine to full production later in 1996. Exploration expense increased $723 thousand (59%) for the second quarter of 1996 compared to the same period in 1995 as a result of the Company's increased exploration program. (See "Liquidity and Capital Resources - - Exploration and Development Activities.") Depreciation, depletion and amortization increased by approximately $243 thousand as a result of increased production in the 1996 period. Interest income increased by $39 thousand (10%) due to higher invested cash balances partially offset by lower interest rates. Interest expense increased $782 thousand due to the Notes Offering completed in March, 1996. (See "Liquidity and Capital Resources.") THE SIX MONTHS ENDED JUNE 30, 1996 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1995 Consolidated operating revenues decreased approximately $400 thousand (5.1%) for the first six months of 1996 compared to the first six months of 1995 -9- 10 primarily due to a reduction in sales volume (1.2 million ounces of silver in the first six months of 1996 compared to 1.3 million ounces of silver in the same period of 1995). The reduction in sales volumes was due to a drawdown in work-in-process inventories in the first six months of 1995 resulting from the suspension of operations of the Company's silver refinery during the 1995 period, which resulted in shorter processing time before sales recognition of silver and copper concentrates to a third party smelter. These decreases were partially offset by increased sales volumes resulting from a 440,000 ounce (57%) increase in production in 1996 compared to 1995. The 1996 period reflects a $604 thousand mark to market loss due to a decline in silver prices at June 30 compared to the end of 1995. During the first six months of 1995, silver prices increased resulting in a $281 thousand gain for the period. Cost of sales decreased $1.8 million (18%) (from $10 million in the first six months of 1995 to $8.2 million in the first six months of 1996) due to the drawdown in inventories in 1995, as discussed above, and lower unit production costs. Unit production costs decreased primarily due to the 57% increase in silver production and a 34% increase in average grades from 1995 to 1996 (1.2 million ounces produced from 58,317 tons at 21.46 ounces per ton in 1996 versus 773 thousand ounces from 49,969 tons at 15.99 ounces per ton in 1995). This decrease was partially offset by a $700 thousand increase in development costs primarily for ramping in the West Chance area of the Sunshine Mine. (See Three Months discussion above.) Exploration expense increased $2.1 million (91%) for the first six months of 1996 compared to the same period in 1995 as a result of the Company's increased exploration program. (See "Liquidity and Capital Resources - Exploration and Development Activities.") Depreciation, depletion and amortization increased by approximately $344 thousand as a result of increased production figures in the 1996 period. Interest income decreased by $123 thousand due to lower invested cash balances. Interest expense increased $944 thousand due to the Notes Offering completed in March, 1996. (See "Liquidity and Capital Resources.") SUNSHINE MINING AND REFINING COMPANY PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS On June 6, 1996, the litigation pending in the United States District Court for the District of Delaware that was commenced on January 25, 1995 by Grace Holdings, L.P. was dismissed with prejudice. Grace Holdings, L.P. alleged that the Company's rights offering was an impermissible distribution or dividend under the Certificate governing the Company's Preferred Stock. The litigation was dismissed with prejudice upon the effectiveness of the merger of -10- 11 the Company and a wholly-owned subsidiary, which resulted in the elimination of the Preferred Stock. ITEM 2. CHANGES IN SECURITIES Effective May 22, 1996, the Company was merged with and into its wholly-owned subsidiary, Sunshine Merger Company whose name was changed to Sunshine Mining and Refining Company. As a result of the merger, the Preferred Stock of Sunshine was eliminated in exchange for Common Stock and warrants to purchase Common Stock. The surviving Company assumed all of the duties and obligations of its predecessor's prior Warrant Agreement and the 8-7/8% Convertible Subordinated Debentures. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS A special meeting of stockholders of the Company was held on March 29, 1996, for the purpose of approving a merger of the Company into a wholly-owned subsidiary, and by stockholder vote convert the Company's outstanding Preferred Stock into Common Stock and warrants. Of the 7,166,186 shares of Preferred Stock outstanding, the merger was approved, as follows: For: 4,381,202 Against: 387,867 Abstain: 39,029 Of the 191,996,142 shares of Common Stock outstanding, the merger was approved, as follows: For: 101,831,358 Against: 6,945,701 Abstain: 3,062,877 The merger was effective May 22, 1996. ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 11.1 Computation of Earnings Per Common Share (Three Months) 11.2 Computation of Earnings Per Common Share (Six Months) 27 Financial Data Schedule (b) Reports on Form 8-K On May 29, 1996, the Company filed a Report on Form 8-K reporting the effectiveness of the merger between the Company into its wholly-owned subsidiary. 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 hereto duly authorized. SUNSHINE MINING AND REFINING COMPANY Dated: July 29, 1996 By: \s\ William W. Davis ---------------------------- William W. Davis Executive Vice President, Chief Financial Officer and Chief Accounting Officer -11- 12 INDEX TO EXHIBITS EXHIBIT NUMBER DESCRIPTION - ------- ----------- 11.1 Computation of Earnings Per Common Share (Three Months) 11.2 Computation of Earnings Per Common Share (Six Months) 27 Financial Data Schedule EX-11.1 2 COMPUTATION OF EARNINGS PER COMMON SHARE (3 MTHS) 1 Exhibit 11.1 SUNSHINE MINING AND REFINING COMPANY COMPUTATION OF EARNINGS PER COMMON SHARE FOR THE THREE MONTHS ENDED JUNE 30, 1996 (In Thousands, Except Per Share Amounts)
Fully Primary Diluted --------------- --------------- Earnings: Earnings applicable to common stockholders $ 33,581 $ 33,581 Add interest expense on the Convertible Subordinated Reset Debentures and the 8 % Senior Exchangeable Notes 810 --------------- --------------- $ 33,581 $ 34,391 =============== =============== Shares: Weighted average common shares outstanding 212,471 212,471 =============== Add common shares issued on assumed conversion of Senior Exchangeable Notes and Convertible Subordinated Reset Debentures 21,782 --------------- 234,253 =============== Earnings per common share Primary $ 0.16 =============== Fully diluted $ 0.15 =============== Note: The effect of the assumed exercise of outstanding stock options and warrants was not dilutive.
EX-11.2 3 COMPUTATION OF EARNINGS PER COMMON SHARE (6 MTHS) 1 Exhibit 11.2 SUNSHINE MINING AND REFINING COMPANY COMPUTATION OF EARNINGS PER COMMON SHARE FOR THE SIX MONTHS ENDED JUNE 30, 1996 (In Thousands, Except Per Share Amounts)
Fully Primary Diluted --------------- --------------- Earnings: Earnings applicable to common stockholders $ 26,339 $ 26,339 Add interest expense on the Convertible Subordinated Reset Debentures and the 8 % Senior Exchangeable Notes 927 --------------- --------------- $ 26,339 $ 27,266 =============== =============== Shares: Weighted average common shares outstanding 202,230 202,230 =============== Add common shares issued on assumed conversion of Senior Exchangeable Notes and Convertible Subordinated Reset Debentures 21,782 --------------- 224,012 =============== Earnings per common share Primary $ 0.13 =============== Fully diluted $ 0.12 =============== Note: The effect of the assumed exercise of outstanding stock options and warrants was not dilutive.
EX-27 4 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AT JUNE 30, 1996 (UNAUDITED) AND THE CONSOLDIATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED) AND IS QUALIFED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 30,192 7 1,718 0 2,063 43,763 140,567 69,947 120,442 5,198 31,515 2,425 0 0 68,896 120,442 7,352 6,748 8,205 10,226 4,474 0 1,286 (11,163) 0 (11,163) 0 0 0 26,339 0.13 0.12
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