UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999.
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 1-13627
APEX SILVER MINES LIMITED
-------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
CAYMAN ISLANDS, BRITISH WEST INDIES NOT APPLICABLE
- -------------------------------------------------------------------------------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
CALEDONIAN HOUSE
JENNETT STREET
GEORGETOWN, GRAND CAYMAN
CAYMAN ISLANDS, BRITISH WEST INDIES NOT APPLICABLE
- -------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(345) 949-0050
- -------------------------------------------------------------------------------
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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
---- ----
AT AUGUST 12, 1999, 26,261,575 ORDINARY SHARES, $0.01 PAR VALUE PER SHARE, WERE
ISSUED AND OUTSTANDING.
<PAGE>
APEX SILVER MINES LIMITED
FORM 10-Q
QUARTER ENDED JUNE 30,1999
INDEX
PART I - FINANCIAL INFORMATION
PAGE
ITEM 1. FINANCIAL STATEMENTS................................. 3
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS............. 7
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK AND HEDGING ACTIVITIES........................ 10
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.................................... 11
ITEM 2. CHANGES IN SECURITIES................................ 11
ITEM 3. DEFAULTS UPON SENIOR SECURITIES...................... 11
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.. 11
ITEM 5. OTHER INFORMATION..................................... 11
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K...................... 11
SIGNATURES ....................................................... 12
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
APEX SILVER MINES LIMITED
An Exploration and Development Stage Company
CONSOLIDATED BALANCE SHEET
(Expressed in United States dollars)
<CAPTION>
June 30, December 31,
1999 1998
-------------- --------------
(Unaudited)
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 11,252,371 $ 26,217,241
Accrued interest receivable 148,933 126,332
Prepaid expenses and other assets 410,874 1,197,622
------------- -------------
Total current assets 11,812,178 27,541,195
Mining properties and development costs 39,604,125 29,777,360
Plant, buildings and equipment (net) 2,341,638 2,229,584
Value added tax recoverable 3,600,368 2,725,803
Other non-current assets 112,949 73,092
------------- -------------
Total assets $ 57,471,258 $ 62,347,034
============= =============
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and other accrued liabilities $ 1,362,150 $ 1,734,923
Current portion of long-term debt 230,272 248,773
------------- -------------
Total current liabilities 1,592,422 1,983,696
Long-term debt 1,932,081 1,966,588
Shareholders' equity
Ordinary shares, $.01 par value, 75,000,000 shares
authorized; 26,258,386 and 26,250,761, shares
issued and outstanding for respective periods 262,584 262,507
Contributed surplus 98,023,357 97,946,434
Accumulated deficit (44,339,186) (39,812,191)
------------- -------------
Total shareholders' equity 53,946,755 58,396,750
------------- -------------
Total liabilities and shareholders' equity $ 57,471,258 $ 62,347,034
============= =============
<FN>
The accompanying notes form an integral part of these consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
APEX SILVER MINES LIMITED
An Exploration and Development Stage Company
CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in United States dollars)
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Income
Interest income $ 233,348 $ 661,614 $ 488,587 $ 1,393,996
--------------------------- ---------------------------
Total income 233,348 661,614 488,587 1,393,996
Expenses
Exploration 351,973 1,699,675 1,434,998 2,336,388
Administrative 1,101,240 1,467,669 2,304,533 1,765,412
Consulting 635,319 492,653 818,279 825,632
Professional fees 190,507 309,761 363,553 458,649
Amortization and depreciation 41,753 57,816 94,220 84,041
--------------------------- ---------------------------
Total expenses 2,320,792 4,027,574 5,015,583 5,470,122
--------------------------- ---------------------------
Net loss $(2,087,444) $(3,365,960) $(4,526,996) $(4,076,126)
=========================== ===========================
Net loss per ordinary share -
Basic and diluted(1) $ (0.08) $ (0.13) $ (0.17) $ (0.16)
=========================== ===========================
Weighted average ordinary
shares outstanding 26,251,969 26,201,923 26,250,365 26,201,923
=========================== ===========================
<FN>
(1) Diluted earnings per share were antidilutive for all periods presented.
The accompanying notes form an integral part of these consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
APEX SILVER MINES LIMITED
An Exploration and Development Stage Company
CONSOLIDATED STATEMENT OF CASH FLOWS
(Expressed in United States dollars)
(Unaudited)
<CAPTION>
Six Months Ended
June 30,
-----------------------------
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net cash used in operating activities $ (4,928,076) $ (4,338,903)
Cash flows from investing activities:
Purchase of short-term investments - -
Mining properties and development costs (9,774,300) (12,652,063)
Purchases of plant, buildings and equipment (286,486) (1,103,450)
------------- -------------
Net cash used in investing activities (10,060,786) (13,755,513)
Cash flows from financing activities:
Net cash from (used in) financing activities 23,992 (1,151,796)
------------- -------------
Net decrease in cash and cash equivalents (14,964,870) (19,246,212)
Cash and cash equivalents - beginning of period 26,217,241 57,033,193
------------- -------------
Cash and cash equivalents - end of period $ 11,252,371 $ 37,786,981
============= =============
Supplemental disclosure of non-cash transactions:
Capitalization of depreciation expense
related to San Cristobal Project $ 52,465 $ 99,513
<FN>
The accompanying notes form an integral part of these consolidated financial statements.
</FN>
</TABLE>
<PAGE>
APEX SILVER MINES LIMITED
An Exploration and Development Stage Company
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in United States dollars)
1. Basis of Preparation of Financial Statements
These unaudited interim consolidated financial statements of Apex Silver
Mines Limited (the "Company") and its subsidiaries have been prepared in
accordance with the rules and regulations of the Securities and Exchange
Commission ("SEC"). Such rules and regulations allow the omission of certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principals, so long as
such omissions do not render the financial statements misleading.
In the opinion of management, these financial statements reflect all
adjustments that are necessary for a fair statement of the results for the
periods presented. All adjustments were of a normal recurring nature. Certain
amounts in the accompanying financial statements have been reclassified. These
interim financial statements should be read in conjunction with the annual
financial statements of the Company included in its 1998 Annual Report on Form
10-K.
2. New Accounting Standards
In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 133, Accounting for Derivatives
and Hedging Activities ("SFAS 133"). This statement is effective for all fiscal
quarters of all fiscal years beginning after June 15, 2000, and establishes
accounting and reporting standards for derivative investments and hedging
activities. The Company has not yet determined the future impact that the
adoption of SFAS 133 will have on its earnings or financial position.
In June 1998, the American Institute of Certified Public Accountants issue
statement of Position ("SoP") 98-5, Reporting on the Costs of Start-Up
Activities. Sop 98-5 is effective for the Company's 1999 fiscal year and
requires that the costs of start-up activities, including organization costs, be
expensed as incurred. The effect of this statement on the Company's financial
statements was not material.
3. Value Added Tax Recoverable
The Company has recorded value added tax ("VAT") paid by ASC Bolivia LDC
("ASC Bolivia") and Minera de Cordilleras, S. de R.L. de C.V. ("Cordilleras
Mexico") as recoverable assets. The VAT paid by ASC Bolivia is expected to be
recovered through the export sale of mine production in accordance with Bolivian
law. The VAT paid by Cordilleras Mexico is related to exploration activities
and is recoverable upon application to the tax authorities and is currently
being recovered. At June 30, 1999, the recoverable VAT recorded by ASC Bolivia
and Cordilleras Mexico was $3,341,564 and $258,804, respectively.
Because of the uncertainty of the recoverability of VAT paid by ASC Peru LDC
("ASC Peru"), all VAT costs incurred by ASC Peru are charged to expense as
incurred.
4. Plant, Buildings and Equipment
The components of plant, buildings and equipment were as follows:
June 30, December 31,
1999 1998
(Unaudited)
------------- -------------
Buildings $ 824,526 $ 828,077
Mining equipment 1,728,539 1,513,757
Other furniture and
equipment 244,462 229,475
----------- ------------
2,797,527 2,571,309
Less: Accumulated
depreciation (455,889) (341,725)
----------- ------------
$2,341,638 $ 2,229,584
=========== ============
<PAGE>
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GENERAL
- -------
The following discussion and analysis summarizes the results of operations of
Apex Silver Mines Limited (the "Company") for the three months ended June 30,
1999 and 1998 and for the six months ended June 30, 1999 and 1998 and changes in
its financial condition from December 31, 1998. This discussion should be read
in conjunction with the Management's Discussion and Analysis included in the
Company's 1998 Annual Report on Form 10-K.
The Company is a mining exploration and development company that holds a
portfolio of silver and base metal exploration and development properties in
South America and Central America. None of these properties are in production
and, consequently, the Company has no current operating income or cash flow.
The sole source of income for the Company since inception has been interest
income. The Company's policy is to invest all excess cash in liquid, high
credit quality, short-term financial instruments.
The Company is incorporated in the Cayman Islands and does not conduct any
business that currently generates U.S. taxable income. There is currently no
corporate taxation imposed by the Cayman Islands. If any form of taxation were
to be enacted in the Cayman Islands, the Company has been granted exemption
until January 16, 2015. Apex Silver Mines Corporation ("Apex Corporation"), the
Company's U.S. management services company, is subject to U.S. federal, state
and local income taxes. Other than the management services company, the Company
does not pay income tax in the U.S.
Results of Operations - Three Months Ended June 30, 1999
- --------------------------------------------------------
Interest Income. Interest income for the second quarter of 1999 was $233,348
as compared to $661,614 for the second quarter of 1998. The decrease in interest
income for 1999 is the result of the reduced cash balances available in 1999
compared to 1998.
Exploration. Exploration expense was $351,973 for the second quarter of 1999,
compared to $1,699,675 for the second quarter of 1998. The decreased exploration
expenses in 1999 are due to reduced exploration activity world wide, as the
Company has shifted its attention to the development of its San Cristobal
Project in Bolivia. With its reduced emphasis on exploration and its continued
emphasis on Latin America, the Company dropped approximately 213,000 acres of
exploration properties in Asia.
Administrative. Administrative expenses were $1,101,240 for the second
quarter of 1999, compared to $1,467,669 for the second quarter of 1998. The
1999 expenses were lower as compared to 1998 primarily as the result of one-time
costs incurred in La Paz Bolivia in 1998 related to the expansion of their
administrative offices.
Consulting. Consulting fees were $635,319 for the second quarter of 1999
compared to $492,653 for the second quarter of 1998. The increase in 1999 is
primarily related to the use of third party consultants in the development of
construction controls pertaining to the San Cristobal Project.
Professional Fees. Professional fees were $190,507 for the second quarter of
1999 compared to $309,761 for the second quarter of 1998. The second quarter
1998 professional fees were higher primarily as the result of initial costs
incurred in connection with SEC reporting requirements.
Results of Operations - Six Months Ended June 30, 1999
- ------------------------------------------------------
Interest Income. Interest income for the first six months of 1999 was $488,587
as compared to $1,393,996 for the same period of 1998. The decrease in interest
income for 1999 is the result of the reduced cash balances available in 1999
compared to 1998.
Exploration. Exploration expense was $1,434,998 for the first six months of
1999, compared to $2,336,388 for the same period of 1998. The decreased
<PAGE>
exploration expenses in 1999 are due to reduced exploration activity world wide
compared to 1998, as the Company has shifted its attention to the development of
its San Cristobal Project in Bolivia. With its reduced emphasis on exploration
and its continued emphasis on Latin America, the Company dropped approximately
213,000 acres of exploration properties in Asia.
Administrative. Administrative expenses were $2,304,533 for the first six
months of 1999, compared to $1,765,412 for the same period of 1998. The
increase in 1999 is primarily related to additional staff and expenses
associated with the additional support necessary for the development of the San
Cristobal Project.
Consulting. Consulting fees were $818,279 for the first six months of 1999,
which is comparable to $825,632 for the same period of 1998.
Professional Fees. Professional fees were $363,553 for the first six months
of 1999 compared to $458,649 for the same period of 1998. Professional fees for
the first six months of 1998 were higher primarily as the result of initial
costs incurred in connection with SEC reporting requirements.
Liquidity and Capital Resources
- -------------------------------
As of June 30, 1999, the Company had cash and cash equivalents of $11,252,371
compared to $26,217,241 at December 31, 1998. The decrease is the result of
$4,928,076 used in operations, including $1,434,998 spent on exploration,
$9,774,300 of development activity on the San Cristobal Project, $286,486
invested in plant, buildings and equipment, and a $53,008 net reduction of debt,
offset by $77,000 in proceeds from the exercise of employee stock options by
former employees.
The Company anticipates cash requirements for the final six months of 1999, to
be approximately $7.5 million, including approximately $3.3 for the advancement
of the San Cristobal Project, approximately $3.3 million for administration and
operations including financing efforts, and approximately $0.9 million for other
exploration. Management believes that the Company's current cash balances are
adequate to fund the above requirements plus an additional six months of
administration and operations. However, construction and development of the San
Cristobal Project will require significant additional financing. Sources of
financing may include bank borrowings and future additional debt or equity
financing. There can be no assurance that the required financing will be
obtainable on terms that are attractive to the Company, or at all.
Recent Developments
- -------------------
On April 13, 1999, the Company filed a shelf registration statement with the
Securities and Exchange Commission under which it may offer up to $200 million
in securities. The shelf registration has not yet been declared effective.
Once effective, the shelf registration will allow the Company to raise money by
selling any combination of securities listed in the filing. Salomon Smith
Barney and Merrill Lynch & Co. may act either alone or as representatives for a
group of underwriters or agents for any offering pursuant to the shelf
registration, unless otherwise stated in a supplemental prospectus.
The registration statement is part of the Company's comprehensive financing
plan for the San Cristobal Project which also includes project financing efforts
spearheaded by our lead arrangers, Barclays Bank PLC and Deutsche Bank
Securities Inc. The Company expects successful completion of its bankable
feasibility study, for the San Cristobal Project, during the third quarter of
1999. Preparation of the feasibility study has involved detailed work on most
aspects of project construction, development and economics, including mine
planning, processing plant capacity and technologies, reserves, metallurgical
testing, mineral recoveries, infrastructure, environmental, financing and tax.
Proceeds from the offering(s), if any, may be used to construct and develop
the San Cristobal Project, continue exploring the Company's other properties,
acquire additional mining related assets and for general corporate purposes.
<PAGE>
Year 2000 Date Conversion
- -------------------------
The inability of certain computer programs to interpret "00" as the Year 2000
does not appear to be a significant problem for the Company. As of June 30,
1999, the Company does not maintain a mainframe computer or central database,
and the accounting system is supported by personal computers and their related
software. The Company believes that its computer systems are Year 2000
compliant. Notwithstanding this fact, the Company, for reasons independent of
Year 2000 issues, is in the process of installing upgraded accounting software
at its major locations. Installation is expected to be completed by the fourth
quarter 1999. All such software is Year 2000 compliant. To further mitigate
the risk of data loss or corruption, the Company performs regular tape backups
of all files, stays in contact with software manufacturers regarding updates to
their products and keeps informed of the latest developments concerning Year
2000 issues. The Company believes that the only non-information technology
systems that may be subject to Year 2000 issues are its telephone and photocopy
machines, which are not expected to materially affect the Company's operations.
The Company's costs with respect to the Year 2000 issue have been minimal.
The Company is in an exploration and development stage and as such does not
expect to have any customers until after the Year 2000. The Company has not
evaluated whether its suppliers and other service providers are Year 2000
compliant. However, the Company does not believe that the failure of its
suppliers and service providers to timely achieve Year 2000 compliance would
have a material adverse affect on earnings. Accordingly the Company has not
developed a contingency plan at this time. The Company believes that in a worst-
case scenario, it could continue its normal business activities on a manual
basis or find suitable alternatives. The Company will continue to monitor the
need for a contingency plan as additional information is acquired.
Forward-Looking Statements
- --------------------------
This filing contains forward-looking statements within the meaning of Section
27A of the Securities Act and Section 21E of the Exchange Act. All statements,
other than statements of historical facts, included in this filing which address
activities, events or developments that the Company expects, believes, intends
or anticipates will or may occur in the future, including such matters as future
investments in existing development projects and the acquisition of new mineral
properties (including the amount and nature thereof), business strategies, mine
development and construction plans, costs, grade production and recovery rates,
permitting, financing needs from external sources, the availability of financing
on acceptable terms, the timing of engineering studies and environmental
permitting, and the markets for silver, zinc and lead, are forward-looking
statements. Forward-looking statements are inherently subject to risks and
uncertainties, many of which cannot be predicted with accuracy, and some of
which might not even be anticipated. The use of any of the words "anticipate",
"continue", "estimate", "expect", "may", "will", "project", "should", "believe"
and similar expressions are intended to identify uncertainties. The Company
believes the expectations reflected in those forward looking statements are
reasonable. However, the Company cannot assure that such expectations will prove
to be correct. Future events and actual results, financial and otherwise, could
differ materially from those set forth in or contemplated by the forward-looking
statements herein.
Factors that could cause actual results to differ materially include, among
others: worldwide economic and political events affecting the supply of and
demand for silver, zinc, and lead; volatility in market prices of silver, zinc
and lead; financial market conditions, and availability of financing on terms
acceptable to the Company; uncertainties associated with the development of a
new mine, including potential cost overruns and the unreliability of estimates
in early stages of mine development; variations in ore grade and other
characteristics affecting mining, crushing, milling and smelting operations and
mineral recoveries; geological, technical, permitting, mining and processing
problems; the availability of and timing of acceptable arrangements for power,
transportation, water and smelting; the availability of experienced employees;
and variations in smelting operations and capacity. Many such factors are beyond
the Company's ability to control or predict. The reader is cautioned not to put
undue reliance on forward looking statements. The Company disclaims any intent
or obligation to update publicly the forward looking statements, whether as a
result of new information, future events or otherwise.
<PAGE>
Item 3. Quantitative and Qualitative Disclosures About Market Risk and Hedging
Activities
Currently, the Company's major principal cash balances are held in U.S.
dollars. Subsidiary cash balances in foreign currencies are held to minimum
balances resulting in minimal risk to currency fluctuations. As a result of its
operations in several foreign countries, the Company may in the future engage in
hedging activities to minimize the risk of exposure to currency and interest
rate fluctuations.
To complete the financing necessary to develop its mineral properties,
including San Cristobal, the Company anticipates that it will be required to
hedge some portion of its planned production in advance. In addition, as its
mineral properties are brought into production and the Company begins to derive
revenue from the production, sale and exchange of metals, the Company may
utilize various price-hedging techniques to lock in forward delivery prices on a
portion of its production. Such price-hedging techniques would be balanced to
mitigate some of the risks associated with fluctuations in the prices of the
metals the Company produces while allowing the Company to take advantage of
rising metal prices should they occur.
The Company is currently developing policies, procedures and guidelines for
the hedging of metal prices, interest rates and foreign currency exposure. The
Company has initiated a limited number of metals trades for the purpose of
testing procedures and controls surrounding the trading function. There was no
material market exposure as a result of these trades. There can be no assurance
that the use of hedging techniques will always benefit the Company.
<PAGE>
PART II: OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities and Use of Proceeds
Pursuant to a Registration Statement on Form S-1 (Registration No. 333- 34685)
filed in connection with the initial public offering (the "Offering") and a
concurrent offering to a shareholder, which became effective on November 25,
1997, the Company sold a total 5,532,000 of its Ordinary Shares.
Since the date of the Offering, the Company estimates that of the $54.6
million net proceeds from the Offering, the following approximate amounts have
been used: (1) $1,921,000 for construction of plant, building and facilities;
(2) $1,300,000 for the acquisition of the business of Mintec; (3) $573,000 for
the repayment of indebtedness; (4) $9,529,000 for working capital; and (5)
$36,653,000 for exploration and development activities primarily related to the
San Cristobal Project, including land acquisition and option payments. The
remaining net proceeds of the Offering were invested in cash equivalents and
investments with various maturity dates. The Company believes that the above
amounts are reasonable estimates of the amount of the net proceeds of the
Offering applied.
Other than compensation paid, and expenses reimbursed, to directors of the
Company and officers of subsidiaries of the Company, and certain payments made
in connection with the Company's acquisition of Mintec to then existing
shareholders of Mintec (who are currently employees of the Company), none of
the net proceeds of the Offering have been paid, directly or indirectly, to
directors, officers, general partners of the Company or their associates, to
persons owning 10 percent or more of any class of equity securities of the
Company or to affiliates of the Company.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
The Annual Meeting of Shareholders was held on May 4, 1999. At the
meeting the following directors were elected until 2002:
Director Number of Common Shares Voted
-------- ----------------------------------
Affirmative Negative
----------- --------
Ove Hoegh 20,064,478 9,150
Keith R. Hulley 20,064,478 9,150
Paul Soros 20,064,478 9,150
The directors continuing in office until 2000 or 2001 are Thomas S. Kaplan,
Michael Comninos, Harry M. Conger, Eduardo S. Elsztain, David Sean Hanna,
and Richard Katz.
The shareholders also ratified the Company's selection of
PricewaterhouseCoopers LLP as the independent accountants for 1999 fiscal
year with an affirmative vote of 20,040,987 Common Shares, with 4,100
Common Shares voting against and 28,550 Common Shares abstaining.
Item 5. Other Information
None.
Item 6. (a) Reports on Form 8-K
None.
(b) Exhibits
27 Financial Data Schedule.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf of the undersigned
thereunto duly authorized.
APEX SILVER MINES LIMITED
(Registrant)
Date: August 13, 1999 By: /s/ Thomas S. Kaplan
-----------------------------
Thomas S. Kaplan
Chairman, Board of Directors
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Jun-30-1999
<CASH> 11252
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 11812
<PP&E> 42402
<DEPRECIATION> 456
<TOTAL-ASSETS> 57471
<CURRENT-LIABILITIES> 1592
<BONDS> 0
<COMMON> 263
0
0
<OTHER-SE> 53684
<TOTAL-LIABILITY-AND-EQUITY> 57471
<SALES> 0
<TOTAL-REVENUES> 489
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5016
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4527)
<EPS-BASIC> (.17)
<EPS-DILUTED> (.17)
</TABLE>
