U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
x Quarterly report under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000.
Transition report under Section 13 or 15(d) of the
Exchange Act
For the transition period from to
Commission File Number 1-1761
CHIEF CONSOLIDATED MINING COMPANY
(Exact name of Small Business Issuer as Specified in Its
Charter)
Arizona 87-0122295
(State or other jurisdiction of incorporation or
organization)(I.R.S. Employer ID. No.)
500 Fifth Avenue, Suite 1021, New York, NY 10110-1099
(Address of Principal Executive Offices)
212-354-4044
(Issuer's Telephone Number, Including Area Code)
Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15 (d) of the Securities and
Exchange Act during the past 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
Class Outstanding at November 1,2000
Common Stock $0.50 par value 8,024,601
Redeemable Convertible Common Stock $0.50 par value 3,500,000
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CHIEF CONSOLIDATED MINING COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2000
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,929,037
Other current assets 41,500
Total current assets 1,970,537
INVESTMENT IN CENTRAL STANDARD
CONSOLIDATED MINES 78,954
ADVANCES TO CENTRAL STANDARD
CONSOLIDATED MINES 48,908
MINING CLAIMS AND PROPERTIES, less accumulated
depletion of $1,215,692 8,456,009
MACHINERY AND EQUIPMENT, less accumulated
depreciation of $162,600 3,265,157
OTHER ASSETS 348,840
Total assets $14,168,405
The accompanying notes to condensed consolidated financial
statements are an integral part of this condensed
consolidated balance sheet.
CHIEF CONSOLIDATED MINING COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (Continued)
AS OF SEPTEMBER 30, 2000
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 124,991
Accrued liabilities 37,179
Total current liabilities 162,170
ACCRUED RECLAMATION COSTS 389,800
MINORITY INTEREST 2,502,361
REDEEMABLE CONVERTIBLE COMMON STOCK,
3,500,000 shares issued and outstanding 4,078,045
SHAREHOLDERS' EQUITY:
Preferred stock, $0.50 par value; 1,500,000 shares
authorized, 11,168 shares outstanding with a
liquidation value of $5,584 5,584
Common stock, $0.50 par value; 20,000,000 shares
authorized, 8,024,601 shares outstanding, 16,441 shares
held in treasury with a zero cost 4,012,301
Additional paid-in capital 14,033,213
Stock purchase rights
3,321,747
Deferred compensation (3,225)
Notes receivable from shareholders (55,570)
Accumulated deficit (14,278,021)
Total shareholders' equity 7,036,029
Total liabilities and shareholders' equity $14,168,405
The accompanying notes to condensed consolidated financial
statements are an integral part of this condensed
consolidated financial statements.
CHIEF CONSOLIDATED MINING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended For the Nine Months
Sept 30, 2000 Sept 30, 1999 Sept 30, 1999 Sept 30, 1999
REVENUE:
Interest $14,783 10,453 142,542 23,008
Other 2,700 2,033 25,363 4,389
Total revenues 17,483 12,486 167,905 37,397
EXPENSES:
General and 416,995 250,605 1,035,738 742,748
administrative
Mining properties
operating
and 302,790 64,704 1,057,976 355,764
exploration costs
Taxes other than income 18,165 13,191 96,791 53,206
taxes
Total Expenses 737,950 328,500 2,190,505 1,151,718
NET LOSS (720,467) (316,014) (2,022,600)(1,114,321)
REDEEMABLE CONVERTIBLE
COMMON STOCK DIVIDENDS:
Eight percent stock
dividend (183,750) -- (551,250) --
Accretion to redemption(324,662) -- (973,986) --
NET LOSS APPLICABLE TO
COMMON SHAREHOLDERS $(1,228,879) $ (316,014) $(3,547,836) (1,114,321)
NET LOSS PER COMMON SHARE
(Basic and Diluted) $(.15) $(0.04) $(.44) $(0.15)
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
(Basic&Diluted) 8,024,601 7,948,634 8,024,601 7,596,576
The accompanying notes to condensed consolidated financial
statements are an integral part of this condensed
consolidated balance sheet.
CHIEF CONSOLIDATED MINING COMPANY
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
For the Nine Months Ended
Sept 30, 2000 Sept 30, 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (2,022,600) (1,114,321)
Adjustments to reconcile net loss to
net cash
used in operating activities:
Issuance of common stock for
services - 31,377
Depreciation 9,000 24,254
Amortization of deferred compensation 9,675 9,675
Changes in operating assets and
liabilities:
Decrease in accounts receivable - 2,271
Increase in other assets (226,267) (4,456)
Decrease in accounts
payable and accrued liabilities (389,980) (75,071)
Net cash used in operating activities (2,620,172) (1,126,271)
CASH FLOWS FROM INVESTING ACTIVITIES:
Mining property development costs
and purchase of machinery and equipment (2,357,667) (272,733)
Advances to affiliates (18,258) (3,000)
Payments received on notes receivable
from shareholders 23,900 1,950
Net cash used in investing activities (2,352,025) (273,783)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from sale of common stock - 1,471,750
Net cash provided by financing
activities - 1,471,750
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (4,972,197) 71,696
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 6,901,234 835,453
CASH AND CASH EQUIVALENTS AT END OF
PERIOD 1,929,037 907,149
The accompanying notes to condensed consolidated financial
statements are an integral part of this condensed
consolidated financial statement.
CHIEF CONSOLIDATED MINING COMPANY
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The accompanying condensed consolidated financial statements
have been prepared by registrant, without audit, pursuant to
the rules and regulations of the Securities and Exchange
Commission. Certain information and disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed
or omitted pursuant to such rules and regulations, although
registrant believes the following disclosures are adequate
to make the information presented not misleading. In the
opinion of management, all adjustments (consisting only of
normal recurring adjustments) considered necessary for a
fair presentation have been included. Results of operations
for interim periods are not necessarily indicative of
results for a full year. These condensed consolidated
financial statements and notes thereto should be read in
conjunction with registrant's consolidated financial
statements and notes thereto, included in registrant's Form
10-KSB for the year ended December 31, 1999, registrant's
Forms 10-QSB for the quarters ended June 30, 2000 and March
31, 2000.
Tintic Joint Venture
Tintic Utah Metals LLC ("Tintic") was formed on July 17,
1996. Registrant owns a 75% vested interest in Tintic and
Korea Zinc Co. Ltd. ("Korea Zinc") owns the remaining 25%.
Registrant contributed $3,975,873 of its mining claims and
properties and machinery and equipment for its interest in
Tintic. Registrant's contribution was made at the
historical bases of the related mining properties and
machinery and equipment for financial reporting purposes.
No gain recognition or step-up in basis was recorded in the
accompanying consolidated financial statements as a result
of the transaction.
In October 1998, an amendment to the operating agreement was
signed which granted to registrant an option to purchase
Korea Zinc's 25 percent ownership for $2,000,000. The
option, which was to expire on October 15, 1999, was
extended to December 31, 2000. During the option period,
Korea Zinc is not required to make any advances to Tintic or
to repay to registrant 25 percent of the advances made by
registrant to Tintic.
Central Standard Consolidated Mines
Registrant owns approximately 23 percent of the outstanding
capital stock of Central Standard Consolidated Mines
("Central Standard"). Central Standard's mining properties
consist of 320 acres located in the East Tintic Mining
District contiguous to Tintic's property. See Part II "Item
5. Other Information." of this report for information
concerning a proposed merger between registrant's wholly
owned subsidiary, Chief Gold Mines, Inc., and Central
Standard.
Registrant's Application for Appropriation of Burgin Mine
Water
A hearing on registrant's application to appropriate water
from the Burgin Mine was held on September 14, 2000, in Salt
Lake City, Utah at the offices of the Utah State Engineer.
At the hearing, registrant's expert witnesses presented
registrant's position that the East Tintic Aquifer, in which
the Burgin Mine is located, is an isolated source not
contributing to the waters of Utah Lake and that the pumping
of water from the Burgin Mine will not adversely affect the
prior existing water rights held by others in the area.
Several protestors to registrant's application argued
against registrant's position at the hearing.
Registrant is currently awaiting a decision by the Utah
State Engineer on its application. See registrant's Form 10-
KSB for the year ended December 31, 1999-"Item 1.
Description of Business.-Registrant's Application for
Appropriation of Burgin Mine Water." and "Item 2.
Management's Discussion and Analysis or Plan of Operation.
(a) PLAN OF OPERATION. - Burgin Mine." for information
concerning the application and registrant's plans if the
application is approved. Registrant anticipates that a
decision by the Utah State Engineer will be issued in the
fourth quarter of 2000.
Redeemable Convertible Common Stock Dividends
The redeemable convertible common stock carries a dividend
rate of 8 percent which is payable in non-redeemable
convertible common stock of the Company (based on the number
of issued redeemable convertible common shares). The
dividend shares are to be issued on an annual basis. As of
September 30, 2000, the Company has estimated the value of
the stock dividend based upon the dividend shares to be
issued (210,000 shares) and the market price of its common
stock at that date ($2.813 per share). The estimated value
of the dividend has been added to the net loss in the
accompanying statement of operations for the three and nine
months ended September 30, 2000 in order to arrive at net
loss attributable to common shareholders. However, as the
ultimate payment of the dividends will not result in any
change in total shareholders' equity and the dividend shares
have not been issued, no adjustment has been made to the
accompanying balance sheet. The Company will reflect the
dividend shares on its balance sheet when the shares are
actually issued at the end of 2000.
Item 2. Management's Discussion and Analysis or Plan of
Operation.
PLAN OF OPERATION
Registrant hereby incorporates by reference the following
portions of: Registrant's Annual Report dated March 29, 2000
on Form 10-KSB for the fiscal year ended December 31, 1999:
"Item 6. Management's Discussion and Analysis or Plan of
Operation - (a) PLAN OF OPERATION"; "Item 1. Description of
Business." and "Item 2. Description of Property." and
registrant's Form 10-QSB for the quarter ended June 30,
2000: "Item 2. Management's Discussion and Analysis or Plan
of Operation - PLAN OF OPERATION-Recent Development at
Trixie Mine."
RESULTS OF OPERATION
Registrant had no revenues from mining operations during the
year 1999 or during the first nine months of 2000.
Registrant's consolidated revenues of $167,905 for the first
nine months of 2000 consisted of $142,542 from interest and
$25,363 from miscellaneous sources. Registrant's
consolidated revenues of $37,397 for the first nine months
of 1999 consisted of $23,008 from interest and $4,389 from
miscellaneous sources.
Registrant's consolidated net loss for the nine months ended
September 30, 2000 was $2,022,600 as compared to Registrant's
consolidated net loss for the nine months ended September 30,
1999 of $1,114,321.
Registrant's consolidated net loss for the three months
ended September 30, 2000 was $720,467, as compared to
registrant's consolidated net loss for the three months
ended September 30, 1999 of $316,014. The increases in the
losses of $908,279 and $404,453 for the nine months and
three months ended September 30, 2000, respectively,
resulted primarily from an increase in the cost associated
with the exploration and development of registrant's Trixie
Mine; by Tintic Utah Metals LLC ("Tintic Utah Metals"); a
consolidated subsidiary and from an increase in general and
administrative expenses. The Tintic Utah Metals loss for
the nine months and three months ended September 30, 2000
was $647,856 and $281,744 respectively. In addition, the
increase in net loss to common shareholders for the nine and
three month periods in 2000 as compared to the nine and
three month periods in 1999 resulted from the provision for
the 8% dividend on registrant's convertible common stock and
accretion of the redeemable convertible common stock towards
its redemption value.
General and administrative expenses for the nine month
period ended September 30, 2000 compared to the nine month
period ended September 30, 1999 increased in the amount of
$292,990. This increase resulted primarily from expenses
relating to the hearing held by the Utah State Engineer on
September 14, 2000 on registrant's application for the
appropriation of Burgin Mine water; increased general
administrative costs relating to increases in administrative
salaries, liability insurance expenses and increased
administrative costs of Tintic Utah Metals LLC. General
administrative expenses for the three month period ended
September 30, 2000 compared to the three month period ended
September 30, 1999 increased in the amount of $166,390.
This increase resulted primarily from the allocation of
resources during the three months ended September 30, 2000
towards mining properties operating and exploration costs,
and expenses relating to the water appropriation hearing.
Mining property operating and exploration costs for the nine
and three month periods ended September 30, 2000 compared to
the nine and three month periods ended September 30, 1999
increased in the amounts of $702,212 and $238,086,
respectively. These increases resulted primarily from
increased exploration, development and operating costs at
the Company's Trixie Mine in Utah during both periods.
Taxes other than income taxes for the nine and three month
periods ended September 30, 2000 as compared to the nine and
three month periods ended September 30, 1999 increased in
the amounts of $43,585 and $4,974 respectively. This
increase resulted primarily from an increase in payroll
taxes associated with increases in mining and mill labor
costs and administrative salaries.
CASH NEEDS OF REGISTRANT
During the nine month period ended September 30, 2000,
registrant, in addition to its corporate overhead, paid out
$4,392,950 in connection with the ongoing projects at the
Tintic properties, the Trixie Mine and registrant's other
properties. Of the $4,392,950 paid out during the nine
month period ended September 30, 2000, $3,254,037 consisted
of advances to Tintic and $1,138,913 was for exploration,
development and operating expenses, primarily at the Trixie
Mine. Advances to Tintic will be reimbursed by Tintic to
registrant when and if Tintic has available funds. During
the remaining three months of 2000, registrant anticipates
that approximately $800,000 will be spent in connection with
these ongoing projects. Registrant will also expend cash
for its corporate overhead. Based upon the approximate
$1,078,400 in cash and equivalents on hand at November 1,
2000, registrant expects to have sufficient cash to meet its
cash needs over the remaining three month period ending
December 31, 2000. The extent by which registrant will be
able to fund the production of gold ore from the Trixie Mine
in early 2001 and to make further advances to Tintic for the
operation of Tintic's concentrating mill to process the
Trixie ore, will depend primarily upon the ability of
registrant to raise funds through obtaining a credit line
from a financial institution, the private placement of its
stock, or from other sources. When and if Trixie Mine ore
production is begun and the ore is processed in the Tintic
concentrating mill, registrant would receive cash flow as an
additional source of funding. However, the amount of any
such cash flow cannot be estimated at this time.
DRILLING PROGRAMS AND RECENT DEVELOPMENT AT THE TRIXIE MINE
The Trixie Mine is located on the property of Chief's 100%
owned subsidiary, Chief Gold Mines, Inc. in the East Tintic
District of Utah. A surface drilling program at the Trixie
Mine was initiated in April 2000, and was completed in July
2000, with approximately 20 surface drillholes having been
drilled over extended areas of Trixie Mine property. One of
the purposes of the surface exploration program was to
locate and develop the geologically projected extensions of
the significant gold and silver grades contained in the "75-
85" orebody previously mined by Kennecott when Kennecott was
leasee of the Trixie Mine.
In July 2000, two independent assay laboratories confirmed
registrant's own laboratory assay results covering a 35-foot
gold and silver intercept contained in a surface drillhole
located on registrant's Trixie Mine property. The
independent laboratories confirmed that the 35-foot
intercept located at a depth of between 655 and 690 feet,
contained an average of 6.7 ounces of gold and 9.6 ounces of
silver per ton, with grades through the 35-foot mineralized
area running between 2.1 and 17.1 ounces of gold and between
2.9 and 11.3 ounces of silver per ton. An additional 50-foot
section, between 690 and 740 feet in depth was confirmed to
contain an average of 1.0 ounce of gold and 1.8 ounces of
silver per ton.
See registrant's Form 10-QSB for the quarter ended March 31,
2000, "Item 2. Management's Discussion and Analysis or Plan
of Operation. PLAN OF OPERATION.
Recent Developments at Trixie Mine." for information
concerning gold and silver grades contained in a 30-foot
mineralized zone, discovered at a depth of between 630 and
660 feet in the first drillhole of the exploration program.
The results of the above referred to two drillholes,
together with mineralization contained in five additional
surface drill holes penetrating the zone, have confirmed the
presence of an indicated gold and silver orebody. Utilizing
required grading procedures standard in the mining industry
for valuing purposes, all gold assay intervals of an
indicated orebody grading in excess of one ounce per ton
were reduced to one ounce per ton. Incorporating these
grading reductions, the orebody discovered to date contains
approximately 70,546 tons of indicated ore at an average
grade of three-quarters of an ounce of gold and five ounces
of silver per ton. The contained gold and silver in this
initial indicated tonnage estimate equates to 52,808 ounces
of gold and 351,539 ounces of silver.
The Trixie Mine's fully operational production shaft is
located approximately 1200 feet from the new ore body. It is
anticipated that work to drift into the discovery zone and
to prepare it for mining will be completed early next year
with mining operations projected to begin during the first
quarter of 2001. All necessary mining permits for the Trixie
Mine have been obtained.
Ore mined from the Trixie Mine will be processed in the
newly rehabilitated gold and silver concentrating mill
located on the adjacent property of Tintic Utah Metals LLC,
Chief's 75% owned subsidiary. The concentrating mill went
into operation in June 2000 when it began test operations
utilizing surface dump material containing lower grade gold
and silver values previously mined from the Trixie Mine.
The test operations were successfully completed in August
2000 and the mill was placed on standby in September 2000
awaiting the initial production from the Trixie Mine and
final permitting procedures.
PART II. OTHER INFORMATION
Item 5. Other Information.
An Agreement and Plan of Merger dated October 4, 2000 was
executed between registrant, its 100% owned subsidiary,
Chief Gold Mines, Inc. ("Chief Gold") and Central Standard
Consolidated Mines ("Central Standard"), a Utah corporation
in which registrant owns a 23% stock interest. See Part I
"Item 1. Financial Statements-Notes To Condensed
Consolidated Financial Statements (Unaudited)-Central
Standard Consolidated Mines." for information concerning
Central Standard's ownership of mining properties.
The consummation of the merger is subject to the approval of
stockholders of Central Standard at a meeting to be held
sometime during the first quarter of 2001. If the merger is
approved by the Central Standard stockholders, each
stockholder of Central Standard, other than registrant, will
receive one share of registrant's common stock in exchange
for each ten shares of Central Standard stock owned. If the
merger is approved, registrant will issue approximately
190,000 of its shares of common stock in exchange for the
shares of Central Standard owned by the stockholders of
Central Standard, excluding registrant. Central Standard's
property will be transferred to registrant's subsidiary,
Chief Gold, upon consummation of the merger. The closing
price for registrant's common stock on the NASDAQ small cap
market on October 5, 2000 (the date the Agreement was
executed) was $3.50 per share; the closing price for
registrant's shares on November 1, 2000 was $2.81. Central
Standard is not a reporting company under Securities and
Exchange Commission ("SEC") regulations. Registrant will
file an SEC Form S-4 to register its shares to be issued in
the merger as part of the shareholder approval process.
Item 6. Exhibits And Reports On Form 8-K
(a) Description of Exhibits required to be filed
by Item 601 of Regulation S-B.
(The numbers shown below next to each exhibit are
keyed to Exhibit Table of Item 601 of Regulation
S-B.)
"(2)" Agreement and Plan of Merger dated October 4,
2000 among registrant, Chief Gold Mines, Inc. and
Central Standard Consolidated Mines, a copy of which
is filed with this report and marked as Exhibit "B".
"(3)" Articles of Incorporation and By-Laws:
Registrant hereby incorporates by reference (i)
registrant's Restated Articles of Incorporation that
was annexed as Exhibit A to registrant's Proxy
Statement For The Special Meeting In Lieu Of Annual
Meeting Of Shareholders held December 29, 1999
(Restated Articles approved at meeting); and (ii)
registrant's By-Laws previously filed with the
Securities and Exchange Commission.
"(4)" Not applicable.
"(10)" Material Contracts.
A. Operating Agreement of Tintic Utah
Metals LLC dated as of July 17, 1996 by and among
registrant, Akiko Resources (Utah) Inc. and K Z
Utah, Inc., a copy of which was filed with the
Securities and Exchange Commission by registrant
as a part of its 1996 Form 10-KSB report.
B. First Amendment to Operating Agreement
dated as of March 11, 1997 by and among
registrant, Akiko Resources (Utah) Inc. and KZ
Utah, Inc., a copy of which was filed with the
Securities and Exchange Commission by registrant
as a part of its 1997 Form 10-KSB report.
C. Second Amendment to Operating Agreement
dated as of November 10, 1997 by and between
registrant and KZ Utah, Inc., a copy of which was
filed with the Securities and Exchange Commission
by registrant as a part of its 1997 Form 10-KSB
report.
D. Third Amendment to Operating Agreement
dated as of October 1, 1998 by and between
registrant and KZ Utah, Inc., a copy of which was
filed with the Securities and Exchange Commission
by registrant as part of its 1998 Form 10-KSB
report.
E. Fourth Amendment to Operating Agreement
dated as of September 9, 1999 by and between
registrant and KZ Utah, Inc., a copy of which was
filed by registrant with the Securities and
Exchange Commission by registrant as part of its
1999 Form 10-KSB report.
F. Articles of Organization of Tintic Utah Metals LLC,
copy of which was filed with the Securities and Exchange
Commission by registrant as a part of its 1996 Form 10-KSB
Report.
G. Stock Purchase Agreement ("Stock Purchase Agreement")
dated as of November 19, 1999 between registrant and
Dimeling, Schreiber & Park, a copy of which was filed with
the Securities and Exchange Commission by registrant as part
of its Form 8-K report filed on December 1, 1999.
H. Registration Rights Agreement dated as of November 19,
1999 between registrant and Dimeling, Schreiber & Park,
constituting Exhibit A to the Stock Purchase Agreement, a
copy of which was filed with the Securities and Exchange
Commission by registrant as part of its Form 8-K report
filed on December 1, 1999.
I. Form of Warrant issued to Dimeling,
Schreiber & Park by registrant dated as of
November 19, 1999, constituting Exhibit B to the
Stock Purchase Agreement, a copy of which was
filed with the Securities and Exchange Commission
by registrant as part of its Form 8-K report filed
on December 1, 1999.
"(11)" Not applicable.
"(15)" Not applicable.
"(18)" Not applicable.
"(19)" Not applicable.
"(22)" Not applicable.
"(23)" Not applicable.
"(24)" Not applicable.
"(27)" Financial Data Schedule, filed with
this report and marked as Exhibit "A".
"(99)" Not applicable.
Safe Harbor Statement under the Private Securities Reform
Act of 1995:
This Form 10-QSB report contains and incorporates by
reference statements which are not historical facts, such as
anticipated production, exploration and drilling results and
costs and therefore are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act
of 1995, and involve a number of risks and uncertainties
that could cause actual results to differ materially from
those projected, anticipated, expected or implied. These
risks and uncertainties include, but are not limited to, the
following: registrant's cash is not sufficient to complete
the intended work and mining project at the Trixie Mine or
to keep the Concentrator in full operation before production
begins; even if the amount of cash available is sufficient
to complete the work and projects, registrant is unable to
initiate profitable mining activities at the Trixie Mine
and/or mining from the Homansville area is not commercially
feasible; registrant's application for appropriation of
water from the Burgin Mine is rejected by the Utah State
Engineer, necessitating registrant to seek alternative
methods for dewatering the of the Burgin Mine; even if the
water appropriation application is approved, if a water
treatment facility is not built or if built, mining from the
Burgin Mine is not commercially feasible; registrant is
unable to obtain long term financing to fund the Burgin
mining project if registrant's application for appropriation
of water from the Burgin Mine is approved; recent drilling
results at the Trixie Mine do not result in an orebody that
is commercially feasible to mine; Dimeling, Schreiber & Park
does not exercise its right to purchase the additional
5,000,000 shares of convertible common stock by December 31,
2002 and, as a result, registrant is unable to continue any
mining operations and development work at the Trixie Mine or
continue to seek development of the Burgin Mine and the
Homansville area; registrant is unable to sell any of its
real estate for residential or commercial use. Refer to
registrant's Form 10-QSB for the quarter ended June 30,
2000; Form 10-KSB for the year ended December 31, 1999; and
its Proxy Statement dated November 30, 1999 for the Special
Meeting In Lieu of Annual Meeting of Shareholders of
registrant held December 29, 1999 filed with the Securities
and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
CHIEF CONSOLIDATED MINING COMPANY
(Registrant)
November 9, 2000 /s/LEONARD WEITZ
(Signature and Title)
Leonard Weitz
President, Chairman of the Board of
Directors, and
Principal Executive Officer
November 9, 2000 /s/EDWARD R. SCHWARTZ
(Signature and Title)
Edward R. Schwartz
Secretary Treasurer,
Principal Financial Officer and
Principal Accounting Officer
EXHIBIT A
Chief Consolidated Mining Company
Financial Data Schedule
September 30, 2000
September 30,2000
5-02 (1) Cash and cash items $1,929,037
5-02 (2) Marketable securities -
5-02 (3) Notes and accounts -
(a) (1) receivable - trade
5-02 (4) Allowances for doubtful -
accounts
5-02 (6) Inventory -
5-02 (9) Total current assets 1,970,537
5-02 (13) Property, plant and 11,721,166
equipment
5-02 Accumulated depreciation 1,378,292
(14)
5-02 (18) Total assets 14,168,405
5-02 (21) Total current liabilities 162,170
5-02 (22) Bonds, mortgages and -
similar debt
5-02 (28) Preferred stock -
mandatory redemption -
5-02 (29) Preferred stock - no
mandatory redemption 5,584
5-02 (30) Common stock 4,012,301
5-02 (31) Other stockholders' equity 4,699,938
5-02 (32) Total liabilities and 14,168,405
stockholders' equity
Nine Months Ended
September 30,2000
5-03 (b) 1 Net sales of tangible -
(a) products
5-03 (b) 1 Total revenues 167,905
5-03 (b) 2 Cost of tangible goods -
(a) sold
5-03 (b) 2 Total costs and expenses
applicable to sales and
revenues
5-03 (b) 3 Other costs and expenses 2,190,505
5-03 (b) 5 Provision for doubtful -
accounts and notes
5-03 (b) Interest and amortization -
(8) of debt discount
5-03 (b) Income before taxes and (2,022,600)
(10) other items
5-03 (b) Income tax expense -
(11)
5-03 (b) Income/loss continuing (2,022,600)
(14) operations
5-03 (b) Discontinued operations -
(15)
5-03 (b) Extraordinary items -
(17)
-
5-03 (b) Cumulative effect-changes
(18) in accounting principles
5-03 (b) Net income or loss (3,547,836)
(19)
5-03 (b) EPS - primary (0.44)
(20)
5-03 (b) EPS - fully diluted (0.44)
(20)
