UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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, 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 0-9370
____________________
USMX, INC.
(Exact name of registrant as specified in its charter)
____________________
Delaware 84-1076625
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
141 Union Boulevard, Suite 100
Lakewood, Colorado 80228
(Address of principal executive offices) (Zip Code)
(303) 985-4665
(Registrant's telephone number, including area code)
Not Applicable
(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
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class of Common Outstanding at
Stock August 14, 1996
---------------- ---------------
$.001 par value 16,184,182
<PAGE>
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
USMX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Amounts in Thousands)
<CAPTION>
June 30, December 31,
1996 1995
----------- -------------
<S> <C> <C>
ASSETS
Cash and equivalents $ 1,043 $ 5,226
Federal income taxes receivable 437 381
Other current assets 477 227
----------- -------------
Total current assets 1,957 5,834
----------- -------------
Property, plant & equipment 23,333 13,291
Accumulated depreciation, depletion and amortization (3,524) (3,475)
----------- -------------
Net property, plant and equipment 19,809 9,816
Other assets 3,037 1,819
----------- -------------
Total assets $ 24,803 $ 17,469
=========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 4,330 $ 312
Accrued salaries 43 73
Accrued reclamation 576 304
Other accrued liabilities 23 51
Note payable - affiliate,current 720 -
----------- -------------
Total current liabilities 5,692 740
Note payable - affiliate 3,733 -
Estimated reclamation liability 535 885
Stockholders' equity
Common stock 15 15
Additional paid-in capital 15,583 15,583
Retained earnings (accumulated deficit) (755) 246
----------- -------------
Total liabilities and stockholders' equity $ 24,803 $ 17,469
=========== =============
<FN>
The accompanying notes are part of the condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
USMX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in Thousands, Except Per Share Amounts)
<CAPTION>
Three Months Six Months
Ended Ended
June 30,
------------------------------------------------------
1996 1995 1996 1995
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sales $ - $ 392 $ - $ 778
Costs applicable to sales - 460 - 913
---------- ----------- ---------- -----------
Gross profit - (68) - (135)
General and administrative expenses 742 690 1,306 1,250
Prospecting costs 211 230 405 476
Mineral property abandonments & impairments 242 1,443 242 1,471
---------- ----------- ---------- -----------
Loss from operations (1,195) (2,431) (1,953) (3,332)
Gain on sale of assets - - - -
Royalty income 180 180 360 360
Other income, net 448 142 525 329
---------- ----------- ---------- -----------
Loss before income tax benifit (567) (2,109) (1,068) (2,643)
Income tax benifit (44) (158) (67) (219)
---------- ----------- ---------- -----------
Net loss $ (523) $ (1,951) $ (1,001) $ (2,424)
---------- ----------- ---------- -----------
Loss per common share $ (0.03) $ (0.13) $ (0.07) $ (0.16)
---------- ----------- ---------- -----------
Weighted average common shares outstanding 15,310 14,904 14,977 14,824
========== =========== ========== ===========
<FN>
The accompanying notes are part of the condensed consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
USMX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in Thousands)
<CAPTION>
Six Months Ended
June 30,
---------------------
1996 1995
-------- ---------
<S> <C> <C>
Net cash provided by (used in) operations $ 2,597 $ (1,166)
Net cash provided by (used in) investing activities: -------- ---------
Capital additions and property acquisitions (10,308) (2,217)
Proceeds from sale of property, plant and equipment - 414
-------- ---------
(10,308) (1,803)
Net cash provided by (used in) financing activities:
Proceeds from note payable to affiliate 4,500 -
Investment in restricted cash account (972) -
Repurchase of common stock - (52)
Proceeds from issuance of common stock - 7
-------- ---------
3,528 (45)
-------- ---------
Decrease in cash and equivalents (4,183) (3,014)
Cash and cash equivalents at beginning of year 5,226 12,014
-------- ---------
Cash and cash equivalents at end of period $ 1,043 $ 9,000
======== =========
Six Months Ended
June 30,
------------------------
Supplemental Disclosures of Cash Flow Information
1996 1995
Cash paid during the period for: --------- -----------
Interest $ 23 $ -
Income taxes $ - $ -
<FN>
The accompanying notes are part of the condensed consolidated financial statements.
</TABLE>
<PAGE>
USMX, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - General
The accompanying interim condensed consolidated
financial statements have been prepared in accordance
with the instructions for Form 10-Q. In the opinion of
management, all adjustments (consisting of normal
recurring adjustments) considered necessary for a fair
statement of the results for the interim periods
presented have been included. Operating results for the
three and six month periods ended June 30, 1996 are not
necessarily indicative of the results which may be
expected for the year ending December 31, 1996. These
condensed interim consolidated financial statements
should be read in conjunction with the consolidated
financial statements and notes thereto included in the
Company's Form 10-K for the year ended December 31, 1995.
Note 2 - Note Payable - Affiliate
During the second quarter of 1996 the Company
arranged for a $4.5 million, 8.75% fixed rate loan from
Pegasus Gold Corporation (Pegasus), which owns
approximately 30.8% of the Companys common stock. The
loan is repayable over a 50 month period beginning June
1, 1996. The loan is collateralized by the Companys
royalty interest in Montana Tunnels. In lieu of loan
payments by the Company, Pegasus will retain the $60,000
per month Montana Tunnels royalty payments that it would
otherwise make to the Company.
During the second quarter of 1996 the Company also
agreed with Pegasus to sell its net
profits royalty interest in the Montana Tunnels Mine to
Pegasus for $4,500,000. Pegasus is the owner and
operator of the Montana Tunnels Mine. The net profits
royalty interest entitles the Company to the greater of a
5% net profits royalty interest or minimum advance
royalties of $60,000 per month until certain
construction, land acquisition, associated financing and
other costs have been recovered by Pegasus (Payback),
and a 50% net profits royalty interest thereafter. Based
on information provided by Pegasus, the Company estimates
that, as of December 31, 1995, the remaining recoverable
costs to attain Payback were approximately $26,539,000.
It is unclear whether Payback will ever be achieved.
Payback is dependent upon several factors, including
future metal prices, production rates, and the life of
the Montana Tunnels Mine. Based on Pegasus published
reserves, the expected mine life is in the range of 3
to 4 years. Since inception of the contract, the Company
has only received the monthly minimum advance royalties.
Loan proceeds received by the Company from Pegasus
will be credited against the sales price at closing and
the loan will be extinguished. Closing of the
transaction is subject to completion of definitive
documentation and approval of the Companys stockholders.
Because stockholders approval has not been received, the
long-term portion of the loan has not been classified as
a current liability in the accompanying condensed
consolidated statements of financial position as of June
30, 1996.
<PAGE>
USMX, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 3 - Income Taxes
The income tax benefits were computed using the
expected annual effective income tax rate. The effective
income tax rate varies from the statutory rate primarily
due to differences in tax and book treatment of statutory
depletion on mining properties.
Note 4 - Commitments and Contingencies
Reclamation Surety
Pursuant to the mining reclamation and bonding
regulations of the State of Utah, Department of Natural
Resources and the Bureau of Land Management, the Company
has provided reclamation surety for the Goldstrike Mine
in the amount of $1,736,600. The required surety is in
the form of a certificate of deposit in the amount of
$800,000 and letters of credit, secured by cash, in the
amount of $936,600. The certificate of deposit and cash
security is reflected in Other assets in the accompanying
condensed consolidated statements of financial position.
Note 5 - Subsequent Events
Property Acquisition
Effective July 11, 1996, the Company acquired
leasehold and other property interests in the Illinois
Creek Project in north central Alaska from North Pacific
Mining Corporation ("NPMC"). The $4.0 million purchase
price was paid by the issuance, to NPMC, of 1,540,663
shares of the Companys common stock. The calculation of
the number of shares was based on the average market
price of the common stock on The Nasdaq Stock Market as
provided in the agreement. As a result of this
transaction, NPMC owns approximately 9.5% of the
Company's issued and outstanding common stock.
Financing Facility
On July 11, 1996 the Company closed a $22 million
financing facility with N M Rothschild & Sons Limited
(Rothschild). The facility comprises a $19.5 million
project loan and a $2.5 million convertible loan.
Proceeds of the facility will be used to partially fund
the development of the Companys Illinois Creek Mine in
Alaska. Total capital costs of the Illinois Creek
Project are estimated to be $33.7 million. On July 18,
1996, the Company drew $10.0 million against the
facility.
<PAGE>
USMX, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Financing Facility (Continued)
The $19.5 million project loan will bear interest,
payable quarterly, at 2.25% above the LIBOR until certain
tests related to project operations have been completed
to the satisfaction of the lender and 1.875% thereafter
for the remainder of the approximate four-year term of
the loan. Principal payments will be made in 8 amortized
installments on September 30 and December 31 of each
year, commencing September 30, 1997. The Company will be
a guarantor of the $19.5 million loan (which will remain
secured by the Illinois Creek Project assets) until it
has been demonstrated that the Illinois Creek Project is
operating in a manner satisfactory to Rothschild and
that no defaults are outstanding. There can be no
assurance when, or if, this will occur, and the Company
could have a substantial debt burden without other
resources to make repayment. In addition, the Company
will be a continuing guarantor of the covenant to comply
with environmental laws.
The $2.5 million convertible loan will bear interest
at 2% above LIBOR and will be payable no less frequently
than semi-annually. The note may be converted into
Common Stock at the conversion price of $3.40 per share
at the option of the lender at any time during the
approximate four-year term of the note. The Company may
also require conversion if the note is not in default and
the daily closing price of the Common Stock exceeds $4.75
for 30 consecutive trading days. A total of 735,294
shares of Common Stock (subject to adjustment for certain
events) will be reserved for issuance by the Company upon
conversion of the $2.5 million loan. The convertible
loan is due September 30, 2000.
The loan agreements include several financial and
other covenants, including the maintenance of certain
operating and financial ratios, limitations on or
prohibitions of dividends, indebtedness, liens,
investments, mergers, changes in capital structure and
certain other items. Such restrictions could affect the
Companys operations and future plans.
<PAGE>
Pro forma effect of subsequent events
Following is a pro forma condensed consolidated
statement of financial position reflecting the effect
of the subsequent events discussed above.
<TABLE>
USMX, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Amounts in Thousands)
<CAPTION>
June 30, 1996
-------------
As Reported Subsequent Events Adjustmet As Adjusted
----------- --------------------------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and equivalents $ 1,043 $2,459 c $ 3,502
Cash restricted to Illinois Cr Use - 3,211 a,b,c 3,211
Federal income taxes receivable 437 437
Other current assets 477 477
------- -------
Total current assets 1,957 7,627
------- -------
Property, plant & equipment 23,333 4,000 d 27,333
Accumulated depreciation, depletion and amortization (3,524) (3,524)
------- -------
Net property, plant and equipment 19,809 23,809
Other assets 3,037 3,037
------- -------
Total assets $24,803 $34,473
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 4,330 (4,330) b $ -
Accrued salaries 43 43
Accrued reclamation 576 576
Other accrued liabilities 23 23
Note payable - affiliate, current 720 720
------- -------
Total current liabilities 5,692 1,362
Note payable - affiliate 3,733 3,733
Long -term debt - 10,000 a 10,000
Estimated reclamation liability 535 535
Stockholders' equity
Common stock 15 2 d 17
Additional paid-in capital 15,583 3,998 d 19,581
Retained earnings (accumulated deficit) (755) (755)
------- -------
Total liabilities and stockholders' equity $24,803 $34,473
======= =======
<FN>
a) Cash draw of $10 million against Rothschild loan facility.
b) Payment of current accounts payable from loan proceeds.
c) Transfer of non-restricted funds to operating account.
d) Issuance of stock to NPMC for payment of $4 million Illinois Creek property acquisition.
</FN>
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Financial Condition
Liquidity
Cash and cash equivalents decreased during the first
six months of 1996 by $4,183,000 primarily as a result of
cash invested in property, plant and equipment
(principally development of the Illinois Creek, Alaska
property) of $10,308,000 partially offset by $2,597,000
in cash provided by operations and $4,500,000 in cash
proceeds from long term debt incurred. Cash provided by
operations of $2,597,000 results primarily from an
increase in accounts payable of $4,018,000 reduced by
cash used to fund operations for the first six months.
It is the Company's goal to commence mining on the
Illinois Creek Mine in the late summer of 1996. The
Company estimates that the total capital cost to develop
the Illinois Creek Mine and place it into production will
be approximately $33.7 million, including approximately
$4.7 million in working capital and $4 million in
property acquisition costs which was paid by the issuance
of 1,540,663 shares of Company Common Stock on July 11,
1996. At June 30, 1996 the Company has incurred costs of
approximately $14.2 million and committed to an
additional $2.9 million on the project.
On July 11, 1996, the Company closed a $22 million
financing facility with N M Rothschild & Sons Limited
(Rothschild). The facility comprises a $19.5 million
project loan and a $2.5 million convertible loan.
Proceeds of the facility will be used to fund the
remaining development and provide working capital for the
Illinois Creek Mine. On July 18, 1996, the Company drew
$10 million against the facility.
The terms of the financing facility require the
Company to maintain a minimum balance in the Proceeds
Account equal to the sum of: (I) the greater of
$1,500,000 or a formula amount based on the present value
of future net cash flow from the Project, (II) the lesser
of $250,000 or interest payable to the Lender for the
following three months, (III) capital expenditures
scheduled for the following three months and, (IV) any
other payments due to the Lender for the following three
months. The Company has agreed with Rothschild that it
will deposit $1,500,000 in the Proceeds Account by
September 30, 1996.
There are substantial risk factors associated with
the Illinois Creek Project and the Company's future
operations, including the substantial financial
commitment made by the Company to the development of the
Project, and the resultant strain on the Company's
liquidity and capital resources, delays and other
problems which may result from difficulties in
transportation of equipment, supplies and personnel to
the Project, potentially adverse weather conditions and
potentially substantial costs to comply with
environmental and other laws, as well as gold price
volatility and other economic factors which are beyond
the control of the Company. Moreover, inasmuch as the
Project has not been fully constructed and is not yet
operational, there is no operating history upon which to
base estimates of future cash operating costs and other
operating requirements.
<PAGE>
The Company is exploring alternatives to provide
additional financing to enable it to continue work to
commence mining at Illinois Creek in the near future,
provide contingency funds for unforeseen delays or other
problems at Illinois Creek, and to provide for future
operations, including exploration and development
activities on other properties. The Companys ability to
obtain outside financing will depend, among other things,
upon the price of gold and perceptions of future prices.
Therefore, availability of funding is dependent largely
upon factors outside the Companys control, and cannot be
predicted. Any such financing, if available, could
increase the indebtedness of the Company or dilute
current stockholders positions. If the Company acquires
such funding through debt, a substantial portion of the
Company's cash flow may need to be devoted to the payment
of principal and interest on such debt, which could
render the Company more vulnerable to competitive
pressure or economic downturns.
The Company has filed a Notice of Intent to Operate
with the Idaho Department of Lands describing the
Companys proposed gold and silver mining activities in
the Thunder Mountain Project. If the Thunder Mountain
Project is sufficiently attractive to warrant continued
development and the necessary permits and financing are
obtained, it is possible that construction could commence
in 1997. Management estimates that substantial capital
would be required for construction of facilities and
other development activities at Thunder Mountain.
The Company is reviewing alternative means of
augmenting its capital base, but has no firm commitments
for additional funding. Failure to obtain additional
funding would have a material adverse effect on the
Company.
Results of Operations
Fluctuations in the Company's results of operations
arise primarily from four factors: (1) changes in the
volume of gold sold and the selling price of gold, (2)
changes in the cost of gold sold, (3) the cost of mineral
properties abandoned or impaired during any given period
and (4) asset dispositions.
<PAGE>
Three months ended June 30
- --------------------------
The Company recorded a net loss for the second
quarter of 1996 of $523,000, compared with a net loss of
$1,951,000 for the same period of 1995.
Change in the Volume of Gold Sold and Selling Price of Gold
The following table analyzes the change in gold
sales revenue for the quarters ended June 30, 1996 and
1995:
Revenue Variance Analysis
Quarter Ended June 30, 1996 1995
---------- ------------
Ounces of gold sold - 1,000
Average price realized per ounce - $392
Variances
Lower volume ($392,000) ($4,244,00)
Higher prices - 9,000
-------------------------
Decrease in gold sales revenue over
the comparable period of the
preceding year ($392,000) ($4,235,000)
The decrease in the ounces sold is the result of the
termination of production and the commencement of rinsing
at the Companys Goldstrike Mine on October 1, 1995. The
small amount of gold recovered during the rinsing process
is recorded as a reduction to the rinsing costs.
Change in Costs Applicable to Sales
There were no costs applicable to sales for the
second quarter of 1996, compared to $460,000 or $460 per
ounce for the same period of 1995 as illustrated in the
following table.
<TABLE>
Quarter Ended June 30,
<CAPTION>
1996 1995
------ -------
Goldstrike Mine
----------------
<S> <C> <C>
Ounces of gold produced - 1,509
Ounces of gold sold - 1,000
Per ounce statistics:
Cash production costs incurred $- $ 231
Depreciation, depletion, amortization and
reclamation accruals - (3)
------ ------
Production cost per ounce produced $- $ 228
------ ------
Gold sales revenue $- $ 392
------ ------
Production cost per ounce sold - 343
Change in inventories - (22)
------ ------
Cost of gold sold - 321
Mining Taxes - 3
Production royalties - 136
------ ------
Costs applicable to sales - 460
------ ------
Gross loss $- $ (68)
====== ======
</TABLE>
<PAGE>
Mineral Property Abandonments and Impairments
Mineral property abandonments and impairments
charged to operations amounted to $242,000 for the
quarter ended June 30, 1996, compared to $1,443,000 for
the same period of 1995.
Mineral properties which had historical costs
totaling $242,000 were written off during the second
quarter of 1996, compared to $403,000 for the same period
in 1995. The properties abandoned during the second
quarter of 1996 were the Elk Creek, Montana ($93,000), La
Reserva, Mexico ($81,000), Las Cruces, Mexico ($48,000),
Tecolate, Mexico ($15,000) and other Mexico properties
($5,000).
No impairment loss was recorded during the second
quarter of 1996 compared to $1,040,000 for the same
period of 1995.
Asset Dispositions
During the second quarter of 1996 the Company
recorded a $439,000 gain on the sale of 168,273 shares of
Alta Gold Co. common stock held for investment. During
the same period of 1995 the Company recorded a $1,000
loss related to the sale of a mineral property.
Six months ended June 30
- ------------------------
The Company recorded a net loss for the six month
period ended June 30, 1996, of $1,001,000, compared with
a net loss of $2,424,000 for the same period of 1995.
Change in the Volume of Gold Sold and Selling Price of Gold
The following table analyzes the change in gold
sales revenue for the six month periods ended June 30,
1996 and 1995:
<TABLE>
<CAPTION>
Revenue Variance Analysis
Six Months Ended June 30, 1996 1995
----------- -------------
<S> <C> <C>
Ounces of gold sold - 2,000
Average price realized per ounce $ $ 389
-
Variances
Lower volume ($778,000) ($5,739,000)
Higher prices - 18,000
Decrease in gold sales revenue over the
comparable period of the preceding year ($778,000) ($5,721,000)
</TABLE>
The decrease in the ounces sold is the result of the
termination of production and the commencement of rinsing
at the Companys Goldstrike Mine on October 1, 1995. The
small amount of gold recovered during the rinsing process
is recorded as a reduction to the rinsing costs.
Change in Costs Applicable to Sales
<PAGE>
There were no costs applicable to sales for the six
month period ended June 30, 1996, compared to $913,000 or
$457 per ounce for the same period of 1995 as set forth
in the following table.
<TABLE>
<CAPTION>
Six Months Ended June 30, 1995 1994
---------------------
Goldstrike Mine
---------------------
<S> <C> <C>
Ounces of gold produced - 3,676
Ounces of gold sold - 2,000
Per ounce statistics:
Cash production costs incurred $ - $ 204
Depreciation, depletion, amortization and
reclamation accruals - (1)
-------- ---------
Production cost per ounce produced $ - $ 204
======== =========
Gold sales revenue $ - $ 389
-------- ---------
Production cost per ounce sold - 374
Change in inventories - (49)
-------- ---------
Cost of gold sold - 325
Mining Taxes - 3
Production royalties - 129
-------- ---------
Costs applicable to sales - 457
-------- ---------
Gross loss $ - $ (68)
======== =========
</TABLE>
Mineral Property Abandonments and Impairments
Mineral property abandonments and impairments
charged to operations amounted to $242,000 for the six
month period ended June 30, 1996, compared to $1,471,000
for the same period of 1995.
Mineral properties which had historical costs
totaling $242,000 were written off during the first six
months of 1996, compared to $431,000 for the same period
in 1995. The properties abandoned during the first six
months were the Elk Creek, Montana ($93,000), La Reserva,
Mexico ($81,000), Las Cruces, Mexico ($48,000), Tecolate,
Mexico ($15,000) and other Mexico properties ($5,000).
No impairment loss was recorded during the first six
months of 1996 compared to $1,040,000 for the same period
in 1994.
Asset Dispositions
During the first six months of 1996 the Company
recorded a $439,000 gain on the sale of 168,273 shares of
Alta Gold Co. common stock held for investment. During
the same period of 1995 the Company recorded a $1,000
loss related to the sale of a mineral property.
<PAGE>
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits - None
(b) Reports on Form 8-K
The Company filed a Form 8-K reporting under
Item 5. the election on April 18, 1996, of
Donald P. Bellum to Chairman of the Board of
Directors and Chief Executive Officer of the
Company, effective May 1, 1996.
The Company filed a Form 8-K reporting under
Item 2. the acquisition effective July 11,
1996, of leasehold and other property interests
in the Illinois Creek Project in north central
Alaska from North Pacific Mining Corporation.
The Company also reported that, effective July
11, 1996, the Company entered into credit
agreements with N M Rothschild & Sons Limited
for a $22,000,000 facility to partially finance
the development and construction costs of the
Illinois Creek Project. The credit agreements
and other pertinent documents were filed as
exhibits to this Report.
<PAGE>
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.
USMX, INC.
(Registrant)
Date: August 14, 1996 By: /s/ Donald E. Nilson
Donald E. Nilson, Vice President -
Finance, Secretary, Chief Financial
Officer
Date: August 14, 1996 By: /s/ Daniel J. Stewart
Daniel J. Stewart, Controller,
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,043
<SECURITIES> 0
<RECEIVABLES> 437
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,957
<PP&E> 23,333
<DEPRECIATION> 3,524
<TOTAL-ASSETS> 24,803
<CURRENT-LIABILITIES> 5,692
<BONDS> 0
<COMMON> 15
0
0
<OTHER-SE> 14,828
<TOTAL-LIABILITY-AND-EQUITY> 24,803
<SALES> 0
<TOTAL-REVENUES> 628
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,195
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (567)
<INCOME-TAX> (44)
<INCOME-CONTINUING> (523)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (523)
<EPS-PRIMARY> (0.03)
<EPS-DILUTED> 0
</TABLE>
