SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15 (d) of
the Securities Exchange Act of 1934
For The Six Months Ended JANUARY 31, 1997 Commission File Number:
2-86160-NY
LEADVILLE MINING AND MILLING CORP.
(Exact name of registrant as specified in its charter)
NEVADA #13-3180530
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
76 BEAVER STREET, NEW YORK, NEW YORK 10005
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (212) 344-5158
The Number of Shares Outstanding of Common Stock,
$.0001 Par Value, At January 31, 1997 134,061,075
===========
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 ______
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEET
JANUARY 31, 1997
(Unaudited)
ASSETS
Current Assets:
Cash ...................................................... $ 31,059
Prepaid Expense ........................................... 1,196
Other Current Assets ...................................... 386
-----------
Total Current Assets ................................... 32,641
Property and Equipment (Net of
Accumulated Depreciation of $341,638) ..................... 1,361,316
-----------
Other Assets:
Mining Reclamation Bonds .................................. 11,000
Security Deposit .......................................... 3,667
-----------
Total Other Assets ..................................... 14,667
Total Assets ................................................ $ 1,408,624
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accrued Expenses and Taxes ................................ $ 73,961
Loans Payable - Officers .................................. 9,673
-----------
Total Current Liabilities .............................. 83,634
Commitments and Contingencies
Stockholders' Equity:
Common Stock, Par Value $.0001 Per Share;
Authorized 150,000,000 shares; Issued and
Outstanding 134,061,075 Shares .......................... 13,406
Capital Paid In Excess of Par Value ....................... 6,442,893
Deficit Accumulated in the Development Stage .............. (5,131,309)
-----------
Total Stockholders' Equity ............................. 1,324,990
Total Liabilities and Stockholders' Equity .................. $ 1,408,624
===========
The accompany notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For The Period
September 17,1982
(Inception)
Three Months Ended Six Months Ended To
January 31, January 31, January 31, 1997
------------------------------ ----------------------------- ----------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Revenues:
Interest Income ............... $ 194 $ 176 $ 414 $ 499 $ 707,808
Miscellaneous ................. -- -- -- -- 23,483
------------- ------------- ------------- ------------- -------------
Total Revenues .............. 194 176 414 499 731,291
------------- ------------- ------------- ------------- -------------
Costs and Expenses:
Mine Expenses ................. 73,734 59,475 163,735 90,119 1,569,307
Selling, General and
Administrative Expenses ..... 66,256 89,679 261,424 135,968 3,815,289
Depreciation .................. 1,216 1,936 3,156 3,484 341,638
Loss on Write-Off of
Investment .................. -- -- -- -- 10,000
Loss on Joint Venture ......... -- -- -- -- 101,700
------------- ------------- ------------- ------------- -------------
Total Costs and
Expenses ................... 141,206 151,090 428,315 229,571 5,837,934
------------- ------------- ------------- ------------- -------------
Loss Before Provision
For Income Taxes .............. (141,012) (150,914) (427,901) (229,072) (5,106,643)
Provision For Income
Taxes ......................... -- -- 688 1,900 24,666
------------- ------------- ------------- ------------- -------------
Net Loss ........................ $ (141,012) $ (150,914) $ (428,589) $ (230,972) $ (5,131,309)
============= ============= ============= ============= =============
Net Loss Per Share .............. $ (.00) $ (.00) $ (.00) $ (.00)
============= ============= ============= =============
Average Common Shares Outstanding 132,804,988 114,299,677 132,612,947 114,649,275
============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For The Period
Six Months Ended September 17, 1982
January 31, (Inception)
---------------------------- To
1997 1996 January 31, 1997
--------- ------------- ------------------
<S> <C> <C> <C>
Cash Flow From Operating Activities:
Net Loss ....................................... $ (428,589) $ (230,972) $(5,131,309)
Adjustments to Reconcile Net Loss to
Net Cash Used By Operating Activities:
Depreciation ............................... 3,156 3,484 341,638
Loss on Write-Off of Investment ............ -- -- 10,000
Loss From Joint Venture .................... -- -- 101,700
Value of Common Stock Issued For Services .. 3,858 68,805 1,258,303
Compensation Portion of Options Exercised .. 98,000 -- 359,500
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Prepaid Expenses .. 50,212 672 (1,196)
(Increase) in Other Current Assets ....... (179) (145) (386)
(Increase) in Security Deposit ........... -- -- (3,667)
Increase (Decrease) in Accrued Expenses
and Taxes ............................. 4,155 (63,685) 73,961
----------- ----------- -----------
Net Cash Used By Operating Activities ............ (269,387) (221,841) (2,991,456)
----------- ----------- -----------
Cash Flow From Investing Activities:
Purchase of Property and Equipment ............. (3,500) (5,987) (1,698,453)
Investment in Joint Venture .................... -- -- (101,700)
Investment in Privately Held Company ........... -- -- (10,000)
----------- ----------- -----------
Net Cash Used By Investing Activities ............ (3,500) (5,987) (1,810,153)
----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF CASH FLOWS
(Unaudited)
(Continued)
<TABLE>
<CAPTION>
For The Period
Six Months Ended September 17, 1982
January 31, (Inception)
-------------------------- To
1997 1996 January 31, 1997
----------- ----------- ------------------
<S> <C> <C> <C>
Cash Flow From Investing Activities:
(Increase) Decrease in Loans Receivable .............. $ 7,908 $ (749) $ --
Increase in Loans Payable - Officers ................. -- -- 18,673
Repayment of Loans Payable - Officers ................ -- (7,000) (9,000)
Proceeds From Sale of Common Stock ................... 261,181 235,600 5,248,008
Commissions on Sale of Common Stock .................. -- -- (5,250)
Expenses of Initial Public Offering .................. -- -- (408,763)
Combined Purchase of Certificate of Deposit-Restricted -- -- (5,000)
Combined Purchase of Mining Reclamation Bond ......... -- -- (6,000)
----------- ----------- -----------
Net Cash Provided By Financing Activities .............. 269,089 227,851 4,832,668
----------- ----------- -----------
Increase (Decrease) In Cash and Cash Equivalents ....... (3,798) 23 31,059
Cash and Cash Equivalents - Beginning .................. 34,857 11,268 --
----------- ----------- -----------
Cash and Cash Equivalents - Ending ..................... $ 31,059 $ 11,291 $ 31,059
=========== =========== ===========
Supplemental Cash Flow Information:
Cash Paid For Interest ............................... $ -- $ -- --
=========== =========== ===========
Cash Paid For Income Taxes ........................... $ 688 $ 1,900 $ 24,115
=========== =========== ===========
Non-Cash Financing Activities:
Issuances of Common Stock as Commissions
on Sales of Common Stock ........................... $ 24,297 $ 14,250 $ 94,082
=========== =========== ===========
Issuances of Common Stock For
Acquisition of Property and Equipment ................ $ 4,500 $ -- $ 4,500
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
Item I. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES REFERENCE TO
ANNUAL REPORT;
These financial statements should be read in conjunction with the Form
10-QSB for the Quarter ended October 31, 1996 and Form 10-KSB for quarter ended
July 31, 1996. The interim financial statements reflect all adjustments which
are, in the opinion of management, necessary for a fair statement of the results
of operations for the interim periods presented. Such adjustments are of a
normal recurring nature. Operating results for the six months ended January 31,
1997 are not necessarily indicative of the results that may be expected for the
fiscal year ending July 31, 1997.
Item II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS:
FINANCIAL CONDITION:
As of January 31, 1997, the Company had a negative working capital of
$40,993 (defined as current assets less current liabilities) which represents a
net increase in working capital of $659.00 from October 31, 1996. As was
explained in the Company's 10-KSB, the Company is in a precarious financial
condition and there is no assurance whatsoever that the Company will be able to
continue as a going concern or that any of its plans with respect to its gold
mining properties will come to fruition. The Company, in order to continue its
mine pogrom must obtain substantial financing. While management is seeing such
financing through joint venture partners, private placement of its shares and
other arrangements, there is no assurance that management will succeed therein.
It should be emphasized that the Company's financial condition has remained
critical since the date of the last 10-KSB and that in order to survive, the
Company will need an infusion of capital within the near future.
RESULTS OF OPERATIONS:
Construction work neared completion on the Hunter, second exit shaft during
this Fiscal quarter. The shaft is now open the 7th level. Dividers, ladders and
landings are near the bottom of the shaft. Elevator guides are now nearly all
installed.
The Hunter hoist facility is completed and operational. The electrical
generating plant is tested and operational.
The Hunter 7th level is fully rehabilitated. Sulfide and oxide
mineralization is abundant on this level.
<PAGE>
Exploration by long-hole drilling on the seventh level has shown
indications of possible large amounts of high grade gold mineralization.
Exploration in continuing.
During this fiscal quarter, the Company began initial, low level mine
production. The Company's mill is expected to commence processing ore during the
late Spring.
<PAGE>
LEADVILLE MINING AND MILLING CORP.
(A DEVELOPMENT STAGE ENTERPRISE
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997
(Unaudited)
NOTE 1 - Basis of Presentation
In the opinion of the Company, the accompanying unaudited financial
statements reflect all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results of
operations and cash flows for the periods presented.
Results of operations for interim periods are not necessarily indicative of
the results of operations for a full year due to external factors which are
beyond the control of the Company.
<PAGE>
FORM 10-QSB
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 thereto duly authorized.
LEADVILLE MINING & MILLING CORP.
Registrant
By: /S/ Gifford Dieterle
------------------------
Gifford Dieterle
Treasurer/Secretary
Date: March 24, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-START> AUG-01-1996
<PERIOD-END> JAN-31-1997
<CASH> 31,059
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 32,641
<PP&E> 1,702,954
<DEPRECIATION> 341,638
<TOTAL-ASSETS> 1,408,624
<CURRENT-LIABILITIES> 83,634
<BONDS> 0
0
0
<COMMON> 13,406
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,408,624
<SALES> 0
<TOTAL-REVENUES> 414
<CGS> 0
<TOTAL-COSTS> 163,735
<OTHER-EXPENSES> 264,580
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (427,901)
<INCOME-TAX> 688
<INCOME-CONTINUING> (428,589)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (428,589)
<EPS-PRIMARY> (0.001)
<EPS-DILUTED> (0.001)
</TABLE>
