<PAGE> 1
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
------------------------------
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the 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 0-14329
CANYON RESOURCES CORPORATION
(a Delaware Corporation)
I.R.S. Employer Identification Number 84-0800747
14142 Denver West Parkway, Suite 250
Golden, CO 80401
(303) 278-8464
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 issuers
classes of common stock, as of the latest practicable date:
37,284,110 shares of the Company's Common Stock were outstanding as of
August 1, 1996.
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<PAGE> 2
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following consolidated financial statements have been prepared by
Canyon Resources Corporation ("the Company") pursuant to the rules and
regulations of the Securities and Exchange Commission ("SEC"). Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such SEC rules and regulations. In the
opinion of the Company's management, the consolidated financial statements
include all adjustments, consisting only of adjustments of a normal, recurring
nature, necessary to present fairly the financial information set forth
therein.
These consolidated financial statements should be read in conjunction
with the financial statements and accompanying notes included in the Company's
Form 10-K for the year ended December 31, 1995.
Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . Page 3
Consolidated Statements of Operations . . . . . . . . . . . . Page 4
Consolidated Statements of Cash Flows . . . . . . . . . . . . . Page 5-6
Notes to Interim Consolidated Financial Statements . . . . . . Page 7-9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS . . . . . . . . . . . .Page 10-11
<PAGE> 3
CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION> June 30, December 31,
1996 1995
----------- -----------
<S> <C> <C>
ASSETS
Cash and cash equivalents $10,232,100 $1,893,800
Restricted cash 12,907,500 25,212,600
Accounts receivable 1,019,600 586,300
Inventories 860,600 664,200
Prepaid and other assets 355,100 297,900
----------- -----------
Total current assets 25,374,900 28,654,800
----------- -----------
Property and equipment, at cost
Mining claims and leases 35,807,700 34,321,800
Producing properties 4,475,300 2,869,100
Other 22,449,800 2,692,600
----------- -----------
62,732,800 39,883,500
Accumulated depreciation and depletion (1,634,200) (1,359,100)
----------- -----------
Net property and equipment 61,098,600 38,524,400
----------- -----------
Deferred financing costs, net of amortization of $885,900 at
June 30, 1996, and $741,100 at December 31, 1995 1,898,900 1,981,800
Other assets 742,700 3,263,200
----------- -----------
Total Assets $89,115,100 $72,424,200
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $2,105,400 $806,900
Notes payable - current 1,459,000 216,600
Accrued taxes, other than payroll and income 222,700 413,200
Accrued reclamation costs 500,600 686,000
Deferred income taxes 267,900 267,900
Other accrued liabilities 651,200 476,800
----------- -----------
Total current liabilities 5,206,800 2,867,400
Notes payable - long term 48,905,600 47,371,800
Accrued reclamation costs 1,926,000 2,026,000
Other noncurrent liabilities 289,800 88,500
----------- -----------
Total Liabilities 56,328,200 52,353,700
----------- -----------
Common stock ($.01 par value) 100,000,000 shares authorized; issued and out-
standing: 30,938,000 at June 30, 1996, and 25,793,300 at December 31, 1995 309,300 257,900
Capital in excess of par value 60,565,400 46,072,500
Deficit (28,087,800) (26,259,900)
----------- -----------
Total Stockholders' Equity 32,786,900 20,070,500
----------- -----------
Total Liabilities and Stockholders' Equity $89,115,100 $72,424,200
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
3
<PAGE> 4
CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended June 30, Six months ended June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUE
Sales $1,303,100 $2,158,100 $2,447,200 $5,848,000
---------- ---------- ---------- ----------
EXPENSES
Cost of sales 1,234,400 1,809,900 2,146,200 4,464,400
Depreciation, depletion, and amortization 59,700 164,500 120,000 461,900
Selling, general and administrative 927,500 797,200 1,739,000 1,849,800
Exploration costs 92,600 342,000 222,100 589,200
Abandoned mineral properties - 121,300 - 135,600
---------- ---------- ---------- ----------
2,314,200 3,234,900 4,227,300 7,500,900
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE)
Interest income 392,200 175,700 724,600 365,300
Interest expense (399,600) (410,700) (802,300) (833,100)
Gain (loss) on asset disposals (4,000) - (4,000) 160,600
Other 22,800 (39,300) 33,900 (38,900)
---------- ---------- ---------- ----------
11,400 (274,300) (47,800) (346,100)
---------- ---------- ---------- ----------
Net loss ($999,700) ($1,351,100) ($1,827,900) ($1,999,000)
========== ========== ========== ==========
Net loss per share ($0.03) ($0.05) ($0.06) ($0.08)
========== ========== ========== ==========
Weighted average shares outstanding 30,872,700 25,650,500 29,072,300 25,604,600
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
4
<PAGE> 5
CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended June 30,
1996 1995
----------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net loss ($1,827,900) ($1,999,000)
----------- ----------
Adjustments to reconcile net loss to net cash:
Depreciation, depletion, and amortization 120,000 480,500
Amortization of financing costs 144,800 141,300
Abandonment loss - 135,600
(Gain) loss on asset disposals 4,000 (160,600)
Other - 33,600
Changes in assets and liabilities,
(Increase) in receivables (330,900) (138,900)
(Increase) decrease in inventories (98,800) 1,070,200
(Increase) decrease in prepaid and other assets (57,000) 71,200
(Decrease) in accounts payable and accrued liabilities (388,800) (757,600)
(Decrease) increase in other liabilities (123,900) 313,000
----------- ----------
Total adjustments (730,600) 1,188,300
----------- ----------
Net cash used in operating activities (2,558,500) (810,700)
----------- ----------
Cash flows from investing activities:
Purchases of property and equipment (21,075,500) (3,620,500)
Proceeds on asset dispositions 5,300 324,500
Other 20,000 20,000
----------- ----------
Net cash used in investing activities (21,050,200) (3,276,000)
----------- ----------
Cash flows from financing activities:
Issuance of stock, net 14,444,200 12,200
Debenture conversion cost - (43,500)
Payments on debt (123,900) (271,700)
Payments on capital lease obligations (24,200) (17,000)
Proceeds from loans 17,853,200 -
Payments to escrow account (47,800) -
Payments for debt issuance costs (154,500) -
----------- ----------
Net cash provided by (used in) financing activities 31,947,000 (320,000)
----------- ----------
Net increase (decrease) in cash and cash equivalents 8,338,300 (4,406,700)
Cash and cash equivalents, beginning of year 1,893,800 13,280,100
----------- ----------
Cash and cash equivalents, end of period $10,232,100 $8,873,400
=========== ==========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
5
<PAGE> 6
CANYON RESOURCES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
(Unaudited)
Supplemental disclosures of cash flow information:
1. The Company paid $653,500 of interest, net of $741,100 capitalized during
the first half of 1996, and $695,400, net of $3,400 capitalized during the
corresponding period of 1995.
2. The Company paid no income taxes during the first half of 1996, and no
income taxes during the corresponding period of 1995.
Supplemental schedule of noncash investing and financing activities:
1. The Company acquired $275,800 in equipment through capital leases during
the first half of 1996, and $25,800 in equipment through capital leases
during the first half of 1995.
2. The Company issued 61,500 shares of common stock which was valued at
$100,000 in exchange for an interest in a joint venture during the first
six months of 1995.
3. Debentures in the principal amount of $100,000 were converted into 29,000
shares of common stock during the first six months of 1996 and $725,000
in principal were converted to 210,100 shares of common stock during the
first six months of 1995.
The accompanying notes are an integral part of these consolidated
financial statements.
6
<PAGE> 7
CANYON RESOURCES CORPORATION
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION:
During interim periods, Canyon Resources follows the accounting
policies set forth in its Annual Report to Stockholders and its Report
on Form 10-K filed with the Securities and Exchange Commission. Users
of financial information produced for interim periods are encouraged
to refer to the footnotes contained in the Annual Report to
Stockholders when reviewing interim financial results.
In the opinion of management, the accompanying interim financial
statements contain all material adjustments, consisting only of normal
recurring adjustments necessary to present fairly the financial
position, the results of operations, and the changes in financial
position of Canyon Resources and its consolidated subsidiaries for
interim periods. Certain amounts in the prior period financial
statements have been reclassified to conform to the current period
presentation.
2. INTERIM RESULTS:
The foregoing interim results are not necessarily indicative of the
results of operations for the full year ending December 31, 1996, as
the Briggs Mine is scheduled to commence production in the third
quarter of 1996.
3. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
4. RESTRICTED CASH:
Restricted cash consisted of the following:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Collateral for Letter of Credit (a) $ 1,953,000 $ 1,953,000
Collateral for Letter of Credit (b) 500,000 500,000
Unexpended proceeds from loan drawing (c) 8,406,400 23,259,600
Contingency account (d) 2,048,100 2,000,300
----------- -----------
$12,907,500 $27,712,900
Current portion 12,907,500 25,212,600
----------- -----------
Noncurrent portion $ - $ 2,500,300
=========== ===========
</TABLE>
7
<PAGE> 8
4. RESTRICTED CASH: (Continued)
(a) In connection with the issue of certain bonds in 1995 for the
performance of reclamation obligations at the Kendall and
Briggs Mines, a bank Letter of Credit has been provided in
favor of the Surety as partial collateral for such bond
obligations. The Letter of Credit, in the amount of
$1,953,000, will expire no earlier than December 31, 1996, and
at the bank's option, may be renewed for successive one-year
periods. The Company has fully collateralized the Letter of
Credit by depositing cash in the amount of $1,953,000 with the
bank.
(b) In connection with a first year work commitment on an
exploration property in Ethiopia, a bank Letter of Credit has
been provided in favor of the Ministry of Mines and Energy,
Federal Democratic Republic of Ethiopia. The Letter of
Credit, in the amount of $500,000, will expire on January 6,
1997. The Company has fully collateralized the Letter of
Credit by depositing cash in the amount of $500,000 with the
bank.
(c) Restricted solely for the development of the Briggs Mine.
(d) As a condition precedent to securing the Briggs loan facility,
the Company transferred $2.0 million to an escrow account to
be held in reserve against construction cost overruns at the
Briggs Mine. These funds, including interest earned and net
of any cost overruns, will be returned to the Company upon
final completion of an expansion phase of development,
currently scheduled in the second quarter of 1997.
5. INVENTORIES:
Inventories consisted of the following:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Gold-in-process (a) $460,100 $389,200
Industrial minerals (a) 211,400 120,000
Materials and supplies 189,100 155,000
-------- --------
$860,600 $664,200
======== ========
</TABLE>
(a) Includes all direct and indirect costs of mining, crushing,
processing, and site overhead expenses.
6. NOTES PAYABLE:
Notes payable consisted of the following at:
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
------------- -----------------
<S> <C> <C>
Briggs Loan (a) $29,000,000 $26,000,000
6% Debentures (b) 21,075,000 21,175,000
Caterpillar Finance Note (c) 289,600 413,400
----------- -----------
$50,364,600 $47,588,400
Current portion 1,459,000 216,600
----------- -----------
Notes Payable - Long Term $48,905,600 $47,371,800
=========== ===========
</TABLE>
8
<PAGE> 9
6. NOTES PAYABLE: (Continued)
(a) On December 6, 1995, the Company's wholly owned subsidiary, CR
Briggs Corporation, secured a $34.0 million loan facility to
finance the capital requirements of mine construction and
working capital for its Briggs Mine in California. On
December 27, 1995, drawing commenced on the facility and $25.0
million principal in the form of a gold loan and $1.0 million
principal as a dollar loan were drawn. The gold loan portion
was monetized at $388.05 per ounce, or 64,425 ounces. An
additional $3.0 million principal as dollar loans were drawn
during the first six months of 1996. Interest rates on the
drawings for the six months ended June 30, 1996 were (i) 4.56%
on the $25.0 million gold loan and (ii) 9.65% on the $4.0
million cash loans. During the first six months of 1996,
interest payments of $732,300 were made utilizing proceeds
from the drawings.
(b) On June 2, 1993, the Company sold $22.0 million ($21.1 million
outstanding at June 30, 1996) of Subordinated Convertible
Notes (the "Notes") which were due June 1, 1998. Interest was
payable semi-annually on June 1 and December 1 at a rate of
6% per annum. The Notes were convertible at the option of the
holder any time into common shares at the rate of $3.45 per
share. During the second quarter of 1996, Notes in the
principal amount of $100,000 were converted into 29,000 shares
of common stock. On or after June 1, 1996, the Company could
redeem the Notes by issuing common stock at a rate equal to
94% of the then trading common stock price at the time of
redemption, or by payment in cash at par. On June 14, 1996,
the Company gave notice to all holders of record that the
Notes in the aggregate principal amount of $21,075,000 would
be redeemed on July 12, 1996, by the issuance of common stock
at a price equal to $3.31 per share. The Company subsequently
issued 6,346,100 shares in July, 1996, in connection with the
call for redemption.
(c) In August 1994, the Company exercised purchase options on its
leased mining equipment at the Kendall Mine for $899,900.
Caterpillar Financial Services Corporation subsequently agreed
to finance the purchase price over a three-year period at a
fixed rate of 9.5%. During the first half of 1996, the
Company paid $20,000 of interest and reduced the principal
balance by $123,900.
7. INCOME TAXES:
The Company has not recorded a tax benefit for the current periods as
the benefit is not expected to be realized during the year. The
benefit is also not expected to be realizable as a deferred tax asset
at year end as the Company anticipates recording a full valuation
allowance for all deferred tax assets, except to the extent of
offsetting reversals of expected deferred tax liabilities.
9
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The Company recorded a net loss of $999,700, or $0.03 per share, on
revenues of $1,303,100 during the second quarter of 1996 and a net loss of
$1,827,900, or $0.06 per share, on revenues of $2,447,200 for the first half of
1996. This compares to a net loss of $1,351,100, or $0.05 per share, on
revenues of $2,158,100 during the second quarter of 1995 and a net loss of
$1,999,000, or $0.08 per share, on revenues of $5,848,000 during the first six
months of 1995. Although the current periods were adversely impacted by lower
gold production at the Kendall Mine, lower non-project related exploration
expenses, no property abandonments, and higher interest income resulted in an
overall improvement from the comparable periods in 1995.
For the three months ended June 30, 1996, the Company sold 1,069
ounces of gold and 808 ounces of silver at an average price of $387 per
equivalent gold ounce. For the comparable period of 1995, 3,463 ounces of gold
and 2,586 ounces of silver were sold at an average price of $392 per equivalent
gold ounce. For the first half of 1996, 2,069 ounces of gold and 1,408 ounces
of silver were sold at an average price of $396 per equivalent gold ounce. For
the prior year first half, the Company sold 11,363 ounces of gold and 7,086
ounces of silver at an average price of $387 per equivalent gold ounce.
Cost of sales at Kendall was $725 per ounce for the three months ended
June 30, 1996 and $621 per ounce for the first half of 1996, as compared to
$408 per ounce and $325 per ounce, respectively, for the comparable periods in
1995. The higher unit costs in the current periods are due to lower production
levels during the rinsedown of the leach pads in preparation for final
reclamation.
Depreciation, depletion and amortization decreased in the current
periods due to a fourth quarter write-off of Kendall's remaining asset carrying
values.
Interest income was higher in the current periods due to higher
investible balances. Interest expense was not materially different.
The Company recorded a gain of $160,600 on the sale of a portion of
the Kendall mining equipment during the prior six-month period, with no
comparable activity for the current period.
LIQUIDITY & CAPITAL RESOURCES
Net cash used in operating activities during the six months ended June
30, 1996 was $2,558,500, as compared to a use of $810,700 for the same period
in 1995. The increased use of cash in the current period was principally due
to lower gold sales. Cash and cash equivalents at June 30, 1996 was
$10,232,100.
The Company spent $21,075,500 on capital programs for the six months
ended June 30, 1996, principally on the Briggs and McDonald projects. Capital
expenditures at Briggs were financed by draws from a loan facility which
totalled $17,853,200 for the six month period.
10
<PAGE> 11
On March 26, 1996, the Company completed a private placement in the
amount of $12.1 million ($11.2 million net of expenses). The offering was
completed at a price of $3.00 per unit which included one share of common stock
(4,034,300 total shares) and one-half warrant (2,017,200 total warrants). Each
whole warrant entitles the holder to purchase one share of common stock at an
exercise price equal to $3.75 per share. The warrants expire on March 25, 1999.
The Company filed a Registration Statement under the Securities and Exchange Act
of 1933 in respect of the common shares, the warrants, and the common shares
underlying the warrants which was declared effective by the Securities and
Exchange Commission on May 14, 1996. The Company's planned use of proceeds are
for exploring properties within and in proximity to the Briggs claim block,
continuing to fund its share of expenditures on the McDonald Project,
exploration work on select foreign properties, particularly in Brazil, and for
general corporate purposes.
During the second quarter of 1996, the Company received proceeds of
$2,978,900 in connection with the exercise of various warrants to purchase
common stock. The Company issued 878,100 shares of common stock as a result of
the warrant exercises.
On June 14, 1996, the Company gave notice to all holders of record
that its 6% Convertible Subordinated Notes in the aggregate principal amount of
$21,075,000 would be redeemed on July 12, 1996, by the issuance of common
stock, at a price equal to $3.31 per share. The Company subsequently issued
6,346,100 shares in July, 1996, in connection with the call for redemption.
OUTLOOK
In July, 1996, ore crushing commenced at the Briggs Mine in
southeastern California. Initial gold production is expected in October 1996,
after sufficient ore stacking and leaching to facilitate gold recovery has
occurred, with production of approximately 19,000 ounces anticipated for 1996.
Direct cash operating costs, after achieving design capacity, are expected in
the range of $215-$225 per ounce during the fourth quarter of 1996.
The Company anticipates gold production from residual leaching at
Kendall in 1996 of approximately 7,000 ounces at direct cash operating costs of
approximately $330-$340 per ounce. The Company expects to spend approximately
$0.7 million on reclamation during 1996.
During 1996, the Company expects to contribute approximately $1.8
million to fund its share of expenditures for the McDonald Project, principally
relating to ongoing permitting and support activities. The Company's overall
exploration objectives in 1996 will be to seek quality joint venture partners
for several of its foreign properties and focus internally on exploring and
drilling within and adjacent to the Briggs claim block and select foreign
properties, particularly in Brazil. These expenditures are expected to total
$3.0 million.
11
<PAGE> 12
PART II OTHER INFORMATION
<TABLE>
<S> <C> <C>
ITEM 1. LEGAL PROCEEDINGS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None
ITEM 2. CHANGES IN SECURITIES:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS: . . . . . . . . . . . . . . . . . . . . None
</TABLE>
On June 5, 1996, the Company held its Annual Meeting
of Shareholders. The following two items of business
were voted upon by shareholders at the meeting:
Proposal I was the election of three Directors of the
Company: William W. Walker, William C. Parks, and
Christopher M. T. Thompson. The proposal electing
the three Directors passed with votes of 19,557,681;
19,555,939; and 19,526,034 shares "For" respectively,
and 144,527; 146,269; 176,174 "Withheld",
respectively.
Proposal II was to ratify the appointment of Coopers
& Lybrand L.L.P. as the Company's independent public
accountants for 1996. The proposal passed with votes
of 19,608,950 "For"; 17,568 "Against"; and 75,690
"Abstaining".
<TABLE>
<S> <C> <C>
ITEM 5. OTHER INFORMATION: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None
ITEM 6(a) EXHIBITS:
No. 11 - Calculation of primary and fully diluted income (loss) per share
No. 27 - Financial Data Schedule
ITEM 6(b) REPORTS ON FORM 8-K: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None
</TABLE>
12
<PAGE> 13
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.
CANYON RESOURCES CORPORATION
Date: August 12, 1996 /s/ Richard H. De Voto
----------------------------
Richard H. De Voto
President
Date: August 12, 1996 /s/ Gary C. Huber
----------------------------
Gary C. Huber
Chief Financial Officer
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. EXHIBIT DESCRIPTION PAGE
- ----------- ------------------- ----
<S> <C> <C>
11 Calculation of primary and fully
diluted income (loss) per share
27 Financial Data Schedule
</TABLE>
14
<PAGE> 1
EXHIBIT NO. 11
CANYON RESOURCES CORPORATION
CALCULATION OF PRIMARY AND FULLY-DILUTED EARNINGS PER SHARE
- -----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
PRIMARY EARNINGS PER SHARE:
Computation for Statement of Operations
- ---------------------------------------
Adjustment to net loss per statements
of operations to amount used in primary
loss per share computation:
Net loss ($999,700) ($1,351,100) ($1,827,900) ($1,999,000)
Add interest on convertible
debentures, net of tax effect (B) (B) (B) (B)
---------- ---------- ---------- ----------
Net loss, as adjusted ($999,700) ($1,351,100) ($1,827,900) ($1,999,000)
========== ========== ========== ==========
Adjustment to weighted average shares
outstanding to amount used in primary
earnings (loss) per share computation:
Weighted average shares outstanding 30,872,700 25,650,500 29,072,300 25,604,600
Additional shares issuable from
assumed exercise of options and
warrants (Note A) (B) (B) (B) (B)
Add shares issuable from assumed
exercise of convertible debentur (B) (B) (B) (B)
---------- ---------- ---------- ----------
Primary average shares outstanding,
as adjusted 30,872,700 25,650,500 29,072,300 25,604,600
========== ========== ========== ==========
Primary loss per share ($0.03) ($0.05) ($0.06) ($0.08)
========== ========== ========== ==========
</TABLE>
A. This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although not required by footnote 2 to paragraph 14 of APB
Opinion No. 15 because it results in dilution of less than 3%.
B. Effect is antidilutive, so amounts are not included in the earnings (loss)
per share calculation.
<PAGE> 2
EXHIBIT NO. 11
CANYON RESOURCES CORPORATION
CALCULATION OF PRIMARY AND FULLY-DILUTED EARNINGS PER SHARE
- -----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
FULLY-DILUTED EARNINGS PER SHARE:
Computation for Statement of Operations
- ---------------------------------------
Adjustment to net loss per statements
of operations to amount used in fully
diluted loss per share computation:
Net loss ($999,700) ($1,351,100) ($1,827,900) ($1,999,000)
Add interest on convertible
debentures, net of tax effect (B) (B) (B) (B)
---------- ---------- ---------- ----------
Net loss, as adjusted ($999,700) ($1,351,100) ($1,827,900) ($1,999,000)
========== ========== ========== ==========
Adjustment to weighted average shares
outstanding to amount used in fully
diluted loss per share computation:
Weighted average shares outstanding 30,872,700 25,650,500 29,072,300 25,604,600
Additional shares issuable from
assumed exercise of options
and warrants (Note A) (B) (B) (B) (B)
Add shares issuable from assumed
exercise of convertible debentur (B) (B) (B) (B)
---------- ---------- ---------- ----------
Fully-diluted average shares
outstanding, as adjusted 30,872,700 25,650,500 29,072,300 25,604,600
---------- ---------- ---------- ----------
Fully-diluted loss per share ($0.03) ($0.05) ($0.06) ($0.08)
========== ========== ========== ==========
</TABLE>
A. This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although not required by footnote 2 to paragraph 14 of APB
Opinion No. 15 because it results in dilution of less than 3%.
B. Effect is antidilutive, so amounts are not included in the earnings (loss)
per share calculation.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 23,139,600
<SECURITIES> 0
<RECEIVABLES> 1,019,600
<ALLOWANCES> 0
<INVENTORY> 860,600
<CURRENT-ASSETS> 25,374,900
<PP&E> 62,732,800
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<TOTAL-ASSETS> 89,115,100
<CURRENT-LIABILITIES> 5,206,800
<BONDS> 48,905,600
<COMMON> 309,300
0
0
<OTHER-SE> 60,565,400
<TOTAL-LIABILITY-AND-EQUITY> 89,115,100
<SALES> 2,447,200
<TOTAL-REVENUES> 2,447,200
<CGS> 2,146,200
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<OTHER-EXPENSES> 342,100
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<INCOME-PRETAX> (1,827,900)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,827,900)
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,827,900)
<EPS-PRIMARY> (0.06)
<EPS-DILUTED> (0.06)
</TABLE>
