FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended:December 31, 1995
Commission file number:001-10156
Original Sixteen to One Mine, Inc.
(Exact name of registrant as specified in its charter)
California 94-0735390
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Post Office Box 1621, Alleghany, CA 95910
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(916) 287-3223
Securities registered pursuant to Section 12 (b) of the Act:
Title of each class Name of each exchange on
which registered
Common stock, par The Pacific Stock
Value $.10 per share Exchange Incorporated
Securities registered pursuant to Section 12 (g) of the Act:
None
(Title of Class)
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 .
The aggregate market value of voting stock held by non-affiliates of
the registrants $14,491,380 as of March 20, 1996.
PART I
ITEM 1. BUSINESS
Description of Business
The Company is a California corporation formed on October 11, 1911.
It is in good standing and has never been in bankruptcy, receivership or
similar proceedings. It has one class of stock; common.
The Company's business is mining for gold on properties it owns or
leases or on which it has claims. Properties of the Company are located in
both the Alleghany and the French Gulch mining districts. These districts
are in Northern California. The Alleghany district mineral deposit is a
high-grade gold found underground in a system of quartz veins. The French
Gulch district mineral deposit is in an underground quartz vein.
The Company has three main products. One is rare high-grade gold and
quartz specimens, which are sold at a premium to museums, collectors,
and producers of fine jewelry. One is refined bullion sold to gold buyers
and investors. One is jewelry and mine bars made from Sixteen to One gold.
All types of gold are sold directly to a variety of purchasers by the
Company. There are no major customers on whom the Company depends. The
operation relies more on labor than on machinery or supplies. The
Company has never experienced a shortage of supplies or workers, except
during WW II when steel, explosives and labor for the mines were difficult
to find. The current economic climate has created no shortage of
available skilled personnel.
The Company's bonus policy for its mine crew makes it very competitive
in the labor market. Its current use of hand held metal detectors to
locate gold has contributed to the profitable production of gold the past
three years.
The Company operates its underground and milling facilities in
compliance with county, state and federal regulations. The estimated cost
of compliance with environmental laws is approximately $5,000 per month.
These expenditures reduce the cash available for development necessary to
extend the life of the mine.
The Company has thirty-seven full time employees and four part time
workers. The Company's executive offices are located at 527 Miners Street,
Alleghany, California 95910. The Company's phone number is (916) 287-3223.
PART I
ITEM 2. PROPERTIES
Properties
The Alleghany properties held by the Company consists of 28 patented
claims (fee title land), 49 unpatented claims (paramount title held by the
Bureau of Land Management, {BLM}, of the Department of Interior) including
5 claims leased by the Company. On an acreage basis, the Company owns 412
acres of real property and has the mineral and limited surface rights to an
additional 1300 acres.
On January 4, 1994, the Company closed escrow on the purchase of The
French Gulch (Brown Bear) properties which consists of 34 patented claims
and 22 unpatented claims. On an acreage basis, the Company owns 550 acres
of real property and has approximately 400 additional acres of mineral and
limited surface rights.
The original mining property of the Company is carried on the books at
its March 1, 1913, value of $379,000 as determined for depletion purposes
in connection with Federal income taxes. This value, together with the
cost of mining properties acquired in 1920 and 1924 for the aggregated sum
of $145,145 has been fully amortized through depletion charges. No current
provision for depletion with respect to mining properties acquired in
later years costing $105,517 has been made as estimates of depletable
reserves cannot be determined.
A 200 ton/day mill was refurbished and upgraded in 1977 and 1987 by a
lessee. The Company purchased the mill from the lessee in 1991. Other
buildings include a mine office and complete mine shop. All Federal,
State, County and local permits have been granted for a mining and milling
operation. Also included in this category are its established water
rights, high voltage power, and sewer system.
ALLEGHANY DISTRICT:
PATENTED MINING CLAIMS OWNED 100% BY THE COMPANY
Name of Claim Name of Claim
Belmont Rainbow Fraction
Number Three Twenty-One
Eclipse Quartz Eclipse Extension
Tightner Extension Contract
Alene Valentine
Red Star Bartlett
Farnham Gold Quartz Mine Belmont #2
Contract Extension Hanley Quartz Mine
Noble Sixteen to One
Groves Gold Quartz Mine Denver
Happy Jack Extension Ophir
Rainbow Extension Happy Jack
UNPATENTED MINING CLAIMS OWNED 100% BY THE COMPANY
Name of Claim Name of Claim
La Jard Lode Tightner No. 4 Lode
Tagalog Lode Bald Mountain Placer #2
Tightner No. 5 Lode Cumberland Lode
Oversight Lode Tightner No. 6 Lode
Aurora Lode Tightner No. 1 Lode
East Bartlett Lode Copeland Two Lode
Tightner No. 2 Lode Red Star Ext Placer
Antique Lode Tightner No. 3 Lode
Buckeye Placer Bullion Lode
Alene Ext Lode Amethyst Lode
Lava #1 Lode Bartlett Ext Lode
Amethyst Ext Lode Lava #2 Lode
Illocano Lode Mabel Lode
Lava #3 Lode Bal Lode
Margaret Lode Alling One Lode
Verde Lode Phoebe Lode
Alling Two Lode Butterfly Lode
North Star Lode Triple M Lode
Lady Bug Lode Blue Jay Lode
South Fork Placer Honey Bee Lode
Mayflower Lode Copeland One Lode
Bald Mountain Placer Parkman Placer
Oregon Creek Placer
PATENTED MINING CLAIMS LEASED BY THE COMPANY
Name of Claim Name of Claim
Osceola Colorado
Yellow Jacket Colorado Extension
UNPATENTED MINING CLAIM LEASED BY THE COMPANY
Name of Claim
Osceola Fraction Lode
FRENCH GULCH DISTRICT:
PATENTED MINING CLAIMS OWNED 100% BY THE COMPANY
Name of Claim Name of Claim
Dreadnaught Quartz Lode Coon Dog Quartz Lode
North Fork Quartz Lode Madison Quartz Lode
North Fork No. 2 Quartz Mine Martin Quartz Lode
Gem Quartz Lode Slide Quartz Lode
Red Diamond Quartz Lode Abernathy Quartz Lode
New World Quartz Lode New World Quartz Lode
Enterprise Gold Quartz Lode North Pole Quartz Lode
Cube Quartz Lode White Bear Quartz Lode
Highland Mary Quartz Lode Comet Quartz Lode
Dead Horse Quartz Lode Monte Cristo Gold Lode
Belmont Quartz Lode Rising Sun Quartz Lode
Capital Gold Quartz Lode Last Chance Gold Lode
Black Bear Gold Lode Barted Gold Quartz Mine
Queen Gold Quartz Gold Watt Quartz Lode
Melton Quartz Lode Shoofly Gold Mining Claim
Brown Bear Extension Quartz Lode
Brown Bear Gold Quartz Mine
Sebastian Placer Quartz Lode
Deadwood Placer Mining Lode
UNPATENTED MINING CLAIMS OWNED 100% BY THE COMPANY
Name of Claim Name of Claim
Lost Hope Cardinal NO. 1
Cardinal NO. 2 Cardinal NO. 3
Cardinal NO. 4 Cardinal NO. 5
Cardinal Fraction NO. 1 Cardinal Fraction NO. 2
Cardinal Fraction NO. 3 Cardinal Fraction NO. 4
Cardinal Fraction NO. 5 Cardinal Fraction NO. 6
Cardinal Fraction NO. 7 Cardinal Fraction NO. 8
Cardinal Fraction NO. 9 Cardinal Fraction NO.10
Coon Dog Extension Golden Bear NO. 1
Golden Bear NO. 2 Lucky Boy
Sunny Point Sunny Point NO. 2
Milling Ore and Processing Gold
Dore is produced at the mine and shipped to a refiner. The refiner
purifies the gold into a .9999 fine commodity. When the refiner has
properly computed the final weight of the shipment, it credits the
Company's account. The Company determines when and how to sell its metal
credits. Currently the Company orders the gold sold at the spot price and
funds are wired to the bank immediately.
In 1993, the Company established a program to market gold specimens,
quartz and gold slabs (rock that is cut into thin sheets and used as a
precious stone in jewelry) and mine bars (native unrefined gold approx. 22
karat). The purpose is to increase the sale price of gold and profit from
the sale.
Governmental Regulation
Mining is generally subject to regulation by state regulatory
authorities. In most states, the production of gold is regulated by
conservation laws and regulations. State and federal statutes regulate
environmental quality, safety, exploration procedures, reclamation,
employees health and safety, use of explosives, air quality standards,
pollution of stream and fresh water sources, noxious odors, noise, dust,
and other environmental protection controls as well as the rights of
adjoining property owners. While laws may change preventing or delaying
the commencement or continuance of given operations, no material
expenditures for environmental control facilities are foreseen in the near
future.
ITEM 3. LEGAL PROCEEDINGS
1. Original Sixteen to One Mine, Inc., Michael M. Miller,
individually and dba Morning Glory Gold Mine, v. Hon. Reginald
Littrell, Judge of the Superior Court in His Capacity as Trustee of
Townsite of Alleghany, County of Sierra, California and DOES 1
through 20, inclusive. (Sierra County Superior Court Case No.
4055.)
Case filed: June 27, 1986 - Complaint for Declaratory Relief and
Preliminary and Permanent Injunction.
Description: This action seeks to quiet title to certain townsite
deeds purporting to grant rights to property overlying certain unpatented
lode mining claims owned by the Company.
Outcome: The Company did not prevail and lost the decision. An
appeal was filed on February 26, 1994 with the Sierra County Superior
Court.
The appeal was heard in the Court of Appeal of the State of California
Third Appellate District. The decision was filed on August 25, 1995,
which overturned two of the three lower court decisions and ownership of
the mining claims in dispute was restored to the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of the Company's security holders
during the last quarter of its fiscal year ended December 31, 1995.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
Market Information
The common stock is traded on the Pacific Stock Exchange under the
symbol OAU.
Trading began on May 19, 1989.
1995 1994
Price range High Low High Low
1st quarter 3 15/16 3 1/4 7 1/2 4 3/4
2nd quarter 3 3/4 2 5/8 6 1/4 5 1/2
3rd quarter 5 1/4 3 1/8 5 3/4 4 1/2
4th quarter 4 7/8 3 3/4 4 3/8 3 3/8
The amount of common stock that is subject to outstanding options to
purchase is 30,000. The shares of common stock that can be sold pursuant
to Rule 144 under the Securities Act is 551,306.
Holders
As of December 31, 1995, there were 731 holders of common stock.
Dividends
The Company declared a special dividend of $.05 per share on August 7,
1995. The payment of future dividends will be dependent upon gold
production and planned expenditures for mining or acquisitions.
ITEM 6. SELECTED FINANCIAL DATA
For the Years Ended December 31,
1995 1994 1993 1992 1991
Revenues 2,655,575 1,200,913 3,394,216 1,554,072 59,620
Net Income
(loss) 732,124 157,673 1,313,869 441,591 (456,090)
PART II
ITEM 6. SELECTED FINANCIAL DATA (Continued)
For the Years Ended December 31,
1995 1994 1993 1992 1991
Net Income
(loss) $ 0.21 $ 0.04 $ 0.38 $0.13 $(0.14)
per share of
common stock
Total assets $4,087,068 $3,200,899 $2,993,743 $979,768 $527,390
Long-Term
Obligations $15,823 $------ $------ $------- $------
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Revenue
Gold sales increased in 1995 from 1994 by $1,454,662. This is
partially attributed to the change in direction from infrastructure repairs
and maintenance to small block mining in favorable areas for gold
deposition. The new 2600 foot level was extended north and south from the
2483 winze (an inclined excavation below a horizontal level) 300 feet
during the year. A small amount of gold was produced during the work;
however, emphasis was on development of the level, not production.
Revenues for the year ended December 31, 1995, were $2,655,575
compared with $1,200,913 for the year ended 1994. Total gold production
for 1995 was 6,505 troy ounces, an increase of 3,312 troy ounces or 96%
compared to year ended 1994.
Net income was $732,124, or $.21 a share, for the year ended December
31, 1995, compared with $157,673, or $.04 a share for the year ended
December 31, 1994. This increase was due to higher production and gold
prices in 1995.
Expenses
The change in direction from infrastructure repairs and maintenance to
mining during 1995 previously described contributed to a $670,025 increase
in operating expenses.
Operating expenses for the year ended December 31, 1994 decreased
$281,087 compared to the year ended December 31, 1993. This decrease is
attributable to the decision to concentrate on repairs to the
infrastructure and development work not directly associated with gold
production. Gold sales were down resulting in a $300,139 decrease in
salaries and wages attributable to decreased bonuses related to gold
production.
The Company's principal operating expenses for 1995 were compensation
to its employees, contracted labor and supplies and taxes associated with
operating the Sixteen to One Mine. An increase in contracted labor over
the past two years is due to production costs of the jewelry department.
The decreases in legal and accounting expenses for the year ended
December 31, 1995, was due to the completion of legal actions that
protected the Company's mining claims from the encroachment of a townsite
patent.
Significant Changes on Balance Sheet
Inventory increased $460,620. This amount is determined by
multiplying the number of fine troy ounces of gold in the bank by the spot
price of gold on December 31, 1995 ($386.85 ).
In 1995 development costs increased $347,848 from 1994. Costs
included labor for drilling, blasting and removing the broken rock in the
2483 winze as well as utilities and supplies associated with the project.
Assets increased $886,169 to $4,087,068.
Notes payable increased $114,452. During 1995 the Company increased
its inventory of quartz and gold specimens suitable for future sales in the
jewelry department. Lines of credit (notes) were utilized to meet cash
flow demands.
Current Condition and Future Trends
In February 1994, the Company began development of a new winze into
unexplored ground. In June 1995, the winze extended downward about 220
feet and management decided to begin constructing the new 2600 foot level.
To date this level extends 250 feet south and 50 feet north. Gold was
encountered at six locations along the new level; however, mining for gold
at this time is a secondary objective to the completed development of the
level.. In May miners will return to the winze and continue its extension
downward in order to develop a new 2800 foot level some time during the
third quarter of 1996.
In 1995, the Company formalized the division of the miners into
separate crews with specific and on going task designations. The MD (metal
detection) crew examines accessible small blocks of quartz throughout the
mine with the latest metal detection equipment. These miners extract all
visible gold, evaluate the potential of any discovery and turn the heading
over to production crews for further development.
In March 1996, the Eureka crew completed work in the 1719 stope. (A
stope is a free form excavation that primarily follows the ore. The first
two numbers refer to the level; the second two refer to the location from
the winze.) This area yielded 8,500 ounces of gold during 1995 and 1996.
The crew then moved to the 1529 stope, where a large expanse of quartz is
displayed. Prior metal detection produced 150 ounces of gold from this
area, which appears to have gold potential similar to the 1719 stope
directly below.
Another production crew is working on the 1900 foot level in an area
below the productive 1719 stope, to determine whether the pay shoot
continues downward into this area of the mine. Miners continue to break
quartz in the 1571 stope, a target too promising to leave but one that has
been disheartening as to gold produced to date.
The fine ore bin of the mill is under construction. Instead of
replacing the wooden bin, which burned last year, a new steel bin has been
designed. It is anticipated that the mill will be operating in the second
or third quarter.
Results of the gold jewelry and specimen sales in 1994 encouraged the
Company to expand the merchandise and marketing program in 1995. The
Company has continued to expand its production and sales of jewelry. While
1995 jewelry sales accounted for only 6% of total revenue, the growth in
jewelry sales was over 300%. The 1996 year will mark the 100 year
anniversary of the location of the Sixteen to One mining claim. Several
special items including a silver and gold medallion have been designed and
minted to honor this significant event in the history of the Company.
The Company currently employs thirty-seven full-time employees; three
in the corporate office, three in the expanded gold sales department and
the balance in the mine.
Events That May Have a Material Effect on Future Operations, Liquidity and
Capital Resources
TECHNOLOGY
The Company continues to test various technologies for underground
gold location. Should one of the technologies prove to more effectively
detect high grade pockets beyond the Company's current capabilities, the
Company's ability to produce gold at a low cost would be enhanced.
PRICE OF GOLD
Of material effect on the Company's financial operations is the price
of gold. The Company's primary income is based upon current and future
prices of gold. A decrease in the spot price of gold per ounce will
decrease income. Conversely, an increase in the spot price per ounce
increases the Company's income. The December 31, 1995, spot price for gold
was $386.85 per troy ounce. The Company makes no projections on either the
future price of gold, deflation or inflation. While any decrease of the
spot price of gold is definitely a negative factor, deflation and inflation
can arguably be positive occurrences for the Company.
WORKING CAPITAL
The Company may seek to supplement its internally generated funds with
funds raised externally through a registered public offering of its common
stock.
TIMBER
In 1994, the Company filed a Timber Harvest Plan and harvested trees
in Sierra County. Receipts in 1994, were approximately $125,000. Logging
operations were suspended due to early snow storms. The remaining acreage
under the timber harvest plan was logged in 1995. Revenue was
approximately $144,000.
LACK OF PROVEN OR PROBABLE RESERVES OF COMMERCIAL ORE
The Company is engaged in production of gold, and continues to explore
and develop ore zones in the mine. While over 24,408 ounces of fine gold
have been recovered since January 1992, there are no assurances that the
Company will continue to find gold, or that if gold is found that it can be
mined at a profit. The Company has no proven (measured) reserves or
probable (indicated) reserves of gold at the mine as those terms are
defined under Federal securities regulations. However, the vein system
owned and operated by the Company has yielded over 1 million ounces of
gold, thereby establishing it as a proven gold deposit.
GOVERNMENTAL REGULATION
All mining operations are subject to substantial governmental
regulation, including Federal, state and local regulations concerning mine
safety and environmental protection. Compliance with these regulations
may cause significant delays in the operations of the Company and
substantial capital expense. The Company believes it is currently
operating in compliance with all known safety and environmental standards
and regulations. However, amendments or additions to or future
interpretations of current regulations could have an adverse effect on the
Company's mining operations.
DIVIDENDS
Currently, the Company will continue to retain its earnings to expand
its underground mining developmental headings, fund ongoing mining
operations and provide capital for other activities deemed relevant by the
Board of Directors. A special dividend of $.05 per share was declared and
paid in 1995. No assurances can be given that gold production will be
sufficient to allow payment of future dividends.
LIQUIDITY
The Company has, in the past, experienced a lack of liquidity and
working capital. Although the Company held gold inventory of over $2.2
million and had little long term debt as of December 31, 1995, there can be
no assurance that current gold production or gold inventory can be
maintained or that the costs of mine exploration and development will not
exceed revenues and deplete current assets of the Company. Management
believes that the liquidity needs of the Company in the near term will be
met from the sale of existing inventory and the production of gold.
PROPOSED CHANGES TO MINING LAWS
Congress is currently reviewing the 1872 Mining Law which controls
unpatented mining claims. One proposal would replace the current annual
assessment work requirement ($100 per claim) with an undetermined royalty
payment. Although the Company's current production comes from patented
(rather than unpatented) claims, any future production from the Company's
unpatented mining claims may be subject to an additional royalty payment or
other costs, if revisions to the 1872 Mining Law are implemented.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Page
Independent Auditor's Report 15
Balance Sheet 17
Statement of Income 19
Statement of Stockholders' Equity 21
Statement of Cash Flows 22
Notes to Financial Statements 24
Schedules 31
ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ORIGINAL SIXTEEN TO ONE MINE, INC.
FINANCIAL STATEMENTS FOR THE YEARS ENDED
DECEMBER 31, 1995, 1994 AND 1993
and
INDEPENDENT AUDITOR'S REPORT
PERRY-SMITH AND CO.
The Board of Directors
Original Sixteen to One Mine, Inc.
We have audited the accompanying balance sheet of Original Sixteen to One
Mine, Inc. as of December 31, 1995 and 1994, and the related statements of
income, stockholders' equity and cash flows for each of the three years in
the period ended December 31, 1995. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Original Sixteen to One
Mine, Inc. at December 31, 1995 and 1994, and the results of its operations
and its cash flows for each of the three years in the period ended December
31, 1995 in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. Schedules V and VI listed under
Item 14(a)(2) herein are presented for purposes of complying with the
Securities and Exchange Commission's rules and are not a part of the basic
financial statements. These schedules have been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in
our opinion, fairly state in all material respects the financial data
required to be set forth therein in relation to the basic financial
statements taken as a whole.
As discussed in Notes 1 and 5 to the financial statements, the Company
changed its method of accounting for income taxes in 1993 to conform to the
provisions of Financial Accounting Standards Board Statement No. 109.
Perry Smith And Co.
Certified Public Accountants
Sacramento, California
March 1, 1996
ORIGINAL SIXTEEN TO ONE MINE, INC.
BALANCE SHEET
December 31, 1995 and 1994
1995 1994
ASSETS
Current assets:
Cash $180,618 $146,713
Accounts receivable 13,370 17,060
Inventory 2,228,192 1,767,572
Other current assets 9,552 27,783
--------- ----------
Total current assets 2,431,732 1,959,128
Mining property (Note 2):
Real estate and property rights,
net of depletion of $524,145 105,517 105,517
Mineral property 415,263 415,263
Development costs 714,037 366,189
---------- ----------
1,234,817 886,969
Fixed assets, at cost:
Equipment 693,703 545,440
Buildings 143,250 143,250
Vehicles 118,011 77,272
------------ ----------
954,964 765,962
Less accumulated depreciation (568,689) (451,156)
---------- ----------
Net fixed assets 386,275 314,806
Other assets, net of accumulated
amortization of $35,256 and
$29,504 in 1995 and 1994,
respectively 34,244 39,996
----------- ----------
$4,087,068 $3,200,899
========== ==========
1995 1994
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued compensation $56,038 $65,482
Note payable due within
one year (Note 3) 264,452 150,000
Income taxes payable (Note 5) 84,000 28,200
Deferred income tax (Note 5) 632,000 524,000
--------- ----------
Total current liabilities 1,036,490 767,682
Notes payable due after
one year (Note 3) 15,823
--------- ---------
Total liabilities 1,052,313 767,682
Stockholders' equity (Note 4):
Common stock, par value $.10;
10,000,000 and 4,000,000
shares authorized in 1995
and 1994, respectively;
3,513,062 and 3,507,994
shares issued and outstanding
in 1995 and 1994,
respectively 351,306 350,799
Additional paid-in capital 1,369,318 1,325,011
Notes receivable
from employees (52,000) (52,000)
Retained earnings 1,366,131 809,407
--------- ---------
Total stockholders' equity 3,034,755 2,433,217
========== ==========
$4,087,068 $3,200,899
The Accompanying Notes are an integral part of these financial statements.
ORIGINAL SIXTEEN TO ONE MINE, INC.
STATEMENT OF INCOME
For the Years Ended December 31, 1995, 1994 and 1993
1995 1994 1993
Revenues:
Gold and Jewelry sales $2,655,575 $1,200,913 $3,394,216
Operating expenses:
Salaries and wages 804,368 505,029 805,168
Depreciation and
amortization 123,285 102,150 84,826
Contract labor 75,791 36,025 16,661
Telephone and utilities 110,415 57,815 75,720
Taxes - property and payroll 117,214 107,820 86,623
Insurance 125,052 70,915 90,516
Supplies 250,163 72,386 113,288
Small equipment and repairs 72,735 39,309 43,269
Drayage 45,376 22,362 21,130
Promotion 23,525 23,819 16,450
Office expenses 13,341 11,602 8,748
Legal and accounting 57,554 99,192 67,786
Other expenses 64,762 65,132 64,458
--------- --------- ---------
Total operating expenses 1,883,581 1,213,556 1,494,643
--------- --------- ---------
Income (loss) from operations 771,994 (12,643) 1,899,573
Other income 181,130 155,316 16,569
--------- --------- ---------
Income before income taxes and
cumulative effect of required
change in accounting principle 953,124 142,673 1,916,142
Income tax (expense)
benefit (Note 5) (221,000) 15,000 (750,273)
For the Years Ended December 31, 1995, 1994 and 1993
1995 1994 1993
Income before cumulative
effect of required change in
accounting principle $732,124 $157,673 $1,165,869
Cumulative effect of required
change in accounting principle
(Note 5) 148,000
--------- --------- ---------
Net income $732,124 $157,673 $1,313,869
========= ========= ==========
Earnings per share:
Income per share before
cumulative effect of required
change in accounting principle $.21 $.04 $.34
Cumulative effect of required
change in accounting principle .04
Net income per share $.21 $.04 $.38
========= ========= =========
Weighted average number of
shares outstanding 3,508,291 3,507,994 3,455,869
========= ========= =========
ORIGINAL SIXTEEN TO ONE MINE, INC.
<TABLE>
STATEMENT OF STOCKHOLDERS' EQUITY
<CAPTION>
For the Years Ended December 31, 1995, 1994 and 1993
<S> <C> <C> <C> <C> <C> <C>
Balance, January 1, 1993 3,459,494 345,949 1,244,493 (662,135) 928,307
Common stock repurchased (50,000) (5,000) (67,500) (72,500)
Options exercised (Note 4) 97,000 9,700 89,668 99,368
Common stock issued 1,500 150 4,350 4,500
Notes receivable from
options exercised (Note 4) (52,000) (52,000)
Tax benefit from
non-qualified stock
option deduction (Note 5) 54,000 54,000
---------------------------------------------------------------
Net income 1,313,869 1,313,869
Balance, December 31, 1993 3,507,994 350,799 1,325,011 651,734 (52,000) 2,275,544
Net income 157,673 157,673
----------------------------------------------------------------
Balance, December 31, 1994 3,507,994 350,799 1,325,011 809,407 (52,000) 2,433,217
Retired common stock (16,300) (1,630) (53,556) (55,186)
Conversion of note payable
to common stock (Note 3) 21,368 2,137 97,863 100,000
Dividends paid (175,400) (175,400)
Net income 732,124 732,124
-----------------------------------------------------------------
Balance, December 31, 1995 3,513,062 351,306 1,369,318 1,366,131 (52,000) 3,034,755
</TABLE>
The accompanying notes are an integral part of these financial statements.
ORIGINAL SIXTEEN TO ONE MINE, INC.
STATEMENT OF CASH FLOWS
For the Years Ended December 31, 1995, 1994 and 1993
1995 1994 1993
Cash flows from operating activities:
Net income $732,124 $157,673 $1,313,869
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 123,285 102,150 84,826
Decrease (increase) in accounts
receivable 3,690 (6,831) (6,327)
(Increase) decrease in inventory (460,620) 494,316 (1,836,332)
Decrease (increase) in other
current assets 18,231 (18,692) (8,991)
(Decrease) increase in accounts
payable and accrued
compensation (9,444) (84,717) 119,465
Increase (decrease) in income
taxes payable 55,800 28,200 (20,727)
Increase (decrease) in deferred
income taxes 108,000 (44,000) 622,000
--------- --------- ---------
Stock issued in lieu of compensation 4,500
Net cash provided by operating
activities 571,066 628,099 272,283
--------- --------- ---------
Cash flows from investing activities:
Purchase of fixed assets (189,002) (105,575) (32,870)
Capitalization of development costs(347,848) (366,189)
Capitalization of legal costs (86,633)
Deposit on property to be acquired (10,000) (40,000)
--------- --------- ---------
Net cash used in investing
activities (536,850) (568,397) (72,870)
--------- --------- ---------
Cash flows from financing activities:
Proceeds from issuance of common
stock $47,368
Common stock repurchased $(55,186) (72,500)
Repayment of notes payable (51,371) (100,000)
Issuance of notes payable 281,646
Dividends paid (175,400)
--------- --------- ---------
Net cash used in financing
activities (311) (100,000) (25,132)
--------- ---------- ---------
Increase (decrease) in cash 33,905 (40,298) 174,281
Cash at beginning of year 146,713 187,011 12,730
---------- ---------- ---------
Cash at end of year $180,618 $146,713 $187,011
========== ========== =========
Supplemental schedule of noncash
investing and financing activities:
Cash paid during the year for:
Interest expense $29,493 $4,515
Income taxes $57,200 $800 $800
Stock options exercised through
issuance of promissory notes $52,000
Future tax benefit from non-qualified
stock option deduction $54,000
Purchase of mineral property:
$300,000 through issuance of
a $250,000 promissory note and
a $50,000 deposit. $100,000 of
the note was paid during 1994. $150,000
Issuance of 21,368 shares of the
Company's common stock to
repay promissory note. $(100,000)
The accompanying notes are an integral part of these financial statements.
ORIGINAL SIXTEEN TO ONE MINE, INC.
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Original Sixteen to One Mine, Inc. (the Company) was incorporated in 1911
and is actively involved in operating gold mines in Alleghany, California.
Inventory
Inventory consists of gold bullion, specimens and jewelry recorded at the
quoted market price for gold bullion. Gold bullion held in the Company's
name by the smelter is accounted for using the FIFO method. All other gold
inventory is accounted for using the specific identification method.
Fixed Assets
Fixed assets are stated at historical cost. Depreciation is calculated
using straight-line and accelerated methods over the following estimated
useful lives:
Vehicles 3 to 5 years
Equipment 5 to 7 years
Buildings 18 to 31.5 years
Mine Rehabilitation
The costs of mine rehabilitation are expensed as incurred.
Depletion Policy
Because of the geological formation in the Alleghany Mining District,
estimates of ore reserves currently cannot be calculated, and accordingly,
a cost per unit depletion factor cannot be determined. Should estimates of
ore reserves become available, the units of production method of depletion
will be used. Until such time, no depletion deduction will be recorded
(see Note 2).
Development Costs
In February 1994, the Company began development of a new winze into
unexplored ground. The winze was extended 200 feet downward to the 2,600
foot level. Costs associated with the development have been capitalized.
During 1996 the winze will be extended another 200 feet to establish the
new 2,800 foot level.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Other Assets
Other assets include payments for lease rights to certain mineral property
which is being amortized over their estimated useful lives of ten years.
Income Taxes
Effective January 1, 1993, the Company adopted Statement of Financial
Accounting Standards No. 109 (SFAS 109), Accounting for Income Taxes. The
adoption of SFAS 109 changed the Company's method of accounting for income
taxes from the deferred method to an asset and liability approach. Under
this approach, deferred tax assets and liabilities are recognized for the
tax consequences of temporary differences between the financial statement
and tax basis of existing assets and liabilities.
The principle items causing these temporary differences are as follows:
* Net operating loss carryovers
* Tax recognition of gold sales
The adjustments to the January 1, 1993 balance sheet to adopt SFAS 109 are
reflected in 1993 net income as the cumulative effect of a change in
accounting principle.
Gold Sales
Gold sales consist of actual cash sales during the reporting period and
include both gold bullion held by the smelter and marketable ore held in
inventory which are recorded at the spot price per ounce.
Earnings Per Common Share
Earnings per common share are computed on the weighted average number of
common shares outstanding each year. Outstanding stock options are
considered common stock equivalents but are excluded from earnings per
common share computations due to immateriality.
2. MINING PROPERTY
The original mining property is carried on the books at its March 1, 1913
value of $379,000 as determined for depletion purposes in connection with
Federal income taxes. This value, together with the cost of mining
properties acquired in 1920 and 1924 for the aggregated sum of $145,145 has
been fully amortized through depletion charges. During 1994, the Company
purchased mining properties at a cost of $300,000 and capitalized $86,633
in legal costs. These legal costs were incurred in defense of certain
mining claims.
3. NOTES PAYABLE
Notes payable at December 31, 1995 and 1994 are as follows:
1995 1994
Unsecured notes payable to bank; interest due
monthly at the bank's prime rate plus 2%
(10.75% at December 31, 1995) $260,921
9.95% secured note payable; secured by an
automobile; monthly installments of $442 due
through July 27, 2000. 19,354
6% unsecured note payable issued in connection
with the acquisition of mining properties.
Paid in full by a $50,000 cash payment on
March 1, 1995 and on issuance of 21,368
shares of common stock on September 1, 1995
$150,000
---------- ---------
280,275 150,000
Less current portion (264,452) (150,000)
--------- ---------
Notes payable due after one year $15,823 $ -
Under the terms of the unsecured notes payable to bank, the Company may
borrow up to $275,000. Advances under the credit lines mature on July
1, 1996.
Notes payable mature as follows:
Year Ending Future
December 31, Payments
1996 $ 264,452
1997 3,898
1998 4,305
1999 4,753
2000 2,867
-------------------
$ 280,275
===================
4. STOCK OPTIONS
The following is a summary of activity, including the range of per share
prices, for the Company's stock options during the three years ending
December 31, 1995:
Shares
Under
Option
Balance, January 1, 1993 127,000
Exercised (at $.5775) (37,000)
Exercised (at $1.30) (60,000)
-----------
Balance, December 31, 1993, 1994 and 1995 30,000
===========
All shares under option were granted to a director in 1992, and are
currently exercisable at an option price of $1.30.
Stock options were exercised by the President in 1993 at $.5775 per share.
Three employees exercised their stock options in 1993 at a price of $1.30
per share. Two of these employees exercised their options through the
issuance of promissory notes totaling $52,000. These promissory notes bear
interest of 7% and are collateralized by the stock issued.
5. INCOME TAXES
As discussed in Note 1, the Company adopted SFAS No. 109 as of the
beginning of 1993. The cumulative effect on prior years of this change in
accounting principle increased 1993 net income by $148,000, and is reported
separately in the Statement of Operations for the year ended December 31,
1993. Prior year financial statements have not been restated to apply the
1994. provisions of SFAS No. 109.
The income tax expense (benefit) for the years ended December 31, 1995,
1994 and 1993 consisted of the following:
Federal State Total
1995
Current $73,000 $40,000 $113,000
Deferred 91,000 17,000 108,000
---------- --------- ---------
Income tax expense $164,000 $57,000 $221,000
1994
Current $4,000 $25,000 $29,000
Deferred (44,000) (44,000)
Income tax expense
(benefit) $4,000 $(19,000) $(15,000)
1993
Current $(19,727) $(19,727)
Deferred $574,000 196,000 770,000
-------- --------- ---------
Income tax expense $574,000 $176,273 $750,273
========= ========= =========
5. INCOME TAXES (Continued)
Deferred tax assets (liabilities) are comprised of the following:
1995 1994
Deferred tax assets:
Net operating loss carryovers $134,000 $208,000
Accounts payable and other liabilities 67,000 76,000
Alternative minimum tax credit 118,000 29,000
State tax benefit 75,000
--------- ---------
Total deferred tax assets 394,000 313,000
--------- ---------
Deferred tax liabilities:
Tax recognition of gold sales (965,000) (765,000)
Book basis of mineral property (46,000) (46,000)
Accelerated depreciation (11,000) (12,000)
Accounts receivable and other assets (4,000) (14,000)
--------- ---------
Total deferred tax liabilities (1,026,000) (837,000)
--------- ---------
Net deferred tax liabilities $ (632,000) $(524,000)
========= =========
A reconciliation of the income tax expense (benefit) on income per the U.S.
Federal statutory rate to the reported income tax expense follows:
1995 1994 1993
U.S. Federal statutory rate applied
to pre-tax income $324,062 $48,509 $651,488
Depletion deduction (83,183) (98,564) (18,839)
Tax benefit of net operating loss (85,182)
Alternative minimum tax 73,000 29,000
State income taxes (net of U.S.
Federal income tax benefit) 26,400 8,757 116,340
Other (34,097) (2,702) 1,284
--------- --------- ---------
Income tax expense
(benefit) $221,000 $(15,000) $750,273
========= ========= =========
5. INCOME TAXES (Continued)
For Federal income tax purposes, the Company has operating loss
carryforwards which may provide future tax benefits, expiring as follows:
Year of
Expiration
2006 $ 345,753
2007 48,562
----------
$ 394,315
=========
6. 401(k) PLAN
During 1993, the Company adopted a qualified 401(k) Plan available to all
employees who meet the Plan's eligibility requirements. This Plan permits
participants to make contributions by salary reduction up to the maximum
limits allowed by Internal Revenue Code Section 401(k).
7. FINANCIAL INSTRUMENTS
The Company adopted SFAS 107, Disclosures About Fair Value of Financial
Instruments, on January 1, 1995. SFAS 107 requires that the Company
disclose estimated fair values for certain financial instruments. The
carrying amounts of financial instruments including cash, accounts
receivable, accounts payable and accrued compensation, notes payable and
notes receivable from employees approximated fair value as of December 31,
1995, because of the relatively short maturity of these instruments. The
carrying value of inventory is based upon quoted market prices (Note 1).
ORIGINAL SIXTEEN TO ONE MINE, INC.
SCHEDULE V - MINING PROPERTY AND FIXED ASSETS
For the Years Ended December 31, 1995, 1994 and 1993
Balance at
Beginning Retirements Balance at
of Year Additions or Sales End of Year
1995
Mining property $1,044,925 $1,044,925
Development 366,189 $347,848 714,037
Buildings 143,250 143,250
Equipment 545,440 148,263 693,703
Vehicles 77,272 40,739 118,011
--------- --------- --------- ---------
$2,177,076 $536,850 $ - $2,713,926
1994
Mining property $658,292 $386,633 $1,044,925
Development 366,189 366,189
Buildings 143,250 143,250
Equipment 443,365 102,075 545,440
Vehicles 73,772 3,500 77,272
--------- --------- --------- ---------
$1,318,679 $858,397 $ - $2,177,076
========= ========= ========= ==========
1993
Mining property $658,292 $658,292
Buildings 143,250 143,250
Equipment 414,295 $29,070 443,365
Vehicles 69,972 3,800 73,772
--------- --------- --------- ---------
$1,285,809 $32,870 $ - $1,318,679
========== ========= ========= ==========
ORIGINAL SIXTEEN TO ONE MINE, INC.
SCHEDULE VI - ACCUMULATED DEPRECIATION AND
DEPLETION OF MINING PROPERTY AND FIXED ASSETS
For the Years Ended December 31, 1995, 1994 and 1993
Balance at Additions
Beginning Charged to Retirements Balance at
of Year Operations or Sales End of Year
1995
Mining property $524,145 $524,145
Buildings 90,945 $1,608 92,553
Equipment 310,402 99,614 410,016
Vehicles 49,809 16,311 66,120
--------- --------- --------- ---------
$975,301 $117,533 $ - $1,092,834
1994
Mining property $524,145 $524,145
Buildings 89,335 $1,610 90,945
Equipment 228,663 81,739 310,402
Vehicles 36,760 13,049 49,809
--------- --------- --------- ---------
$878,903 $96,398 $ - $975,301
========= ========= ========= =========
1993
Mining property $524,145 $524,145
Buildings 81,340 $7,995 89,335
Equipment 169,613 59,050 228,663
Vehicles 24,731 12,029 36,760
--------- --------- --------- ---------
$799,829 $79,074 $ - $878,903
========= ========= ========= =========
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT
Officers and Directors
The following table sets forth the Officers and Directors of the
Company. The directors listed below will serve until the next annual
shareholders meeting to be held on June 22, 1996. All of the officers of
the Company serve at the pleasure of the board of directors.
Officer
Name Age Position Since Director Since
Charles I. Brown 64 Treasurer & Director 1990 1986
Leland O. Erdahl 67 Director ---- 1992
Michael M. Miller 53 President & Director 1983 1977
Johan Raadsma 38 Vice President 1992 ----
Richard C. Sorlien 73 Secretary & Director 1990 1986
Charles I. Brown-Director and Treasurer
Mr. Brown has served as the Executive Vice President and Chief Financial
Officer of Integrated Medical Systems, Inc. ("IMS"), of Golden, Colorado, a
healthcare communications company, since 1995 and as a Director of IMS
since 1992. From 1992 to March 1995, Mr. Brown was a Senior Vice President
and the Chief Financial Officer IMS. From 1983 to 1992, he was active as a
financial consultant to, and a director of, several banks and corporations.
He was formerly Chairman of the Board of American National Bank-Laramie,
Laramie, Wyoming, from 1986 to 1992, the Chairman of the Rawlins National
Bank, Rawlins, Wyoming, from 1983 to 1991, and the Chairman of the Board of
Prudential Bank of Denver, Colorado from 1984 to 1986. He is also a
Director of Izzo Systems, Inc., Denver, Colorado, a private manufacturer of
gold bags and related products. From 1974 to 182, he served as Senior Vice
President and Director of Energy Fuels Corporation, a Denver-based,
privately owned mining company. From 1959 to 1974, he served as Vice
President/Finance and Director of Western Nuclear, Inc., a publicly-owned
mining company listed on the American Stock Exchange prior to its
acquisition by Phelps Dodge Corporation in 1970. Since 1978, he has served
as a Trustee of the Colorado State University Research Foundation, Fort
Collins, Colorado, and since 1974, he has served as a Trustee of the
Colorado Outward Bound School. He is a member of the American Alpine Club.
Mr. Brown received a master of business administration degree with
distinction from Harvard Graduate School of Business Administration in 1959
and a bachelor of arts in geology from William College in 1954. He was
born in Bombay, India.
Leland O. Erdahl-Director
Mr. Erdahl is a director of Freeport McMoRan Copper and Gold Inc., Canyon
Resources Corporation, Uranium Resources, Inc. and Hecla Mining Company.
He is also a trustee for a group of John Hancock Mutual Funds. He is
also a director of Santa Fe Ingredients Co., Inc. and Santa Fe Ingredients
Co. of California, Inc., private food processing companies. Mr. Erdahl has
been an active participant in the mining industry most of his life. From
1970 until 1984 he held executive offices including President and Chief
Executive Officer with Ranchers Exploration and Development Corporation, a
diversified mining company. From 1987 to 1992, Mr. Erdahl was President
and Chief Executive Officer of Stolar, Inc., a company active in using
underground radio communications and geologic imaging to assist mine
operators. Mr. Erdahl is a graduate of the college of Santa Fe with a
degree in business administration, and is a certified public accountant.
He was born in Doland, South Dakota.
Michael M. Miller-Director, President and CEO
As President and Chief Executive Officer , Mr. Miller is responsible for
the day-to-day operations of the Company. In 1975, Mr. Miller became the
sole proprietor of the Morning Glory Gold Mines. Prior to that, he was
self-employed in Santa Barbara County, California from 1965 to 1974. Mr.
Miller served as a trustee and President of the Sierra County Board of
Education (1979 to 1983 trustee) (President in 1983). Since 1991 he has
served as a member of the Sierra County Planning Commission (Chairman 1992
and 1993). Mr. Miller is licensed as a California Class A general
engineering contractor. He is a member of the American Institute of Mining
Engineers. In 1965, Mr. Miller received a B.A. from the University of
California at Santa Barbara in combined Social Sciences-Economics. He was
born in Sacramento, California.
Johan M. Raadsma-Vice President of Operations
Mr. Raadsma is the mine manager and responsible for the day to day mining
operations in which he manages thirty-one employees. He has been employed
by the Company since 1984. Mr. Raadsma graduated from the University of
New South Wales, Sydney, Australia in 1979 with a B.E. in mining
engineering. Mr. Raadsma has worked in mines in California, Washington,
Nevada, Sierra Leone, and Australia. He is a registered environmental
assessor and a civil engineer. He was born in Dar-Es-Salaam, East Africa.
Richard C. Sorlien-Director and Secretary
Mr. Sorlien served as a partner for 33 years and of Counsel for five years
with the Philadelphia, Pennsylvania law firm of Pepper, Hamilton and
Scheetz. Mr. Sorlien served 22 years as a Director of the Glenmede Trust
Company in Philadelphia. He also served as a Director and Corporate
Secretary of the Cressona Aluminum Company of Cressona, Pennsylvania from
1979 until January 1996. He is a Director of the International Lawn Tennis
Club of the United States. He owns the Alaska Mine and Tree Farm in Pike,
California. Mr. Sorlien received a Bachelors of Arts degree (A.B.) from
Harvard University in 1947, and earned his law degree (L.L.B.) from Harvard
Law School in 1949. He was born in Minneapolis, Minnesota.
ITEM 11. EXECUTIVE COMPENSATION
Remuneration of Directors and Executive Officers
Total compensation for each Director, excluding the President, consists of
$750 per meeting attended and a $2,000 retainer effective January 1, 1994.
The Company has not paid or distributed and does not pay or distribute cash
or non cash compensation to officers, directors or employees under any
retirement, pension or other plans, and has no intent to do so in the
future.
Management Remuneration for the Period Ended December 31, 1995.
Name
and Other
Principal Annual
Position Year Salary Bonus Compensation Securities
Michael Miller 1995 $ 99,840 - - -
President & CEO 1994 $ 98,544 - - -
1993 $ 104,000 $25,000 - -
Johan Raadsma 1995 $ 75,000 - - -
Vice-President 1994 $ 73,919 - - -
1993 $ 79,800 $15,000 - -
Current Management Remuneration
Effective January 1, 1994 Mr. Miller received an increase in salary from
$96,000 to $100,000. In addition to this increase he was awarded a $25,000
bonus. In March 1992, at the board of directors' direction, Johan M.
Raadsma, the mine manager, was promoted to Vice President. His
compensation was $72,000 per year. In December 1993 the board of directors
voted to increase the salary of Johan Raadsma, effective January 1, 1994,
from $72,000 to $75,000. In addition to this increase he was awarded a
$15,000 bonus. There were no increases or bonuses granted to the officers
during 1995.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
Security Ownership of Certain Beneficial Owners and Management
Title of Name and Address Amount and Nature Percent
Class of Beneficial Owner of Beneficial Owner of Class
Common M. Blair Hull 492,750 14%
Hull Trading Co.
401 So. LaSalle, Ste. 505
Chicago, IL 60605
Common Kathy N. Hull 500,750 14%
11 Sierra Ave.
Piedmont, CA 94611
Common Michael M. Miller 344,750 10%
P.O. Box 941
Alleghany, CA 95910
Common Charles I. Brown 160,000 4%
Family Partnership, LTD
2691 Pinehurst Drive
Evergreen, CO 80439
Common Richard Sorlien 87,250 2.5%
3000 Two Logan Square
18th & Arch Street
Philadelphia, PA 19103
Common Johan Raadsma 20,000 0.5%
15903 Shannon Way
Nevada City, CA 95959
Security Ownership of Management Including Officers and Directors
Title of Percent
Class Name Amount of Class
Common Charles I. Brown 160,000 4%
Officer and Director
Common Michael M. Miller 344,750 10%
Officer and Director
Common Richard C. Sorlien 87,250 2.5%
Officer and Director
Common Johan Raadsma 20,000 0.5%
Common All Officers and 612,000 17%
Directors as a group
PART III
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K
(a) 1 and 2. Financial statements
The financial statements and schedules listed in the accompanying
index to financial statements and financial statement
schedules are filed as part of this report.
3. Exhibits
The exhibits listed on the accompanying index to
exhibits are filed as part of this annual report.
(b) Reports on Form 8-K
No reports on Form 8-K were required to be filed.
THE ORIGINAL SIXTEEN TO ONE MINE, INC.
INDEX TO FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT SCHEDULES
(ITEM 14 (a) 1 and 2)
Page
Balance sheet at December 31, 1995 and 1994 17
Statement of income for each of the three years
in the period ended December 31, 1995 19
Statement of stockholders' equity for each of
the three years in the period ended December 31, 1995 21
Statements of cash flows for each of the three
years in the period ended December 31, 1995 22
Notes to financial statements 24
Schedules for each of the three years in the
period ended December 31, 1995:
V - Mining property and fixed assets 31
VI - Accumulated depreciation 32
All other schedules are omitted since the required information is not
present or is not present in amounts sufficient to require submission of
the schedule, or because the information required is included in the
financial statements and notes thereto.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this Annual Report to
be signed on its behalf by the undersigned, thereunto duly authorized.
ORIGINAL SIXTEEN TO ONE MINE, INC.
Registrant
By:
Richard C. Sorlien
Secretary and Director, March 15, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated:
Michael M. Miller
President and Director, March 15, 1996
Charles I. Brown
Treasurer and Director, March 15, 1996
Leland O. Erdahl
Director, March 15, 1996
INDEX TO EXHIBITS
Method of
Exhibit No. Filing
3 Articles of Incorporation Incorporated
by reference
4 Stock Certificate Incorporated
by reference
