<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Transition Period From_________________to___________________
Commission File Number 1-10012
SUNSHINE MINING AND REFINING COMPANY
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 75-2618333
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
877 W. Main, Suite 600, Boise, Idaho 83702
- --------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number including area code (208) 345-0660
---------------
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed
since last report
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Number of Shares Outstanding
Title of Each Class of Common Stock at July 22, 1996
- ------------------------------------ ---------------------
Common Stock, $.01 par value 237,944,037
Page 1 of 11
<PAGE> 2
SUNSHINE MINING AND REFINING COMPANY
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1996 and DECEMBER 31, 1995
(In Thousands)
<TABLE>
<CAPTION>
June 30 December 31
1996 1995
----------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 30,192 $ 12,837
Silver bullion 8,375 8,976
Accounts receivable 1,718 1,583
Inventories (Note 2) 2,063 1,477
Marketable securities 7 13
Other current assets 1,408 1,592
----------- ------------
Total current assets 43,763 26,478
Property, plant and equipment, at cost 140,567 140,886
Less accumulated depreciation,
depletion and amortization (69,947) (69,967)
----------- ------------
70,620 70,919
Other noncurrent assets and deferred charges 6,059 3,737
----------- ------------
Total assets $ 120,442 $ 101,134
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 870 687
Accrued expenses 4,328 2,241
----------- ------------
Total current liabilities 5,198 2,928
Long-term debt 31,515 1,519
Accrued pension and other postretirement benefits 6,465 6,387
Other long-term liabilities and deferred credits 5,943 5,218
Stockholders' equity:
Cumulative redeemable preferred stock--
aggregate redemption value:
December 31, 1995 - $128,203 - 82,268
Common stock--$.01 par value;
400,000 shares authorized; shares issued:
June 30, 1996 - 242,588
December 31, 1995 - 196,760 2,425 1,968
Paid-in capital 704,303 623,337
Deficit (634,107) (622,454)
----------- ------------
72,621 85,119
Less treasury stock, at cost:
June 30, 1996 - 4,644 shares
December 31, 1995 - 3,664 shares 1,300 37
----------- ------------
71,321 85,082
----------- ------------
Total liabilities and stockholder's
equity 120,442 101,134
=========== ============
</TABLE>
See accompanying notes.
- 2 -
<PAGE> 3
SUNSHINE MINING AND REFINING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED
JUNE 30, 1996 AND 1995
(In Thousands, Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
QUARTER SIX MONTHS
1996 1995 1996 1995
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Operating revenues $ 4,025 $ 4,121 $ 7,352 $ 7,749
Mark to market gain (loss) (1,074) (655) (604) 281
--------- --------- ---------- ---------
2,951 3,466 6,748 8,030
--------- --------- ---------- ---------
Costs and expenses:
Cost of sales 4,580 4,935 8,205 9,970
Depreciation, depletion
and amortization 1,061 818 2,021 1,677
Exploration 1,950 1,227 4,474 2,344
Selling, general and
administrative expense 1,367 1,427 2,619 2,878
--------- --------- ---------- ---------
8,958 8,407 17,319 16,869
--------- --------- ---------- ---------
Operating loss (6,007) (4,941) (10,571) (8,839)
Other income (expense):
Interest income 429 390 611 734
Interest expense (990) (208) (1,286) (343)
Other, net 25 178 83 242
--------- --------- ---------- ---------
(536) 360 (592) 633
--------- --------- ---------- ---------
Net loss (6,543) (4,581) (11,163) (8,206)
Retirement of preferred stock 40,124 - 40,124 -
Preferred stock dividend requirements - (2,558) (2,622) (5,117)
--------- --------- ---------- ---------
Income (loss) applicable to common shares $ 33,581 $ (7,139) $ 26,339 $ (13,323)
========= ========= ========== =========
Income (loss) per common share:
Primary $ 0.16 $ (0.04) $ 0.13 $ (0.07)
========= ========= ========== =========
Fully diluted $ 0.15 $ (0.04) $ 0.12 $ (0.07)
========= ========= ========== =========
Average common shares outstanding 212,471 193,040 202,230 193,017
========= ========= ========== =========
</TABLE>
See accompanying notes.
-3-
<PAGE> 4
SUNSHINE MINING AND REFINING COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
JUNE 30, 1996 AND 1995
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
------------- ---------------
<S> <C> <C>
Cash used by operating activities:
Net loss $ (11,163) $ (8,206)
Adjustments to reconcile loss from operations
to net cash used by operations:
Depreciation, depletion and amortization 2,021 1,677
Exploration expenditures 4,474 2,344
Amortization of debt issuance costs 195 -
Realized and unrealized gains on
marketable equity securities (60) (25)
Net (increase) decrease in:
Silver bullion 601 (96)
Accounts receivable (135) (1,607)
Inventories (586) 1,228
Other assets and deferred charges (340) (163)
Net increase (decrease) in:
Accounts payable and accrued expenses 1,862 83
Accrued pension and other postretirement benefits 79 (224)
Other liabilities and deferred credits (749) 283
------------- -------------
Net cash used by operations (3,801) (4,706)
------------- -------------
Cash provided (used) by investing activities:
Additions to property, plant and equipment and
exploration expenditures (6,197) (2,452)
Proceeds from investments 700 597
------------- -------------
Net cash used by investing activities (5,497) (1,855)
------------- -------------
Cash provided by financing activities:
Retirement of preferred stock (1,028) -
Proceeds from issuance of common stock upon exercise
of stock options and warrants 1 102
Proceeds from issuance of long term debt 30,000 -
Debt issuance costs (2,320) -
------------- -------------
Net cash provided by financing activities 26,653 102
------------- -------------
Increase (decrease) in cash and cash equivalents 17,355 (6,459)
Cash and cash equivalents, January 1 12,837 26,581
------------- -------------
Cash and cash equivalents, June 30 $ 30,192 $ 20,122
============= =============
Supplemental cash flow information -
Interest paid in cash $ 876 $ 63
============= =============
</TABLE>
See accompanying notes.
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<PAGE> 5
SUNSHINE MINING AND REFINING COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
June 30, 1996
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements
of Sunshine Mining and Refining Company ("Sunshine" or the "Company")
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions
to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have
been included. Certain previously reported amounts have been
reclassified to conform to the June 1996 presentation. Operating
results for the six month period ended June 30, 1996 are not
necessarily indicative of the results that may be expected for the
year ended December 31, 1996. For further information, refer to the
consolidated financial statements and footnotes thereto included in
Sunshine's report on Form 10-K for the year ended December 31, 1995.
2. INVENTORIES
The components of inventory consist of the following:
<TABLE>
<CAPTION>
June 30 December 31
Metals inventories: 1996 1995
--------- -----------
<S> <C> <C>
Work in process $ 900 $ 512
Finished goods 321 264
Materials and supplies inventories 842 701
-------- --------
$ 2,063 $ 1,477
======== ========
</TABLE>
3. LONG-TERM DEBT
During the first six months, the Company, through its subsidiary SPMI,
issued $30 million in 8% Senior Exchangeable Notes to non-U.S. persons
pursuant to Regulation S promulgated under the Securities Act of 1933,
as amended. See "Management's Discussion and Analysis of Financial
Condition."
4. SIGNIFICANT ACCOUNTING POLICIES
The Company adopted the Financial Accounting Standards Board ("FASB")
Statement No. 121, "Accounting for the Impairment of Long-Lived Assets
and Long-Lived Assets to be Disposed of ("FAS 121")," in the first
quarter of 1996. The adoption of FAS 121 had no impact on the
Company's financial condition as the Company's methodology for
evaluating its mining properties for impairment is consistent with FAS
121. FASB Statement No. 123, "Accounting for Stock Based Compensation
("FAS 123")" establishes an alternative method of accounting for stock
based compensation to the method set forth in Accounting Principles
Board Opinion No. 25 ("APB 25"). The Company will continue to
account for stock option grants under the provisions of APB 25 and has
adopted the disclosure
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<PAGE> 6
provisions of FAS 123. Accordingly, the adoption of FAS 123 in 1996
had no effect on the Company's financial statements.
5. PREFERRED STOCK
During the first six months, Common and Preferred stockholders
approved the merger on May 22, 1996, of Sunshine with and into its
wholly-owned subsidiary, Sunshine Merger Company, pursuant to which
Sunshine Merger Company (which was renamed Sunshine Mining and
Refining Company) was the surviving entity.
The merger resulted in the retirement of all of Sunshine's outstanding
$11.94 (Stated Value) Cumulative Redeemable Preferred Stock (the
"Preferred Stock") in exchange for approximately 46 million shares of
Common Stock and approximately 8 million Warrants to purchase one
share of Common Stock at $1.92, and the recognition of a $40.1 million
gain applicable to Common shares. See "Management's Discussion and
Analysis of Financial Condition."
6. EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share is computed by dividing the loss
applicable to common stockholders by the weighted average number of
common shares and common share equivalents, represented by options and
warrants, if such common share equivalents have a dilutive effect.
Fully diluted earnings per common share computations also assume
conversion of outstanding Convertible Subordinated Reset Debentures
and 8% Senior Exchangeable Notes, if such conversion has a dilutive
effect.
For the periods presented, the common share equivalents did not have a
dilutive effect on the loss per share calculations. In addition, the
assumed conversions of debt did not have a dilutive effect on the loss
per share calculations for the three and six months ended June 30,
1995. Accordingly, the loss per share calculations for such periods
are based on the weighted average number of common shares outstanding
during each period. The number of common shares used in the
computation of fully diluted earnings per common share for the three
and six months ended June 30, 1996, were 234,253 and 224,012,
respectively.
SUNSHINE MINING AND REFINING COMPANY
Management's Discussion and Analysis of Financial Condition
and Results of Operations for the
Six Months Ended June 30, 1996 and 1995
LIQUIDITY AND CAPITAL RESOURCES
The Company, through Sunshine Precious Metals, Inc. ("SPMI"), its
wholly-owned subsidiary, concluded an offering (the "Notes Offering") in March,
1996, conducted in Europe only to non-U.S. persons pursuant to Regulation S
promulgated under the Securities Act of 1933, as amended. SPMI issued $30
million aggregate principal amount of Senior Exchangeable Notes due 2000 (the
"Notes") pursuant to the Notes Offering. The net proceeds from the Notes
Offering (approximately $27
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<PAGE> 7
million) will be used to fund development and exploration opportunities of the
Company, and for working capital requirements of the Company. The Company's
working capital totaled $38.6 million at June 30, 1996, which will be adequate
to fund the Company's anticipated cash requirements for several years.
Set forth below are certain terms and provisions of the Notes and the
Notes Offering. The Notes bear interest at 8% per annum and will mature four
years after their issuance (March 21, 2000). The Notes are exchangeable into a
specified number of shares of Common Stock of the Company at an exchange price
of $1.4375 per share, subject to reset and adjustment in certain events. At
any time after one year from the date of issuance and prior to maturity, SPMI
may force the exchange of the Notes, in whole or in part, subject to certain
restrictions. SPMI may redeem the Notes at any time at the principal amount if
United States withholding taxes are imposed on payments in respect of the
Notes. The Notes will be guaranteed by Sunshine (and any successors thereof)
and the guarantee will rank senior to all of its unsecured and subordinated
obligations, including the currently outstanding Convertible Subordinated Reset
Debentures due July 15, 2008.
Historical Losses
As the price of silver since 1985 has been only slightly in excess of,
or less than, the Company's cash cost to produce an ounce of silver, the
Company's operations have not been able to generate cash flow sufficient to
cover its costs of exploration, research, general and administrative expenses,
and interest, as well as non-cash charges such as depreciation, depletion, and
amortization. Until such time as the price of silver increases significantly or
higher production is achieved at a lower cost, the Company will continue to
generate a negative cash flow from operations.
Exploration and Development Activities
The Company anticipates capital expenditures in 1996 at the Sunshine
Mine to be approximately $3 million, including $1.7 million expended in the
first six months. In addition, the Company currently projects exploration
expenditures for the year will total approximately $10 million at the Sunshine
Mine, the Pirquitas property in Argentina, and other projects. Exploration
expenditures for the first six months of 1996 totaled approximately $4.4
million.
The Company has steadily increased its level of exploration
expenditures in recent years as it has identified and acquired a growing list
of prospects that it felt had the potential to add significantly to operating
income, cash flow, and mineral resources and reserves. The acquisition and
successful development of such prospects is central to the Company's plan to
return to profitability.
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<PAGE> 8
Preferred Stock Retirement
Effective May 22, 1996, Common and Preferred stockholders of Sunshine
approved the merger (the "Merger") of Sunshine with and into its wholly-owned
subsidiary, Sunshine Merger Company, pursuant to which Sunshine Merger Company
was the surviving entity and renamed Sunshine Mining and Refining Company,
resulting in the retirement of all of Sunshine's outstanding Preferred Stock in
exchange for approximately 46 million shares of Common Stock and 8 million
Warrants to purchase one share of Common Stock at $1.92. As a result, the
Company recognized a $40.1 million gain applicable to Common Shares
representing the excess of the aggregate redemption value of the Preferred
Stock (including cumulative dividends in arrears of $44.8 million) over the sum
of the value of securities issued and related transaction costs.
Terms of the Merger include a formula whereby, if the average closing
price of the Common Stock as reported on the New York Stock Exchange Composite
Transactions for the first 120 NYSE trading days after May 22, 1996 is less
than $1.75, up to a maximum of 17.2 million additional shares of Common Stock
may be issued and the exercise price of the Warrants would be reduced to 110%
of such average closing price.
Operating, Investing, and Financing Activities
Cash used in operating activities in the first six months of 1996 was
$3.8 million compared to $4.7 million in the first six months of 1995. Cash
operating losses increased in the first six months of 1996 by $300 thousand,
primarily due to increased interest expense, partially offset by changes in
working capital components.
Approximately $5.5 million of cash was used by investing activities in
the first six months of 1996 compared to $1.9 million in the 1995 period. The
$3.6 million increase was primarily due to increased exploration expenditures
of $2.1 million and $1.6 million increase in additions to property, plant and
equipment partially offset by the sale of certain marketable securities.
Cash provided by financing activities was $26.3 million in the first
six months of 1996 including $27.7 million from the Company's Notes Offering,
partially offset by the costs associated with the Merger. There was no cash
provided by financing activities in the first six months of 1995.
RESULTS OF OPERATIONS
THE THREE MONTHS ENDED JUNE 30, 1996 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1995
Consolidated operating revenues decreased approximately $100 thousand
for the second quarter of 1996 compared to the second quarter of 1995 primarily
due
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<PAGE> 9
to a decline in average silver prices received from $5.36 in 1995 to $5.14 in
1996. Sales volumes for both quarters were approximately 660 thousand ounces
as increased sales resulting from a 265 thousand ounce (67%) increase in
production in the 1996 quarter offset the additional sales in the 1995 quarter
due to a drawdown in work-in-process inventories. The 1995 drawdown resulted
from the suspension of operations of the Company's silver refinery during the
first quarter of 1995, which resulted in shorter processing time before sales
recognition of silver and copper concentrates to a third party smelter.
Mark to market loss on investment bullion and work in process
inventories increased $419 thousand as a result of silver prices declining from
$5.52 at March 31, 1996 to $4.98 at June 30, 1996 compared to a decline from
$5.29 to $5.01 for the corresponding 1995 dates.
Cost of sales decreased $355 thousand (7.2%) (from $4.9 million in the
second quarter of 1995 to $4.6 million in the second quarter of 1996) due to
the drawdown in inventories in 1995, as discussed above, and lower unit
production costs in 1996. Unit production costs decreased primarily due to a
67% increase in silver production and a 51% increase in average grades from
1995 to 1996 (659 thousand ounces produced from 28,077 tons at 24.17 ounces per
ton in 1996 versus 394 thousand ounces from 25,435 tons at 15.96 ounces per ton
in 1995). This was partially offset by development costs, which added
approximately $500 thousand to such costs in 1996 versus 1995, largely devoted
to ramping in the West Chance area of the Sunshine Mine from which no
production benefit has yet been received. [Such ramping will provide access to
the West Chance area for the Company's newly acquired LHD units, which is the
basis for the Company's plan to return the Mine to full production later in
1996.
Exploration expense increased $723 thousand (59%) for the second
quarter of 1996 compared to the same period in 1995 as a result of the
Company's increased exploration program. (See "Liquidity and Capital Resources
- - Exploration and Development Activities.")
Depreciation, depletion and amortization increased by approximately
$243 thousand as a result of increased production in the 1996 period.
Interest income increased by $39 thousand (10%) due to higher invested
cash balances partially offset by lower interest rates.
Interest expense increased $782 thousand due to the Notes Offering
completed in March, 1996. (See "Liquidity and Capital Resources.")
THE SIX MONTHS ENDED JUNE 30, 1996 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1995
Consolidated operating revenues decreased approximately $400 thousand
(5.1%) for the first six months of 1996 compared to the first six months of
1995
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<PAGE> 10
primarily due to a reduction in sales volume (1.2 million ounces of silver in
the first six months of 1996 compared to 1.3 million ounces of silver in the
same period of 1995). The reduction in sales volumes was due to a drawdown in
work-in-process inventories in the first six months of 1995 resulting from the
suspension of operations of the Company's silver refinery during the 1995
period, which resulted in shorter processing time before sales recognition of
silver and copper concentrates to a third party smelter. These decreases were
partially offset by increased sales volumes resulting from a 440,000 ounce
(57%) increase in production in 1996 compared to 1995. The 1996 period
reflects a $604 thousand mark to market loss due to a decline in silver prices
at June 30 compared to the end of 1995. During the first six months of 1995,
silver prices increased resulting in a $281 thousand gain for the period.
Cost of sales decreased $1.8 million (18%) (from $10 million in the
first six months of 1995 to $8.2 million in the first six months of 1996) due
to the drawdown in inventories in 1995, as discussed above, and lower unit
production costs. Unit production costs decreased primarily due to the 57%
increase in silver production and a 34% increase in average grades from 1995 to
1996 (1.2 million ounces produced from 58,317 tons at 21.46 ounces per ton in
1996 versus 773 thousand ounces from 49,969 tons at 15.99 ounces per ton in
1995). This decrease was partially offset by a $700 thousand increase in
development costs primarily for ramping in the West Chance area of the Sunshine
Mine. (See Three Months discussion above.)
Exploration expense increased $2.1 million (91%) for the first six
months of 1996 compared to the same period in 1995 as a result of the Company's
increased exploration program. (See "Liquidity and Capital Resources -
Exploration and Development Activities.")
Depreciation, depletion and amortization increased by approximately
$344 thousand as a result of increased production figures in the 1996 period.
Interest income decreased by $123 thousand due to lower invested cash
balances.
Interest expense increased $944 thousand due to the Notes Offering
completed in March, 1996. (See "Liquidity and Capital Resources.")
SUNSHINE MINING AND REFINING COMPANY
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On June 6, 1996, the litigation pending in the United States
District Court for the District of Delaware that was commenced on
January 25, 1995 by Grace Holdings, L.P. was dismissed with prejudice.
Grace Holdings, L.P. alleged that the Company's rights offering was an
impermissible distribution or dividend under the Certificate governing
the Company's Preferred Stock. The litigation was dismissed with
prejudice upon the effectiveness of the merger of
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<PAGE> 11
the Company and a wholly-owned subsidiary, which resulted in the
elimination of the Preferred Stock.
ITEM 2. CHANGES IN SECURITIES
Effective May 22, 1996, the Company was merged with and into its
wholly-owned subsidiary, Sunshine Merger Company whose name was
changed to Sunshine Mining and Refining Company. As a result of the
merger, the Preferred Stock of Sunshine was eliminated in exchange for
Common Stock and warrants to purchase Common Stock. The surviving
Company assumed all of the duties and obligations of its predecessor's
prior Warrant Agreement and the 8-7/8% Convertible Subordinated
Debentures.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
A special meeting of stockholders of the Company was held on
March 29, 1996, for the purpose of approving a merger of the Company
into a wholly-owned subsidiary, and by stockholder vote convert the
Company's outstanding Preferred Stock into Common Stock and warrants.
Of the 7,166,186 shares of Preferred Stock outstanding, the
merger was approved, as follows:
For: 4,381,202
Against: 387,867
Abstain: 39,029
Of the 191,996,142 shares of Common Stock outstanding, the
merger was approved, as follows:
For: 101,831,358
Against: 6,945,701
Abstain: 3,062,877
The merger was effective May 22, 1996.
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11.1 Computation of Earnings Per Common Share (Three
Months)
11.2 Computation of Earnings Per Common Share (Six Months)
27 Financial Data Schedule
(b) Reports on Form 8-K
On May 29, 1996, the Company filed a Report on Form 8-K
reporting the effectiveness of the merger between the Company
into its wholly-owned subsidiary.
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 hereto duly authorized.
SUNSHINE MINING AND REFINING COMPANY
Dated: July 29, 1996 By: \s\ William W. Davis
----------------------------
William W. Davis
Executive Vice President,
Chief Financial Officer and
Chief Accounting Officer
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<PAGE> 12
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
11.1 Computation of Earnings Per Common Share (Three Months)
11.2 Computation of Earnings Per Common Share (Six Months)
27 Financial Data Schedule
<PAGE> 1
Exhibit 11.1
SUNSHINE MINING AND REFINING COMPANY
COMPUTATION OF EARNINGS PER COMMON SHARE
FOR THE THREE MONTHS ENDED JUNE 30, 1996
(In Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Fully
Primary Diluted
--------------- ---------------
<S> <C> <C>
Earnings:
Earnings applicable to common
stockholders $ 33,581 $ 33,581
Add interest expense on the Convertible
Subordinated Reset Debentures and the
8 % Senior Exchangeable Notes 810
--------------- ---------------
$ 33,581 $ 34,391
=============== ===============
Shares:
Weighted average common shares outstanding 212,471 212,471
===============
Add common shares issued on assumed
conversion of Senior Exchangeable
Notes and Convertible Subordinated
Reset Debentures 21,782
---------------
234,253
===============
Earnings per common share
Primary $ 0.16
===============
Fully diluted $ 0.15
===============
Note: The effect of the assumed exercise of outstanding stock
options and warrants was not dilutive.
</TABLE>
<PAGE> 1
Exhibit 11.2
SUNSHINE MINING AND REFINING COMPANY
COMPUTATION OF EARNINGS PER COMMON SHARE
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(In Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Fully
Primary Diluted
--------------- ---------------
<S> <C> <C>
Earnings:
Earnings applicable to common
stockholders $ 26,339 $ 26,339
Add interest expense on the Convertible
Subordinated Reset Debentures and the
8 % Senior Exchangeable Notes 927
--------------- ---------------
$ 26,339 $ 27,266
=============== ===============
Shares:
Weighted average common shares outstanding 202,230 202,230
===============
Add common shares issued on assumed
conversion of Senior Exchangeable
Notes and Convertible Subordinated
Reset Debentures 21,782
---------------
224,012
===============
Earnings per common share
Primary $ 0.13
===============
Fully diluted $ 0.12
===============
Note: The effect of the assumed exercise of outstanding stock
options and warrants was not dilutive.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AT JUNE 30, 1996 (UNAUDITED) AND THE CONSOLDIATED
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED) AND
IS QUALIFED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 30,192
<SECURITIES> 7
<RECEIVABLES> 1,718
<ALLOWANCES> 0
<INVENTORY> 2,063
<CURRENT-ASSETS> 43,763
<PP&E> 140,567
<DEPRECIATION> 69,947
<TOTAL-ASSETS> 120,442
<CURRENT-LIABILITIES> 5,198
<BONDS> 31,515
<COMMON> 2,425
0
0
<OTHER-SE> 68,896
<TOTAL-LIABILITY-AND-EQUITY> 120,442
<SALES> 7,352
<TOTAL-REVENUES> 6,748
<CGS> 8,205
<TOTAL-COSTS> 10,226
<OTHER-EXPENSES> 4,474
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,286
<INCOME-PRETAX> (11,163)
<INCOME-TAX> 0
<INCOME-CONTINUING> (11,163)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 26,339
<EPS-PRIMARY> 0.13
<EPS-DILUTED> 0.12
</TABLE>
