SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1O-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended April 30, 2000 Commission File Number 0-18616
------------------------------------ ------------------------------
ST. GEORGE METALS, INC.
-----------------------------------------------------
(Exact name of registrant as specified In its charter)
Nevada 88-0227915
-------- ------------
(State or other jurisdiction of (I.R.S. Employer Identification Number)
Incorporation or organization)
125 Bank of America Plaza, 1111 E. Main St., Richmond, Virginia 23219
--------------------------------------------------------------- -------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (804) 644-3434
--------------
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
--- ---
As of April 30, 2000, the number of shares of Common Stock outstanding
was 14,487,159.
NOTE: The information presented in this Form 10-QSB is unaudited, but in the
opinion of management reflects all adjustments (which include only
normal recurring adjustments) necessary to fairly present such
information.
<PAGE>
ST. GEORGE METALS, INC.
FORM 10-QSB
QUARTER ENDED APRIL 30, 2000
INDEX
PAGE
PART I - FINANCIAL INFORMATION
Interim Consolidated Balance Sheets.................................. 3
Interim Consolidated Statement of Income and Deficit................. 4
Interim Consolidated Statement of Cash Flows......................... 5
Notes to the Interim Consolidated Financial Statements............... 6
Management's Discussion and Analysis of Financial Condition
and Results of Operations............................................ 7
PART II - OTHER INFORMATION
Items 1 - 6.......................................................... 8-9
Signatures........................................................... 10
-2-
<PAGE>
<TABLE>
ST. GEORGE METALS, INC.
(A DEVELOPMENT STAGE COMPANY)
INTERIM CONSOLIDATED BALANCE SHEETS
AS OF APRIL 30, 2000 AND JANUARY 31, 2000
(EXPRESSED IN THOUSANDS OF U.S. DOLLARS)
<CAPTION>
APRIL 30, JANUARY 31,
2000 2000
----------- -----------
ASSETS
<S> <C> <C>
CURRENT
Cash $ 7 $ 6
OTHER - Reclamation Deposit 78 78
----------- -----------
$ 85 $ 84
----------- -----------
LIABILITIES
CURRENT
Advances from shareholder $ 552 $ 552
Accrued interest payable 4,460 4,218
Accrued mineral interests reclamation costs 90 90
----------- -----------
5,102 4,860
LONG TERM-DEBT
Other 1,888 1,888
Related parties 5,057 5,057
----------- -----------
TOTAL LIABILITIES 12,047 11,805
----------- -----------
SHAREHOLDERS' DEFICIT
SHARE CAPITAL
Authorized
10,000,000 Preferred shares -
Par value $.01 per share
30,000,000 Common shares -
Par value $.01 per share
Issued and paid in capital
1,450 Series A Preferred shares 1,450 1,450
166,417 Series B Preferred shares 499 499
14,487,159 Common shares 9,285 9,285
Deficit accumulated during development stage (23,196) (22,955)
----------- -----------
(11,962) (11,721)
----------- -----------
TOTAL $ 85 $ 84
----------- -----------
</TABLE>
PREPARED BY MANAGEMENT
-3-
<PAGE>
ST. GEORGE METALS, INC.
(A DEVELOPMENT STAGE COMPANY)
INTERIM CONSOLIDATED STATEMENT OF LOSS AND DEFICIT
FOR THE THREE MONTHS ENDED APRIL 30, 2000 AND 1999
(EXPRESSED IN THOUSANDS OF U.S. DOLLARS)
THREE MONTHS
ENDED APR. 30
2000 1999
--------- --------
ADMINISTRATION COSTS
General and administrative $ - $ 1
Interest 242 173
Reclamation and other costs - -
Professional fees - 2
--------- --------
TOTAL ADMINISTRATIVE COSTS 242 176
INTEREST INCOME 1 1
--------- --------
NET LOSS 241 175
DEFICIT BEGINNING OF PERIOD 22,955 22,168
--------- --------
DEFICIT END OF PERIOD 23,196 22,343
--------- --------
BASIC LOSS PER SHARE IN U.S. DOLLARS $ .01 $ .01
--------- --------
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING $14,487,159 $14,487,159
----------- -----------
PREPARED BY MANAGEMENT
-4-
<PAGE>
ST. GEORGE METALS, INC.
(A DEVELOPMENT STAGE COMPANY)
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED APRIL 30, 2000 AND 1999
(EXPRESSED IN THOUSANDS OF U.S. DOLLARS)
THREE MONTHS
ENDED APRIL 30,
2000 1999
----------- -----------
FUNDS PROVIDED (USED) BY OPERATING
ACTIVITIES
Net loss $ (241) $ (175)
CHANGES IN OTHER
WORKING CAPITAL ITEMS 242 201
----------- -----------
TOTAL 1 26
----------- -----------
FINANCING ACTIVITIES
Long-term debt - (27)
----------- -----------
NET INCREASE (DECREASE) IN CASH 1 (1)
CASH BALANCE BEGINNING OF PERIOD 6 6
----------- -----------
CASH BALANCE END OF PERIOD $ 6 $ 5
----------- -----------
PREPARED BY MANAGEMENT
-5-
<PAGE>
ST. GEORGE METALS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENT
APRIL 30, 2000
(EXPRESSED IN THOUSANDS OF U.S. DOLLARS)
1. ACCOUNTING POLICIES
These interim consolidated financial statements have been prepared in
accordance with accounting principles and practices that are generally
accepted in the United States. The notes to the Company's (unaudited)
consolidated financial statements as of January 31, 2000, substantially
apply to the interim financial statements at April 30, 2000, and are
not repeated here.
2. INTERIM ADJUSTMENTS
The unaudited interim financial information reflects all adjustments
which are, in the opinion of management, necessary to a fair statement
of the results for the interim period presented. These adjustments are
of a normal recurring nature.
3. STATUS OF BUSINESS
The Company is not engaged in any active business. There was no change
during the quarter ending April 30, 2000, with respect to the Company's
continued its efforts to reach an out-of-court accord with its trade
creditors. See Item 5, Other Information, of Part II of this Form
10-QSB.
PREPARED BY MANAGEMENT
-6-
<PAGE>
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations - Financial
---------------------------------
Revenues. The Company had no revenues during the quarter ended April
30, 2000, nor did it have any revenues during the comparable period in the
preceding year.
Costs and Expenses. During the quarter ended April 30, 2000, the
Company had total administrative costs of $242,000 compared to $176,000 in the
comparable period in the prior year. The increase in administrative costs was
due to increased interest expense. Accrued interest was $242,000 during the
period, compared to $173,000 during the quarter ended April 30, 1999.
Net Loss. The Company had a net loss (after interest income of $1,000
for the quarter ended April 30, of $241,000 (or $.01 per share), compared to
$175,000 (or $.01 per share) for the comparable period in the prior year.
Analysis of Financial Condition
-------------------------------
The Company had no material liquidity or capital resources at quarter
ended April 30, 2000. At that date, the Company had current assets of $7,000 and
current liabilities of $5.1 million. Current liabilities include $4.46 million
of accrued interest payable which is in arrears. A substantial portion of the
Company's current liabilities and other indebtedness is owed to related parties.
The Company obtained no new financing during the three-month period ended April
30, 2000. The Company has substantially completed the process of satisfying its
trade creditors and other operational expenses other than through a court
supervised process. However, the Company has substantial indebtedness for
borrowed monies which it is unable to satisfy. The Company does not presently
expect to be in a position to make any payments on its Operations Advances
(which are payable solely from net cash flow from the Company's now-terminated
Dean Mine operations) or on its Gold Delivery Contracts and $4.1 million
principal amount of term debt, both of which categories have been voluntarily
subordinated by the holders to the payment of the Operations Advances.
-7-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal proceedings.
(a) See Item 5 below.
Item 2. Changes in securities.
(a) None
(b) None
Item 3. Defaults upon senior securities.
Under the Company's Phase I and II Loan Commitments,
non-payment of interest constitutes an event of default;
however, a note holder must advise the Company in writing that
he declares his debt to be in default. As previously reported,
two note holders, one a former related party of the Company,
advised the Company in January, 1994, that the Company was in
default with respect to the Company's debt obligations to
them. The Company advised such holders that it did not agree
with their position.
Item 4. Submission of matters to a vote of security holders.
None
Item 5. Other information.
General. The Company's financial resources have been
substantially exhausted and management does not know of any
significant additional financing available to the Company. The
Company has no continuing on-going business operations at this
time. The Company has been seeking, since early 1995, to
satisfy its trade debt other than through a court supervised
process, which would entail significant administrative
expenses. The Company has been able to satisfy a substantial
portion of its trade debt, but in light of its financial
position, it is unlikely any payments will be made on its
other indebtedness, which has been voluntary subordinated to
the Company's trade creditors.
SEC Reporting Obligations. Because of the Company's financial
condition and its consequent difficulty paying the attendant
legal and accounting expenses, its ability to continue to meet
its reporting obligations under the Securities Exchange Act of
1934 remains questionable. The financial statements included
with its Form 10-KSB for the year ended January 31, 1999, were
not audited by an independent certified accountant, because
the Company could not afford the cost of an audit. The Company
sought and obtained administrative relief from the staff of
the Securities and Exchange Commission from the requirement
that it obtain an audited financial statement for its Form
10-KSB filing.
Inability to Pay Indebtedness. Management does not presently
anticipate that any of its outstanding obligations under its
Operations Advances, Gold Delivery Contracts and term debt, a
substantial portion of which outstanding obligations are held
-8-
<PAGE>
by members of the Company's board of directors, can be
satisfied. Accordingly, management does not believe, as a
practical matter, that there is any remaining value to be
ascribed to the Company's outstanding preferred stock or
common stock.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits: Exhibit 27 Financial Data Schedule, filed herewith.
(b) Reports on Form 8-K: None
-9-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
St. George Metals. Inc.
------------------------------------------
(Registrant)
June 9, 2000 By: /s/ C. B. Robertson, III
---------------------------------------
C. B. Robertson, III - Chairman and Principal
Executive Officer
June 9, 2000 /s/ Harrison Nesbit, II
------------------------------------------
Harrison Nesbit, II - Treasurer and Chief Financial
and Accounting Officer
-10-