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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE COMMISSION ACT OF 1934
For the quarterly period ended February 28, 1999
Commission File Number: 001-05970
SILVER BUTTE MINING COMPANY
(Exact name of registrant as specified in its charter)
IDAHO 82-0263301
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
520 Cedar Street, Sandpoint, ID 83864
(Address of Principal Executive Offices) (Zip Code)
(208) 263-5154
Registrant's telephone number, including area code
Check whether the issuer (1) 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 ( ) No (X)
The number of shares of Common Stock, $.05 par value, outstanding as of
February 28, 1999, was 7,828,748.
DOCUMENTS INCORPORATED BY REFERENCE: Form 8-K filed January 15, 1999
Transitional Small Business Disclosure Format (Check One): Yes ( ) No (X)
*****************************************************************************
Document page 1 of 8
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SILVER BUTTE MINING COMPANY
FORM 10-QSB QUARTERLY REPORT
February 28, 1999
INDEX
Page
Number
Part I FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
Condensed Balance Sheets, February 28, 1999, and
August 31, 1998. 3
Condensed Income Statements for the three months and
six months ended February 28, 1999, and 1998 4
Condensed Statements of Cash Flows for the six months ended
February 28, 1999, and 1998 5
Notes to Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7-8
Signature Page 8
Document page 2 of 8
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SILVER BUTTE MINING COMPANY
CONDENSED BALANCE SHEETS
February 28, 1999 and August 31, 1998
<TABLE>
February 28, August 31,
1999 1998
____________ ____________
<C> <S> <S>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,961 $ 480
Certificate of deposit for State lease 5,000 5,000
Marketable securities 82,942 70,336
Accounts receivable 828 1,091
Prepaid expenses 843 512
____________ ____________
TOTAL CURRENT ASSETS 71,574 77,419
PROPERTY, PLANT & EQUIPMENT
Properties 3,000 3,000
Equipment and machinery 19,704 19,704
Accumulated depreciation (19,704) (19,704)
____________ ____________
3,000 3,000
____________ ____________
TOTAL ASSETS $ 74,574 $ 80,419
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,619 $ 2,660
____________ ____________
TOTAL CURRENT LIABILITIES 2,619 2,660
____________ ____________
SHAREHOLDERS' EQUITY
Common stock, $.05 par value
authorized 10,000,000 shares,
issued and outstanding,
7,828,748 shares 391,437 391,437
Additional paid-in capital 392,953 392,953
Accumulated deficit (712,435) (706,631)
____________ ____________
TOTAL SHAREHOLDERS' EQUITY 71,955 77,759
____________ ____________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 74,574 $ 80,419
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
Document page 3 of 8
<PAGE>
SILVER BUTTE MINING COMPANY
CONDENSED INCOME STATEMENTS
For the Three and Six Months Ended February 28, 1998 and 1997
<TABLE>
Three Months Ended Six Months Ended
__________________________ __________________________
February 28, February 28, February 28, February 28,
1999 1998 1999 1998
____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
REVENUES
Dividend income $ 707 $ 522 $ 1,606 $ 522
Interest income 87 95 159 945
Rock sales - - 504 780
Misc. other income 14 (31) 47 -
____________ ____________ ____________ ____________
Total Revenues 808 616 2,316 2,277
____________ ____________ ____________ ____________
EXPENSES
Wages and other
Compensation 2,130 1,875 4,727 4,710
Professional
Services 505 320 970 2,404
Rent & royalties 204 200 471 390
Office expense 155 227 155 349
Taxes and
Insurance 204 680 1,044 680
Miscellaneous 65 231 754 329
____________ ____________ ____________ ____________
Total Expenses 3,263 3,533 8,121 8,862
____________ ____________ ____________ ____________
INCOME (LOSS) BEFORE (2,455) (2,917) (5,805) (6,585)
INCOME TAXES
INCOME TAXES - - - -
____________ ____________ ____________ ____________
NET INCOME (LOSS) $ (2,455) $ (2,917) $ (5,805) $ (6,585)
============ ============ ============ ============
Income (Loss) per Share
Of Common Stock
Outstanding $ (0.0003) $ (0.0004) $ (0.0007) $ (0.0008)
============ ============ ============ ============
Weighted Average Number
Of Common Shares
Outstanding 7,828,748 7,828,748 7,828,748 7,828,748
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
SILVER BUTTE MINING COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
For the Six Months Ended February 28, 1999 and 1998
<TABLE>
Six Months Ended
______________________________
February 28, February 28,
1999 1998
____________ ____________
<C> <S> <S>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $ (5,805) $ (6,585)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Decrease in payables (41) (1,440)
Increase in prepaid expenses (331) (1,379)
Decrease in receivables 263 6
____________ ____________
Net cash used in
operating activities (5,914) (9,398)
____________ ____________
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (increase) in marketable
securities 7,395 (73,552)
____________ ____________
Net cash provided by (used in)
investing activities 7,395 (73,552)
____________ ____________
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 1,481 (82,950)
Cash and Cash Equivalents at Beginning
of Period 480 89,297
____________ ____________
Cash and Cash Equivalents at End of Period $ 1,961 $ 6,347
============ ============
Interest expense paid $ - $ -
============ ============
Income taxes paid $ - $ -
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
Document page 5 of 8
<PAGE>
SILVER BUTTE MINING COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
February 28, 1999
Note 1. Presentation of Interim Information
The accompanying unaudited condensed financial statements have been
prepared by Silver Butte Mining Company's management. In management's opinion,
these condensed financial statements include all normal adjustments considered
necessary to present fairly the financial position as of February 28, 1999, and
the results of operations for the three and six months ended February 28, 1999
and 1998, and cash flows for the six months ended February 28, 1999 and 1998.
Interim results are not necessarily indicative of results for a full year.
The condensed financial statements and notes are presented as permitted by Form
10-QSB, and do not contain certain information that is included in the Company's
annual financial statements.
Note 2. Company Business
The Company was incorporated under the laws of the State of Idaho on
January 19, 1965, and was in the exploratory mining stage from its inception
until it abandoned its status as a development stage enterprise by ceasing all
exploration activities in 1994. The company's exploration efforts developed no
commercial ore deposits, and all capitalized mining costs were written off. The
Company continues to search for business opportunities in the mining industry,
and will also investigate opportunities in other industries. The Company's
meager financial resources severely limit its ability to carry out the type of
exploration activity that it performed in past years, and the Company's
management considers it unlikely that the Company will obtain additional funding
with which to undertake such exploration.
Note 3. Commitments and Contingencies
The Company sold a seven acre parcel of land in the fiscal year ended
August 31, 1996 that contained mine waste rock and mill tailings. The
Company believes there is a remote possibility that this property may require
some cleanup, and an even more remote possibility that the Company may be
required to participate in the cost of such a cleanup, which the Company's
management estimates would be less than $10,000.
Document page 6 of 8
<PAGE>
SILVER BUTTE MINING COMPANY
FORM 10-QSB QUARTERLY REPORT
February 28, 1999
Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION
The Company was a mining company engaged in exploration activities from its
inception in 1965 through 1994. In 1994, the Company abandoned all exploration
activities, and is now seeking other business opportunities in mining or other
industries. The Company continues to hold and maintain the properties on which
it performed its exploration efforts. The Company's fiscal year ends on August
31.
Overview
The Company's management determined in 1994 that the Company did not have
the financial resources to continue to explore for a commercial ore deposit
after many years of unsuccessful efforts. The Company has performed some
reclamation work on its mining properties since 1994, and is soliciting buyers
for its remaining real estate and mining equipment. The Company is seeking out
other business opportunities. Management is unaware of any such opportunities
at this time and will disclose such opportunities when and if they should arise.
Results of Operations
Revenues. The Company's interest income decreased slightly, and the
Company's dividend income increased slightly for the quarter ended February 28,
1999, compared to the same period ended February 28, 1998. Interest income
decreased significantly and dividend increased significantly for the six months
ended February 28, 1999, compared to the same period ended February 28, 1998.
This was the result of management's decision to invest a significant portion of
the Company's funds in money market equity securities during the second quarter
ended February 28, 1998. There were no rock sales during the second quarters
ended February 28, 1999 or 1998, because of the seasonal nature of such sales.
Expenses. Professional services were lower in the six months ended
February 28, 1999, when compared to the same period for 1998, because
management required fewer services from outside consultants. Taxes and
insurance were higher in the first six months of 1999, than the first six months
of 1998, because of the additional costs of workers compensation insurance and
payroll taxes. Miscellaneous expenses, which include supplies used in
connection with the reclamation of the State lease, were higher in the first six
months of 1999, than the first six months of 1998, because of the Company's
efforts to complete the reclamation work by the end of calendar year 1998.
Financial Position. There was a decrease in marketable securities of $7,394 at
February 28, 1999, when compared to the balance at August 31, 1998, the previous
fiscal year end. Securities were sold to provide funds for administrative and
reclamation expenses, and to increase the cash balance at February 28, 1999.
There were no other remarkable changes in financial position during the first
quarter.
The Company may continue to sell marketable securities, if necessary,
during the balance of the fiscal year to provide cash for operating expenses.
Cash Flows. Cash and cash equivalents increased $1,481 during the three months
ended February 28, 1999. The net loss from operations was funded by the sale of
marketable securities as discussed above. The Company has no plans for capital
expenditures that will require significant amounts of cash.
Document page 7 of 8
<PAGE>
SILVER BUTTE MINING COMPANY
FORM 10-QSB QUARTERLY REPORT
February 28, 1999
Cash and cash equivalents decreased by $73,552 during the six months ended
February 28, 1998, as a result of investing in money market equity securities
during that period.
********************************************************************************
SIGNATURES
********************************************************************************
In accordance with section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SILVER BUTTE MINING COMPANY
(Registrant)
/s/ R. Richard Rice
_________________________ Date: April 14, 1999
R. Richard Rice
Title: President
(Principle Executive Officer and
Principle Accounting Officer)
Document page 8 of 8
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the issuer's
condensed financial statements at February 28, 1999 (Unaudited), and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> FEB-28-1998
<CASH> 1,961
<SECURITIES> 62,942
<RECEIVABLES> 828
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 71,574
<PP&E> 22,704
<DEPRECIATION> 19,704
<TOTAL-ASSETS> 74,574
<CURRENT-LIABILITIES> 2,619
<BONDS> 0
0
0
<COMMON> 391,437
<OTHER-SE> (319,482)
<TOTAL-LIABILITY-AND-EQUITY> 74,574
<SALES> 0
<TOTAL-REVENUES> 2,316
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 8,121
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (5,805)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,805)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,805)
<EPS-PRIMARY> (0.001)
<EPS-DILUTED> (0.001)
</TABLE>
