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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 November 30, 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 (X) No ( )
The number of shares of Common Stock, $.05 par value, outstanding as
of November 30, 1999, was 7,828,748.
DOCUMENTS INCORPORATED BY REFERENCE: NONE
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
November 30, 1999
INDEX
Page
Number
Part I - FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
Balance Sheets, November 30, 1999, and August 31, 1999 3
Income statements for the three months
ended November 30, 1999, and 1998 4
Cash Flow Statements for the three months ended
November 30, 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
Signature Page 8
Document page 2 of 8
<PAGE>
SILVER BUTTE MINING COMPANY
CONDENSED BALANCE SHEETS
November 30, 1999 and August 31, 1999
<TABLE>
November 30, August 31,
1999 1999
____________ ____________
<C> <S> <S>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,940 $ 1,893
Certificate of deposit for State lease 5,000 5,000
Marketable securities 65,343 64,521
Accounts receivable 829 829
Prepaid expenses 492 667
____________ ____________
TOTAL CURRENT ASSETS 73,604 72,910
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 $ 76,604 $ 75,910
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,434 $ 2,283
____________ ____________
TOTAL CURRENT LIABILITIES 2,434 2,283
____________ ____________
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 (710,220) (710,763)
____________ ____________
TOTAL SHAREHOLDERS' EQUITY 74,170 73,627
____________ ____________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 76,604 $ 75,910
============ ============
</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 Months Ended November 30, 1999 and 1998
<TABLE>
Three Months Ended
__________________________
November 30, November 30,
1999 1998
____________ ____________
<S> <C> <C>
REVENUES
Dividend income $ 822 $ 899
Interest income 68 72
Rock sales - 504
Misc. other income - 33
____________ ____________
Total Revenues 890 1,508
____________ ____________
EXPENSES
Wages and other
compensation - 2,598
Professional
services 120 465
Taxes and insurance - 839
Rent 175 267
Office expense 48 -
Miscellaneous 4 689
____________ ____________
Total Expenses 347 4,858
____________ ____________
INCOME (LOSS) BEFORE 543 (3,350)
INCOME TAXES
INCOME TAXES - -
____________ ____________
NET INCOME (LOSS) $ 543 $ (3,350)
============ ============
Income (Loss) per Share
Of Common Stock
Outstanding $ 0.0001 $ (0.0004)
============ ============
Weighted Average Number
Of Common Shares
Outstanding 7,828,748 7,828,748
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
Document page 4 of 8
4
<PAGE>
SILVER BUTTE MINING COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
For the Three Months Ended November 30, 1999 and 1998
<TABLE>
Three Months Ended
______________________________
November 30, November 30,
1999 1998
____________ ____________
<C> <S> <S>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ 543 $ (3,350)
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Increase in payables 151 2,486
Decrease in prepaid expenses 175 328
Increase in receivables - (242)
____________ ____________
Net cash provided by (used in)
operating activities 869 (778)
____________ ____________
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (increase) in marketable
securities (882) 1,101
____________ ____________
Net cash provided by (used in)
investing activities (882) 1,101
____________ ____________
NET INCREASE IN
CASH AND CASH EQUIVALENTS 47 323
Cash and Cash Equivalents at Beginning
of Period 1,893 480
____________ ____________
Cash and Cash Equivalents at End of Period $ 1,940 $ 803
============ ============
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
November 30, 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 November 30, 1999, and
the results of operations for the three months ended November 30, 1999 and 1998,
and cash flows for the three months ended November 30, 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
decided to abandon 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
November 30, 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 dividend and interest income decreased slightly for the
quarter ended November 30, 1999, compared to the same period ended November 30,
1998.
The Company made no waste rock sales and had no miscellaneous other income in
the quarter ended November 30, 1999, whereas these items accounted for $537 in
the quarter ended November 30, 1998. The Company will continue to solicit
buyers for its waste rock.
EXPENSES. Expenses were considerably lower in the quarter ended November 30,
1999, when compared to the quarter ended November 30, 1998. No expenses were
incurred in the most recent period for wages and other compensation, and for
taxes and insurance. And an insignificant amount of miscellaneous expenses
were incurred in the quarter ended November 30, 1999. This was the result of
the completion of most of the labor intensive reclamation work on the Company's
properties in prior periods, and a temporary suspension of activities by the
Company's management. The Company will perform limited reclamation work on its
properties during the remainder of the year, and the Company's management will
begin actively seeking out other business opportunities. These activities are
expected to increase expenses significantly in the remaining quarters of the
year compared to the quarter ended November 30, 1999.
FINANCIAL POSITION. There were very little changes in the Company's assets and
liabilities in the quarter ended November 30, 1999, compared to the fiscal year
ended August 31, 1999. This was the result of the temporary suspension of
activities discussed above. The Company's management expects to sell marketable
securities during the balance of the fiscal year to provide cash for operating
expenses.
Document page 7 of 8
<PAGE>
SILVER BUTTE MINING COMPANY
FORM 10-QSB QUARTERLY REPORT
November 30, 1999
CASH FLOWS. Cash and cash equivalents were substantially unchanged during the
quarter ended November 30, 1999, compared to the fiscal year ended August 31,
1999. The dividend income for the quarter was reinvested in marketable
securities, and expenses were incurred by an increase in payables and a decrease
in prepaid expenses. The Company's management plans to use cash provided by the
sale of marketable securities to fund operations during the remaining quarters
of the fiscal year. The Company has no plans for capital expenditures that will
require significant amounts of cash.
There was a modest increase in cash and cash equivalents during the quarter
ended November 30, 1998, as a result of management's decision to maintain a
higher bank account balance.
SIGNATURE
In accordance with the requirements 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
Date: January 12, 2000 /s/ R. Richard Rice
--------------------------------------
R. Richard Rice, President
(Principal Executive Officer and
Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements at November 30, 1999 (Unaudited) and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-2000
<PERIOD-END> NOV-30-1999
<CASH> 1,940
<SECURITIES> 65,343
<RECEIVABLES> 829
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 73,604
<PP&E> 22,704
<DEPRECIATION> 19,704
<TOTAL-ASSETS> 76,604
<CURRENT-LIABILITIES> 2,434
<BONDS> 0
0
0
<COMMON> 391,437
<OTHER-SE> (317,267)
<TOTAL-LIABILITY-AND-EQUITY> 76,604
<SALES> 0
<TOTAL-REVENUES> 890
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 347
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 543
<INCOME-TAX> 0
<INCOME-CONTINUING> 543
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 543
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>
