SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2001
NEW JERSEY MINING COMPANY
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(Name of small business issuer in its charter)
IDAHO 82-0490295
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(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
P.O. Box 1019 (Street: 89 Appleberg Road)
Kellogg, Idaho 83837
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(Address of principal executive offices) (Zip Code)
(208)783-3331
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Issuer's telephone number
Securities registered under Section 12(b) of the Act: None
Common OTCBB
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Title of each class Name of each exchange on which registered
Securities registered under Section 12(g) of the Act:
Common Stock- No Par Value
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Title of Class
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 XX No .
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The number of outstanding shares of the registrant's common stock at
October 11, 2001 was 12,947,240 shares
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TABLE OF CONTENTS
Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements 2
Item 2. Management's Discussion and Analysis 2
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 3
Item 2. Changes in Securities 3
Item 3. Defaults Upon Senior Securities 3
Item 4. Submission of Matters to a Vote of Security Holders 3
Item 5. Other Information 3
Item 6. Exhibits and Reports on Form 8-K 3
PART I
ITEM 1.
FINANCIAL STATEMENTS
The unaudited financial statements of the Company for the periods covered by
this report are included elsewhere in this report, beginning at page F/S-1.
The unaudited financial statements have been prepared by the Company in
accordance with generally accepted accounting principles for interim financial
information with the instructions to Form 10-QSB and Item 310(b) of Regulation
S-B. 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 the Company's management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the nine month period
ended September 30, 2001 are not necessarily indicative of the results that
may be expected for the full year ending December 31, 2001.
For further information refer to the financial statements and footnotes
thereto in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 2000 incorporated by reference herein.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Cash decreased to $493 for the current quarter compared to $1,722 at the end
of the last fiscal year and $1,831 for the quarter ending September 30, 2000.
Capital lease obligations declined from $13,450 one year ago to $8,919 in the
current quarter because of lease payments made. During the quarter a
royalty-work commitment for the Silver Strand mine was transferred from Trend
Mining Co. to an affiliate, thus reducing any future potential problems with
meeting the work commitments. Also, the Company acquired the Roughwater
copper-gold-PGE property through an exchange of stock.
The Company currently leases the New Jersey mill and mine facilities to the
largest shareholder. Should gold and silver prices rise from the current low
levels, the Company may be able to resume financing activities. The Company
would be able to end the lease arrangement with the current lessee and resume
construction of the mineral processing plant, exploration, and mining
activities. It is planned to meet cash requirements in the foreseeable future
from royalty payments by the lessee and monthly payments due from the lessee
of the CAMP project.
The company is involved in exploring for and developing gold, silver and base
metal ore resources in the Coeur d'Alene Mining District and nearby areas of
northern Idaho. The Company has a portfolio of six mineral properties: the
New Jersey mine, the Silver Strand mine, the Lost Eagle project, the CAMP
project, the Wisconsin-Teddy project and the Roughwater project. The New
Jersey mine and the Silver Strand mine are the Company's development stage
properties while the other four properties are exploration stage properties.
For a more complete description of the Company's properties refer to the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2000.
PART II
ITEM 1.
LEGAL PROCEEDINGS
The Company is not currently involved in any legal proceedings and is not
aware of any pending or potential legal actions.
ITEM 2.
CHANGES IN SECURITIES
Neither the constituent instruments defining the rights of the registrant's
security holders nor the rights evidenced by the registrant's outstanding
common stock have been modified, limited or qualified.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
The registrant has no outstanding senior securities.
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of the registrant's security holders
during the period covered by this report.
ITEM 5.
OTHER INFORMATION
None.
ITEM 6.
EXHIBITS AND REPORTS ON FORM 8-K
Exhibits
None
Reports on Form 8-K
No reports on Form 8-K were filed by the registrant during the period covered
by this report.
NEW JERSEY MINING COMPANY
INDEX TO FINANCIAL STATEMENTS
Page
Balance Sheets as of September 30, 2001 and September 30, 2000. F/S-1
Statements of Operations for the nine months ended
September 30, 2001 and 2000. F/S-2
Statements of Cash Flow for the nine months ended
September 30, 2001 and 2000. F/S-3
Notes to Interim Financial Statements F/S-4
NEW JERSEY MINING COMPANY
(A Development Stage Company)
BALANCE SHEET
ASSETS
Sept 30 Sept 30
2001 2000
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Current Assets
Cash $ 493 $ 1,831
Property & Equipment
Building $ 33,894 $ 33,894
Equipment $246,536 $246,536
Other Assets
Deferred Development
Costs $ 80,881 $ 80,881
Investment in Consil
Corporation $ 3,000 $ 8,000
Investment in Silver
Strand $ 74,704
Mining Reclamation Bond $ 2,196 $ 2,073
Goodwill $ 30,950 $ 30,950
Total Assets $472,654 $404,165
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
Accounts Payable &
accrued expenses $ 0 $ 0
Current Maturities of
Capital Lease Obligations $ 4,245 $ 4,964
Total Current Liabilities $ 4,245 $ 4,964
Capital Lease Obligations
(less current maturities) $ 4,674 $ 8,486
Total Liabilities $ 8,919 $ 13,450
Stockholders Equity
Preferred Stock
No shares issued
Common Stock
No Par Value, 20,000,000 shares authorized
2001 Sept 30, 2001
14,894,984 Issued $ 720,899
2000 Sept 30, 2000
13,545,334 Issued $ 647,836
Treasury Stock $(136,300) $(136,300)
(1,947,744 shares)
Retained Earnings $ (44,229) $ (23,738)
Deficit Accumulated in
the Development Stage $ (74,879) $ (74,879)
Net Income $ (1,756) $ (22,204)
Total Stockholders Equity $ 463,735 $ 390,715
Total Liabilities and
Stockholders Equity $ 472,654 $ 404,165
F/S-1
STATEMENT OF OPERATIONS
Sept 30 Sept 30
2001 2000
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Revenues $ 1,847 $(15,031)
Operating and Administrative Expenses $ 3,603 $ (7,173)
Net Income from Operations(Loss) $ (1,756) $(22,204)
Loss on Devaluation of Investments $ -0- $ -0-
Net Gain (Loss) $ (1,756) $(22,204)
Basic Earnings (Loss) Per Share $ (0.000) $(0.002)
F/S-2
STATEMENT OF CASH FLOWS
Sept 30 Sept 30
2001 2000
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INCREASE (DECREASE) IN CASH
Cash Flows From Operating Activities
Net Income (Loss) $ (1,756) $(22,204)
Adjustment to reconcile net loss
to net cash used in Operating Activities:
Capital Loss on sale of stock $ 2,608 $ 22,414
Decrease in accounts payable
and accrued expenses $ 0 $ 0
Net cash from operating
activities $ 852 $ 210
Cash Flows From Investing Activities
Proceeds from sale of
investments $ 1,392 $ 7,586
Increase in Reclamation Bond $ (123) $ (351)
Net cash from investing
activities $ 1,269 $ 7,235
Cash Flows From Financing Activities
Principal payments on capital
lease obligations $ (3,400) $ (5,896)
Net cash provided by
financing activities $ (3,400) $ (5,896)
Net Increase (Decrease) in Cash $ (1,279) $ 1,549
Cash, Beginning of Year $ 1,772 $ 282
Cash, End of 3rd Quarter $ 493 $ 1,831
F/S-3
NEW JERSEY MINING COMPANY
NOTES TO INTERIM FINANCIAL STATEMENTS - UNAUDITED
These unaudited financial statements have been prepared by the Company in
accordance with generally accepted accounting principles for interim financial
information with the instructions to Form 10-QSB and Item 310(b) of Regulation
S-B. 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 the Company's management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the nine month period
ended September 30, 2001 are not necessarily indicative of the results that
may be expected for the full year ending December 31, 2001. For further
information refer to the financials statements and footnotes thereto in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2000
incorporated by reference herein.
Note 1 - Form and Organization
New Jersey Mining Company (the company) is a corporation organized under the
laws of the State of Idaho on July 18, 1996. The Company was dormant until
December 31,1996, when all of the assets and liabilities of the New Jersey
Joint Venture (a partnership) were transferred to the Company in exchange for
10,000,000 shares of common stock. The New Jersey Joint Venture, a
partnership, was formed in 1994 to develop the New Jersey mine.
Note 2 - Leases of Mining Claims
The Company has been assigned mining leases with Gold Run Gulch Mining Company
and William Zanetti. The leases provide for the Company's exploration,
development and mining of minerals on patented and unpatented claims through
October 2008 and thereafter as long as mining operations are deemed
continuous. The leases provide for production royalties of 5% of net sales of
ores or concentrates. Additional production royalties of 1% to 5% are due if
gold exceeds $578 per troy ounce. Also, annual advance royalties totaling
$2,900 are required under the leases. The advance royalties, charged to
expenses as incurred, are accumulated and will be credited against the
production royalty obligations. The lesser may terminate the leases upon the
Company's failure to perform under these terms of the leases. The Company may
also terminate the leases at any time. Mine Systems Design, Inc., the
majority shareholder of New Jersey Mining Company - 66.6%, has agreed to
fulfill all mineral lease requirements necessary for mineral lease permits.
F/S-4
SIGNATURES
In accordance with the requirements of the Exchange Act, this report has
been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
New Jersey Mining Company
Date: November 5, 2001 By /s/ FRED W. BRACKEBUSCH
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Fred W. Brackebusch, President,
Treasurer & Director
Date: November 5, 2001 By /s/ GRANT A. BRACKEBUSCH
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Grant A. Brackebusch, Vice President &
Director