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 -------------------------- (Name of small business issuer in its charter) IDAHO 82-0490295 --------------------------- ----------------------------------- (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 ------------------------------------------- ----------- (Address of principal executive offices) (Zip Code) (208)783-3331 --------------------------- Issuer's telephone number Securities registered under Section 12(b) of the Act: None Common OTCBB ------------------- ------------------------------ 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 -------------------------- 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 . ------ ------ The number of outstanding shares of the registrant's common stock at October 11, 2001 was 12,947,240 shares -----------------
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 <TABLE> NEW JERSEY MINING COMPANY (A Development Stage Company) BALANCE SHEET ASSETS Sept 30 Sept 30 2001 2000 -------- --------- <S> <C> <C> 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 </TABLE> <TABLE> LIABILITIES AND STOCKHOLDERS EQUITY <S> <C> <C> 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 </TABLE> F/S-1
<TABLE> STATEMENT OF OPERATIONS Sept 30 Sept 30 2001 2000 -------- ------- <S> <C> <C> 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) </TABLE> F/S-2
<TABLE> STATEMENT OF CASH FLOWS Sept 30 Sept 30 2001 2000 -------- ------- <S> <C> <C> 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
</TABLE> 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 ----------------- --------------------------------- Fred W. Brackebusch, President, Treasurer & Director Date: November 5, 2001 By /s/ GRANT A. BRACKEBUSCH ------------------ --------------------------------- Grant A. Brackebusch, Vice President & Director