Dass man es schon gewusst hat, zeugen die wechsel des Managements im August.
Neuer CEO:
http://biz.yahoo.com/bw/070716/20070716005103.html?.v=1
Neuer Vice und CFO:
http://biz.yahoo.com/bw/070813/20070813005364.html?.v=1
Und noch der Quarter Bericht ebenfalls vom August:
Form 10QSB for ATLAS MINING CO
14-Aug-2007
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD LOOKING STATEMENTS
This Form 10-QSB contains forward-looking statements, including statements regarding the expectations of future operations. For this purpose, any statements contained in this Form 10-QSB that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing words such as "may," "will," "expect," "believe," "anticipate," "estimate," or "continue" or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within the Company's control. These factors include, but are not limited to, economic conditions generally and in the industries in which the Company may participate, competition within the chosen industry, including competition from much larger competitors, technological advances, and the failure to successfully develop business relationships. In light of these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. This item should be read in conjunction with "Item 1. Consolidated Financial Statements" and other items contained elsewhere in this report.
OVERVIEW
We are a natural resources company engaged in the acquisition and exploration of our resource properties in the states of Idaho and Utah, and in New Foundland, Canada. We also provide contract mining services and specialized civil construction services for mine operators, exploration companies, and the construction and natural resource industries through our trade name "Atlas Fausett Contracting."
Our primary source of revenue is generated by our Atlas Fausett Contracting operations. However, we also have exploration targets and timber. As a result, we are providing management's discussion on our plan of operation.
Contract Mining
Our contract mining generates most of our revenues. This may decrease as we are able to increase operations on our owned properties, and we will adjust our resources accordingly. At this time, we anticipate that our contracting will remain a significant portion of our business.
Property Exploration
We intend to continue our exploration activities for halloysite clay and other minerals, and intend to acquire commercially feasible properties that can be put into production with minimal environmental problems and with limited financial resources. We do not intend to seek out and acquire other properties unless they fit into the parameters we have set. Further, we will limit our acquisitions based on our ability to conduct our feasibility surveys and other exploration work on these properties, and until we have been able to bring our existing acquisitions into an income generating stage.
In August 2001, we acquired the Dragon Mine in Juab, Utah and began our clay exploration. Our exploration and development expenses for the three month period ending June 30, 2007 and 2006 were $440,402 and $505,364, respectively, on the halloysite clay project.
The halloysite clay is considered a non-toxic material, and we feel we can produce a sellable product with minimal environmental consequences using proper containment and processing techniques. The intended processing will be the crushing, drying, and packaging of the product for shipment. In 2003, we completed diamond drilling programs to verify location of clay beds at the Dragon Mine. In 2006, we have continued our diamond drilling program. With that information, we have been able to formulate development and mining plans. During 2005 and 2006 we have worked to develop and bring the Dragon Mine into a production stage.
Our halloysite clay marketing efforts include contacting potential customers and distributors, which we have done. Each buyer may have different uses for the product and, therefore, the prices and quantities will vary as a result. The sale of product cannot be formalized until we have verified our ability to provide the quality and quantities as required by the potential buyers. From results of the product samples distributed, we have numberous potential buyer. In March 2006, we activated Nano Clay and Technologies, Inc., a wholly owned subsidiary, and hired Dr. Ronald Price as its President and Chief Executive Officer, to pursue these activities.
Until the Dragon Mine is producing in a profitable manner, we are not aggressively trying to develop other properties. However, it is our intent to look for other properties that can be acquired, developed, and mined with minimal costs, and environmental concerns.
We have a mining plan and reclamation bond approved by the proper state authorities, have filed and received Mine Safety and Health Administration (MSHA) registration, and county permitting where applicable. In the future, we may pursue additional acquisitions and exploration of other properties for metals and industrial minerals, development of which will require submission of new mining and reclamation plans to the proper state and federal authorities.
Timber
We will continue to harvest timber on our property. Timber harvesting will be dependent upon lumber prices and weather. We normally do not log much in the winter months.
RESULTS OF OPERATIONS
Revenues for the three month period ended June 30, 2007 were $2,158,250 and $767,097 for the same period ending June 30, 2006, or an increase of $1,391,153. Revenues for the six month period ended June 30, 2007 were $4,160,520 and $1,101,829 for the same period ended June 30, 2006, or an increase of $3,058,691. The main difference was caused by the increase in contracting revenues for both periods in 2007 as compared to the previous year.
Gross profit (loss) for the three month period ended June 30, 2007 was $1,037,838 compared to $240,971 for the same period ended June 30, 2006, a difference of $796,867. Gross profit (loss) for the six month period ended June 30, 2007 was $1,948,105 compared to $401,399 for the same period ended June 30, 2006, or an increase of 385%. This was due to the increased revenues for the periods ended June 30, 2007 over the same periods ended June 30, 2006.
Total operating expenses for the three month period ended June 30, 2007 were $933,588 compared to $764,297 for the same period ending June 30, 2006, or an increase of 22%. Total operating expenses for the six month period ended June 30, 2007 were $1,933,475 compared to $1,860,685 for the same period ended June 30, 2006. The increase is primarily attributed to the increase in mining production costs.
Our net profit (loss) for the three month period ended June 30, 2007 was $117,847 compared to ($525,987) for the same period ended June 30, 2006, or an increase of $643,834 (122%). For the six month period ended June 30, 2007, net profit (loss) was $52,235 compared to ($1,454,590) for the same period ending June 30, 2006, or a decrease of $1,506,825 (104%). The increase realized the period ended June 30, 2007 is due to a significant increase in contract mining revenues, coupled with a reduction in the cost of performing contract mining services.
LIQUIDITY AND CAPITAL RESOURCES
Through December 31, 2006, our activities had been financed primarily through the sale of equity securities and borrowings, coupled with revenues from Atlas Fausett Contracting and logging operations. During the six month period ended June 30, 2007, our activities have been primarily financed through contract mining activities, and sales of equity securities. We intend to continue pursuing contract mining work to help finance for our operations and provide for future growth. For the three month periods and the six month periods ended June 30, 2007 and June 30, 2006, contract mining accounted for 100% of the revenue. Our current asset and debt structure is explained below.
Our total assets as of June 30, 2007 were $6,819,776 compared to $4,309,881 as of December 31, 2006, or an increase of $2,509,895. For the six month period ended June 30, 2007, the Company has increased its current assets by $1,655,408, and increased its fixed assets by $898,708 through acquisitions of additional mining equipment and vehicles.
Total liabilities were $1,014,503 as of June 30, 2007, compared to $855,089 as of December 31, 2006. The Company acquired mining equipment during the period ended June 30, 2007 to facilitate increased contract mining activities. The following debts are still outstanding:
· We have a note payable for equipment due in monthly installments of $2,135, including interest of 9.75%, with a balance of $20,422.
· We have a note payable for equipment due in monthly installments of $1,605, including interest of 5.41%, with a balance of $36,434.
· We have a note payable for equipment due in monthly installments of $676, including interest of 1.35%, with a balance of $8,068.
· We have a note payable for equipment due in annual installments of $15,573, including interest of 5%, with a balance of $61,225.
· We have a note payable for equipment due in monthly installments of $479, including interest of 0%, with a balance of $12,945.
· We have a note payable for a vehicle due in monthly installments of $688, including interest of 7.59%, with a balance of $26,847.
· We have a note payable for property with mineral rights due in annual installments ranging between $15,000 to $54,000 with a balance of $83,796.
· We have a note payable for equipment due in monthly installments of $3,518, including interest of 22.66%, with a balance of $120,959.
· We have a note payable for equipment due in monthly installments of $1,075, including interest of 0%, with a balance of $35,487.
· We have a note payable for equipment due in monthly installments of $1,632, including interest of 3%, with a balance of $88,019.
· We have a note payable to an insurance company for insurance premiums with a balance of $2,801.
· We have two capital leases payable for equipment at an aggregate monthly payment totaling $4,493 with a balance of $38,673.
· Current liabilities including accounts payable and accrued expenses due as of June 30, 2007 were $485,193 and are the result of daily operations and accrued taxes. We also carry a liability of $50,307 to the minority interest in a subsidiary.
If we do not reduce our debts, we would be obligated to pay an average of $19,874 per month or $238,491 for the next twelve months.
Our principal sources of cash flow during the first six months of 2007 was from contracting activities which provided an average of $693,420 per month for the six month period ended June 30, 2007, and averaged $183,638 per month for the same period in 2006. In addition, we rely on our credit facilities and public or private sales of equity for additional cash flow.
Cash flow from financing activities for the six month period ended June 30, 2007 was $2,195,131 compared to $1,029,516 for the same period in 2006, a difference of $1,165,615. The major factor for the difference was receipt of proceeds from issuance of common stock in January 2007.
The Company used $1,068,648 from investing activities for the six month period ended June 30, 2007, compared to using $807,315 in the same period in 2006, a difference of $261,333. This was attributed to purchases of more equipment in the period ended June 30, 2007 compared to the same period in 2006.
Cash flows provided by (used by) operating activities for the six month period ended June 30, 2007 was $167,425 compared to ($1,394,320) for the same period in 2006, a difference of $1,561,745. In the six month period in 2007, we had net income after income taxes, as compared to a net loss after income taxes for the same period ended in 2006.
OFF-BALANCE SHEET ARRANGEMENTS
There are no off-balance sheet arrangements between the Company and any other entity that have, or are reasonable likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors.
