Da geht kaum was weiter beim Clay und der wäre der definitive Geldbringer...
Jetzt drillen sie mit der eigenen Firma ihre eigenen Gebiete.
Auch Ausfälle beim Einkommen.
Vielleicht ist schon wieder wo timber nachgewachsen.... 
Form 10QSB for ATLAS MINING CO
15-May-2007
Quarterly Report
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
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 more than 99% 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 a 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 period ending March 31, 2007 and 2006 were $481,868 and $610,767 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 and 2006 we completed diamond drilling programs to verify location of clay beds at the Dragon Mine. With that information we have been able to formulate development and mining plans.
During 2005 we worked to develop and bring the Dragon Mine into the production stage.
Our halloysite clay marketing efforts include contacting potential customers and distributors, which we have done. Each buyer may have a different use for the product and the price and quantity 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 numerous potential buyers. In March 2006 we activated Nano Clay and Technologies, Inc., a wholly owned subsidiary, and hired Dr. Ron 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 problems.
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 ending March 31, 2007 were $2,002,270 and $334,710 for the same period ending March 31, 2006, or an increase of 498%. The difference was caused by the increase in contracting revenues of $1,667,560 for this period compared to the previous year.
Gross profit (loss) for the three month period ending March 31, 2007 was $910,267 compared to $160,429 for the same period ending March 31, 2006, a difference of $749,838. This was due to increased contracting revenues for the three month period ending March 31, 2007 over the same period ended March 31, 2006.
Total operating expenses for the three month period ending March 31, 2007 was $999,427 compared to $1,096,389 for the same period ending March 31, 2006 or a decrease of 9%. Although the company recognized less administrative costs and exploration and development costs in the period ended March 31, 2007 compared to the same period ended March 31, 2006, more mining production costs were incurred.
Our net profit (loss) for the three month period ending March 31, 2007 was $(65,612) compared to $(928,603) for the same period ending March 31, 2006, or a decrease of 93%. As previously mentioned, the company experienced significant increases in contracting revenues during the first quarter ended March 31, 2007 as compared to the same period ending March 31, 2006.
LIQUIDITY AND CAPITAL RESOURCES
To date our activities have been financed primarily through the sale of equity securities, borrowings, and revenues from Atlas Fausett Contracting. We intend to continue pursuing contract mining work and logging of our timber properties to help pay for our operations. For the three month periods ended March 31, 2007 and March 31, 2006 contract mining accounted for 100% of the revenue. Our current asset and debt structure is explained below.
Our total assets as of March 31, 2007 were $6,673,536 compared to $4,309,881 as of December 31, 2006, or an increase of $2,363,655. For the three month period ended March 31, 2007 the company has increased its current assets by $1,951,396, and its fixed assets by $442,468 through acquisitions of additional equipment for mining and milling operations.
Total liabilities were $1,045,874 as of March 31, 2007, compared to $907,376 as of December 31, 2006. The following debts are still outstanding;
º We have a note payable to a leasing company for a piece of equipment with a $26,233 balance with payments of $2,135 per month at 9.75% interest and maturing in March 2008.
º We have a note payable to a leasing company for equipment with a $40,718 balance with monthly installments of $1,605 at 5.41% interest and maturing in May 2009.
º We have a note payable to a leasing company for the acquisition of equipment with a $10,073 balance and monthly payments of $676 at 1.35% interest, maturing in June 2008.
º We have a note payable to a leasing company for the acquisition of equipment with a $61,225 balance and monthly payments of $15,573 at 5% interest and maturing in August 11.
º We have a note payable to a lending company for the acquisition of equipment with a $14,383 balance and monthly payments of $479 at 0% interest and maturing in December 2008.
º We have a note payable to a lending company for the acquisition of equipment with a $22,146 balance and monthly payments of $688 at 7.59% interest and maturing in March 2010.
º We have a note payable to a private party with a $100,677 balance due in annual installments of between $15,000 to $54,000 with an interest rate of 0%. The note matures in April 2009.
º We have a note payable to a company with a $124,526 balance due in monthly installments of $3,518 at 22.66% interest and maturing in February 2012.
º We have a note payable to a company with a $38,713 balance due in monthly installments of $1,075 at 0% interest and maturing in March 2010.
º We have a note payable to an insurance company with a $35,115 balance due in monthly installments of $12,767 at 8.85% interest and maturing in July 2007.
Accounts payable and accrued expenses due as of March 31, 2007 were $448,404 and are the result of daily operations and accrued taxes. We also carry a liability of $52,289 to the minority interest in a subsidiary.
If we do not reduce our debts, we would be obligated to pay an average of $60,386 per month or $672,348 for the next fiscal year.
Our principal sources of cash flow during the first quarter 2007 was from contracting activities which provided an average of $667,423 per month for the three month period ended March 31, 2007, and averaged $111,570 per month for the same period in 2006. In addition, we rely on our credit facilities and any public or private sales of equity for additional cash flow.
Cash flow from financing activities for the three month period ended March 31, 2007 was $2,200,480 compared to $93,258 for the same period in 2006, a difference of $2,107,222. The major factor for the difference was receipt of proceeds from issuance of common stock in 2007.
The Company used $537,094 from investing activities for the three month period ended March 31, 2007, compared to using $210,321 in the same period in 2006, a difference of $326,773. This was attributed to purchases of more equipment in the period ended March 31, 2007 compared to the same period in 2006.
Cash flow used by operating activities for the three month period ended March 31, 2007, was ($62,216) compared to ($902,913) for the same period in 2006, a difference of $840,697. In the three month period in 2007 net losses was markedly lower than the same period in 2006.
