UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(MARK ONE)
|
ý |
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
|
|
|
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003. |
|
|
|
|
|
OR |
||
|
|
|
|
|
o |
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
|
|
|
|
|
|
FOR THE TRANSITION PERIOD FROM TO . |
COMMISSION FILE NUMBER 1-13627
APEX SILVER MINES LIMITED
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
|
CAYMAN ISLANDS, BRITISH WEST INDIES |
|
NOT APPLICABLE |
|
(STATE OR OTHER JURISDICTION OF |
|
(I.R.S. EMPLOYER |
|
|
|
|
|
WALKER HOUSE |
|
NOT APPLICABLE |
|
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) |
|
(ZIP CODE) |
|
|
|
|
|
(345) 949-0050 |
||
|
(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE) |
||
|
|
||
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS 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 ý NO o
INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS AN ACCELERATED FILER (AS DEFINED IN RULE 12B-2 OF THE EXCHANGE ACT): YES ý NO o
AT NOVMBER 7, 2003, 36,760,231 ORDINARY SHARES, $0.01 PAR VALUE PER SHARE, WERE ISSUED AND OUTSTANDING.
APEX SILVER MINES
LIMITED
FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 2003
INDEX
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
||
|
|
|
|
|
|
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK AND HEDGING ACTIVITIES |
||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
2
|
|
|
September 30, |
|
December 31, |
|
||
|
|
|
(Unaudited) |
|
|
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
41,919,388 |
|
$ |
44,145,593 |
|
|
Prepaid expenses and other assets |
|
1,504,477 |
|
670,724 |
|
||
|
Total current assets |
|
43,423,865 |
|
44,816,317 |
|
||
|
|
|
|
|
|
|
||
|
Property, plant and equipment (net) |
|
97,031,461 |
|
93,781,351 |
|
||
|
Value added tax recoverable |
|
5,221,026 |
|
5,205,157 |
|
||
|
Other non-current assets |
|
298,527 |
|
251,959 |
|
||
|
Total assets |
|
$ |
145,974,879 |
|
$ |
144,054,784 |
|
|
|
|
|
|
|
|
||
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Current liabilities |
|
|
|
|
|
||
|
Accounts payable and other accrued liabilities |
|
$ |
1,886,405 |
|
$ |
1,470,093 |
|
|
Current portion of notes payable |
|
— |
|
84,000 |
|
||
|
Total current liabilities |
|
1,886,405 |
|
1,554,093 |
|
||
|
|
|
|
|
|
|
||
|
Notes payable |
|
689,958 |
|
769,958 |
|
||
|
Commitments and contingencies (Note 6) |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
||
|
Shareholders’ equity |
|
|
|
|
|
||
|
Ordinary Shares, $.01 par value, 75,000,000 shares authorized; 36,738,205 and 36,268,317, shares issued and outstanding for respective periods |
|
367,382 |
|
362,683 |
|
||
|
Contributed surplus |
|
220,508,701 |
|
214,136,784 |
|
||
|
Accumulated deficit |
|
(77,477,567 |
) |
(72,768,734 |
) |
||
|
Total shareholders’ equity |
|
143,398,516 |
|
141,730,733 |
|
||
|
Total liabilities and shareholders’ equity |
|
$ |
145,974,879 |
|
$ |
144,054,784 |
|
The accompanying notes form an integral part of these consolidated financial statements.
3
APEX
SILVER MINES LIMITED
An Exploration and Development Stage Company
|
|
|
|
|
Nine
Months Ended |
|
For the
Period |
|
|||||||||
|
|
|
2003 |
|
2002 |
|
2003 |
|
2002 |
|
|
||||||
|
|
|
|
|
(Restated) (2) |
|
|
|
(Restated) (2) |
|
|
|
|||||
|
Income and expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest and other income |
|
$ |
104,141 |
|
$ |
198,399 |
|
$ |
432,007 |
|
$ |
657,379 |
|
$ |
14,151,910 |
|
|
Trading gain (loss) |
|
505,420 |
|
(298,728 |
) |
705,465 |
|
(208,523 |
) |
193,331 |
|
|||||
|
Exploration |
|
(637,855 |
) |
(1,466,383 |
) |
(2,192,092 |
) |
(2,807,680 |
) |
(62,349,096 |
) |
|||||
|
Administrative |
|
(916,947 |
) |
(829,519 |
) |
(3,627,670 |
) |
(4,336,939 |
) |
(32,910,721 |
) |
|||||
|
Amortization and depreciation |
|
(9,596 |
) |
(16,152 |
) |
(26,544 |
) |
(51,492 |
) |
(1,121,878 |
) |
|||||
|
Loss before minority interest |
|
(954,837 |
) |
(2,412,383 |
) |
(4,708,834 |
) |
(6,747,255 |
) |
(82,036,454 |
) |
|||||
|
Minority interest in loss of consolidated subsidiary |
|
— |
|
— |
|
— |
|
— |
|
4,558,886 |
|
|||||
|
Net loss for the period |
|
$ |
(954,837 |
) |
$ |
(2,412,383 |
) |
$ |
(4,708,834 |
) |
$ |
(6,747,255 |
) |
$ |
(77,477,568 |
) |
|
Net loss per Ordinary Share – basic and diluted (1) |
|
$ |
(0.03 |
) |
$ |
(0.07 |
) |
$ |
(0.13 |
) |
$ |
(0.19 |
) |
$ |
(2.81 |
) |
|
Weighted average Ordinary Shares outstanding |
|
36,658,117 |
|
35,976,222 |
|
36,502,367 |
|
35,785,050 |
|
27,538,069 |
|
|||||
(1) Diluted earnings per share were antidilutive for all periods presented.
(2) See Note 2 for discussion of restated amounts.
The accompanying notes form an integral part of these consolidated financial statements.
4
APEX
SILVER MINES LIMITED
An Exploration and Development Stage Company
|
|
|
|
|
For the Period |
|
|||||
|
|
|
2003 |
||||||||