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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended May 31, 1997 Commission file Number 1-7602
EXCALIBUR INDUSTRIES
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Utah 87-0292122
- ------------------------------- ----------------------
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification Number)
P. O. Box 1474 Moab, Utah 84532
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 801-259-7896
------------
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of each exchange on which registered
----------------------- -----------------------------------------
Common stock (Par value
$.01 per share) None
Securities registered pursuant to Section 12(g) of the Act:
None
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
requirement for the past 90 days.
Yes X No
State the aggregate market value of the voting stock held by non-affiliates of
the registrant. The aggregate market value shall be computed by reference to the
price at which the stock was sold, or the average bid and asked prices of such
stock, as of a specified date within 60 days prior to the date of filing. As of
May 31, 1997, no bid or asked prices are available.
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date. As of May 31, 1997, the
registrant had total outstanding shares of 5,987,361, $0.01 par value common
stock.
-1-
EXCALIBUR INDUSTRIES
FORM 10-K
PART I
ITEM 1 - Business
- -----------------
Excalibur Industries is a Utah corporation formed by the consolidation of Tower
Enterprises (formerly Moab Uranium Company) and The Thrifty Helper on June 1,
1971. In January 1972, Excalibur purchased all of the issued and outstanding
shares of capital stock of Mountain West Mines, Inc., a Nevada corporation,
which is now a wholly owned subsidiary of Excalibur.
Excalibur Industries' business is natural resources and is primarily involved in
the uranium mining industry. The domestic uranium outlook is suffering its most
depressed state in its history. Current open market prices for yellow cake are
at all time lows and uranium production in the United States has all but
disappeared. The majority of the major mines and their United States producers
have closed and abandoned the industry. Excalibur throughout this period has
been able to maintain its royalty position in the most valuable of its uranium
reserves located in the Powder River District of Wyoming.
With the limited resources available to Excalibur, it is not in a position to
actively participate in a mining program and must rely on its lease owners and
an improved market.
URANIUM REPORT
POWDER RIVER BASIN-WYOMING
- --------------------------
A. Pathfinder Mines Corp. (Parent Company COGEMA-France)
Pathfinder is one of the few moderately active in the United States uranium
industry and represents the most promising of Excalibur's lessees for a
possible near-term mining operation. Pathfinder currently holds two
projects in which Excalibur retains royalty interests: (1) North Butte and
Greasewood Creek, and (2) Brown-TVA.
(1) North Butte-Greasewood Creek
Excalibur retains a 4% yellow cake royalty of which some $1,300,000 advance
royalty has been paid. This royalty credit is restricted to these two
deposits and only a minor production payment has been made. Excalibur
retains the right of reassignment. Pathfinder has prepared the North Butte
deposit for a solution mining program. State and Federal E. P. A. permits
have been secured and an engineering feasibility study completed. No start
up date has been announced.
Patented Cut-Off Average In Place
Deposit Area Claims Thick-Grade Grade % Lbs. U308
---------------- -------- ----------- ------- -----------
Greasewood Creek 36 2.0' - .05% 0.11% 3,400,000
North Butte 49 6.0' - .10% 0.20% ll,000,000
(2) Brown-TVA
Excalibur retains a 2 1/2% yellow cake royalty on a portion of a deposit
that extends beyond North Butte's claim boundaries. This uranium reserve is
a geological extension of the North Butte deposit and will add
significantly to the poundage of the overall project.
B. Power Resources, Inc. (Parent Company-Central Electricity Generating Board-
England, subsequently reported purchased by CAMECO Corporation of
Saskatoon, Saskatchewan, Canada).
Power Resources has been acquiring uranium properties in the Powder River
Basin, most notably the formerly Exxon- Highland Mine. Power Resources is
currently producing uranium from the Highland project. Power Resources has
challenged Excalibur's royalty position. Hopefully, this will not require a
judicial resolution.
-2-
EXCALIBUR INDUSTRIES FORM 10-K
PART I
POWDER RIVER BASIN-WYOMING (Continued)
- --------------------------------------
Excalibur's North Bing and Four Mile deposits are under lease to Power
Resources and are designated as the Ruby Ranch project. Excalibur retains a
4% yellow cake royalty with the right of reassignment.
Power Resources has conducted hydrological well monitoring studies on the
Four Mile deposit. Production activity is not expected in the near future.
The Ruby Ranch project area has approximately 3,800 acres and several
million pounds of reserves.
C. Quivira Mining Company (Parent Company Rio Algom - Canada)
Rio Algom is recognized as a world-class producer of uranium and has
respected engineering expertise in uranium property development. Quivira
Mining Co. acquired several claim blocks totaling some 5,000 acres. Each of
these claim blocks have established uranium occurrences but none have been
subjected to extensive drilling evaluation.
Excalibur retains a variable overriding royalty which ranges from 2% to 6%
yellow cake with the right of reassignment. Quivira has performed necessary
assignment requirements and no development project has been announced.
D. Other uranium properties held by Mountain West and/or Excalibur are not
considered by Management to be significant. They are under lease to others
and no production royalties are being received and no minimum payments are
required of Lessees.
SILVER REPORT
Excalibur owns approximately 162 acres of patented lode mining claims in Ouray
County, Colorado.
REAL ESTATE
The Moab real estate held by the Corporation has been utilized by the
Corporation for office space and as a storage facility. On June 30, 1993 this
Moab real estate was sold.
BUSINESS
Excalibur is natural resource oriented. In the past its activities have
consisted of acquisition and sale of mineral properties. The Corporation's
resources are extremely limited for a corporation of this character. Under the
present depressed market conditions it has no alternative but to await a change.
At the present time the corporation is inactive, except for overseeing it's
leases and maintaining corporate viability.
ITEM 2 - Properties
- -------------------
Mountain West Mines, Inc. (Mountain West) a wholly owned subsidiary of
Excalibur, owns a royalty interest in approximately 85 patented lode mining
claims, and 8 unpatented lode mining claims in the Powder River Basin in Johnson
and Campbell Counties, Wyoming. These properties had capitalized costs of
-3-
EXCALIBUR INDUSTRIES
FORM 10-K
PART I
ITEM 2 - Properties (Continued)
- -------------------------------
$347,032, and are directly related to the advance royalties received from Cliffs
as described in Item 1 of this Form 10-K. The extent of any ore bodies and
related possible production royalties is not determinable at this time. The
Board of Directors had determined, however, that a more realistic value should
be placed on the books for financial reporting and elected to reduce the
reported value for financial statement purposes to $100,000.
In January 1987, Cleveland-Cliffs offered at public sale the 85 patented claims
known as the North Butte and Greasewood Creek Deposits for $3,000,000. On April
7, 1987 Uranerz, U.S.A., a Colorado corporation based in Denver, purchased the
claim blocks along with the remaining portion of Mountain West Mines Inc.
advance royalty credit.
North Butte Deposit Area
------------------------
Pfister Patent - 49-77-0019 222.420 acres
Brown Patent - 49-77-0022 730.016 acres
-------
952.436 acres
Surface acres included with mineral acres 309.000 acres
Greasewood Creek Deposit Area
-----------------------------
Greasewood Creek Patent - 49-75-0068 646.596 acres
Surface acres 0.000 acres
In May 1991, Pathfinder Mines, Inc., subsidiary of COGEMA-France, purchased the
85 patent claim block from Uranerz, U.S.A. Excalibur retains a 4% yellow cake
royalty of which approximately $1,300,000 has been paid as an advance royalty
payment and represents a credit restricted to future production from the 85
claim block. Right of reassignment is also retained.
In May, 1986, Cliffs conveyed to Central Electricity Generating Board
Exploration, Inc., who then conveyed to Power Resources, Inc., its wholly owned
subsidiary, 800 Werner Court, Suite 230, Casper, Wyoming 82601, 63.688 acres of
patented claims and 12 unpatented lode mining claims, subject to Mountain West
Mines, Inc.,'s 4% earned royalty and right of reassignment.
In July, 1983, Cliffs quitclaimed 436 unpatented lode mining claims and 1,042
net acres of fee mineral leases to Texas Eastern Nuclear, Inc. of Houston,
Texas. In August, 1986, Texas Eastern Nuclear, Inc. reassigned said properties
to Mountain West, who, in turn, conveyed and assigned its interest in said
property to Everest Minerals, subject to a variable overriding royalty
reservation which ranges from 2 to 6%. Everest Minerals determined to abandon a
portion of the property and offered to reconvey it to Mountain West. Mountain
West has since abandoned said property.
On June 28, 1990, Everest Minerals sold the remaining 270 claims to Quivira
Mining Company, 6305 Waterford Boulevard, Suite 325, Oklahoma City, Oklahoma
73ll8, a subsidiary of Rio Algom Ltd., a Canadian based world producer of
uranium and other metals. Excalibur retains the right of reassignment along with
a variable overriding yellow cake royalty reservation of 2% to 6%.
As the result of a compromise and settlement with Utah International (now
Pathfinder), the Company has a 4% yellow cake royalty in 393 claims and the
right to the return of the claims in the event Utah International (Pathfinder)
elects to abandon the property. Seventy-five of these claims were recently
transferred to Uranerz, U.S.A. by Pathfinder.
-4-
EXCALIBUR INDUSTRIES
FORM 10-K
PART I
ITEM 2 - Properties (Continued)
- -------------------------------
On August 5, 1991, Pathfinder Mines, Inc., 255 Glendale Avenue, Suite 26,
Sparks, Nevada 89431, a subsidiary of COGEMA-France, abandoned the 75 claims
recently acquired in the Uranerz, U.S.A. agreement. Excalibur has no continuing
interest in their project.
In 1973, Mountain West sold mineral rights on approximately 14,000 acres of
mining claims in Campbell and Johnson Counties, Wyoming to American Nuclear
Corporation. Mountain West reserved a royalty interest of 2 1/2% of the value of
uranium ores produced from these claims at the mine mouth, or of the gross
proceeds from the sale of recovered U308 if processed by American Nuclear or its
assignees. The properties retained by American Nuclear Corporation are now a
part of the joint venture between American Nuclear Corporation and the Tennessee
Valley Authority. The Corporation has no control over management or production
from these properties. On May 31, 1986, there were approximately 6,640 acres
held by American Nuclear and its associates. In June, 1986 TVA conveyed 97 of
the claims to Mountain West. In March, 1987, TVA reassigned an additional 62
claims to Mountain West who, in turn, abandoned said claims. TVA offered to
reassign 25 claims to Mountain West in January 1989, but Mountain West elected
not to take a reassignment.
At public auction in 1991 TVA sold this project along with their entire holdings
in the area to General Atomic. In August 1992, General Atomic sold said same
project to Pathfinder Mines, Inc. Excalibur retains a 2 1/2% yellow cake royalty
and the right of reassignment. This project area is designated Brown-TVA.
Excalibur owns patented mining claims in Ouray County, Colorado with capitalized
costs of $8,533. These properties were purchased as silver prospects and are not
active.
The Moab real estate held by the Corporation has been utilized by the
Corporation for office space and as a storage facility. On June 30, 1993 this
Moab real estate was sold.
ITEM 3 - Legal Proceedings
- --------------------------
Management of the Registrant knows of no litigation, pending or threatened, that
would materially affect the financial statements of Excalibur or Mountain West
Mines, Inc.
ITEM 4 - Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------
(a-d) No matters were submitted to a vote of security holders during the
quarter ended May 31, 1997 through solicitation of proxies or otherwise.
The last annual shareholder's meeting of the Company was held November
16, 1996.
ITEM 5 - Market for the Registrant's Common Equity and Related Stockholder
Matters
- --------------------------------------------------------------------------
(a) Principal Market:
The stock of the Corporation was formerly traded on the Intermountain
Stock Exchange in Salt Lake City, Utah. At the present time the stock is
not traded on a listed stock exchange and the Company knows of no market
maker.
(b) Approximate number of shareholders of record as of July 20, 1997 is 1092.
-5-
EXCALIBUR INDUSTRIES
FORM 10-K
PART II
ITEM 5 - Market for the Registrant's Common Equity and Related Stockholder
Matters (Continued)
- --------------------------------------------------------------------------
(c-1) No dividends have been paid or declared in the past 5 fiscal years.
(c-2) Management anticipates no payment of dividends in the near future.
ITEM 6 - Selected Financial Data For The Years Ended May 31:
- ------------------------------------------------------------
1997 1996 1995 1994 1993
---------- ---------- ---------- ---------- ----------
Total Revenues $ 0 $ 0 $ 0 $ 0 $ 0
Total Operating Expense 32,352 38,449 36,887 44,382 36,679
--------- --------- --------- --------- ---------
Loss From Operations (32,352) (38,449) (36,887) (44,382) (36,679)
Other Income 2,645 4,437 23,110 177,072 449
--------- --------- --------- --------- ---------
Income (Loss) -
Before Income Taxes (29,707) (34,012) (13,777) 132,690 (36,230)
Provision For Income Taxes 100 100 100 100 100
--------- --------- --------- --------- ---------
Net Income (Loss) (29,807) (34,112) (13,877) 132,590 (36,330)
Retained Earnings (Deficit)
Beginning of Year 51,589 85,701 99,578 (33,012) 3,318
--------- --------- --------- --------- ---------
Retained Earnings (Deficit)
End of Year $ 21,782 $ 51,589 $ 85,701 $ 99,578 $ (33,012)
========= ========= ========= ========= =========
Average Shares of Common
Stock Outstanding 5,987,361 5,987,361 5,987,361 5,987,361 5,987,361
========= ========= ========= ========= =========
Net Income (Loss) Per Share
of Common Stock $ 0.0036 $ 0.0057 $ (0.0023) $ (0.0221) $ (0.0061)
========= ========= ========= ========= =========
Total Assets -
End of Year $ 165,701 $ 195,583 $ 229,647 $ 243,526 $ 123,769
========= ========= ========= ========= =========
Long-Term Obligations $ 0 $ 0 $ 0 $ 0 $ 0
========= ========= ========= ========= =========
Cash Dividends Declared
Per Share of
Common Stock $ 0 $ 0 $ 0 $ 0 $ 0
========= ========= ========= ========= =========
-6-
EXCALIBUR INDUSTRIES
FORM 10-K
PART II
ITEM 7 - Management's Discussion and Analysis of Financial Condition and
Results of Operations
- ------------------------------------------------------------------------
Excalibur Industries experienced substantial fluctuations in its consolidated
net income over the past several years. The Company maintained its mineral
properties and interest throughout that period of fluctuation despite a large
drain on its financial resources. Management is now working to retain as much of
its mineral rights and interests as possible, considering its limited resources
and the depressed market conditions.
Quivira Mining Co. advance payments ended with the May, 1992 payment, after
which time no additional payments will be received until production commences.
Other than interest income, no other continuing material cash inflows are known
to Management or anticipated at this time, based on current agreements.
The Board of Directors has adopted a policy designed to husband its resources
and retain as much of its mineral interests as possible, taking into account the
depressed market for minerals and the Company's limited resources.
The consolidated financial statements contained herein under ITEM 8 should be
read in conjunction with this ITEM 7, with particular emphasis on the Notes to
Consolidated Financial Statements. Additional information pertaining to the
fluctuation of the Company's income and expenses is detailed.
-7-
EXCALIBUR INDUSTRIES
FORM 10-K
PART II
ITEM 8 - Financial Statements and Supplementary Data
- ----------------------------------------------------
-8-
ACCOUNTANTS' COMPILATION REPORT
To the Board of Directors and Stockholders
Excalibur Industries
We have compiled the accompanying consolidated balance sheets of Excalibur
Industries (Corporation) and its wholly owned subsidiary, Mountain West Mines,
Inc. as of May 31, 1997, 1996 and 1995, and the related consolidated statements
of operations and changes in retained earnings, and cash flows for the years
then ended, in accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
/s/Maxfield and Co. P.C.
July 23, 1997
-9-
EXCALIBUR INDUSTRIES
--------------------
Consolidated Balance Sheets
May 31, 1997, 1996 and 1995
(Unaudited)
1997 1996 1995
--------- --------- ----------
ASSETS
------
Current Assets
Cash and certificates of deposit $ 12,051 $ 15,241 $ 13,168
Note receivable - current portion 2,082 1,948 1,799
Investment in U.S. Treasury Bills 39,687 64,766 99,104
-------- -------- --------
Total Current Assets 53,820 81,955 114,071
-------- -------- --------
Property and Equipment
Mining properties and interests 108,533 108,533 108,533
Furniture and fixtures 2,354 2,354 2,354
Mining equipment 1,347 1,347 1,347
-------- -------- --------
112,234 112,234 112,234
Accumulated depreciation (3,661) (3,661) (3,661)
-------- -------- --------
Total Property and Equipment 108,573 108,573 108,573
-------- -------- --------
Other Assets
Note receivable - less current portion 3,248 4,995 6,943
Deposits 60 60 60
-------- -------- --------
Total Other Assets 3,308 5,055 7,003
-------- -------- --------
Total Assets $ 165,701 $ 195,583 $ 229,647
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts payable $ -- $ -- $ --
Income tax payable 100 100 100
Other taxes payable 135 210 162
-------- -------- --------
Total Current Liabilities 235 310 262
-------- -------- --------
Stockholders' Equity
Common stock - $.01 par value,
authorized 10,000,000 shares,
issued 5,997,361 shares including
shares in treasury 59,974 59,974 59,974
Capital received in excess of par value 83,810 83,810 83,810
Retained earnings 21,782 51,589 85,701
Treasury stock, 10,000 shares, at cost (100) (100) (100)
-------- -------- --------
Total Stockholders' Equity 165,466 195,273 229,385
-------- -------- --------
Total Liabilities and Stockholders'
Equity $ 165,701 $ 195,583 $ 229,647
======== ======== ========
See accompanying notes and accountants' compilation report.
-10-
EXCALIBUR INDUSTRIES
--------------------
Consolidated Statements of Operations and Changes in Retained Earnings
Years Ended May 31, 1997, 1996 and 1995
(Unaudited)
1997 1996 1995
----------- ----------- -----------
Revenues
Royalties $ -- $ -- $ --
---------- ---------- ----------
Operating Expenses
Mining and related expenses -- -- 156
General and administrative 32,352 38,449 36,731
---------- ---------- ----------
Total Operating Expenses 32,352 38,449 36,887
---------- ---------- ----------
Loss From Operations (32,352) (38,449) (36,887)
---------- ---------- ----------
Other Income
Gain on sale of assets -- -- 17,653
Interest income 2,645 4,437 5,457
---------- ---------- ----------
Total Other Income 2,645 4,437 23,110
---------- ---------- ----------
Income (Loss) Before Income Taxes (29,707) (34,012) (13,777)
Provision For Income Taxes 100 100 100
---------- ---------- ----------
Net Income (Loss) (29,807) (34,112) (13,877)
Retained Earnings - Beginning of Year 51,589 85,701 99,578
---------- ---------- ----------
Retained Earnings - End of Year $ 21,782 $ 51,589 $ 85,701
========== ========== ==========
Net Income (Loss) Per Share of Common Stock $ (0.0036) (0.0057) $ (0.0023)
========== ========== ==========
Outstanding Number of Common Shares 5,987,361 5,987,361 5,987,361
========== ========== ==========
See accompanying notes and accountants' compilation report.
-11-
EXCALIBUR INDUSTRIES
--------------------
Consolidated Statements of Cash Flows
Years Ended May 31, 1997, 1996 and 1995
(Unaudited)
1997 1996 1995
--------- --------- ---------
Cash Flows From Operating Activities
Net income (loss) $ (29,807) $ (34,112) $ (13,877)
Adjustments to reconcile net loss to net
cash provided by operating activities
Gain on sale of assets -- -- (17,653)
(Increase) decrease in:
Notes receivable 1,613 1,799 (8,742)
Deposits -- -- 60
Increase (decrease) in:
Other taxes payable (75) 48 ( 2)
-------- --------- ---------
Net Cash Used By Operating
Activities (28,269) (32,265) (40,214)
-------- --------- ---------
Cash Flows From Investing Activities
Proceeds from (Payments for) U.S. Treasury Bills 25,079 34,338 (99,104)
Proceeds from sale of assets -- -- 17,653
-------- --------- ---------
Net Cash Provided (Used) by
Investing Activities 25,079 34,338 (81,451)
-------- --------- ---------
Net Increase (Decrease) In Cash (3,190) 2,073 (121,665)
Cash - Beginning of Year 15,241 13,168 134,833
-------- --------- ---------
Cash - End of Year $ 12,051 $ 15,241 $ 13,168
======== ========= =========
Supplemental Disclosures
Income taxes paid $ 100 $ 100 $ 100
See accompanying notes and accountants' compilation report.
-12-
EXCALIBUR INDUSTRIES
--------------------
Notes to Consolidated Financial Statements
(Unaudited)
Note 1 - Summary of Significant Accounting Policies
- ---------------------------------------------------
Consolidation
-------------
The consolidated financial statements presented herein include the accounts
of Excalibur Industries (Excalibur) and its wholly owned subsidiary,
Mountain West Mines, Inc., (Mountain West), a Nevada corporation, qualified
to do business in the states of Utah and Wyoming. All significant
intercompany transactions have been eliminated from these
statements.
Mining Properties and Interests
-------------------------------
Mining claims, leases, and royalty interests are stated at cost, unless in
the judgement of the Directors a lesser amount is felt to be more
appropriate due to a permanent decline in value. No depletion has been
charged against income for financial statement purposes, but is deducted
for Federal income tax purposes when allowable. The full carrying value is
charged against income at the time of sale or disposition of an asset. If a
perpetual overriding royalty is retained the recorded costs of the asset
are treated the same for financial statement purposes as for income tax
purposes and are not reduced in value until production royalties are
received.
Depreciable Property and Equipment
----------------------------------
Depreciable property and equipment are stated at cost. Depreciation for
income tax purposes is consistent with that used for financial statement
purposes and has been computed using the straight-line method.
Deferred Income Taxes
---------------------
Deferred income taxes are provided as a result of timing differences in
reporting income for financial statement and tax purposes. Currently no
deferred income taxes payable (or receivable) are recognized.
Earnings Per Share
------------------
Earnings per share of common stock are computed using the weighted average
number of common shares outstanding during the period. Primary and full
diluted earnings per share are shown as the same figure if the dilative
effect of any common stock equivalents or convertible securities are less
than three percent. The Company currently has no dilative equivalents.
Note 2 - Mining Properties and Interests
- ----------------------------------------
Uranium
-------
The Company owns various royalty and other interests in patented and
unpatented mining claims and mineral leased acreage, located in the Powder
River Basin, Johnson and Campbell Counties, Wyoming. Future earned
royalties are subject to offset by the amount of certain advance minimum
royalty revenues. These properties were assigned a value of $347,032
following the acquisition of Mountain West by Excalibur. Various acreage
has been dropped during the past years as such acreage was determined to be
of no value. The capitalized costs of these properties have been
reallocated to the remaining acreage still retained by the Company. The
Board of Directors determined that a more realistic value should be placed
on the books and elected to reduce the reporting value for financial
statement purposes by $247,032.
-13-
EXCALIBUR INDUSTRIES
--------------------
Notes to Consolidated Financial Statements
(Unaudited)
Note 2 - Mining Properties and Interests (Continued)
- ----------------------------------------------------
Silver
------
The Company owns various interests in patented mining claims located in the
Red Mountain and Uncompahgre Mining Districts, Ouray, Colorado.
Other Holdings
--------------
The Company owns various other interests in mining properties (silver and
uranium) including several interests with no cost basis. During the year
ended May 31, 1995 the Company sold one of those properties for a net price
of $17,653.
A summary of capitalized costs in the above properties as of May 31, 1997,
1996 and 1995 follows:
Uranium $ 100,000
Silver 8,384
Other 149
--------
Total $ 108,533
========
Note 3 - General and Administrative Expense
- -------------------------------------------
General and administrative expenses for the years ended May 31, 1997, 1996
and 1995 follows:
1997 1996 1995
-------- -------- --------
Salaries $ 17,800 $ 19,800 $ 19,800
Reports and publications 1,187 1,283 1,417
Professional 4,571 4,869 4,325
Telephone, office
supplies and other 8,794 12,497 11,189
------- ------- -------
Total $ 32,352 $ 38,449 $ 36,731
======= ======= =======
Note 4 - Income Taxes
- ---------------------
Currently, no deferred income taxes payable (or receivable) are recognized
as a result of timing differences in reporting income for financial
accounting and tax purposes.
Deferred income taxes on unrealized losses in the amount of $247,032 due
to the reduction in value of royalty interests has not been recognized in
the financial statements due to the uncertainty of any future tax benefit.
Likewise, deferred income taxes are not affected as a result of statutory
depletion deductions taken for tax purposes.
-14-
EXCALIBUR INDUSTRIES
--------------------
Notes to Consolidated Financial Statements
(Unaudited)
Note 4 - Income Taxes (Continued)
- ---------------------------------
At May 31, 1997 the Company has loss carryforwards of approximately
$162,000 for Federal tax purposes and $122,000 for State tax purposes that
may be offset against future taxable income (expiring on various dates
through 2,012).
-15-
EXCALIBUR INDUSTRIES
FORM 10-K
PART III
ITEM 9 - Disagreements on Accounting and Financial Disclosure
- -------------------------------------------------------------
None
ITEM 10 - Directors and Executive Officers of the Registrant
- ------------------------------------------------------------
(a,b & e) Name Age Position
---------------- --- --------------------------------------
Joseph P. Hubert 65 President, Chief Executive Officer and
Chairman of Board of Directors
Jack D. Powers 71 Vice-President and Director
Joyce Jones 70 Secretary-Treasurer, Chief Financial
Officer, and Director
Joseph P. Hubert is President and Chief Executive Officer. He has been a
self-employed mining geologist for more than seven years. He served on the Board
of Directors of Mountain West Mines, Inc. from 1966 until 1971, either as
President or Vice-President during that period. Mr. Hubert was elected to the
Presidency and Board of Directors of Excalibur at the 1982 annual meeting and
following Directors' meeting.
Jack D. Powers is Vice-President. He obtained a BA degree in business and
accounting from the University of Minnesota and a BS degree in mechanical
engineering from Michigan Tech. He has worked as a driller for Longyear Drilling
Co., Boyles Bros. and Joy for many years and presently is a self employed
drilling consultant.
Joyce Jones was elected Secretary-Treasurer at the 1988 annual meeting. She has
served as bookkeeper for the Company since 1971. She is currently employed by a
Certified Public Accountant in Moab, Utah.
(c) Excalibur has no full time employees.
(d) There is no family relationship between any Director and Executive Officer
and/or any other Director or Executive Officer or nominee for Director.
(f) No Officer, Director or nominee for Director has been involved in any legal
proceedings involving Federal bankruptcy laws, or any State insolvency
laws, or has been convicted or named in a criminal proceeding, or is the
subject of any order, judgement, or decree limiting him in any activity, or
from engaging in any type of business practice, or from engaging in any
activity in connection with the purchase or sale of any security, or in
connection with any violation of Federal or State security laws.
ITEM 11 - Management Remuneration
- ---------------------------------
(a) Remuneration paid by Excalibur (none paid by Mountain West Mines, Inc.)
(1) Cash Compensation
(i) None
(ii) All Officers and Directors (3) $19,940
(2) Bonuses and Deferred Compensation - None
-16-
EXCALIBUR INDUSTRIES
FORM 10-K
PART III
ITEM 12 - Security Ownership of Certain Beneficial Owners and Management
- ------------------------------------------------------------------------
(a) Security Ownership of Certain Beneficial Owners:
*Amount and Percent
Nature of of class
Name and Address Beneficial as of
Title of Class of Beneficial Owner Ownership 7/20/97
-------------- ------------------- ----------- --------
Common Joseph P. Hubert 1,179,000 19.69%
1800 Lakeview Drive Direct
Duluth, MN. 55803
Common Allen E. Nugent, Trustee of the *868,000 14.50%
Claude E. Nugent Trust Direct
10238 South 2375 East
Sandy, Utah 84092
Common Robert H. Ruggeri 33 ,683 5.62%
3314 Music Lane Direct
Grand Junction, CO 81506
Common Jack D. Payne 302,540 5.05%
Box 2951 Direct
Grand Junction, CO 81501
*Includes 24,000 shares owned by Allen Nugent's wife, and 24,000 shares
owned by Allen E. Nugent, son of Claude E. Nugent.
(b) Security Ownership of Management:
*Amount and Percent
Nature of of class
Name and Address Beneficial as of
Title of Class of Beneficial Owner Ownership 7/20/97
-------------- ------------------- ----------- --------
Common Joseph P. Hubert 1,179,000 19.69%
Common Jack D. Powers 25,000 .42%
Common Joyce Jones 75,792 1.27%
Common Directors and Offic 1,279,792 21.38%
*Information as to beneficial ownership is based upon statements furnished
by each Director. Information with such ownership rests peculiarly within
their knowledge and the Registrant disclaims responsibility for the
accuracy and completeness thereof.
(c) Changes in Control:
No arrangements are known to Registrant which may at a subsequent date
result in a change in control of the Registrant.
-17-
EXCALIBUR INDUSTRIES
FORM 10-K
PART III
ITEM 13 - Certain Relationships and Related Transactions
- --------------------------------------------------------
(a) Transactions with Management and Others
None
(b) Certain Business Relationships
None
(c) Indebtedness of Management
None
(d) Transactions with Promoters
None
ITEM 14 - Exhibits, Financial Statement Schedules, and Reports on Form 10-K
- ---------------------------------------------------------------------------
(a) 1. Unaudited Consolidated Financial Statements for the fiscal years ended
May 31, 1997, 1996 and 1995, including:
Accountants' Compilation Report
Consolidated Balance Sheets
Consolidated Statements of Operations and Changes in
Retained Earnings
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
2. None
3. None
(b) No reports on Form 8-K have been filed during the quarter ended May 31,
1997.
(c) None
(d) None
-18-
EXCALIBUR INDUSTRIES
FORM 10-K
SIGNATURES
- ----------
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
Date 7/20/97 By /s/Joseph P. Hubert
---------------- -----------------------------------
Joseph P. Hubert
President, Chief Executive Officer
and Chairman of Board of Directors
Date 7/23/97 By /s/Joyce Jones
---------------- -----------------------------------
Joyce Jones
Secretary-Treasurer,
Chief Financial Officer,
and Director