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| BULM.OB > SEC Filings for BULM.OB > Form 10KSB/A on 24-Jul-2008 | All Recent SEC Filings |
24-Jul-2008
Annual Report
Plan of Operation
Forward-looking Statements
Statements made in this Annual Report which are not purely historical are forward-looking statements with respect to the goals, plan objectives, intentions, expectations, financial condition, results of operations, future
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Bullion's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: general economic or industry conditions, nationally and/or in the communities in which Bullion conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, our ability to raise capital, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting Bullion's operations, products, services and prices.
Accordingly, results actually achieved may differ materially from expected results in these statements. Forward-looking statements speak only as of the date they are made. Bullion does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.
General
Management believes there are adequate funds to continue current operations for
the next 12 months. Information provided by Newmont indicated that royalty
payments to Bullion from its Leeville mine would be approximately $1.2 million,
for the fiscal year ended April 30, 2007, but were actually $1.35 million.
Newmont projects to be in full production (3,200 tons per day) by calendar year
end 2007. Revenues from Newmont, when in full production, are anticipated to be
between $2.5 and $3 million per year.
Bullion expects production royalty payments from the North Pipeline 440 acre property to begin in late 2007. Minimum royalty payments of $0.50 per yard of material processed are calculated to be approximately one $1,250 dollars per day or $350,000 a year, when projected operations reach 2,500 tons per day.
Current operating expense is expected to decrease at approximately $50,000 per month or $600,000 per year. Bullion will continue to look for and explore various mining opportunities. The extent to which Bullion will be able to capitalize on the various ventures will depend on the available resources on hand. EnShale, Bullion's majority-owned subsidiary, is currently being funded by Bullion and required ongoing operations are calculated into Bullion's operating expense.
EnShale requires additional capital to build and operate a pilot plant to test proprietary research and development technology on the extraction of oil from oil shale. Studies are currently underway to determine the amount of funding that is required to be raised. EnShale is evaluating various possibilities to raise the funding necessary to construct a pilot plant by 2008, in debt, equity, a combination of debt and equity, joint ventures or other contractual arrangements.
Bullion does not expect to sell or dispose of any of its assets during the next 12 months; and no significant changes are anticipated in their number of employees.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Year Ended April 30, 2007 compared to the Year Ended April 30, 2006
Royalty revenues increased substantially during fiscal 2007 compared to 2006.
Bullion received $1,352,801 in 2007 compared to $444,375 in fiscal 2006.
Bullion's largest revenue source is coming from the 1% royalty on Newmont's
Leeville mine. Newmont has increased production on Leeville and is therefore
increasing their royalty payment to Bullion. According to Newmont, they are
nearing 2/3 production capacity and expect to be at full production by the end
of calendar year 2007. Bullion expects royalties on the Leeville mine to
continue to increase until they reach full production.
Expenses in fiscal 2007 increased by $77,659 from fiscal 2006. Much of the increased expense was due to research and development expenses and an increase in general and administrative expenses.
For the fiscal year ended April 30, 2007, Bullion had royalty revenues of $1,352,801 compared to the fiscal year ended April 30, 2006, in the amount of $444,375. General and administrative expenses for the fiscal year ended April 30, 2006, were $811,286 compared to $864,299 for the fiscal year ended April 30, 2007. Bullion also had research and development expenses in the fiscal year ended 2007 of $24,646 compared to $0 in 2006. These revenues resulted in an operating income of $463,856 for the fiscal year ended April 30, 2007, compared to an operating loss of $366,911 for the fiscal year ended April 30, 2006. In the fiscal year ended April 30, 2007, Bullion had other income of $37,500, interest income of $4,016, interest expense of $1,161 and a net loss to a non-controlling interest of $86,712, compared to the fiscal year ended April 30, 2006, in which Bullion had interest income of $951 and a loss on forfeiture of property of $20,431; and a net loss allocated to the non-controlling interest of $139,723. Bullion had a net income in the fiscal year ended April 30, 2007, of $640,168, compared to a net loss for the fiscal year ended April 30, 2006, of $246,668.
Liquidity
Bullion had cash and cash equivalents of $649,841 as of April 30, 2007, and total current assets of $803,811; total current liabilities of $120,805; and a total stockholders' equity of $1,959,435.
Off-Balance Sheet Arrangements
Bullion had no off-balance sheet arrangements during any of the period covered by this Annual Report or the consolidated financial statements that accompany this Annual Report.
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