SEC Info - Silver Mountain Lead Mines Inc - ‘10-K405’ for 12/31/98

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Silver Mountain Lead Mines Inc – ‘10-K405’ for 12/31/98

As of: Monday, 3/22/99 · For: 12/31/98 · Accession #: 90366-99-2 · File #: 1-03728

  As Of                Filer                Filing    For·On·As Docs:Size

 3/22/99  Silver Mountain Lead Mines Inc    10-K405    12/31/98    2:29K

Annual Report — [x] Reg. S-K Item 405 — Form 10-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K405     Silver Mountain Lead Mines, Inc. Form 10-K            18     59K 
 2: EX-27       Financial Data Schedule                                1      5K

10-K405 — Silver Mountain Lead Mines, Inc. Form 10-K
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Business Certain Relationships and Related Transactions Directors and Executive Officers of the Registrant Disagreements on Accounting and Financial Disclosure Executive Compensation Exhibits, Financial Statement Schedules and Reports on Form 8-K Financial Statements and Supplementary Data Legal Proceedings Management's Discussion and Analysis of Financial Condition and Results of Operations Market for the Registrant's Common Stock and Related Security Holder Matters Property Security Ownership of Certain Beneficial Owners & Management Selected Financial Data (unaudited) Submission of Matters to a Vote of Security Holders
1	1st Page - Filing Submission
2	Item 1. Business
4	Item 2. Property
"	Item 3. Legal Proceedings
"	Item 4. Submission of Matters to a Vote of Security Holders
5	Item 5. Market for the Registrant's Common Stock and Related Security Holder Matters
6	Item 6. Selected Financial Data (unaudited)
7	Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
"	Item 8. Financial Statements and Supplementary Data
13	Item 9. Disagreements on Accounting and Financial Disclosure
14	Item 10. Directors and Executive Officers of the Registrant
"	Item 11. Executive Compensation
15	Item 12. Security Ownership of Certain Beneficial Owners & Management
"	Item 13. Certain Relationships and Related Transactions
16	Item l4. Exhibits, Financial Statement Schedules and Reports on Form 8-K

10-K405 1st Page of 18 TOC ↑Top Previous Next ↓Bottom Just 1st
 

SECURITIES AND EXCHANGE COMMISSION                
Washington, D.C.  20549                 
FORM 10-K                 

[X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                      
SECURITIES EXCHANGE ACT OF 1934                 

For the Fiscal Year Ended December 31, 1998                                     

Commission File No.      132-3                                                  
                  ----------------------------------------------------------

SILVER MOUNTAIN LEAD MINES, INC.
--------------------------------
(Exact name of Registrant as specified in its charter)

  Idaho                                           82-6008744
-------------------------------                       ------------------------- 
(State or other jurisdiction of                           (I.R.S. Employer      
incorporation or organization)                           Identification No.)    

6500 Mineral Drive                                                      
Coeur d'Alene, Idaho                                   83815-8788     
-------------------------------------------           ------------------------  
(Address of principal executive offices)                    (Zip Code)          

(Registrant's telephone number, including area code)        208-769-4100        
                                                    ------------------------

Securities registered pursuant to Section 12(g) of the Act:                     

Title of each class                 
-----------------------------------------               
Common stock, par value $0.10 per share               

     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, and (2) has been subject to  such  filing
requirements for at least the past 90 days.  Yes    XX     No                   
                                    --------     -----

     Indicate  by  check  mark if disclosure of delinquent  filers  pursuant  to
Item  405  of Regulation S-K is not contained herein, and will not be contained,
to  the  best  of  registrant's knowledge, in definitive  proxy  or  information
statements  incorporated  by reference in Part III of  this  Form  10-K  or  any
amendment to this Form 10-K.  [ X ]                                             

     The aggregate market value of the registrant's voting common stock held  by
non-affiliates  was $153,300 as of May 24, 1991, the date Silver  Mountain  Lead
Mines  ceased being quoted on the Spokane Stock Exchange (due to the  Exchange's
discontinuance  of operations).  As of February 26, 1999, there  were  3,066,000
shares of the registrant's common stock outstanding.                            

10-K405 2nd Page of 18 TOC 1st Previous Next ↓Bottom Just 2nd

PART I                

Item 1.   Business                                                              

Silver  Mountain  Lead Mines, Inc. (Silver Mountain or the  Company),  an  Idaho
corporation,  was organized in 1952.  At present the Company is  engaged  in  no
activity other than necessary maintenance work on its property.                 

On  June  15, 1954, Silver Mountain entered into an agreement with Hecla  Mining
Company  (Hecla)  and The Bunker Hill Company (Bunker Hill)  whereby  these  two
companies  would  explore and develop the mining properties  owned  or  held  by
Silver  Mountain  and  would mine any commercial ore deposits  discovered  as  a
result of this exploration and development.                                     

The  contract  provided that if commercial ore was found on the Silver  Mountain
property, Hecla and Bunker Hill would provide all necessary mining equipment and
would  mine  the ore of which Silver Mountain would receive 25% with  Hecla  and
Bunker  Hill  sharing equally in the remaining 75%.  Any charges against  Silver
Mountain  for such costs, in excess of their net smelter returns from  any  ores
produced,  would  be carried forward to be paid only from net profits  from  any
future production of such property.                                             

The  contract contained a provision that when and if a commercial ore  body  was
discovered  on the property or after a total of $1,000,000 had been expended  on
exploration and development of said property, Silver Mountain would then own  an
undivided 25% interest in the property.                                         

On  October 7, 1959, Silver Mountain was advised by Hecla and Bunker  Hill  that
exploration work, which cost in excess of $1,600,000, had been performed on  the
property  under  the terms of the above agreement.  $538,000 of such  costs  was
advanced  by  the  Defense  Minerals Exploration  Administration.   After  being
notified of this fact, Silver Mountain deeded to Hecla and Bunker Hill  each  an
undivided 37.5% interest in the Silver Mountain property under the terms of  the
agreement.                                                                      

Since  the  1954  Agreement was terminated on October  7,  1959,  the  necessary
maintenance and assessment work on the property has been performed by Hecla  and
Bunker Hill or other outside parties and Silver Mountain has been charged 25% of
such expenses.                                                                  

On  November 1, 1982, Bunker Limited Partnership purchased from Bunker Hill  all
of its Idaho assets and certain liabilities. Included in this purchase by Bunker
Limited  Partnership  were Bunker Hill's 37.5% interest in the  Silver  Mountain
property,  896,000  shares of Silver Mountain stock, and notes  receivable  from
Silver Mountain.  As a result of this purchase, Bunker Limited                  

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10-K405 3rd Page of 18 TOC 1st Previous Next ↓Bottom Just 3rd

Partnership and Hecla continued management of the Silver Mountain property.     

On  June  6,  1988, the Company entered into a mining lease with  Hecla  whereby
Hecla  received the exclusive right to the exploration, development  and  mining
operations  upon  the  Company's property for a period of 25  years  subject  to
cancellation if the property was not in production within 15 years.  This  lease
was  in  exchange for a net profits royalty of 40%.  On January  18,  1991,  the
lease was terminated.                                                           

At  February  9,  1995,  Bunker Limited Partnership and  Hecla  Mining  Company,
pursuant  to  the  agreement dated June 15, 1954, each owned an undivided  37.5%
interest  in the Silver Mountain property. Stock ownership of the two  companies
at February 9, 1995, was as follows:                                            

                  Shares Held as of     Percent of
                   February 9, 1995      Ownership
                   ----------------      ---------

Bunker Limited Partnership            896,000            29.22%               
Hecla Mining Company                  115,000             3.75%               
                    ---------            -----
Total                          1,011,000            32.97%          
                    ---------            -----

On February 10, 1995, Hecla Mining Company acquired Bunker Limited Partnership's
37.5%  undivided interest in the Silver Mountain property and their entire stock
interest  in the Company.  Hecla currently holds 1,011,000 or 32.97%  shares  of
common stock of the Company.                                                    

Hecla  Mining Company provides accounting and legal services to Silver Mountain.
In  1998,  1997 and 1996, Silver Mountain paid Hecla Mining Company $9,000  each
year  for these services.  At December 31, 1998, the Company had obligations  to
Hecla  Mining Company totaling $2,306 and $63,927 for accounts payable and notes
payable,  respectively.  At December 31, 1997, the Company  had  obligations  to
Hecla  Mining Company totaling $2,622 and $63,927 for accounts payable and notes
payable, respectively.                                                          

On  August 28, 1997, the United States Department of Justice filed a Motion  for
Leave  to File a First Amended Complaint which sought to add the Company and  16
other companies in litigation pending in the United States District Court in and
for the State of Idaho, captioned United States of America, Plaintiff, v. ASARCO
Incorporated,  et  al.,  Defendants, Civil No.  96-0122-N-EJL.   The  litigation
involves  a  claim under the Comprehensive Environmental Response,  Compensation
and  Liability  Act by the United States of America for alleged damages  to  the
environment  and  associated natural resources through  the  Company's  historic
mining activities in and near the Bunker Hill Superfund Site and the            

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10-K405 4th Page of 18 TOC 1st Previous Next ↓Bottom Just 4th

Coeur  d'Alene River watershed located in North Idaho.  In March 1998, the Court
denied  the  motion  to add parties including the Company.  Although  the  Court
stated that the plaintiff could renew their motion to add parties following  the
Court's  ruling on a number of substantive motions pending before the  Court,  a
later  ruling  by  the Court indicated a strong desire not  to  have  additional
parties added to this proceeding.                                               

Silver  Mountain  is an inactive company.  It has no known ore reserves  and  at
present has no immediate plans for developing the property.                     

Item 2.   Property                                                              

Silver  Mountain's  property is located about one and  one-half  miles  east  of
Mullan,  Idaho.   In 1993, Silver Mountain, together with the  co-owners  (Hecla
Mining  Company  and  Bunker  Limited Partnership) relinquished  its  rights  to
certain unpatented mining claims, some of which were traded for patented mineral
rights  in  a  land exchange with the U.S. Forest Service, thereby changing  its
property  ownership  from a 25% interest in 24 patented  claims,  93  unpatented
claims, and 160 acres of mineral rights to a 25% interest in 24 patented  mining
claims and 268 acres of patented mineral property.                              

Item 3.   Legal Proceedings                                                     

On  August 28, 1997, the United States Department of Justice filed a Motion  for
Leave  to File a First Amended Complaint which sought to add the Company and  16
other companies in litigation pending in the United States District Court in and
for the State of Idaho, captioned United States of America, Plaintiff, v. ASARCO
Incorporated,  et  al.,  Defendants, Civil No.  96-0122-N-EJL.   The  litigation
involves  a  claim under the Comprehensive Environmental Response,  Compensation
and  Liability  Act by the United States of America for alleged damages  to  the
environment  and  associated natural resources through  the  Company's  historic
mining  activities  in and near the Bunker Hill Superfund  Site  and  the  Coeur
d'Alene River watershed located in North Idaho.  In March 1998, the Court denied
the motion to add parties including the Company.  Although the Court stated that
the  plaintiff  could  renew their motion to add parties following  the  Court's
ruling  on  a  number of substantive motions pending before the Court,  a  later
ruling  by  the  Court indicated a strong desire not to have additional  parties
added to this proceeding.                                                       

Item 4.   Submission of Matters to a Vote of Security Holders                   

None                                                                            

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PART II                 

Item 5.   Market  for the Registrant's Common Stock and Related Security  Holder
Matters                                                     

a.    The  Company's stock ceased to be traded on any stock exchange on May  24,
1991,  when  the  Spokane  Stock Exchange (where  the  stock  had  been  listed)
discontinued  operations.  At February 26, 1999, the bid and ask price  for  the
Company's common stock was five cents and twelve cents, respectively.   However,
there has not been an established trading market for the common stock since  May
24,  1991,  and,  as  such, the bid and ask price do not constitute  a  reliable
indication  of the price that a holder of common stock could expect  to  receive
upon the sale of any particular quantity thereof.                               

b.    As of February 26, 1999, there were approximately 974 shareholders of  the
Company's common stock.                                                         

c.   The Company has paid no dividends and does not anticipate being able to pay
any dividends in the foreseeable future.                                        

 -5-

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Item 6.   Selected Financial Data (unaudited)                                   

The  Company is an inactive company.  A summary of its operations for the  five-
year period ended December 31, 1998 is as follows:                              

                                                                [Download Table]


                         1998        1997        1996        1995        1994   
                       ---------   ---------   ---------   ---------   ---------

                                                                                
Interest and other                                                              
  income               $   2,372   $   1,916   $   2,400   $   2,478   $   1,685
                       ---------   ---------   ---------   ---------   ---------

Administrative expense     9,169      10,136       9,646       9,245       1,390
                       ---------   ---------   ---------   ---------   ---------

Income (loss) from                                                              
  operations before                                                             
  income taxes            (6,797)     (8,220)     (7,246)     (6,767)        295

Provision for income                                                            
  taxes                       30          30          30          33          10
                       ---------   ---------   ---------   ---------   ---------

Net income (loss)      $  (6,827)  $  (8,250)  $  (7,276)  $  (6,800)  $     285
                       ---------   ---------   ---------   ---------   ---------

Basic income (loss)                                                             
   per  common  share  $(0.00223)  $(0.00269)  $(0.00237)  $(0.00222)  $ 0.00009
                       =========   =========   =========   =========   =========

Total assets           $ 374,214   $ 381,357   $ 389,241   $ 398,719   $ 401,505
                       =========   =========   =========   =========   =========

Long-term debt         $  63,927   $  63,927   $  63,927   $  63,927   $  63,927
                       =========   =========   =========   =========   =========

No cash dividends were declared in the five-year period ended December 31, 1998.

 -6-

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Item 7.   Management's  Discussion  and  Analysis  of  Financial  Condition  and
Results of Operations                                       

The  Company's  general  financial  condition remained  substantially  unchanged
during 1998 compared to 1997.  Cash and cash equivalents decreased $7,143  (16%)
from  $44,203  at December 31, 1997, to $37,060 at December 31,  1998.   Working
capital  declined $6,827 (16%) from $41,581 at December 31, 1997, to $34,754  at
December  31,  1998.   The  decreases in cash and cash equivalents  and  working
capital are primarily attributable to administrative expenses, partly offset  by
a $464 increase in interest income.                                             

The  1998  net  loss of $6,827 was $1,423 less than the net loss in  1997  which
totaled  $8,250.   This  decreased loss was primarily  attributable  to  a  $967
decrease in administrative expenses and a $456 increase in interest and transfer
fee income.                                                                     

The  Company  expects  to  keep  the property on a  care-and-maintenance  basis.
Management believes that the Company has sufficient cash and cash equivalents at
December 31, 1998, to meet its present and intermediate financial requirements. 

The  Company  is presently inactive and is no longer considered  to  be  in  the
development stage.  All costs are being expensed as incurred.  Through  December
31, 1994, the Company was considered a development stage company.               

The  information  reported under Item 6. Selected Financial  Data  and  Item  8.
Financial  Statements  and Supplementary Data regarding financial  condition  is
incorporated herein by reference.                                               

Item 8.   Financial Statements and Supplementary Data                           

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SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED BALANCE SHEETS
December 31, 1998 and 1997
------------  

                                                                [Download Table]

                               ASSETS                                   
                                                     1998        1997   
                                                   ---------   ---------
                                                                        
Current assets:                                                         
  Cash and cash equivalents                        $  37,060   $  44,203
                                                   ---------   ---------
    Total current assets                              37,060      44,203
                                                   ---------   ---------
Property, plant and equipment                                           
    Mining claims                                    307,095     307,095
    Deferred development costs                        30,059      30,059
                                                   ---------   ---------
                                                     337,154     337,154
                                                   ---------   ---------
    Total assets                                   $ 374,214   $ 381,357
                                                   =========   =========

                 LIABILITIES AND STOCKHOLDERS' EQUITY                   

Current liabilities:                                                    
  Accounts payable - Hecla Mining Company          $   2,306   $   2,622
                                                   ---------   ---------
    Total current liabilities                          2,306       2,622
                                                   ---------   ---------
Long-term liabilities:                                                  
  Note payable - Hecla Mining Company                 63,927      63,927
                                                   ---------   ---------
    Total liabilities                                 66,233      66,549
                                                   ---------   ---------
Commitments and Contingencies (Note 6)                                  

Stockholders' equity:                                                   
Common stock; par value $0.10 per share                                 
  5,000,000 shares authorized, 3,066,000                                
  shares outstanding                                 306,600     306,600
Accumulated surplus                                    1,381       8,208
                                                   ---------   ---------
                                                     307,981     314,808
                                                   ---------   ---------
    Total liabilities and stockholders' equity     $ 374,214   $ 381,357
                                                   =========   =========

The accompanying notes are an integral part           
of the financial statements.          

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SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED STATEMENTS OF INCOME AND ACCUMULATED SURPLUS
 For the years ended December 31, 1998, 1997, and 1996
----------    

                                                                [Download Table]


                                      1998           1997           1996    
                                    ---------      ---------      --------- 
                                                                            
Income:                                                                     
  Transfer fees                     $      16      $      24      $      96 
  Interest income                       2,356          1,892          2,304 
                                    ---------      ---------      --------- 
    Total income                        2,372          1,916          2,400 
                                    ---------      ---------      --------- 
Expenses:                                                                   
  Accounting and legal fees             9,000          9,000          9,000 
  Office expenses                         (89)           115             96 
  Filing fees                             - -            300            250 
  Property taxes                            8             30            - - 
  Stock transfer expense                  250            691            300 
                                    ---------      ---------      --------- 
    Total expenses                      9,169         10,136          9,646 

Loss from operations before                                                 
 provision for income taxes            (6,797)        (8,220)        (7,246)
  Provision for income taxes               30             30             30 
                                    ---------      ---------      --------- 
Net loss                               (6,827)        (8,250)        (7,276)

Accumulated surplus at beginning                                            
 of year                                8,208         16,458         23,734 
                                    ---------      ---------      --------- 
Accumulated surplus at end of year  $   1,381      $   8,208      $  16,458 
                                    =========      =========      ========= 
Basic loss per common share         $(0.00223)     $(0.00269)     $(0.00237)
                                    =========      =========      ========= 
Cash dividends per share            $   - -        $     - -      $     - - 
                                    =========      =========      ========= 
Weighted average number of common                                           
 shares outstanding                 3,066,000      3,066,000      3,066,000 
                                    =========      =========      ========= 


The accompanying notes are an integral          
part of the financial statements.           

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SILVER MOUNTAIN LEAD MINES, INC.
UNAUDITED STATEMENTS OF CASH FLOWS
For the years ended December 31, 1998, 1997 and 1996
-------------   

                                                                [Download Table]


                                               1998        1997        1996    
                                             ---------   ---------   --------- 

                                                                               
Operating activities:                                                          
  Net loss                                   $  (6,827)  $  (8,250)  $  (7,276)

Change in:                                                                     
  Accounts payable - Hecla Mining Company         (316)        366      (2,202)
                                             ---------   ---------   --------- 

Net cash used by operating activities           (7,143)     (7,884)     (9,478)
                                             ---------   ---------   --------- 

Net decrease in cash and cash equivalents       (7,143)     (7,884)     (9,478)

Cash and cash equivalents at beginning                                         
  of period                                     44,203      52,087      61,565 
                                             ---------   ---------   --------- 

Cash and cash equivalents at end of period   $  37,060   $  44,203   $  52,087 
                                             =========   =========   ========= 

Supplemental disclosure of cash flow                                           
  information:                                                                 

Cash paid during period for income tax       $      30   $      30   $      30 
                                             =========   =========   ========= 

The accompanying notes are an integral part of the financial statements.        

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SILVER MOUNTAIN LEAD MINES, INC.

 NOTES TO FINANCIAL STATEMENTS

------------- 

NOTE 1:   SIGNIFICANT ACCOUNTING POLICIES                                       

The  Company  is presently inactive and is no longer considered  to  be  in  the
exploration  and development stage.  All costs are presently being  expensed  as
incurred.                                                                       

No provision has been made for depreciation since the Company is inactive.      

The  Company  considers cash equivalents to consist of highly liquid investments
with a remaining maturity of three months or less when purchased.               

Property,  plant and equipment are stated at the lower of cost or estimated  net
realizable  value.  Maintenance, repairs and renewals are charged to operations.
Betterments of a major nature would be capitalized.  When assets are retired  or
sold,  the  costs  and related allowances for depreciation and amortization  are
eliminated  from  the accounts and any resulting gain or loss  is  reflected  in
operations.   Idle  facilities, placed on a standby basis, are  carried  at  the
lower of net book value or estimated net realizable value.  Effective January 1,
1996,  the  Company adopted the provisions of Statement of Financial  Accounting
Standards, No. 121, "Accounting for the Impairment of Long-Lived Assets and  for
Long-Lived  Assets  to  be Disposed Of" (SFAS No. 121).   The  adoption  of  the
provisions  of SFAS No. 121 had no material effect on the results of  operations
or financial condition of the Company.                                          

In  February  1997, Statement of Financial Accounting Standards  No.  128  (SFAS
128),  "Earnings  Per  Share" was issued.  SFAS 128  established  standards  for
computing  and  presenting  earnings  per  share  and  simplifies  the  existing
standards,  including the presentation of basic earnings per share  in  lieu  of
primary earnings per share.  The Company adopted the provisions of SFAS  128  in
1997, and all prior period earnings per share calculations have been restated to
conform with SFAS 128.  Due to the lack of existence of common stock equivalents
in 1998, 1997, and 1996, there is no difference between the calculation of basic
and primary earnings per share.                                                 

NOTE 2:   PROPERTY, PLANT AND EQUIPMENT                                         

The  Company acquired its property located in the Coeur d'Alene Mining District,
Shoshone  County, Idaho, for cash of $494.50 and through issuance  of  3,066,000
shares of capital stock.  A total of                                            

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316,000 shares were issued to officers and/or directors at the date of issuance.

NOTE 3:   LONG-TERM LIABILITIES                                                 

The notes payable to Hecla Mining Company represent noninterest bearing advances
for annual assessment work which are to be repaid only from production should  a
commercial ore deposit be discovered and mined.  At December 31, 1998 and  1997,
the Company owed Hecla Mining Company $63,927 for such advances.                

NOTE 4:   RELATED PARTIES                                                       

Hecla  Mining Company (which owns 32.97% of the Company's common stock) provides
accounting and legal services to Silver Mountain. In 1998, 1997 and 1996, Silver
Mountain  paid  Hecla Mining Company $9,000 each year for  these  services.   At
December  31, 1998, the Company had obligations to Hecla Mining Company totaling
$2,306  and  $63,927  for accounts payable and notes payable,  respectively.  At
December  31, 1997, the Company had obligations to Hecla Mining Company totaling
$2,622 and $63,927 for accounts payable and notes payable, respectively.        

NOTE 5:   FAIR VALUE OF FINANCIAL INSTRUMENTS                                   

The  following estimated fair value amounts have been determined using available
market   information   and   appropriate  valuation   methodologies.    However,
considerable  judgment is required to interpret market data and to  develop  the
estimates  of  fair value. Accordingly, the estimates presented herein  are  not
necessarily  indicative of the amounts the Company could realize  in  a  current
market exchange.                                                                

The  following methods and assumptions were used to estimate the fair  value  of
each class of financial instruments for which it is practicable to estimate that
value.   Potential  income  tax  ramifications related  to  the  realization  of
unrealized  gains  and  losses  that would be incurred  in  an  actual  sale  or
settlement have not been taken into consideration.                              

The carrying amounts for cash and cash equivalents and current liabilities are a
reasonable estimate of their fair values.                                       

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The estimated fair values of financial instruments are as follows:              

                                                                [Download Table]


                                                      December 31,              
                                      ------------------------------------------
                                            1998                  1997          
                                      ------------------------------------------
                                       Carrying     Fair     Carrying     Fair  
                                       Amounts     Value     Amounts     Value  
                                      ---------  ---------  ---------  ---------

                                                                                
Financial assets                                                                
 Cash and cash equivalents            $ 37,060   $ 37,060    $ 44,203   $ 44,203
Financial liabilities                                                           
 Accounts payable - Hecla Mining Co.     2,306      2,306       2,622      2,622
 Note payable - Hecla Mining Co.        63,927        (A)      63,927        (A)

(A)  Fair value information is not available.                                   

NOTE 6:  CONTINGENCIES                                                          

On  August 28, 1997, the United States Department of Justice filed a Motion  for
Leave  to File a First Amended Complaint which sought to add the Company and  16
other companies in litigation pending in the United States District Court in and
for the State of Idaho, captioned United States of America, Plaintiff, v. ASARCO
Incorporated,  et  al.,  Defendants, Civil No.  96-0122-N-EJL.   The  litigation
involves  a  claim under the Comprehensive Environmental Response,  Compensation
and  Liability  Act by the United States of America for alleged damages  to  the
environment  and  associated natural resources through  the  Company's  historic
mining  activities  in and near the Bunker Hill Superfund  Site  and  the  Coeur
d'Alene River watershed located in North Idaho.  In March 1998, the Court denied
the motion to add parties including the Company.  Although the Court stated that
the  plaintiff  could  renew their motion to add parties following  the  Court's
ruling  on  a  number of substantive motions pending before the Court,  a  later
ruling  by  the  Court indicated a strong desire not to have additional  parties
added to this proceeding.                                                       

Item 9.   Disagreements on Accounting and Financial Disclosure                  

Not applicable.                                                                 

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PART III                

Item 10.  Directors and Executive Officers of the Registrant                    

The names, ages and present principal occupation of management's nominees, other
directorships  held by them and the year each first became a  director  are  set
forth in the table below.                                                       

Name, Age & Date First Elected           Principal Occupation & Directorships   
------------------------------           ------------------------------------   

MICHAEL B. WHITE                         Vice President - Secretary and         
Director since March 20, 1995            General Counsel of Hecla Mining        
Age 48                                   Company, Coeur d'Alene, Idaho          

JOHN P. STILWELL                         Vice President - Chief Financial       
Director since January 2, 1996           Officer of Hecla Mining Company,       
Age 46                                   Coeur d'Alene, Idaho                   

EXECUTIVE OFFICERS                

Name                           Age                    Office                    
-----------------------------------------------------------------               

Michael B. White                48                 President                    
John P. Stilwell                46                 Vice President               
Nathaniel K. Adams              37                 Secretary                    

Item 11.  Executive Compensation                                                

Silver Mountain paid no remuneration in 1998 to its officers and directors.  Any
compensation  that  may have been paid to the officers and directors  of  Silver
Mountain  for  their  services  to the Company  was  paid  by  their  respective
principal employers. Silver Mountain has no compensation plans for its  officers
and directors and there are no stock options outstanding.                       

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Item 12.  Security Ownership of Certain Beneficial Owners & Management          

As  of  December  31, 1998, there were 3,066,000 shares of the Company's  common
stock, par value $.10 per share outstanding.                                    

The table below sets forth, as of December 31, 1998, the number of shares of the
Company's outstanding common stock held by Hecla Mining Company.                

Name & Address of         Amount and Nature                                     
Beneficial Owner          of Beneficial Ownership    Percent of Class           
-----------------         -----------------------    ----------------           

Hecla Mining Company      1,011,000 shares direct           32.97%              
6500 Mineral Drive        (Sole voting & investment                             
Coeur d'Alene, ID 83815   power)                                                

The  Company is not aware of any person (including any "group" as that  term  is
used  in Section 13 (d) (3) of the Securities Exchange Act of 1934), other  than
as set forth above, who is the beneficial owner of more than five percent of the
Company's common stock as of December 31, 1998.                                 

As  of December 31, 1998, no shares of the Company's outstanding stock were held
by  any director individually or by all directors and officers of the Company as
a group.                                                                        

Item 13.  Certain Relationships and Related Transactions                        

Not applicable.                                                                 

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PART IV                 

Item l4.  Exhibits, Financial Statement Schedules and Reports on Form 8-K       

(a) (1) and (2) All Financial Statements:                                       
Unaudited Balance Sheets, December 31, 1998 and 
1997                                        
Unaudited Statements of Income and Accumulated  
  Surplus for the Years Ended December 31, 1998,
1997 and 1996                               
Unaudited Statements of Cash Flows for the Years
Ended December 31, 1998, 1997 and 1996      
Notes to Financial Statements                   

(a) (3) and (c) Exhibits:                                                       

                The  exhibit  numbers in the  following  list  correspond to the
                numbers assigned to such exhibits in Item 601 of Regulation S-K.

Number        Description of Exhibits           
------        -----------------------           

27          Financial Data Schedule         

(b)             Reports on Form 8-K:                                            

None                                            

(d)             Financial  Statements  Required  by  Regulations S-X  which  are
excluded from the annual report to shareholders:

None                                            

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SIGNATURES                

      Pursuant  to  the  requirements of Section 13 or 15(d) of  the  Securities
Exchange  Act of 1934, the Registrant has duly caused this annual report  to  be
signed on its behalf by the undersigned, thereunto duly authorized, on March 19,
1999.                                                                           

            SILVER MOUNTAIN LEAD MINES, INC.

     By /s/   Michael B. White
                ------------------------------
                 Michael B. White, President
                and Director

      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.                    

/s/ Michael B. White    3/19/99                  /s/ John P. Stilwell   3/19/99 
-------------------------------                  ------------------------------ 
Michael B. White         Date                    John P. Stilwell         Date  
President and Director                           Vice President and Director    
Chief Executive Officer                          Chief Accounting Officer       

/s/ Nathaniel K. Adams  3/19/99                  /s/ David F. Wolfe     3/19/99 
-------------------------------                  ------------------------------ 
Nathaniel K. Adams       Date                    David F. Wolfe           Date  
Secretary                                        Chief Financial Officer        

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       EXHIBIT INDEX
       -------------

Exhibit                                                                         
No.                       Description                                       
--------           ---------------------------------                            

27                Financial Data Schedule                                     

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘10-K405’ Filing	Date	First	Last	Other Filings

Filed on:	3/22/99
	3/19/99	17
	2/26/99	1	5
For Period End:	12/31/98	1	16
	12/31/97	3	16	10-K405
	8/28/97	3	13
	12/31/96	9	16	10-K405
	1/2/96	14
	1/1/96	11
	3/20/95	14
	2/10/95	3
	2/9/95	3
	12/31/94	7
				List all Filings

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Filing Submission 0000090366-99-000002 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Silver Mountain Lead Mines Inc – ‘10-K405’ for 12/31/98

As of: Monday, 3/22/99 · For: 12/31/98 · Accession #: 90366-99-2 · File #: 1-03728

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Annual Report — [x] Reg. S-K Item 405 — Form 10-KFiling Table of Contents

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10-K405 — Silver Mountain Lead Mines, Inc. Form 10-K
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