-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SBP6JAjam+PAVS4REfc60co6ALAtzcC9Bew/7mnfeElCFkmPmzY1SfmMADDCgIuq xSfxkXb4ugLNZXFCvLReNg== 0000912057-97-017835.txt : 19970520 0000912057-97-017835.hdr.sgml : 19970520 ACCESSION NUMBER: 0000912057-97-017835 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORD RESOURCES CORP CENTRAL INDEX KEY: 0000072316 STANDARD INDUSTRIAL CLASSIFICATION: MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400] IRS NUMBER: 850212139 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08733 FILM NUMBER: 97606573 BUSINESS ADDRESS: STREET 1: 8150 WASHINGTON VILLAGE DR CITY: DAYTON STATE: OH ZIP: 45458 BUSINESS PHONE: 5134336307 MAIL ADDRESS: STREET 1: 8150 WASHINGTON VILLAGE DRIVE CITY: DAYTON STATE: OH ZIP: 45458 10-Q 1 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 F O R M 10-Q ------------- (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 -------------- OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-6202-2 -------- Nord Resources Corporation ----------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 85-0212139 ------------------------------- ------------------------------------ (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 8150 Washington Village Drive, Dayton Ohio 45458 - ------------------------------------------ ----- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (937) 433-6307 -------------- Not Applicable ------------------------ Former name, former address and former fiscal year, if changed since last report 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 twelve 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 X NO --- --- Common shares outstanding as of April 18, 1997: 21,843,058 NORD RESOURCES CORPORATION AND SUBSIDIARIES INDEX PAGE NUMBER ------ PART I. FINANCIAL INFORMATION: ITEM 1. Condensed Financial Statements: Balance Sheets - March 31, 1997 and December 31, 1996 1 Statements of Operations - Quarters ended March 31, 1997 and 1996 2 Statements of Cash Flows - Quarters ended March 31, 1997 and 1996 3 Notes to Condensed Financial Statements 4-9 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10-12 PART II. OTHER INFORMATION: ITEM 1. Legal Proceedings 13 ITEM 2-5. Inapplicable 13 ITEM 6. Exhibits and Reports on Form 8-K 13 NORD RESOURCES CORPORATION AND SUBSIDIARIES CONDENSED BALANCE SHEETS (In Thousands) ASSETS ------ MARCH 31, DECEMBER 31, 1997 1996 -------- ------------ CURRENT ASSETS: Cash and Cash Equivalents $ 11,311 $ 15,583 Restricted Investments - available for sale 2,385 2,376 Accounts Receivable 146 179 Prepaid Expenses 308 163 Net Assets of Discontinued Operations 10,266 9,766 --------- --------- TOTAL CURRENT ASSETS 24,416 28,067 INVESTMENTS IN AND ADVANCES TO AFFILIATES 11,645 9,840 INVESTMENT IN SRL 69,345 67,552 PROPERTY, PLANT AND EQUIPMENT, net 23 27 OTHER ASSETS 5,078 4,817 -------- -------- $110,507 $110,303 -------- -------- -------- -------- LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES: Accounts Payable $ 123 $ 77 Accrued Expenses 411 539 Unearned Revenue 1,500 1,500 Obligations to Lenders - SRL 22,187 21,620 -------- --------- TOTAL CURRENT LIABILITIES 24,221 23,736 RETIREMENT BENEFITS 7,253 6,987 STOCKHOLDERS' EQUITY: Common Stock 218 218 Additional Paid-in Capital 77,960 77,950 Retained Earnings 717 1,274 Cumulative Foreign Currency Translation Adjustment 281 281 Minimum Pension Liability (143) (143) -------- -------- 79,033 79,580 -------- -------- $110,507 $110,303 -------- -------- -------- -------- See notes to condensed financial statements 1 NORD RESOURCES CORPORATION AND SUBSIDIARIES CONDENSED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) QUARTERS ENDED MARCH 31 ----------------------- 1997 1996 -------- --------- GENERAL AND ADMINISTRATIVE EXPENSES AND $ (954) $ (938) (LOSS) FROM OPERATIONS OTHER INCOME (EXPENSE): Interest Income 408 145 Interest Expense (31) (35) Litigation Recoveries 150 Equity in Net Earnings of Affiliate 20 4 -------- --------- TOTAL OTHER INCOME (EXPENSE) 397 264 -------- --------- (LOSS) FROM CONTINUING OPERATIONS (557) (674) (LOSS) FROM DISCONTINUED OPERATIONS (1,443) -------- --------- NET (LOSS) $ (557) $(2,117) -------- --------- -------- --------- (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE: From Continuing Operations $ (.03) $ (.04) From Discontinued Operations (.09) -------- --------- Net (Loss) $ (.03) $ (.13) -------- --------- -------- --------- AVERAGE SHARES 21,840 15,838 -------- --------- -------- --------- See notes to condensed financial statements 2 NORD RESOURCES CORPORATION AND SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOWS (In Thousands) QUARTERS ENDED MARCH 31 ----------------------- 1997 1996 -------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net (Loss) $ (557) $ (2,117) Adjustments to reconcile net (loss) to net cash (used in) operating activities: Changes in Assets and Liabilities 71 98 Loss from Discontinued Operations 1,443 Depreciation and Amortization 7 11 Equity in Net (Earnings) of affiliate (20) (4) Net Cash (Used in) Discontinued Operations (500) (3,052) -------- --------- Net Cash (Used In) Operating Activities (999) (3,621) -------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Net Cash from Sale of Fixed Assets 66 Additions to Other Assets (263) (64) Increase in Investments in and Advances to Affiliates (1,785) (30) Increase in Investment in SRL (1,226) (359) -------- --------- Net Cash (Used In) Investing Activities (3,274) (387) -------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Stock Option Activity 10 Restricted Cash and Investments (9) 4 -------- --------- Net Cash Provided by Financing Activities 1 4 -------- --------- (DECREASE) IN CASH AND CASH EQUIVALENTS (4,272) (4,004) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 15,583 6,026 -------- --------- CASH AND CASH EQUIVALENTS - END OF PERIOD $11,311 $ 2,022 -------- --------- -------- --------- See notes to condensed financial statements 3 NORD RESOURCES CORPORATION AND SUBSIDIARIES NOTES TO CONDENSED FINANCIAL STATEMENTS QUARTERS ENDED MARCH 31, 1997 AND 1996 1. FINANCIAL STATEMENTS The balance sheet at December 31, 1996 is condensed financial information taken from the financial statements, which are audited, but the independent auditors report included a disclaimer of opinion for an uncertainty relating to the ability of the Company to continue as a going concern. The interim financial statements are unaudited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary to present fairly the financial position and results of operations for the interim periods presented have been made. The results shown for the first quarter of 1997 are not necessarily indicative of the results that may be expected for the entire year. In February 1997, the Financial Accounting Standard Board issued SFAS No. 128, "Earnings Per Share," which is effective for the Company at December 31, 1997. SFAS No. 128 establishes standards for computing and presenting earnings per share. It replaces the presentation of primary earnings per share with a presentation of basic earnings per share. It also requires dual presentation of basic and diluted earnings per share for entities with complex capital structures. As the Company incurred a loss in the first quarter of 1997 and 1996, the adoption of SFAS No. 128 will have no effect on the Company's financial statements for the period ended March 31, 1997 and 1996. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 1996 annual report to shareholders. 2. BASIS OF PRESENTATION The consolidated financial statements include the accounts of Nord Resources Corporation, and its 50% interest in a rutile mining operation ("SRL") (collectively the "Company"). All significant intercompany transactions and balances are eliminated. SRL as used in these financial statements includes Sierra Rutile Holdings, Sierra Rutile Limited (the mining operation) and other subsidiaries of the Company and 4 Sierra Rutile Holdings that are economically dependent on the mining operation. As a result of the situation described in Note 3, the Company's 50% investment in SRL is carried at the cost basis of accounting in the consolidated balance sheets. Investments in 20% to 40%-owned affiliates and joint ventures are carried using the equity method. On an interim basis, all costs subject to recurring year-end adjustments have been estimated and allocated ratably to the quarters. Income taxes, if necessary, have been provided based on the estimated tax rate for the respective years after excluding infrequently occurring items whose specific tax effect is reported during the same interim period as the related transaction. The accompanying condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not contain any adjustments that might be necessary should the Company be unable to continue as a going concern. Certain reclassifications have been made to the March 31, 1996 and December 31, 1996 financial statements to conform to the classifications used in 1997. 3. INVESTMENT IN SRL In January 1995, the Company's 50% owned rutile mining operation in Sierra Leone was attacked by non-government forces. As a result, SRL was forced to suspend mining operations and subsequently terminated all nonessential personnel. The resumption of operations is dependent upon many conditions including (1) Sierra Leone having an acceptable political environment within which to operate, (2) SRL having adequate levels of security in and around the minesite area, (3) SRL completing an accurate assessment of the cost of resuming operations, (4) SRL successfully renegotiating its operating agreements with the government of Sierra Leone and (5) SRL obtaining adequate levels of financing at acceptable terms. Cost of resuming operations includes repair or replacement of assets which have incurred damage and deterioration during the period of suspension of operations and costs to reestablish and train a workforce, replenish supplies and restore and recommission facilities. Until SRL personnel can complete a detailed assessment of the condition of SRL's assets, it is not possible to accurately estimate these costs. There is no certainty that adequate financing would be available to fund the above noted costs, although management of the Company, SRL and the other 50% owner of SRL are engaged in advanced discussions with 5 potential financing sources. The Company is not yet able to determine when operations will resume at the Sierra Leone mine. If the above noted conditions for resuming operations in Sierra Leone are not satisfied, the Company may have to record an impairment reserve against a significant portion or possibly all of its investment in SRL. Prior to December 31, 1994, the Company proportionately consolidated its share in each of the assets, liabilities and operations of SRL. As of December 31, 1994, the Company adopted the cost basis of accounting for its investment in SRL because the mine was no longer controlled by SRL. The Company's investment includes original cost plus undistributed earnings through December 31, 1994 plus SRL obligations to lenders, payment of which is guaranteed by the Company, less any related restricted cash. The Company intends to resume proportional consolidation for its 50% share in each of the assets, liabilities and operations of SRL once SRL reestablishes its operations. At that time, the Company will recognize its share of SRL's operating results since January 1, 1995 in its statement of operations. If the Company had resumed proportional consolidation at March 31, 1997, it would have recognized $13,358,000 as its share of SRL's operating loss since January 1, 1995. During the quarter ended March 31, 1997 the Company contributed $1,226,000 as its 50% share of funding for SRL's cash needs, primarily to satisfy vendor payments, to fund ongoing operational needs of SRL and for certain costs related to the SRL mine rehabilitation program. Summarized financial data for the Company's 50% share of SRL's operations are as follows: Quarters Ended March 31, ------------------------ 1997 1996 --------- --------- (in thousands) Revenues $ 492 $ 481 Less Costs and Expenses: Cost of Sales 272 36 Selling, General and Administrative 1,094 493 Other Expense 738 486 Income Tax Expense 18 6 --------- ------- Net (Loss) $ (1,630) $ (540) --------- --------- --------- --------- 6 Included in revenues for 1996 is $409,000 received in an insurance settlement from claims made for costs related to the evacuation of the SRL operations in Sierra Leone. The increase in selling, general and administrative costs in 1997 compared to 1996 is primarily related to security costs incurred in 1997 and increased activity related to commencement of the mine rehabilitation program. An impairment reserve of $3,000,000 was recorded in the first quarter of 1995 as the Company's 50% share of damage to assets. The Company will likely record an additional impairment reserve when a more extensive damage assessment can be performed. Although SRL will incur costs to restart the operations, the amount of an additional impairment and costs to restart the operations, cannot be estimated currently. If adequate security in and around SRL's operations is not attainable or the estimated costs of resuming SRL's operations in Sierra Leone are prohibitive, the Company may have to record an impairment reserve against a portion or possibly all of its investment in SRL. 4. INDEBTEDNESS As a result of the suspension of its mining operations resulting from civil disturbances in January 1995, SRL is not in compliance with certain financial and operational covenants under its financing agreements. The lenders have agreed to forebear from accelerating the maturities of the loans or enforcing their rights against any collateral until July 1, 1997 to allow SRL time to determine the damage to the mining operations, assess the political situation in Sierra Leone and develop and present a plan for refinancing, rehabilitating and reopening the mining operation. The forebearance agreement would terminate if there is a material change in circumstances. As of March 31, 1997 and December 31, 1996, amounts due the lenders by SRL have been classified in the balance sheet as a current liability. The financing agreements contain restrictive covenants relating to SRL including requirements to maintain minimum current and debt coverage ratios and a limit on indebtedness compared to net worth and a limit on the amount of dividends. Additional covenants under these agreements include restrictions on change of control of SRL and limitations on additional indebtedness at SRL. Separately, as a condition to the forebearance and as security for its guarantee, the Company has pledged proceeds it may receive from claims made under a political risk insurance policy issued by an agency of the United States government. The Company will be able to retain the first $2.7 million of the proceeds. Any additional proceeds will be held in trust and funds will be released from the trust when the Company's 50% share of the deferred principal payments have been made and no events of default exist under the financing agreements. 7 5. DISCONTINUED OPERATIONS On April 23, 1997 the Company sold substantially all the assets (except cash and accounts receivable) of its 80% owned subsidiary, Nord Kaolin Company ("NKC"), for $20 million less $735,000 relating to certain accruals assumed by the purchaser. Under the sale agreement, the Company is responsible for the payment of a majority of the liabilities of NKC. At December 31, 1996 the Company recorded a loss on disposal of $18,912,000 and a provision for operating losses to disposal date of $2,500,000. The Company expects to realize $10.3 million in cash from this sale (after payment of NKC's liabilities and other liabilities incurred as a result of the transaction), of which $6.3 million was received at closing. The remaining amount is expected to be realized in the second quarter of 1997. In addition, the restriction on use of $2.4 million of investments, previously used to secure payment of certain of NKC's liabilities, has been removed. Sales of $7.1 million and $8.4 million and the respective cost of sales, selling, general and administrative expenses and interest expense for the quarters ended March 31, 1997, and 1996, respectively, have been reclassified from continuing operations in the statement of operations and are included in the loss from discontinued operations. During the first quarter of 1997, the Company charged $1,771,000 against the provision for operating losses to disposal date. The assets (liabilities) of discontinued operations are summarized as follows: March 31, December 31, 1997 1996 --------- ------------ (in thousands) Current Assets $ 8,492 $ 9,071 Plant and equipment and deferred charges 19,485 20,237 Other current liabilities (13,459) (13,475) Accrued transaction costs (1,611) (1,611) Estimated operating losses to disposal date (729) (2,500) Long-term liabilities (1,912) (1,956) --------- ------------ Net Assets of Discontinued Operations $ 10,266 9,766 --------- ------------ --------- ------------ 8 6. NET (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE Net (loss) per common share and common equivalent share is computed by dividing net (loss) by the weighted average number of common shares outstanding during the period adjusted for the dilutive effect of common share equivalents when applicable. 7. EQUITY IN NET (LOSS) OF AFFILIATE The Company has a 35% interest in Nord Pacific Limited at March 31, 1997. Summary financial data for the operations of Nord Pacific Limited for the periods are as follows: Quarters Ended March 31, ------------------------ 1997 1996 --------- --------- (in thousands) Sales $ 3,936 $ 3,210 Less costs and expenses (3,409) (3,102) Foreign currency transaction gain (loss) 31 (43) Forward currency exchange contracts gain (loss) (170) 384 Copper contracts gain (loss) 232 (301) Other income 37 65 Provision for taxes (700) (300) --------- --------- Net (loss) $ (43) $ (87) --------- --------- --------- --------- The Company's share of the net (loss) for the quarters ended March 31, 1997 and 1996 was $(15,000) and $(31,000), respectively. 8. LITIGATION The Company has reached settlements with all defendants in SRL's action against those allegedly responsible for certain allegedly improper and fraudulent transactions against SRL which occurred prior to 1991. The financial statements of the Company for the quarter ended March 31, 1996 include a final payment of $150,000 in other income in connection with these settlements. 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995. The statements contained in this report which are not historical fact are "forward looking statements" that involve various important risks, uncertainties and other factors which could cause the Company's actual results for 1997 and beyond to differ materially from those expressed in such forward looking statements. These factors include, without limitation, the risks and factors set forth below as well as other risks previously disclosed in the Company's securities filings. LIQUIDITY AND CAPITAL RESOURCES Cash decreased from $15.6 million at December 31, 1996 to $11.3 million at March 31, 1997. The Company's administrative activities required $479,000 in cash during the first quarter of 1997 while $500,000 was used to fund the discontinued kaolin segment. Cash of $263,000 was used for additions to other assets and $1.2 million was advanced to SRL and $1.8 million was advanced to Nord Pacific during the first quarter of 1997. The Company has made available, at its discretion, two demand loans for up to $1 million each to Nord Pacific Limited ("Pacific"), one for operating needs and one for funding an escrow account required by a lender to Pacific. During the first quarter of 1997 the Company advanced $1.8 million to Pacific and at March 31, 1997 the Company was owed $3.0 million by Pacific. If Pacific is successful in completing a public offering of its common stock in Canada, the Company has agreed to purchase that number of additional shares of common stock from Pacific so that it would maintain approximately a 30% interest in Pacific. The Company estimates that the purchase price could approximate $4.5 million. Any amount owed by Pacific at the date the above offering is completed will be used by the Company to pay a portion of the purchase price. On April 23, 1997, the Company completed the sale of substantially all of the assets of Nord Kaolin Company ("NKC"). After collection of NKC's accounts receivable and settlement of NKC's liabilities and other liabilities incurred as a result of this transaction, the Company received $6.3 million on April 23, 1997 and anticipates that during the second quarter of 1997 it will receive an additional $4.0 million of net proceeds as a result of this transaction. In addition, the restriction on use of $2.4 million of investments, previously used to secure payment of certain of NKC's liabilities, has been removed. With the sale of the kaolin operations, the Company's business consists of a 50% ownership in SRL and a 35% ownership in Pacific. The Company anticipates that its cash balances, including cash received from the sale of the kaolin assets, will be 10 sufficient to fund its administrative activities for the foreseeable future. The Company has not made any commitment to provide funds to Pacific other than the current demand loans outstanding and does not anticipate that it will be requested to provide any additional funding to Pacific, once Pacific completes the aforementioned public offering. However, the Company expects to be required to fund SRL's cash needs as described below. Due to the suspension of its operations, SRL has relied and will continue to rely on funds from the Company and its other 50% owner to sustain its operations. Funds are expected to continue to be required by SRL for maintaining a limited workforce, payment of vendors, costs of security at the mine and interest on loans outstanding. The Company has sufficient funds to continue funding SRL for these purposes for the foreseeable future; however, it is the Company's and SRL's intention to continue with plans for resumption of SRL's operations. Among other key factors in that process is the availability of adequate levels of funding. SRL's preliminary projections indicate that it may require approximately $90 million through 1998 for asset rehabilitation, completion of a new powerhouse and dredge, mine development and working capital. SRL has held advanced discussions with its current lenders and other lending sources to determine if funds would be available from these sources to fund the major portion of the above requirements. The Company cannot determine if any additional funding will be available at terms which would be acceptable to SRL and the Company. To the extent funds are not available from these or other sources, the Company would be required to contribute its 50% share of SRL's cash requirements. However, the Company would likely not be able to fund a significant amount to SRL without obtaining capital from other sources. One source of cash could be from the payment of claims which have been and will be made by the Company under an insurance policy covering damage to assets at SRL due to political violence, as described below. SRL has begun various aspects of its planned rehabilitation program. The Company's share of funds which has been committed for these efforts is $4.5 million, which is expected to be funded to SRL through June 1997. These funds are expected to be available from the Company's cash balances. A result of the suspension of the SRL operations is that SRL is not in compliance with certain financial and operational covenants under its bank financing agreements. At March 31, 1997, the Company's 50% share of SRL's obligations to the lenders is $22.2 million, payment of which has been guaranteed by the Company. The lenders have agreed to forebear through July 1, 1997 (extended from January 1, 1997) from accelerating payment of the outstanding indebtedness, to enable SRL to assess its future operating alternatives. The forebearance would terminate if a material change in conditions occurs, as determined by the lenders, and requires SRL to expend at least $500,000 each quarter to pay for its liabilities and purchases. In addition to discussing the availability of additional financing from these lenders, SRL has discussed revision of the terms of the present financing agreements, including deferral of payments to beyond 1999. SRL and the Company are not able to determine the willingness of the lenders to approve any modification of the present loan terms beyond July 1, 1997, at 11 which date payment of the entire amount of the loans outstanding could be demanded by the lenders. The Company has filed a claim for damage due to political violence at SRL under a political risk insurance policy which has a coverage limit of $15.7 million. Additional documents and proof of loss are required to be filed as more information becomes available as to damage at the mine and the cost to repair equipment. The Company has received a $1.5 million provisional payment from the insurer; however, it is not able to estimate the total amount or timing of any future payments which may be received from claims under this policy. The Company is obligated to return any or all of this amount if it does not comply with certain provisions with respect to its efforts to repair damage at SRL or if the final amount of damage is less than that amount. The Company has pledged any proceeds in excess of $2.7 million it may receive under this policy as security under the bank financing agreements. RESULTS OF OPERATIONS The Company incurred a net loss from continuing operations of $557,000 and $674,000 in the quarters ended March 31, 1997 and 1996, respectively. Since the Company has adopted the cost basis of accounting for its investment in the rutile segment, the results do not include any amounts relating to its operations. Selling, general and administrative expense in the first quarter of 1997, which comprised the majority of the Company's loss, were comparable to the level of expenses incurred in 1996. Interest income increased in 1997 compared to 1996 due primarily to a higher level of funds available for investment in 1997. 12 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None. ITEMS 2-5. Inapplicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits required by Item 601 of Regulation S-K. Exhibit No. Description ----------- ----------- 27 Financial Data Schedule 13 Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NORD RESOURCES CORPORATION (Registrant) s/Terence H. Lang -------------------------------- Terence H. Lang Senior Vice President - Finance (Principal Financial Officer and Authorized Officer) DATE: May 14, 1997 14 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM NORD RESOURCES CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 11,311 0 146 0 0 24,416 565 542 110,507 24,221 0 0 0 218 78,815 110,507 0 0 0 954 0 0 31 (557) 0 (557) 0 0 0 (557) (.03) 0
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