Over the past nine years I have directly communicated with sixty percent of you holding the vast majority of outstanding stock.
Like the company itself, you are a unique body of people. Most of you know something about the company, but your common concern has been the lack of information you were receiving from management.
We changed that policy in May 1983, with our first shareholders' newsletter. It was obvious that all of us needed a fundamental report in order to commence separating fact from fiction in evaluating our individual holdings. So, fellow shareholders, this Special Report is for you.
The body of this report contains collected facts and hard data for your information and represents a presentation to perspective shareholders to facilitate them in evaluating our Company. Our stock certificates represent ownership in a very special company. The sum of Original Sixteen to One Mine, Inc. is truly greater than its separate components.
Our Corporation has completed the bulk of its internal re-organization, which began the after April 1983 election of directors. The significant results of this work have produced the following:
* Revision of an existing lease (April 1976) that increased minimum payments from $25,000 annually to $60,00, paid quarterly. Also production standards were clarified and our lessee abandoned its corporate name of "Sixteen to One Mining Company."
* The first quartz and gold "in kind" Royalty Payment from a lessee was received from high-grade production mined in April 1984.
* Initiation of a rehabilitation and major renovation program of existing Company buildings into positive cash flow income producers. Also the first acquisition of real property in three decades.
* Locating an optionee for major un-leased claims (Bald Mountain) qualified to initiate a sound exploration program.
* An increase in the capitalization to 4,000,000 shares, resulting in increased shareholder's liquidity.
* The enclosed audit…a major effort due to incomplete facts, figures and records, and the problem in determining historical values.
* An in-depth internal analysis of prior corporate activities and the formulation of courses of action for the overall betterment of gold mining in general and the Company specifically.
* Concentration of the offices and related data closer to the mines in Alleghany.
* Commencement of preparations for reviving the Company as a primary gold producer on un-leased claims.
My conclusion is that we have a very exciting and promising company. There are downside risks for the Company that are common to small single product companies like ours. Also there are factors that may materially affect the revenue of the Company that are beyond the control of the officers and directors. However, a close examination of our holdings, the status of our business relationships, and the gold mining industry in relation to world wide economic possibilities combine to make Original Sixteen to One Mine, Inc., a corporation worth noticing and holding as an investment.
M. Meister Miller