SECURITIES AND EXCHANGE COMMISSION

Washington D. C. 20549

Form 10-Q

Quarterly Report Under Section 13 or 15(d)

of the Securities Exchange Act of 1934

For Quarter Ended September 30, 2000	Commission File

	No. 1-3871

CALIFORNIA-ENGELS MINING COMPANY

(Exact name of registrant as specified in its charter)

State of California	94-0357560	

(State or other jurisdiction of 	(I.R.S. Employer

incorporation or organization)	Identification No.)

117 Crescent Street 

P.O. Box 778

Greenville, California 95947-0778

(Address of principal executive office)  (Zip Code)

(530) 284-6191

(Registrant's telephone number including area code)

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 registrantwas required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes __X___   No _____

 

CLASS	OUTSTANDING AT SEPTEMBER 30, 2000

Capital Stock, par	760,954.34 Shares

Value, $0.25 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Filing Contains 8 pages

CALIFORNIA-ENGELS MINING COMPANY

BALANCE SHEETS

(Unaudited)

PART I FINANCIAL INFORMATION

Item 1.  Financial Statements

		September 30		December 31

		2000		1999		

ASSETS

Current Assets		

	Cash	$	54,467	$ 	71,295					

	Deeds of trust - current portion		2,837		5,317
	Deferred income tax		-		-

	Reimbursements receivable		-		-						

	Deposits		-		-

	Prepaid income tax		-		-	

		Total Current Assets		57,304		76,612
Property and Equipment, net		398,243		450,804
Other Assets

	Investments available-for-sale		1,575		1,549

	Investments held-to-maturity		2,367		2,790

	Deeds of trust - net of current portion		174,544		30,830
		Total Other Assets		178,486		35,169
		Total Assets	$	634,033	$	562,585	

LIABILITIES

Current Liabilities

	Income taxes payable	$	23,284	$	4,697

	Deferred tax liabilities		50		50

	Accrued expenses		41,594		48,614

	Notes payable, current portion		1,894		6,444
		Total Current Liabilities		66,822		59,805
Long-term Liabilities

	Notes payable, net of current portion		114,563		124,866
		Total Long-term Liabilities		114,563		124,866
		Total Liabilities		181,385		184,671
STOCKHOLDER'S EQUITY

Stockholder's Equity

	Capital stock, par value $0.25: 4,000,000

		shares authorized 760,954.3 shares

		issued and outstanding in 1999 and 2000		190,241		190,241

	Accumulated other comprehensive

		income (loss)		288		288

	Reduction surplus		2,800,917		2,800,917

	Accumulated deficit		(2,538,798)		(2,613,532)
		Total Stockholder's Equity		452,648		377,914
	

	Total Liabilities and Stockholder's Equity	$	634,033	$	562,585**CALIFORNIA-ENGELS MINING COMPANY 

STATEMENTS OF OPERATIONS

(Unaudited)**
				Three Months Ended September 30,

				2000		1999	
Revenue

	Timber and rock revenue	$	480	$	695

	Dividend income		200		347

	Interest income		2,717		1,030
			

			Total Revenue		3,397		2,072

Operating and General Expenses

	Depreciation		501		1,836

	Director fees		2,000		-

	Insurance		-		-	

	Miscellaneous		268		473

	Memberships and dues		-		-			

	Office and storage rents		3,127		878

	Office expenses		460		217

	Professional fees		930		-

	Reclamation plan expense		12,738		-

	Repairs and maintenance		-		30

	Superior quarry expense		-		-	

	Taxes and licenses		222		976	

	Travel and per diem		230		-

	Vehicle expense		249		355

	Wages and related taxes		3,334		-	

			Total Operating and General

			Expenses		24,059		4,765
			Net Income (Loss) from Operations		(20,662)		(2,693)
Other Income and (Expense)

	Depletion		-		-

	Gain (loss) on sale of securities		-		-	

	Gain on sale of land		143,240		-	

	Interest		(4,752)		(1,110)

	Timber management expense		5,319		(8,156)

	Office and bookkeeping service		5,790		-	

			

			Total other income and (expense)		149,597		(9,266)
			Income (Loss) Before Taxes		128,935		(11,959)

Provision for Income Taxes		(29,824)		-
	

			Net Income (Loss)	$	99,111	$	(11,959)	

			Earnings (Loss) per Share	$	0.130	$	(0.016)
 
**CALIFORNIA-ENGELS MINING COMPANY

STATEMENTS OF OPERATIONS

(Unaudited)**
 

				Nine Months Ended September 30, 

				2000		1999	
Revenue

	Timber and rock revenue	$	1,525	$	2,798

	Dividend income		967		1,209

	Interest income		5,706		4,646
		

			Total revenue		8,198		8,653

Operating and General Expenses

	Depreciation		1,503		3,672

	Director fees		2,000		-

	Insurance		1,900		1,900

	Miscellaneous		631		1,255

	Memberships and dues		-		350

	Office and storage rents		9,383		2,883

	Office expenses		3,140		768

	Professional fees		3,970		1,838

	Reclamation plan expense		12,738		-

	Repairs and maintenance		1,050		3,770

	Superior quarry expense		-		-	

	Taxes and licenses		3,111		3,114

	Travel and per diem		714		411

	Vehicle expense		945		973	

	Wages and related taxes		9,511		-
			Total Operating and General

			Expenses		50,596		20,934
			Net Income (Loss) from Operations		(42,398)		(12,281)
Other Income and (Expense)

	Depletion		-		-

	Gain (loss) on sale of securities		-		-

	Gain (loss) on sale of land		143,240		-

	Interest		(12,679)		(1,110)

	Timber management expense		(6,160)		(11,042)

	Office and bookkeeping service		22,365		-
			

			Total Other Income and (Expense)		146,766		(12,152)
			Income (Loss) Before Taxes		104,368		(24,433)

Provision for Income Taxes		(29,824)		-
		

			Net Income (Loss)	$	74,544	$	(24,433)	

			Earnings (Loss) per Share	$	0.098	$	(0.032)		
** 

CALIFORNIA-ENGELS MINING COMPANY

STATEMENTS OF CASH FLOWS

(Unaudited)**
				Nine Months Ended September 30,

				2000		1999	
Cash Flows from Operating Activities

	Net Income (Loss)	$	74,544	$	(24,433)

	Adjustments to reconcile net income 

		(loss) to net cash provided (used) by 

		operating activities:

			Depreciation and depletion		1,503		3,672

			Amortization of GNMA discount		-		-

			(Gain) loss on sale of securities		-		(2,948)

			(Gain) loss on sale of land		(143,228)		-

	(Increase) decrease in assets

			Prepaid expenses		-		-	

			Deposits		-		563

	Increase (decrease) in liabilities

			Taxes payable		18,587		(1,650)

			Accrued expenses		(7,020)		49,114
			Net cash provided (used) by 

			operating activities		(55,614)		24,318
Cash Flows from Investing Activities

	Payments received on notes receivable		4,683		35,232

	Notes issued		(49,117)		-

	Purchases of securities and investments		(26)		-	

	Proceeds from sale of securities		-		20,824

	Proceeds from sale of land		98,248		-

	Return of principal GNMA		613		1,095

	Capital expenditures		(762)		(233,003)
			Net cash provided (used) by

			investing activities		53,639		(175,852)
Cash Flows from Financing Activities

	Purchase of treasury shares		-		(90)

	Notes payable		-		177,600

	Payments on notes payable		(14,853)		(28,890)
	

			Net cash provided (used) 

			by financing activities		(14,853)		148,620
Net Increase (Decrease) in Cash and 

	Cash Equivalents		(16,828)		(2,914)

Cash and Cash Equivalents, 

	Beginning of period		71,295		10,128
	End of period	$	54,467	$	7,214	
**CALIFORNIA-ENGELS MINING COMPANY

FIXED ASSET SUMMARY

(Unaudited)**
 

 

				September 30,		December 31,

				2000		1999	
Furniture and Equipment	$	38,273	$	33,775

Land				239,702		116,696

Less: Accumulated Depreciation		(25,713)		(18,700)
		

			Subtotal		252,262		131,771		

Timber Management Development		164,078		109,636

Less: Accumulated Depletion		(18,097)		(2,896)
	

			Subtotal		145,981		106,740
			Total Property and Equipment	$	398,243	$	238,511** 

CALIFORNIA-ENGELS MINING COMPANY

NOTES TO FINANCIAL STATEMENTS**
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	The accompanying financial statements are unaudited but, in the opinion of the management, include all adjustments, consisting solely of normal items, necessary for a fair presentation.  Interim results are not necessarilyindicative of results for a full year.

	These financial statements should be read in conjunction with the financial statements and notes, which are included in the Company's Annual Report on Form 10-K for the year ended December 31, 1999.  The accounting policies setforth in those annual financial statements are the same as the accounting policies utilized in the preparation of these financial statements, except as modified for appropriate interim financial statement presentation.

 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

	During the 30 years its mining properties were leased, the Company endeavored to increase working capital, total assets and shareholder's equity in the event that its lessee, Placer Dome U.S. Inc., terminated its Mining Lease andOption to Purchase agreement and return the mining properties to the Company.  This event occurred effective April 20, 1993.  Thus, funds were available to begin preparation of a Non-Industrial Timber Management Plan which was approved by the CaliforniaDepartment of Forestry and became effective July 2, 1999.  The objective of the Company is to earn income from the sale of its timber so funds are available for the maintenance of its properties and the implementation of its timber management plan.Because timber revenues are sporadic, in order to provide regular monthly income the President of the Company, on January 1, 2000, transferred management of the office building at 117 Crescent Street, Greenville, CA and its related bookkeeping business tothe Company.

	The Company filed a Notice of Timber Operations pursuant to its Non-Industrial Timber Management Plan with the California Department of Forestry on September 7, 2000 for a mechanical thinning and biomass project on its EngelsParcel and is completing a Timber Harvest Plan for its Henry Parcel.

Results of Operations

	The Company had net gain, for the three months ending September 30, of $ 99,111 in 2000, compared to net loss of $ 11,959 in the 1999 period.  The change in net income for the third quarter of 2000 over the third quarter of 1999was due to the gain on the sale of land.

	The Company had net gain, for the nine months ending September 30, of $ 74,544 in 2000, compared to net loss of $ 24,433 in the 1999 period.  The change in net income for the first nine months of2000 compared with the corresponding period in 1999 was also due to the gain on the sale of land.  
	The Company's principal sources of income are office management and bookkeeping fees, sale of timber, interest, dividends, capital gains on sale of real estate and sale of rock and sand.  There is no assurance that any of thesources of income will continue at current rates into the future. 

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995

	The matters discussed in this report on Form 10-Q, when not historical matters, are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from projectedresults.  Such risks, trends and uncertainties include the highly cyclical nature of the forest products industry, general economic conditions, competition, price conditions or trends for the Company's products, the possibility that timber supply couldincrease if governmental, environmental or endangered species policies change, and limitations on the Company's ability to harvest its timber due to adverse natural conditions or increased governmental restrictions.  These and other risks are describedfrom time to time in the Company's filings with the Securities and Exchange Commission.  Many of these factors are beyond the Company's ability to control or predict.  The Company disclaims any intent or obligation to update its forward-lookingstatements, whether a result of receiving new information, the occurrence of future events, or otherwise. 

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Prices

	The Company's earnings and cash flow may be significantly impacted by changes in the market price of timber.  Timber prices fluctuate and may be affected by numerous factors, such as seasonal demand, production levels, economicpolicies of central banks, interest rates and producer hedging.

 
**PART II - OTHER INFORMATION**
Item 1.  Legal Proceedings.

	

	None

Item 2.  Changes in Securities.

	None

Item 3.  Defaults upon Senior Securities.

	None

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

	None

Item 5.  Other Information.

	None

Item 6.  Exhibits and Reports on Form 8-K.

	None
** 

 

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.

 

		**CALIFORNIA-ENGELS MINING COMPANY
		Registrant

 

 **
DATE: 	November 10, 2000	By _/s/ Norman A. Lamb_____
		    Norman A. Lamb, President

		    and Chief Executive Officer

 

DATE: November 10, 2000	By _/s/ James E. Brousseau__

	    James E. Brousseau, Secretary-

	    Treasurer and Chief Financial

	    Officer