<PAGE>   1



                    U.S. SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C.  20549

                                  FORM 10-QSB
(Mark One)

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

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995

                                       OR

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

For the transition period from                to 
                               --------------    --------------

COMMISSION FILE NUMBER 0-16436

                        PIEDMONT MINING COMPANY, INC.
      (Exact name of small business issuer as specified in its charter)

                    NORTH CAROLINA                    56-1378516
           (State or other jurisdiction            (I.R.S. Employer
         of incorporation or organization)        Identification No.)

                        4215 STUART ANDREW BOULEVARD
                       CHARLOTTE, NORTH CAROLINA 28217
                  (Address of principal executive offices)



                               (704) 523-6866
                         (Issuer's telephone number)

                               NOT APPLICABLE
            (Former name, former address and former fiscal year,
                        if changed since last report)


         Check whether the issuer (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 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 
            -----       ------

                    APPLICABLE ONLY TO CORPORATE ISSUERS
         State the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:

           COMMON STOCK, NO PAR VALUE--15,043,869 SHARES OUTSTANDING
                             AS OF NOVEMBER 9, 1995





                                      -1-
<PAGE>   2

                                    INDEX
PIEDMONT MINING COMPANY, INC.
PART I. FINANCIAL INFORMATION


Item 1.  Financial Statements.                                              Page

         Consolidated Condensed Balance Sheets--September 30, 1995           3
         (unaudited) and December 31, 1994

         Consolidated Condensed Statements of Operations (unaudited)--       4
         Three months ended September 30, 1995 and September 30, 1994---
         Nine months ended September 30, 1995 and September 30, 1994

         Consolidated Condensed Statements of Cash Flows                     5
         (unaudited)--Nine months ended September 30, 1995 and
         September 30, 1994

         Notes to Consolidated Condensed Financial Statements                6
         (unaudited)--September 30, 1995


Item 2.  Management's Discussion and Analysis of                            10
         Financial Condition and Results of Operations.


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                  14

Item 6.  Exhibits and Reports on Form 8-K.                                  15


SIGNATURES                                                                  16






                                      -2-
<PAGE>   3

PIEDMONT MINING COMPANY, INC
PART I.  FINANCIAL INFORMATION
<TABLE>
<CAPTION>
 ITEM 1. FINANCIAL STATEMENTS                                             At              At
                                                                    September 30      December 31
CONSOLIDATED CONDENSED BALANCE SHEETS                                   1995             1994    
                                                                    -------------     ------------
ASSETS                                                               (unaudited)
<S>                                                                 <C>               <C>
CURRENT ASSETS
  Cash and cash equivalents (including $0 and
   $51,000 relating to the Haile Mining Venture)                    $   940,000       $    91,000
  Investment in Amax Gold common stock (Notes B,E)                    1,574,000         5,250,000
  Accounts receivable                                                    28,000            28,000
  Other                                                                   2,000               -0-
                                                                    -----------       -----------
          TOTAL CURRENT ASSETS                                        2,544,000         5,369,000

PROPERTY AND EQUIPMENT (including $207,000
   and $227,000 relating to the Haile
   Mining Venture)                                                      250,000           278,000

OTHER ASSETS
  Deferred costs, net of accumulated
   amortization of $3,377,000 (including
   $1,536,000 relating to the Haile Mining
   Venture)                                                           1,754,000         1,754,000
  Other                                                                   4,000             4,000
                                                                    -----------       -----------
             TOTAL OTHER ASSETS                                       1,758,000         1,758,000
                                                                    -----------       -----------

                   TOTAL ASSETS                                     $ 4,552,000       $ 7,405,000
                                                                    ===========       ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts payable (including $140,000 and
   $39,000 relating to Haile Mining Venture)                        $   141,000       $    90,000
  Disputed cash calls (Note C)                                          254,000               -0-
  Accrued salaries and wages                                             18,000            17,000
  Note payable (Note D)                                                     -0-           940,000
  Accrued interest (Note D)                                                 -0-            28,000
  Note Payable-Amax Gold Inc. (Note D)                                      -0-         1,129,000
  Accrued interest-Amax Gold Inc. (Note D)                                  -0-           100,000
                                                                    -----------       -----------
      TOTAL CURRENT LIABILITIES                                         413,000         2,304,000
                                                                    -----------       -----------

ACCRUED RECLAMATION COSTS                                               125,000           125,000
                                                                    -----------       -----------

DEFERRED GAIN, net of accumulated amortization
   of $4,774,000 and $4,295,000 (Note B)                              2,244,000         2,724,000
                                                                    -----------       -----------
SHAREHOLDERS' EQUITY
  Common Stock                                                       11,157,000        11,157,000
  Contributed capital                                                   317,000           317,000
  Accumulated deficit                                                (9,824,000)       (9,222,000)
  Unrealized gain on available-for-sale
   securities (Note E)                                                  120,000               -0-
                                                                    -----------       -----------
     TOTAL SHAREHOLDERS' EQUITY                                       1,770,000         2,252,000
                                                                    -----------       -----------

  Commitments and contingencies (Notes B and F)                                                  
                                                                    -----------       -----------
           TOTAL LIABILITIES AND
           SHAREHOLDERS' EQUITY                                     $ 4,552,000       $ 7,405,000
                                                                    ===========       ===========
</TABLE>




            See notes to consolidated condensed financial statements





                                      -3-
<PAGE>   4

PIEDMONT MINING COMPANY, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)


<TABLE>
<CAPTION>

                                                       Three Months Ended              Nine Months Ended      
                                                          September 30                   September 30        
                                                       ------------------              -----------------      
                                                      1995            1994           1995             1994     
<S>                                               <C>             <C>             <C>              <C>          
NET SALES                                         $     -0-       $     -0-       $     -0-        $   -0-      
                                                                                                                
COST OF SALES:                                                                                                  
 Depreciation expense                                   3,000           3,000           8,000          19,000   
 Haile Mining Venture expenses(Notes B,C)             146,000         162,000         480,000         776,000   
 Amortization-deferred gain(Notes B,C)               (146,000)       (162,000)       (480,000)       (776,000)  
                                                  -----------     -----------     -----------     -----------   
                                                                                                                
                                                        3,000           3,000           8,000          19,000   
                                                  -----------     -----------     -----------     -----------   
                                                                                                                
 GROSS LOSS FROM OPERATIONS                             3,000           3,000           8,000          19,000   
                                                                                                                
OTHER (INCOME) EXPENSES:                                                                                        
 General and administrative                           170,000         153,000         495,000         480,000   
 Stock appreciation rights and awards                   -0-             -0-             -0-           (47,000)  
 Exploration                                            3,000           3,000           8,000          12,000   
 Professional fees                                     48,000          18,000         156,000         184,000   
 Interest and other, net                              (10,000)         36,000          12,000          64,000   
 (Gain) Loss on sale of stock                        (158,000)           -0-          (45,000)          -0-     
 Brokers fees and commissions                           3,000            -0-           45,000           -0-     
                                                  -----------     ------------    -----------     -----------   
                                                                                                                
                                                       56,000         210,000         671,000         693,000   
                                                  -----------     -----------     -----------     -----------   
                                                                                                                
 LOSS BEFORE INCOME TAXES                              59,000         213,000         679,000         712,000   
                                                                                                                
                                                                                                                
  Income tax benefit (provision)                        5,000          82,000          77,000         263,000   
                                                  -----------     -----------     -----------     -----------   
                                                                                                                
 NET LOSS                                         $    54,000     $   131,000     $   602,000     $   449,000   
                                                  ===========     ===========     ===========     ===========   
                                                                                                                
                                                                                                                
NET LOSS PER COMMON SHARE                         $       .01     $       .01     $       .04     $       .03   
                                                  ===========     ===========     ===========     ===========   
                                                                                                                
CASH DIVIDENDS PER SHARE                              None            None            None            None      
                                                                                                                
WEIGHTED AVERAGE NUMBER OF                                                                                      
 COMMON SHARES OUTSTANDING                         15,043,869      14,923,919      15,043,869      14,923,919   
                                                  ===========     ===========     ===========     ===========   
</TABLE>


           See notes to consolidated condensed financial statements.





                                      -4-
<PAGE>   5

PIEDMONT MINING COMPANY, INC.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                              Nine Months Ended
                                                                                September 30,      
                                                                          ---------------------------
                                                                             1995              1994
<S>                                                                       <C>              <C>
OPERATING ACTIVITIES
  Net loss                                                                $  (602,000)     $  (449,000)
  Adjustments to reconcile net loss to net cash                                                            
    used in operating activities:                                                                          
      Depreciation                                                             28,000           37,000     
      Amortization of deferred gain                                          (480,000)        (776,000)    
       Deferred income tax (benefit) expense                                  (77,000)        (278,000)    
      Compensation recorded with respect to                                                                
       stock appreciation rights and stock awards                                 -0-          (47,000)    
      (Gain) Loss on sale of assets                                           (48,000)         (13,000)    
      Changes in operating assets and liabilities:                                                         
       Decrease in income taxes receivable                                        -0-          110,000     
       Increase (decrease) in accounts payable                                                             
        and accrued expenses                                                  305,000          (78,000)    
       Other                                                                    2,000            -0-       
                                                                          -----------      -----------     
                                                                                                           
NET CASH USED IN OPERATING ACTIVITIES                                        (872,000)      (1,494,000)    
                                                                          -----------      -----------     
                                                                                                           
INVESTING ACTIVITIES                                                                                       
  Purchase of property and equipment                                              -0-           (3,000)    
  Proceeds from sales of land, property and equipment                           4,000           90,000     
  Proceeds from sales of Amax Gold Inc. stock                               3,914,000            -0-        
                                                                          -----------      -----------      
                                                                                                           
NET CASH PROVIDED BY INVESTING ACTIVITIES                                   3,918,000           87,000     
                                                                          -----------      -----------     
                                                                                                           
FINANCING ACTIVITIES                                                                                       
  Proceeds from note payable to Amax Gold Inc.                                    -0-          603,000     
  Proceeds from broker margin loan                                                -0-          740,000     
  Payments on short-term debt                                              (2,197,000)           -0-       
                                                                          -----------      -----------     
                                                                                                           
NET CASH USED IN FINANCING ACTIVITIES                                      (2,197,000)       1,343,000     
                                                                          -----------      -----------     
                                                                                                           
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                              849,000          (64,000)    
                                                                                                           
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                               91,000          195,000     
                                                                          -----------      -----------     
                                                                                                           
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                $   940,000      $   131,000
                                                                          ===========      ===========
</TABLE>



           See notes to consolidated condensed financial statements.





                                      -5-
<PAGE>   6

PIEDMONT MINING COMPANY, INC.

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


September 30, 1995

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and
Article 10 of Regulation S-X.  Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements.  The consolidated condensed financial
statements include the accounts of the Registrant and its wholly-owned
subsidiaries, Kershaw Gold Company, Inc. (formerly Mineral Mining Company,
Inc.) and Piedmont Gold Company, Inc.  In the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation have been included.  Certain reclassifications of prior
year amounts have been made to conform to current year presentation.  Operating
results for the nine month period ended September 30, 1995 are not necessarily
indicative of the results that may be expected for the year ending December 31,
1995, as a result of the transactions described in Note B.  For further
information, refer to the financial statements and footnotes thereto included
in the Registrant's audited consolidated financial statements on Form 10-KSB
for the year ended December 31, 1994.

NOTE B - HAILE MINING VENTURE

On March 15, 1991, the Registrant entered into an option and earn-in agreement
with Amax Gold Exploration, Inc. (AGEI), a wholly-owned subsidiary of Amax Gold
Inc. (AGI), pursuant to which AGI acquired an option to purchase a 62.5%
interest in the Registrant's Haile Property located in South Carolina.
Pursuant to this agreement and as part of the earn-in conditions, AGEI paid the
Registrant $1,000,000 in cash; assumed the Registrant's obligations to make
payments on its notes to MMC Holding, Inc. and its sole shareholder through May
1, 1992 (a total of $1,072,000); provided financial support for a $750,000
reclamation bond increase; agreed to fund all exploration costs during the
option period and prepared at its sole cost a preliminary feasibility study for
the Haile Property which was delivered to the Registrant in December, 1991.

On May 1, 1992, AGI through its wholly-owned subsidiary, Lancaster Mining
Company, Inc., exercised its option and acquired a 62.5% undivided interest in
the Registrant's Haile Property.  Upon the exercise of the option, the
Registrant received $1,750,000 in cash and 1,000,000 unregistered shares of
AGI's common stock (AGI Common Stock).  The closing price of AGI Common Stock
on the New York Stock Exchange was $6.00 on September 30, 1995.  


Pursuant to the terms of the option and earn-in agreement, Kershaw Gold
Company, Inc. and Lancaster Mining Company, Inc. formed the Haile Mining
Venture (the Venture) to further explore, evaluate and, if  warranted, develop
and operate a gold mine at the Haile Property.  Lancaster Mining Company, Inc.
owns a 62.5% undivided interest and Kershaw Gold Company, Inc. owns a 37.5%
undivided interest in the Venture's assets and liabilities.  Costs of the
Venture have been borne by each party based on their respective interests, and
the ultimate gold production by the Venture, if any, will be taken by the
parties in kind.





                                      -6-
<PAGE>   7

In contemplation of the formation of the Venture described above, the
Registrant suspended its mining and hauling operations in August 1991.  On June
30, 1992, leaching and recovery of gold ceased for the Registrant's account and
commenced for the account of the Venture.

The excess of the consideration received by the Registrant from AGI over the
carrying value of the Haile assets sold and liabilities assumed has been
recorded as a deferred gain in the accompanying consolidated balance sheet
because the Registrant had intended to fund its share of the costs of the
Venture at the Haile Property.

The Venture agreement between Kershaw Gold Company, Inc. and Lancaster Mining
Company, Inc. provided that the Venture participants jointly decide whether to
commence production at the Haile Property.  Until a production decision is
made, the Registrant is charging to expense all of its share of the Venture's
costs and expenses.

The Registrant is amortizing the deferred gain to income in amounts equal to
the sum of the Registrant's share of the Venture's costs and expenses and the
Registrant's other direct costs of participation in the Venture. The
amortization recorded was approximately $480,000 relating to costs incurred
during the nine month period ended September 30, 1995.  However, as discussed
in Note C, no cash calls have been paid by the Registrant since February 1995.

The 1994 program and budget called for total Venture expenditures of
approximately $6,300,000, including $1,900,000 for additional drilling and
$150,000 for completion of a bankable feasibility study.  However, no further
drilling was conducted in 1994, the bankable feasibility study has not yet been
produced, and actual Venture expenditures for 1994 were approximately
$2,415,000.  In September 1994, the Registrant was advised by AGI that AGI had
decided to pursue the sale of its interest in the Venture.

AGI did not submit a proposed 1995 program and budget to the Registrant until
March 1995. The budget submitted by AGI calls for total project expenditures of
only about $2,000,000 for 1995.  The Registrant expects to have adequate funds
to meet its 37.5% share of the expenditures in 1995, but believes that
additional financing will be required in the future.

On March 29, 1995, the Registrant filed a lawsuit in South Carolina against AGI
and certain of its affiliates, claiming, among other things, that AGI's failure
to implement the 1994 program and budget was in breach of its obligations under
the Venture Agreement and Management Agreement for the Venture, and seeking
damages.  On May 24, 1995, AGI filed a demand for arbitration and on May 26,
1995 filed motions to dismiss the lawsuit.  The Registrant intends to
vigorously pursue its claims and to contest the arbitrability of the dispute.
(See Part II, Item 1)

The failure of AGI to implement the 1994 work plan and budget, the decision by
AGI to pursue the sale of its interest in the Venture, and the pending
litigation between the Registrant and AGI are expected to further delay a
decision whether to commence production at the Haile property.  Preliminary
estimates of the total costs of developing and commencing operations, based
upon the Preliminary Feasibility Study prepared pursuant to the Option and
Earn-In Agreement in December 1991, ranged up to approximately $80,000,000, of
which the Registrant's 37.5% share would be approximately $30,000,000.
Subsequent internal studies have also suggested that the capital costs could
equal or exceed this amount.





                                      -7-
<PAGE>   8

NOTE C - DISPUTED CASH CALLS

In February 1995, the Registrant advised AGI of its position that AGI was in
breach of the Haile Mining Venture Agreement and Management Agreement.  In
March 1995, the Registrant further advised AGI of its position that it was not
obligated to continue to pay the monthly cash calls for the Venture.
Subsequent to the filing of the lawsuit against AGI described in Note B, the
Registrant, through its counsel, again advised AGI of its position that it is
not required to and does not intend to pay any further cash calls until the
litigation is resolved.

The cash calls for March through September of 1995 are reflected as disputed
cash calls on the Registrant's balance sheet at September 30, 1995 and are
included in the Haile Mining Venture expenses and offset by the corresponding
amortization of deferred gain in the Registrant's statement of operations for
the nine months ended September 30, 1995.  However, the Registrant has not paid
such cash calls and maintains its position that it is not obligated to make
such payments.

NOTE D - BORROWINGS

The Registrant had a loan commitment of up to $2,000,000 from AGI through May
1, 1994. Borrowings under this agreement bore interest at prime plus 2%.  The
agreement required the Registrant to secure the loan balance with sufficient
AGI common shares having a market value equal to 200% of the outstanding
principal balance.  On February 27, 1995 this loan was paid in full.

The Registrant also has a credit arrangement with a broker that is secured by
the Registrant's shares of AGI stock.  Borrowings may be obtained under this
arrangement based on the number of shares subject to pledge and the market
value of such shares, among other factors.  There was no principal outstanding
under this agreement at September 30, 1995.

NOTE E - INVESTMENT IN AMAX GOLD COMMON STOCK

The Registrant was required to adopt the provisions of Statement of Financial
Accounting Standards No. 115, Accounting for Certain Investments in Debt and
Equity Securities, ("FAS 115"), effective January 1, 1994.  FAS 115 addresses
the accounting and reporting for investments in equity securities that have
readily determinable fair values and supersedes Statement of Accounting
Standards No. 12, Accounting for Certain Marketable Securities ("FAS 12").  FAS
115 requires securities that are classified as available-for-sale to be
reported at fair value, with unrealized gains and losses reported in a separate
component of shareholders' equity.  FAS 12 generally required that investments
in marketable securities be recorded at the lower of cost or market value.

In October 1993, the Registrant commenced borrowing from AGI against its
1,000,000 shares of AGI Common Stock and as of December 31, 1994 it had
borrowed $1,129,000 against these shares.  In January 1995, the Registrant
began selling shares of the AGI Common Stock on the open market.  On February
27, 1995 the Registrant paid AGI $1,247,772, representing the entire loan
balance plus accrued interest, from the proceeds of the sale of a portion of
the shares of AGI Common Stock held by the Registrant.  At September 30, 1995,
the Registrant held 262,400 shares of the AGI Common Stock.  The closing price
of AGI's Common Stock on the New York Stock Exchange on September 30, 1995 was
$6.00 per share.





                                      -8-
<PAGE>   9

The Registrant has substantial deferred tax assets relating principally to net
operating loss carryforwards which are available to offset taxable income
generated upon the future disposition of the AGI shares.  Prior to the adoption
of FAS 115, the Registrant has maintained a valuation allowance which reduces
its deferred tax assets to an amount equal to the sum of offsetting deferred
tax liabilities.  As of September 30, 1995, a deferred income tax liability
relating to the unrealized gain on securities available-for-sale, in the amount
of approximately $77,000, has been recorded as a reduction in the unrealized
gain.  Under Statement of Financial Accounting Standards No. 109, Accounting
for Income Taxes ("FAS 109"), the recording of this deferred income tax
liability resulted in a corresponding $77,000 reduction of the Registrant's
valuation allowance against deferred tax assets.  In accordance with FAS 109,
the tax benefit relating to the reduction of the valuation allowance is
allocated to the statement of operations to the extent of income tax benefits
generated by 1995 operating losses and any balance is included in the
unrealized gain on securities available-for-sale. In the event that the
unrealized gain on investment securities which gave rise to this tax benefit
decreases significantly in the future, the Registrant may be required to
restore the valuation allowance through a provision for income taxes.

NOTE F - CONTINGENCIES

Pursuant to the Option and Earn-In Agreement, the Venture Agreement and certain
related agreements, the Registrant has agreed to indemnify AGI for all
environmental and other liabilities arising from matters occurring or existing
on the Haile Property prior to March 15, 1991, or arising from acts, omissions
and operations on the Haile Property from March 15, 1991 to July 1, 1992 (the
date the Venture was formed).  AGI has identified approximately $2,036,000 of
Venture expenditures ($290,000 for the second half of 1992, $681,000 for 1993,
$674,000 in 1994 and $391,000 through September 30, 1995) that it claims are
subject to such indemnification provisions and should be reallocated 100% to
the Registrant.

Invoices have been received by the Registrant totalling $1,356,000 representing
the amount of such costs not previously funded by the Registrant as part of its
37.5% share of Venture expenses.  A substantial part of such costs relate to
ongoing water treatment and property maintenance at the Haile Property, as well
as certain reclamation costs.  AGI has also taken the position that the
Registrant will be responsible for 100% of similar ongoing expenses.

The Registrant has disputed the cost reallocation asserted by AGI.  Such
dispute remains unresolved, and AGI has demanded arbitration of the dispute.
(See Part II, Item 1)  At this time the Registrant is unable to estimate the
amount, if any, which it might be required to pay or provide upon resolution of
this matter.  The amount and duration of any future or continuing costs that
AGI claims would be the responsibility of the Registrant will also depend on
whether and when mining operations are commenced at the Haile Property and the
specific mining and reclamation plans adopted at that time.  Any such amount
that ultimately becomes payable by the Registrant will be charged against any
remaining amount of the deferred gain resulting from the sale of the 62.5%
interest in the Haile Property to AGI in connection with the formation of the
Venture in 1992.  See Note C for discussion of the disputed cash calls which
the Registrant has accrued but claims it is not required to pay.





                                      -9-
<PAGE>   10

PIEDMONT MINING COMPANY, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
  OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

   The Registrant's principal operations prior to mid-1992, other than its
exploration activities, were mining and production of gold at the Haile
Property, which accounted for most of the Registrant's revenues to date.  On
March 15, 1991, the Registrant entered into an Option and Earn-In Agreement
with Amax Gold Inc. (AGI) pursuant to which AGI was granted an option to
acquire a 62.5% undivided interest in the Haile Property.  In connection with
its entering into the Option and Earn-In Agreement and AGI's exploration
activities at the Haile Property during the option period thereunder, the
Registrant began to phase out its shallow, open-pit mining operations at the
Haile Property in March 1991 and suspended mining and hauling in August 1991.
AGI exercised its option on May 1, 1992, and the Registrant and AGI formed the
Venture on July 1, 1992 to further explore, evaluate, and, if warranted,
develop and operate a large-scale mining operation at the Haile Property.  The
Registrant has an undivided 37.5% interest in the Venture's assets,
liabilities, costs and revenues.  Recovery and production of gold from the
leaching of ore previously mined continued until July 1, 1992 for the account
of the Registrant until the formation of the Venture on July 1, 1992, and for a
short period thereafter for the account of the Venture.

   In connection with the grant of the option pursuant to the Option and
Earn-In Agreement with AGI in March 1991, and as part of the earn-in
conditions, AGI also paid the Registrant $1,000,000 in cash, assumed debt
service obligations during the option period (approximately $1,072,000) on the
Registrant's note to MMC Holding, Inc., provided financial support for a
reclamation bond increase at the Haile Property, funded all exploration costs
at the Haile Property during the option period, and provided at its expense a
preliminary feasibility study for the Haile Property.  Upon the exercise by AGI
of its option in 1992, the Registrant received $1,750,000 in cash and 1,000,000
unregistered shares of AGI Common Stock.  Because the Registrant has intended
to fund its share of the costs of the Venture, the excess of the fair value of
the consideration received from AGI over the carrying value of the interests in
the Haile Property sold and liabilities assumed was reflected as a deferred
gain and is being amortized to income in amounts equal to the sum of the
Registrant's share of the Haile Mining Venture's costs and expenses and the
Registrant's other direct costs of participation in the Venture.

   As discussed in Note B to the accompanying financial statements, the failure
of AGI to implement the 1994 work plan and budget, the decision by AGI to
pursue the sale of its interest in the Venture, and the pending litigation
between the Registrant and AGI are expected to further delay any decision
whether to commence production at the Haile property.  Thus the Registrant's
financial condition and operations in the future are currently expected to
depend upon the ultimate resolution of its litigation with AGI, which is
described in Part II, Item 1 of this report.

THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1994.

           There were no sales or mine operating expenses for the three month
period ended September 30, 1995 and 1994 due to the suspension of mining in
1991 and the completion in 1992 of recoveries of gold from leaching of ore
previously mined.

           Depreciation expense remained unchanged at $3,000 for the three
month period ended September 30, 1995.





                                      -10-
<PAGE>   11

PIEDMONT MINING COMPANY, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)

           General and administrative expenses increased 11% to $170,000 for
the three month period ended September 30, 1995 due primarily to North Carolina
Intangible taxes.

           Professional fees increased 168% principally due to the timing
differences in required legal, accounting and consulting services.

           There were no stock appreciation rights and stock awards expense for
the 1995 quarter because no awards or stock appreciation rights were issued
during the period and the Registrant's stock price declined below the exercise
price for all outstanding options.

           Exploration expenses remained unchanged at $3,000 for the three
month period ended September 30, 1995.

           Interest and other, net decreased by $46,000 principally due to no
borrowing during 1995 and offsetting interest income.

           The Registrant commenced sales of its AGI Common Stock in early
1995.  The Registrant recorded a gain of approximately $158,000 on sales of AGI
Common Stock during the three months ended September 30, 1995.  Brokers' fees
and commissions were also incurred as a result of the Registrant's sales of AGI
Common Stock during the three months ended September 30, 1995.

           The Registrant has been amortizing the deferred gain, recorded as a
result of the AGI option exercise, to income in amounts equal to the sum of the
Registrant's share of the Venture's costs and expenses and the Registrant's
other direct costs of participation in the Venture.  Such costs and related
amortization amounted to $146,000 for the three months ended September 30,
1995.  As explained in Note C the Registrant has not funded these costs since
February 1995.  This amount is 10% lower than the three months ended September
30, 1994 due to the reduced expenditures at the Haile Property during 1995.

           The income tax benefit of $5,000 for the three months ended
September 30, 1995 relates to the tax effect of the unrealized gain on
securities available-for-sale as discussed in Note E to the accompanying
financial statements.

           The Registrant's net loss of $54,000 for the three month period
ended September 30, 1995 was due to the factors set forth above.

NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1994.

           There were no sales or mine operating expenses for the nine month
period ended September 30, 1995 and 1994 due to the suspension of mining in
1991 and the completion in 1992 of recoveries of gold from leaching of ore
previously mined.

           Depreciation expense decreased 58% to $8,000 principally as a result
of the limited expenditures for plant, machinery and equipment during the 1995
quarter and the sale of certain equipment in early 1994.

           General and administrative expenses increased 3% for the nine month
period ended September 30, 1995 due to increased travel and other expense
relating to the Amax suit.





                                      -11-
<PAGE>   12

PIEDMONT MINING COMPANY, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)


           Professional fees decreased 15% principally due to the decrease in
required legal, accounting and consulting services.

           There were no stock appreciation rights and stock awards expense for
the nine month period ending September 30, 1995 because no awards or stock
appreciation rights were issued during the period and the Registrant's stock
price declined below the exercise price for all outstanding options.

           Exploration expenses declined by $4,000 due to a reduction in lease
expense for the Registrant's North Carolina properties.

           Interest and other, net decreased by 81% principally due to the
decrease in borrowing during 1995 and offsetting interest income.

           The Registrant commenced sales of its AGI Common Stock in early
1995.  The Registrant recorded a gain of approximately $45,000 on sales of AGI
Common Stock during the first nine months of 1995.  Brokers' fees and
commissions were also incurred as a result of the Registrant's sales of AGI
Common Stock during the nine months ended September 30, 1995.

           The Registrant has been amortizing the deferred gain, recorded as a
result of the AGI option exercise, to income in amounts equal to the sum of the
Registrant's share of the Venture's costs and expenses and the Registrant's
other direct costs of participation in the Venture. As explained in Note C, the
Registrant has not funded these costs since February 1995.  Such costs and
related amortization amounted to $480,000 for the nine months ended September
30, 1995.  This amount is 38% lower than the nine months ended September 30,
1994 due to the reduced expenditures at the Haile Property during 1995.

           The income tax benefit of $77,000 for the nine months ended
September 30, 1995 relates to the tax effect of the unrealized gain on
securities available-for-sale as discussed in Note E to the accompanying
financial statements.

           The Registrant's net loss of $602,000 in the nine months ended
September 30, 1995 was due to the factors set forth above.

FINANCIAL CONDITION

           The Registrant's financial condition and liquidity declined in the
first nine months of 1995 due primarily to the funding of the costs and
expenses of the Venture and various corporate costs without any offsetting
revenues.  Working capital declined to $2,131,000 at September 30, 1995,
compared with $3,065,000 at the end of 1994.

           The Registrant's principal source of liquidity during the nine
months ended September 30, 1995 was from the sale of 737,600 shares of AGI
Common Stock it had acquired upon AGI's exercise of its option with respect to
the Haile Property.  In connection with the exercise of the option, AGI had
agreed to lend up to $2,000,000 to the Registrant at the Registrant's request,
at the prime rate plus 2%, such loan to be secured by AGI shares having a
market value of at least 200% of the amount of the loan (or, if less, all of
the AGI shares) and to be repaid upon the earlier of the sale of the shares
pursuant to the Registrant's registration rights, AGI's repurchase of the
shares in lieu of registration, or expiration of the registration rights
(December 31, 1996).





                                      -12-
<PAGE>   13

PIEDMONT MINING COMPANY, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONT.)

The Registrant began borrowing from AGI under this arrangement in October 1993.
This loan was paid in full on February 27, 1995.  The Registrant also has a
credit arrangement with a broker for margin loans on the AGI Common Stock.
There was no principal outstanding under this arrangement at September 30,
1995.

           During the first quarter of 1995, the Registrant began selling
shares of the AGI Common Stock on the open market and applied a portion of the
proceeds of such sales to repayment in full of the loan from AGI and repayment
of the outstanding balance due the broker on the margin loans.  Through
September 30, 1995, the Registrant had sold 737,600 of such shares at an
average net price per share of $5.25, and at September 30, 1995 held 262,400
shares of AGI Common Stock with no borrowing against such shares.  The market
price of AGI Common Stock at September 30, 1995 was $6.00 per share.

           Further sales of or margin loans on the remaining shares of the AGI
Common Stock held by the Registrant may be its only source of additional cash
for the foreseeable future.  Thus, declines in the market price of the AGI
Common Stock could adversely affect the Registrant's liquidity.

           The Registrant believes its current cash position and funds
available from loans on or dispositions of the AGI Common Stock will provide
sufficient capital for its continued operations through the end of 1995,
including any amounts it could be required to pay for its share of the 1995
Venture expenses (see Note B to the accompanying financial statements) and any
amounts it would ultimately pay or be required to pay on the disputed claim for
reallocation of certain Venture expenses described in Note F to the
accompanying financial statements.  So long as the Registrant is not required
to pay the disputed cash calls or the disputed claim described in Note F, such
funds should also be sufficient for continual operations through 1996,
including the funding required to maintain the pending litigation against AGI.
However, the Registrant will need additional financing to develop and commence
mining operations at the Haile Property, or if prior to a production decision
substantially more expenditures are incurred at the Haile Property for which
the Registrant is responsible, or if the Registrant decides to resume its North
Carolina exploration program.  Additional financing for such purposes could be
sought through the issuance of additional shares of the Registrant's Common
Stock or other equity securities, through debt financing, or through various
arrangements (including joint ventures or mergers) with third parties.
However, the Registrant currently has no commitments for any such additional
financing, and there is no assurance that the Registrant could obtain any such
additional financing if and when needed.

           If a production decision were to be made, the total costs of 
developing and commencing mining operations at the Haile Property, as estimated
in the Preliminary Feasibility Study prepared in December 1991 pursuant to the
Option and Earn-In Agreement, could be as great as $80,000,000, and could be
even more, depending upon the nature, size and scope of the operations and
other variables which have not yet been determined.  Although the Registrant
and AGI had agreed in the Venture Agreement to seek project financing for the
development of the Haile Property if a production decision were made, there is
no assurance that project financing will be available and the Registrant may be
required to seek its own separate financing.





                                      -13-
<PAGE>   14

PIEDMONT MINING COMPANY, INC.
PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.

   On March 29, 1995, the Registrant and its wholly-owned subsidiary, Kershaw
Gold Company, Inc., as plaintiffs, filed a complaint in the Court of Common
Pleas for Lancaster County, South Carolina (Case No. 95-155) against Amax Gold
Inc., Lancaster Mining Company, Inc. and Haile Mining Company, Inc., alleging
breach of contract by defendants Amax Gold Inc., Lancaster Mining Company, Inc.
and Haile Mining Company, Inc., and tortious interference with contractual
rights by defendant Amax Gold Inc.  The complaint asks for actual and punitive
damages in an unspecified amount as the Court and jury shall determine. A trial
by jury is demanded.

  On May 24,1995 the defendant filed a demand for arbitration with the American
Arbitration Association alleging the breach by plaintiffs of obligations under
the Venture Agreement and seeking "a declaration of future responsibilities of
the parties regarding the [Haile Property]." On May 26, 1995, the defendants
filed motions in the state court proceeding to dismiss the complaint. The
Registrant has taken the position before both the court and the American
Arbitration Association that the dispute is not arbitrable under the terms of
the Venture Agreement, and has objected to the arbitration proceedings. The
Registrant has also served discovery requests on defendants.

  A hearing on pending motions in the state court proceeding was held on
October 5, 1995.  On November 2, 1995, the court issued an order dismissing the
claims of Piedmont Mining Company, Inc. (but not those of Kershaw Gold Company)
against the defendants, and dismissing both plaintiffs' claims for breach of
contract against Amax Gold Inc. (but not Kershaw Gold Company's claims against
Lancaster Mining Company, Inc. and Haile Mining Company, Inc.), on the grounds
that only the subsidiaries of the Registrant and of Amax Gold Inc. are parties
to the contract in question. The order also stayed Kershaw Gold Company's
claims for breach of contract against the two Amax Gold Inc. subsidiaries
pending a determination of arbitrability by the arbitrators. Kershaw Gold
Company's claim against Amax Gold Inc. for tortious interference with contract
(including the Venture Agreement) was allowed to proceed. Amax Gold Inc.'s
motion for a more definite statement of the tortious interference claim was
granted. Discovery on the tortious interference claim was also authorized.
The Registrant intends to vigorously prosecute its claims against Amax
Gold Inc. and the two subsidiaries.

  In the meantime, the American Arbitration Association has commenced its
proceedings to establish a panel for the arbitration. The Registrant intends to
vigorously contest the arbitrability of the dispute on the grounds that
disputes subject to arbitration under the Venture Agreement are limited to
claims not exceeding $2,000,000, and that the Registrant's claims significantly
exceed that amount.

   The action arises out of the Haile Mining Venture and the allegations in the
complaint relate to various breaches of the Venture Agreement and Management
Agreement for the Haile Mining Venture by the defendants, including the failure
of the defendants to implement the 1994 program and budget for the Venture.
Defendant Amax Gold Inc. is also alleged to have intentionally procured such
breaches by the other defendants through its domination and control of the
other defendants. The demand for arbitration made by the defendants includes
claims against the Registrant for certain Venture costs for which the
Registrant is alleged to be liable under the environmental indemnity provisions
of the Venture Agreement, as discussed in Note F--"Contingencies" to the
accompanying financial statements.





                                      -14-
<PAGE>   15


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

     (a)    Exhibits

     27     Financial Data Schedule (filed in electronic format only)

     (b)    Reports on Form 8-K
            No reports on Form 8-K were filed during the three months
            ended September 30, 1995.





                                      -15-
<PAGE>   16


PIEDMONT MINING COMPANY, INC.



                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.




                        PIEDMONT MINING COMPANY, INC.



Date: November 13, 1995            By /s/ Robert M. Shields, Jr.             
                                      ----------------------------------------
                                      Robert M. Shields, Jr.
                                      Chairman and
                                        Chief Executive Officer




Date: November 13, 1995            By /s/ Thomas L. Ross, III                
                                      ---------------------------------------
                                      Thomas L. Ross, III
                                      Secretary and Controller
                                        (Chief Accounting Officer)






                                      -16-