EXHIBIT 99.2
CYPRUS NORTHSHORE MINING CORPORATION
AND CONSOLIDATED SUBSIDIARY
FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 1994
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STATEMENT OF CONSOLIDATED FINANCIAL POSITION (UNAUDITED)
CYPRUS NORTHSHORE MINING CORPORATION AND CONSOLIDATED SUBSIDIARY
(In Thousands)
September 30,
1994
--------------
ASSETS
CURRENT ASSETS
Cash $ 5
Accounts receivable:
Trade 12,883
Other 538
----------
13,421
Inventories:
Concentrates 589
Finished products 13,192
Supplies and coal (net of reserve - $1,469) 8,680
----------
22,461
Deferred income taxes 634
Other current assets 2,173
----------
TOTAL CURRENT ASSETS 38,694
PROPERTIES
Land 4,499
Plant and equipment 87,786
----------
92,285
Allowance for depreciation and amortization (53,710)
----------
TOTAL PROPERTIES 38,575
OTHER ASSETS 35
----------
TOTAL ASSETS $ 77,304
==========
See notes to consolidated financial statements (unaudited).
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STATEMENT OF CONSOLIDATED FINANCIAL POSITION (UNAUDITED)
CYPRUS NORTHSHORE MINING CORPORATION AND CONSOLIDATED SUBSIDIARY
(In Thousands)
September 30,
1994
--------------
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 2,610
Taxes payable:
Federal and state income 229
Other 4,589
Accrued employment costs 1,377
Royalties payable 2,025
Other current liabilities 2,372
----------
TOTAL CURRENT LIABILITIES 13,202
POSTEMPLOYMENT BENEFIT LIABILITIES 1,491
DEFERRED INCOME TAXES 1,291
OTHER LIABILITIES 1,487
SHAREHOLDER'S EQUITY
Capital stock-par value $1 a share
Authorized-1,000 shares
Issued-100 shares --
Capital in excess of
par value of shares 87,238
Retained deficit (27,405)
----------
TOTAL SHAREHOLDER'S EQUITY 59,833
----------
TOTAL LIABILITIES AND
SHAREHOLDER'S EQUITY $ 77,304
==========
See notes to consolidated financial statements (unaudited).
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STATEMENT OF CONSOLIDATED INCOME (UNAUDITED)
CYPRUS NORTHSHORE MINING CORPORATION AND CONSOLIDATED SUBSIDIARY
(In Thousands)
Nine Months Ended
September 30,
1994
-----------------
REVENUES
Product sales and service $ 77,648
Other income 167
----------
77,815
COSTS AND EXPENSES
Cost of sales 59,647
Depreciation and amortization 2,340
Royalties 3,216
State and local taxes 5,267
Administrative, selling and general expenses 1,011
Other expenses 120
----------
Total Costs and Expenses 71,601
----------
INCOME BEFORE INCOME TAXES 6,214
INCOME TAXES 2,301
----------
NET INCOME $ 3,913
==========
See notes to consolidated financial statements (unaudited).
21
STATEMENT OF CONSOLIDATED CASH FLOWS (UNAUDITED)
CYPRUS NORTHSHORE MINING CORPORATION AND CONSOLIDATED SUBSIDIARY
(In Thousands,
Brackets Indicate
Cash Decrease)
Nine Months Ended
September 30,
1994
-----------------
OPERATING ACTIVITIES
Net Income $ 3,913
Adjustments to reconcile net income
to net cash (used by) operations:
Depreciation and amortization 2,340
Deferred income tax provision 1,661
Loss on disposal of assets 8
Other 393
----------
Total before changes in operating
assets and liabilities 8,315
Changes in operating assets and liabilities:
Receivables (increase) (5,657)
Inventories decrease 1,563
Other current assets (increase) (1,978)
Payables and accrued liabilities (decrease) (4,336)
----------
Total changes in operating
assets and liabilities (10,408)
----------
Net cash (used by) operating activities (2,093)
INVESTING ACTIVITIES
Purchase of plant, property and equipment (3,509)
Proceeds from sale of assets 135
----------
Net cash (used by) investing activities (3,374)
FINANCING ACTIVITIES
Decrease in intercompany account with
Cyprus Amax Minerals Company 11,266
Decrease in capital in excess of par value of shares (5,866)
-----------
Net cash from financing activities 5,400
-----------
DECREASE IN CASH (67)
CASH AT BEGINNING OF PERIOD 72
-----------
CASH AT END OF PERIOD $ 5
===========
See notes to consolidated financial statements (unaudited).
22
STATEMENT OF CONSOLIDATED SHAREHOLDER'S EQUITY (UNAUDITED)
CYPRUS NORTHSHORE MINING CORPORATION AND CONSOLIDATED SUBSIDIARY
In Thousands
------------------------------------------------------------------
Capital In
Excess of
Capital Par Value Inter- Retained
Stock of Shares Company Deficit Total
------- ---------- -------- -------- -------
Balance, December 31, 1993 $ -- $93,104 $(11,266) $(31,318) $50,520
Net income -- -- -- 3,913 3,913
Return of capital to
Cyprus Amax Minerals
Company -- (5,866) -- -- (5,866)
Decrease in intercompany
account with Cyprus
Amax Minerals Company -- -- 11,266 -- 11,266
------- ------- -------- -------- -------
Balance, September 30, 1994 $ -- $87,238 $ -- $(27,405) $59,833
======= ======= ======== ======== =======
See notes to consolidated financial statements (unaudited).
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
CYPRUS NORTHSHORE MINING CORPORATION AND CONSOLIDATED SUBSIDIARY
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 8-K and should be read in conjunction
with the financial statement footnotes and other information in Cyprus
Northshore Mining Corporation and consolidated subsidiary's (the "Company")
1993 audited financial statements. In management's opinion, the unaudited
financial statements present fairly the Company's financial position and
results of operations.
NOTE B - ACQUISITION BY CLEVELAND-CLIFFS INC
On September 30, 1994, Cleveland-Cliffs Inc acquired, through its
wholly-owned subsidiary Cliffs Minnesota Minerals Company, all of the
outstanding shares of stock of the Company (renamed Northshore Mining Company)
and Cyprus Silver Bay Power Corporation (renamed Silver Bay Power Company) from
Cyprus Amax Minerals Company.
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