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 the Quarter Ended June 30, 2011      Commission File No. 001-10156



                          ORIGINAL SIXTEEN TO ONE MINE, INC.
                (Exact name of registrant as specified in its charter)



                   CALIFORNIA                            94-0735390
 (State or other jurisdiction of     (I.R.S. Employer Identification No.)
   incorporated or organization)

                     Post Office Box 909, Alleghany, CA  95910
                      (Address of principal executive offices)


                                    (530) 287-3223
                            (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 past 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirement for the past 90 days.

                        Yes:                       No:  x



As of June 30, 2011, 13,399,505 shares of Common Stock, par value $.03 per
share, were issued and outstanding.


PART I 1. FINANCIAL INFORMATION Original Sixteen to One Mine, Inc. Condensed Balance Sheet June 30, 2011 and December 31, 2010 June 30, 2011 December 31, 2010 ASSETS Current Assets Cash $ 11,726 $ 4,956 Accounts receivable 2,837 3,597 Inventory 382,289 372,199 ---------- ---------- Total current assets 396,852 380,752 ---------- ---------- Mining Property Real estate and property rights net of depletion of $524,145 230,401 230,401 Real estate and mineral property 47,976 47,976 ---------- ---------- 278,377 278,377 ---------- ---------- Fixed Assets at Cost Equipment 810,404 810,404 Buildings 209,487 209,487 Vehicles 105,414 105,414 ---------- ---------- 1,125,305 1,125,305 Less accumulated depreciation (1,061,108) (1,055,357) ---------- ---------- Net fixed assets 64,197 69,948 ---------- ---------- Other Assets Bonds and misc. deposits 5,460 7,962 ---------- ---------- Total Assets $ 744,886 $ 737,039 ========== ==========
Original Sixteen to One Mine, Inc. Condensed Balance Sheet continued June 30, 2011 and December 31, 2010 June 30, 2011 December 31, 2010 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities Accounts payable & accrued expenses 805,094 817,497 Due to related party 388,363 304,848 Notes payable due within one year - - ---------- ---------- Total Current Liabilities 1,193,457 1,122,345 ---------- ---------- Long Term Liabilities Notes payable due after one year 97,236 97,236 ---------- ---------- Total Liabilities 1,290,693 1,219,581 ---------- ---------- Stockholders' Equity Capital stock, par value $.03: 30,000,000 shares authorized: 13,399,505 shares issued and outstanding as of June 30, 2010 and 13,373,505 as of December 31, 2009 440,656 440,656 Additional paid-in capital 2,063,202 2,063,202 (Accumulated deficit) retained earnings (3,049,665) (2,986,400) ---------- ---------- Total Stockholders' Equity (545,807) (482,542) ---------- ---------- Total Liabilities and Stockholders' Equity $744,886 $737,039 ========== ========== See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Operations and Retained Earnings Three Months Ending June 30, Six Months Ending June 30, 2011 2010 2011 2010 ------ ------ ------ ----- Revenues: Gold & jewelry sales $ 88,480 $ 52,106 $ 121,798 $ 63,174 ----------- ----------- -------- -------- Total revenues 88,480 52,106 121,798 63,174 ----------- ----------- -------- -------- Operating expenses: Salaries and wages 16,210 74,394 42,778 84,935 Contract Labor 12,316 14,026 23,938 22,819 Telephone & utilities 16,702 24,475 32,305 36,119 Taxes - property & payroll 4,761 10,930 11,026 20,827 Insurance 190 13,513 3,163 14,546 Supplies 12,540 24,750 16,188 48,191 Small equipment & repairs 3,685 4,540 5,536 5,991 Drayage 6,172 7,013 10,412 14,898 Corporate expenses 4,889 5,947 6,389 7,097 Legal and accounting 2,852 534 9,997 4,132 Mine Maintenance 21,199 64 29,450 10,528 Depreciation & amortization 2,876 4,354 5,752 8,707 Other expenses 1,734 1,866 3,113 10,804 ---------- ---------- ------- ------- Total operating expenses 106,126 186,406 200,047 289,594 ---------- ---------- -------- -------- Loss from operations (17,646) (134,300) $ (78,249) $ (226,420) Other Income & (Expense): Other income (expense) (7,057) 2,412 15,784 280,791 ---------- ----------- ------- -------- Profit (Loss) before taxes (24,703) (131,888) (62,465) 54,371 ---------- ----------- --------- ---------- Income tax benefit (expense) (800) - (800) (800) ---------- ----------- --------- ---------- Net profit (loss) $ (25,503) $ (131,888) $ (63,265) $ 53,571 ============ =========== ========== ========== Basic and diluted (loss) Gain per share $ (.002) $ (.01) $ (.005) $ .004 ============ ============ ========= ========= Shares used in the calculation of net loss income per share 13,399,505 13,399,505 13,399,505 13,399,505 ============ =========== ========== =========== See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Cash Flows Six Months Ended June 30,2011 and June 30,2010 Six Months Ended June 30, 2011 2010 -------------- -------------- Cash Flows From Operating Activities: Net (loss) profit $ (63,265) $ 53,571 operating activities: Depreciation and amortization 5,752 8,707 (Increase)Decrease in accounts receivable 760 (1,351) Decrease(Increase) in inventory (10,090) (14,814) (Increase)Decrease in other current assets - - (Decrease) increase in accounts payable and accrued expenses (12,403) 28,653 (Decrease) increase in short term notes 83,515 (433,307) ------------ ---------- Net cash (used) provided by operating activities 4,269 (358,541) ------------ ----------- Cash Flows From Investing Activities: Sale of mining property - 300,000 Capitalization of mining claims - (2,646) Other assets bonds misc. deposits 2,501 (2,502) ------------- ----------- Net cash used by investing activities 2,501 294,852 ------------- ----------- Cash Flows From Financing Activities Increase (decrease) notes payable - - Proceeds from sale of common stock - 780 Additional paid-in capital - 57,920 ------------ ------------ Net cash provided (used) by financing activities - 58,700 ------------ ------------ (Decrease) increase in cash 6,770 (4,989) Cash, beginning of period 4,956 7,321 ------------ ---------- Cash, end of period $ 11,726 $ 2,332 ============ ============ Supplemental schedule of other cash flows: Cash paid during the period for: Interest expense $ 14,744 $ 5,058 ============ ============ Income taxes $ 800 $ 800 ============ ============ See Accompanying Notes
NOTES TO THE FINANCIAL STATEMENTS I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Original Sixteen to One Mine, Inc. (the Company) was incorporated in 1911 and is actively involved in operating gold mines in Alleghany, California; currently, in maintenance status. Inventory: Inventory consists of gold bullion, specimens and jewelry. Gold bullion and specimens are quoted at the market price for gold bullion. Jewelry is quoted at the market price for the gold content plus labor cost. Gold bullion and jewelry are accounted for using the FIFO method. All other inventory is accounted for using the specific identification method. Fixed Assets: Fixed assets are stated at historical cost. Depreciation is calculated using straight-line and accelerated methods over the following useful lives: Vehicles 3 to 5 years, Equipment 5 to 7 years, Buildings 18 to 31.5 years. Depletion Policy: Because of the geological formation in the Alleghany Mining District, estimates of ore reserves currently cannot be calculated, and accordingly, a cost per unit depletion factor cannot be determined. Should estimates of ore reserves become available, the units of production method of depletion will be used. Until such time, no depletion deduction will be recorded. Revenue Recognition: As they are mined, gold specimens are recorded in inventory and revenue is recognized using quoted market prices for gold. For income tax purposes revenues are not recognized until the gold is sold. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. GENERAL NOTES 1. In accordance with directive from the Securities and Exchange Commission (SEC)and Industry Guide 7, reference for all intent and purposes to the Company's employees as miners, its properties as mines or its operation as mining does not diminish the fact that the Company has no proven reserves and is in the "exploration state" as defined in Guide 7(a)(4)(iii). 2. In the opinion of management, the financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company's financial position at June 30, 2011 and December 31, 2010, the results of operations and cash flows for the three-month periods ended June 30, 2011 and 2010. The unaudited financial statements have been prepared in accordance with Generally Accepted Accounting Principles for interim financial information and with the instructions to Form 10-Q and Item 310(b) of Regulation S-B. II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION The Sixteen to One mine in the Alleghany Mining District is a unique mine and requires a unique operation, which has been recognized by its owners, its miners, geologists, engineers, and some public agencies during the last decade of the twentieth century and to the present. It is a traditional high-grade, hard rock, underground gold mine. The same company owns and operates (maintains) the mine. Original Sixteen to One Mine Inc, (owner) was incorporated in California in 1911. Experts estimate that less than twenty percent of the proven and probable ore deposit has been mined. Production is approximately 1,500,000 ounces of gold. There are over twenty-eight miles of horizontal workings and millions of cubic feet of vertical excavations called stopes. The entire grounds are not maintained for mining. Once an area is targeted for mining, travel ways and escape routes are brought into safety compliance. Production miners set up a heading (face) and begin a drill-blast-muck sequence into the quartz. Gold is hosted in the quartz vein in exceedingly rich concentrations called "pockets". Metal detectors are regularly used underground as a tool for guiding the direction of the work. Metal detectors are also used as a tool to separate the ore underground. This has the positive affect of reducing the volume of shot rock from the mine, thereby reducing costs. In 1992, the company initiated a gold marketing plan of selling gold in quartz as a gemstone. This produces revenue significantly greater than selling gold into the spot market. Demand for the Sixteen to One gold-in-quartz gemstone exceeds supply. Production has been termed a "feast or famine" situation for over 100 years. Reserves in a high-grade gold mine cannot be termed as "proven". The company hoards gold and sells it according to short-term cash needs. This fact requires an operator to manage its cash flow to operate between pockets. It is difficult to undertake major expansion plans with an uncertain supply of capital. The Company has announced general plans to build a new shaft in the northern section of its Alleghany patented claims. BALANCE SHEET COMPARISONS For the six-month period from December 31, 2010 to June 30, 2011 there were no significant changes to the balance sheet. STATEMENT OF OPERATIONS Revenues for the three-month and six-month periods ended June 30, 2011 compared to the same periods in 2010 increased by $36,374 (70%) and $58,624 (93%) respectively. Primarily due to an increase in the spot price of gold. Operating expenses for the three-month and six-month periods ended June 30,2011 decreased by $80,280 (43%) and $89,547 (31%) respectively compared to the same periods in 2010 as a result of decreased maintenance activity in 2011. Other income and expenses for the three-month period ended June 30, 2011 increased on the expense side by $9,469 (392%) due to higher interest expense in 2011 compared to the same period in 2010. For the six-month period ended June 30,2011 other income and expense decreased on the income side by $265,007 due primarily to the sale of the Brown Bear Mine which was booked in 2010. For the three-month period ended June 30, 2011 the company showed a loss of $25,503 compared to a loss of $131,888 for the same period in 2010. The $106,385 (80%) difference is due to the combination of more revenue and lower expenses in 2011. For the six-month period ended June 30, 2011 the company showed a loss of $63,265 compared to a profit of $53,571 for the same period in 2010. The $116,836 (218%) difference is primarily due to the sale of the Brown Bear Mine in 2010. See 2010 10-K for more information. SUBSEQUENT EVENTS Case 7068 complaint filed by the Company against Sierra County for damages was settled on July 22, 2011. LIQUIDITY AND CAPITAL RESOURCES The Company's liquidity is substantially dependent upon the results of operations. The Company maintains a gold inventory which it liquidates to satisfy working capital needs. There is no assurance that inventory is adequate to sustain the Company. PART II LEGAL PROCEEDINGS In July 2009 the Company and its president were served a complaint for damages in Superior Court of the State of California, County of Sierra by the California Regional Water Quality Control Board, Central Valley Region. Discovery is ongoing. The case number is: No. 7019. On January 6, 2010, the California Department of Conservation, formally the Division of Mines and Geology filed a complaint for statutory reporting and mining fees and penalties alleging failures by the Company. Various Public Resources Code Sections were cited substantially related to surface mining. On March 24, 2010, the Company filed verified answers denying any wrongdoing. Discovery is ongoing. Case 7068 complaint filed by the Company against Sierra County for damages was settled on July 22, 2011. OTHER INFORMATION The unaudited interim consolidated financial statements of Original Sixteen to One Mine, Inc. (the Company) have been prepared by management in accordance with generally accepted accounting practices. Such rules allow the omission of certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted audited accounting principles as long as the statements are not misleading. In the opinion of management, verified by signature below, all adjustments necessary for a fair presentation of these interim statements have been included. These adjustments are of a normal recurring nature. The preparation of the Company's financial statements in conformity with accounting principles accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ from those based on such estimates and assumptions. No accounting principle upon which the Company's financial status depends, requires estimates of proven and probable reserves and/or assumptions of future gold prices. Commodity prices may significantly affect the company's profitability and cash flow. No independent accounting firm or auditors have any responsibility for the accounting and written statements of the Form 10-QSB. The Company and its president assume responsibility for the accuracy of this filing and certify the financial statements present fairly in all material respects, the financial position of Original Sixteen to One Mine, Inc at June 30, 2011. CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 From time to time the Original Sixteen to One Mine, Inc. (the Company), will make written and oral forward-looking statements about matters that involve risks and uncertainties that could cause actual results to differ materially from projected results. Important factors that could cause actual results to differ materially include, among others: - Fluctuations in the market prices of gold - General domestic and international economic and political conditions - Unexpected geological conditions or rock stability conditions resulting in cave-ins, flooding, rock-bursts or rock slides - Difficulties associated with managing complex operations in remote areas - Unanticipated milling and other processing problems - The speculative nature of mineral exploration - Environmental risks - Changes in laws and government regulations, including those relating to taxes and the environment - The availability and timing of receipt of necessary governmental permits and approval relating to operations, expansion of operations, and financing of operations - Fluctuations in interest rates and other adverse financial market conditions - Other unanticipated difficulties in obtaining necessary financing with specifications or expectations - Labor relations - Accidents - Unusual weather or operating conditions - Force majeure events - Other risk factors described from time to time in the Original Sixteen to One Mine, Inc., filings with the Securities and Exchange Commission Many of these factors are beyond the Company's ability to control or predict. Investors are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update its forward-looking statements, whether as a result of receiving new information, the occurrence of future events or otherwise. 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. ORIGINAL SIXTEEN TO ONE MINE, INC. (Registrant) /s/Michael M. Miller President and Director Dated: November 29,2011