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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10QSB

[X]

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 

FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2001

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 333-94835

ANCONA MINING CORPORATION
(Exact name of registrant as specified in its charter)

NEVADA

88-0436055

(State of other jurisdiction

(IRS Employer Identification

of incorporation or organization)

Number)

1040 West Georgia
Suite 1160
Vancouver, British Columbia
Canada V6E 4H1

(Address of principal executive offices)

(604) 605-0885
(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 Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ x ] No [ ]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of December 31, 2001: 6,062,200

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PART I.

ITEM 1. - Financial Statements

ANCONA MINING CORPORATION
(AN EXPLORATION STAGE ENTERPRISE)
BALANCE SHEETS

December 31,
2001
(Unaudited)


June 30,
2001

ASSETS

CURRENT ASSETS

Cash

$

15,712

$

75,560

Total Current Assets

15,712

75,560

PROPERTY, PLANT AND EQUIPMENT

Office furniture

2,466

2,466

Accumulated depreciation

(311)

(62)

Total Fixed Assets

2,155

2,404

OTHER ASSETS

Deposits

411

411

Mining claims

2,644

2,644

Total Other Assets

3,055

3,055

TOTAL ASSETS

$

20,922
=================

$

81,019
===============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

1,224

$

5,051

Accounts payable, related parties

100

27,339

Total Current Liabilities

1,324

32,390

COMMITMENTS AND CONTINGENCIES

-

-

STOCKHOLDERS' EQUITY

Common stock, 100,000,000 shares authorized, $0.00001 par
value; 6,062,200 shares issued and outstanding


61


61

Additional paid-in capital

381,159

381,159

Deficit accumulated during exploration stage

(361,622)

(332,591)

Total Stockholders' Equity

19,598

48,629

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

20,922
=================

$

81,019
===============

See notes to interim financial statements

1

- 2 -

ANCONA MINING CORPORATION
(AN EXPLORATION STAGE ENTERPRISE)
STATEMENTS OF OPERATIONS




Three Months Ended December 31,





Six Months Ended December 31,

From
September 7,
1999
(Inception)
to
December 31,
2001
(Unaudited)

2001
(Unaudited)

2000
(Unaudited)

2001
(Unaudited)

2000
(Unaudited)

REVENUES

$

-

$

-

$

-

$

-

$

-

EXPENSES

Consulting services provided by directors

-

-

-

-

271,536

Professional fees

2,840

3,100

8,590

6,612

55,382

Rent

845

-

1,871

1,209

4,960

General and administrative

2,993

40

6,263

480

14,365

Stock transfer fees

-

-

25

-

2,925

Depreciation expense

126

-

249

-

311

Mining exploration

289

-

3,539

-

3,649

Travel

596

-

8,494

-

8,494

TOTAL EXPENSES

7,689

3,140

29,031

8,301

361,622

LOSS FROM OPERATIONS

(7,689)

(3,140)

(29,031)

(8,301)

(361,622)

INCOME TAXES

-

-

-

-

-

NET LOSS

$

(7,689)
============

$

(3,140)
============

$

(29,031)
============

$

(8,301)
============

$

(361,622)
============

NET LOSS PER COMMON SHARE,
BASIC AND DILUTED


$


nil
============


$


nil
============


$


nil
============


$


nil
============


$


(0.07)
============

WEIGHTED AVERAGE NUMBER OF
COMMON STOCK SHARES
OUTSTANDING, BASIC AND
DILUTED




6,062,200
============




5,000,000
============




6,062,200
============




5,000,000
============




5,295,320
============

See notes to interim financial statements

2

- 3 -

ANCONA MINING CORPORATION
(AN EXPLORATION STAGE ENTERPRISE)
STATEMENT OF STOCKHOLDERS' EQUITY


Common Stock



Additional
Paid-in
Capital

Deficit
Accumulated
During
Exploration
Stage



Total
Stockholders'
Equity

Number
of Shares


Amount

Issuance of common stock for
expenses, mining claims, and
in payment of advances at
approximately $0.055 per share




5,000,000




$




50




$




274,950




$




-




$




275,000

Net Loss for period ended
June 30, 2000


-


-


-


(294,522)


(294,522)

Balance, June 30, 2000

5,000,000

50

274,950

(294,522)

(19,522)

Issuance of common stock
at $0.10 per share


1,062,200


11


106,209


-


106,220

Net Loss for year ended
June 30, 2001


-


-


-


(38,069)


(38,069)

Balance, June 30, 2001

6,062,200

61

381,159

(332,591)

48,629

Net Loss for the six months ended
December 31, 2001


-


-


-


(29,031)


(29,031)

Balance, December 31, 2001
(Unaudited)


6,062,200
============


$


61
===========


$


381,159
=============


$


(361,622)
=============


$


19,598
=============

 

 

See notes to interim financial statements

3

- 4 -

ANCONA MINING CORPORATION
(AN EXPLORATION STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS





Six Months Ended December 31,

From
September 7,
1999
(Inception)
to
December 31,
2001
(Unaudited)

2001
(Unaudited)

2000
(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$

(29,031)

$

(8,301)

$

(361,622)

Adjustments to reconcile net loss to

net cash used by operating activities:

Depreciation

249

-

311

Expenses paid by issuance of stock

-

-

272,223

Increase (decrease) in accounts payable

(3,827)

8,220

1,224

Increase in bank overdraft

-

24

-

Increase (decrease) in accounts payable, related parties

(27,239)

-

100

Decrease (increase) in deposits

-

-

(411)

Net cash used by operating activities

(59,848)

(57)

(88,175)

CASH FLOWS FROM INVESTING ACTIVITIES

Office furniture

-

-

(2,466)

Net cash used by financing activities

-

-

(2,466)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from advances

-

-

133

Proceeds from sale of common stock

-

-

106,220

Net cash provided by financing activities

-

-

106,353

Change in cash

(59,848)

(57)

15,712

Cash, beginning of period

75,560

57

-

Cash, end of period

$

15,712
===============

$

-
===============

$

15,712
===============

SUPPLEMENTAL DISCLOSURES:

Interest paid in cash

$

-
===============

$

-
===============

$

-
===============

Income taxes paid in cash

$

-
===============

$

-
===============

$

-
===============

NON-CASH INVESTMENT AND FINANCING ACTIVITIES:

Stock issued in exchange for expenses paid

$

-

$

-

$

272,223

Stock issued in payment of advances

$

-

$

-

$

133

Stock issued in exchange for mining claims

$

-

$

-

$

2,644

See notes to interim financial statements

4

- 5 -

ANCONA MINES LIMITED
(An Exploration Stage Company)
December 31, 2001

NOTES TO INTERIM FINANCIAL STATEMENTS

========================================

1. BASIS OF PRESENTATION

The foregoing unaudited interim 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 Regulation S-B as promulgated by the Securities and Exchange Commission. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2001. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.

The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company's financial position and results of operations.

Operating results for the three and six month periods ended December 31, 2001 are not necessarily indicative of the results that may be expected for the year ending June 30, 2002.

5

- 6 -

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

Financial Condition, Liquidity and Capital Resources

Since inception on September 7, 1999, the Company has been engaged in exploration and acquisition of mineral properties. The Company's principal capital resources have been acquired through issuance of common stock and from shareholder loans.

At December 31, 2001, there was positive working capital of $14,388 compared to $43,170 at June, 2001. This change is primarily the result of increased activity of the Company resulting in expenses in all major categories.

At December 31, 2001, the Company's total assets of $20,922 consisted of mainly cash, mining claims and office equipment, which compares with the Company's assets at June 30, 2001 of $81,019, which were constituted mainly by cash.

At December 31, 2001, the Company's total liabilities were $1,324 versus $32,390 at June 30, 2001, primarily reflecting the payment of most bills and accounts payable.

The Company has not had revenues from inception. Although there is insufficient capital to fully explore and develop its mineral properties, the Company expects to survive and exploit its resources primarily with funding from sales of its securities and, as necessary, from shareholder loans.

The Company has no long-term debt and does not regard long-term borrowing as a good, prospective source of financing.

Results of Operations

The Company posted losses of $29,031 for the six months ending December 31, 2001. The principal components of the loss were travel, professional expenses, administrative expenses and exploration expenses.

Operating expenses for the six months ending December 31, 2001 were $29,031, up from $8,301 in the same period of the prior year.

- 7 -

SIGNATURES

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 on this 6th day of February, 2002.

ANCONA MINING CORPORATION
(Registrant)

By: /s/ Hugh Grenfal

Hugh Grenfal, President, Treasurer,Principal
Accounting Officer and a member of the Board
Of Directors