Avensys (AVNY) 10QSB Quarterly report (small business)

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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 ENDEDDECEMBER 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 333-46886

KEYSTONE MINES LIMITED
(Exact name of registrant as specified in its charter)

NEVADA	88-0467845
(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: 6,011,198

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PART I.

ITEM 1. Financial Statements

KEYSTONE MINES LIMITED (AN EXPLORATION STAGE ENTERPRISE) BALANCE SHEETS
						December 31, 2001 (Unaudited)		June 30, 2001
ASSETS
	CURRENT ASSETS
			Cash		$	27,567	$	48,890
				Total Current Assets		27,567		48,890
	OTHER ASSETS
			Mining claims			27		27
				Total Other Assets		27		27
			TOTAL ASSETS		$	27,594 ===============	$	48,917 =============
LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES
			Accounts payable		$	-	$	335
			Related party payables			935		2,437
				Total Current Liabilities		935		2,772
	COMMITMENTS AND CONTINGENCIES					-		-
	STOCKHOLDERS' EQUITY
		Common stock, 100,000,000 shares authorized, $0.00001 par value; 6,011,198 shares issued and outstanding				60		60
		Additional paid-in capital				601,060		601,060
		Stock subscriptions receivable				-		-
		Deficit accumulated during exploration stage				(574,461)		(554,975)
				Total Stockholders' Equity		26,659		46,145
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	27,594 ===============	$	48,917 =============

See notes to interim financial statements

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KEYSTONE MINES LIMITED (AN EXPLORATION STAGE ENTERPRISE) STATEMENTS OF OPERATIONS
				Three Months Ended December 31, 2001 (Unaudited)		Three Months Ended December 31, 2000 (Unaudited)		Six Months Ended December 31, 2001 (Unaudited)		Six Months Ended December 31, 2000 (Unaudited)		From June 26, 2000 (Inception) to December 31, 2001 (Unaudited)
REVENUES			$	-	$	-	$	-	$	-	$	-
EXPENSES
	Consulting services provided by directors			-		-		-		-		498,523
	Mining exploration expense			-		-		-		1,337		4,597
	Legal and accounting			2,335		10,975		6,940		23,727		38,377
	General and administrative			4,795		15		7,636		56		13,689
	Rent			1,816		-		3,122		-		4,960
	Investors relations			-		-		-		-		5,558
	Board of directors' expenses			-		-		-		-		3,939
	Stock transfer agent fees			-		-		25		25		3,075
	Travel			759		-		1,763		-		1,763
		TOTAL EXPENSES		9,705		10,990		19,486		25,145		574,481
LOSS FROM OPERATIONS				(9,705)		(10,990)		(19,486)		(25,145)		(574,481)
OTHER INCOME
	Miscellaneous income			-		20		-		-		20
		TOTAL OTHER INCOME		-		20		-		-		20
LOSS BEFORE INCOME TAXES				(9,705)		(10,970)		(19,486)		(25,145)		(574,461)
INCOME TAXES				-		-		-		-		-
NET LOSS			$	(9,705) ==============	$	(10,970) ==============	$	(19,486) ==============	$	(25,145) ==============	$	(574,461) =============
	NET LOSS PER COMMON SHARE, BASIC AND DILUTED		$	nil ==============	$	nil ==============	$	nil ==============	$	nil ==============	$	(0.10) =============
	WEIGHTED AVERAGE NUMBER OF COMMON STOCK SHARES OUTSTANDING, BASIC AND DILUTED			6,011,198 ==============		5,000,000 ==============		6,011,198 ==============		5,000,000 ==============		5,559,614 =============

See notes to interim financial statements

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KEYSTONE MINES LIMITED (AN EXPLORATION STAGE ENTERPRISE) STATEMENT OF STOCKHOLDERS' EQUITY
	Common Stock				Additional Paid-in Capital		Deficit Accumulated During the Exploration Stage		Stock Subscriptions Receivable		Total Stockholders' Equity
		Number of Shares	Amount
Issuance of common stock for services and in payment of advances at approximately $0.10 per share		5,000,000	$	50	$	499,950	$	-	$	(795)	$	499,205
Net loss for period ending, June 30, 2000		-		-		-		(498,923)		-		(498,923)
Balance, June 30, 2000		5,000,000		50		499,950		(498,923)		(795)		282
Payment of subscriptions receivable		-		-		-		-		795		795
Sale of common stock for cash at $0.10 per share		1,011,198		10		101,110		-		-		101,120
Net loss for the year ended ended June 30, 2001		-		-		-		(56,052)		-		(56,052)
Balance, June 30, 2001		6,011,198		60		601,060		(554,975)		-		46,145
Net loss for the six months ended December 31, 2001		-		-		-		(19,486)		-		(19,486)
Balance, December 31, 2001 (unaudited)		6,011,198 ============	$	60 ========	$	601,060 ===========	$	(574,461) ==========	$	- ==========	$	26,659 ==========

See notes to interim financial statements

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KEYSTONE MINES LIMITED (AN EXPLORATION STAGE ENTERPRISE) STATEMENTS OF CASH FLOWS
				Six Months Ended December 31, 2001 (Unaudited)		Six Months Ended December 31, 2000 (Unaudited)		From June 26, 2000 (Inception) to December 31, 2001 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss		$	(19,486)	$	(25,100)	$	(574,461)
	Adjustments to reconcile net loss to cash
	provided (used) in operating activities:
		Increase (decrease) in related party payables		(1,502)		12,752		935
		Decrease (increase) in prepaid expenses		-		682		-
		Increase in mining claims		-		(27)		(27)
		Increase (decrease) in accounts payable		(335)		10,975		-
		Payment of expenses from issuance of stock		-		-		499,840
Net cash provided (used) in operating activities				(21,323)		(718)		(73,713)
CASH FLOWS FROM INVESTING ACTIVITIES				-		-		-
CASH FLOWS FROM FINANCING ACTIVITIES
	Stock subscriptions paid			-		795		-
	Proceeds from advances			-		-		160
	Issuance of common stock			-		-		101,120
Net cash provided (used) by financing activities				-		795		101,280
Change in cash				(21,323)		77		27,567
Cash, beginning of period				48,890		-		-
Cash, end of period			$	27,567 ==============	$	77 ==============	$	27,567 ==============
SUPPLEMENTAL CASH FLOWS DISCLOSURES:
	Interest paid		$	- ==============	$	- ==============	$	- ==============
	Income taxes paid		$	- ==============	$	- ==============	$	- ==============
NON-CASH TRANSACTIONS:
	Stock issued in payment of consulting and other expenses		$	-	$	-	$	499,840
	Stock issued in payment of advances		$	-	$	-	$	133
	Stock issued in payment of mining claims		$	-	$	-	$	27

See notes to interim financial statements

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KEYSTONE MINES LIMITED
(An Exploration Stage Enterprise)
December 31, 2001

NOTES TO INTERIM FINANCIAL STATEMENTS
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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 period 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.

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

Financial Condition, Liquidity and Capital Resources

Since inception on June 26, 2000, our Company has been engaged in exploration and acquisition of mineral properties. Our Company's principal capital resources have been acquired through issuance of common stock.

At December 31, 2001, we had positive working capital of $26,632 compared to $46,118 at June 30, 2001. This was due to expenditures in all major categories: legal and accounting, general and administrative, rent and travel.

At December 31, 2001, our Company's total assets were $27,594, 99.9% of which was cash. This compares favourably with our Company's assets at December 31, 2000 of $104 ($77 cash).

At December 31, 2001, our Company's total liabilities decreased to $935 from $24,127 at December 31, 2000, primarily reflecting the payment of all debt, loans and expenses from the proceeds of stock issue.

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

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

Results of Operations

Our Company posted losses of $19,486 for the six months ending December 31, 2001. The principal components of the loss were professional expenses and general and administrative expenses.

Operating expenses for the six months ending December 31, 2001 were equal to losses, $19,486.

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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 6^th day of February, 2002.

KEYSTONE MINES LIMITED
(Registrant)

BY: /s/ Mike Muzylowski
Mike Muzylowski, President, Treasurer,
Chief Financial Officer and a Member of
the Board of Directors.