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Mines Management Inc Reports Operating Results (10-Q)

August 13, 2010 | About:
10qk

10qk

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Mines Management Inc (MGN) filed Quarterly Report for the period ended 2010-06-30.

Mines Management Inc has a market cap of $37.4 million; its shares were traded at around $1.61 with and P/S ratio of 2875.

Highlight of Business Operations:

The Company reported a net loss for the quarter ended June 30, 2010 of $1.2 million, or $0.05 per share, compared to a net loss of $1.9 million, or $0.08 per share, for the quarter ended June 30, 2009. The $0.7 million decrease in net loss in the second quarter of 2010 is attributable to (i) decreases in operating expenses of $0.1 million from the second quarter of 2009, principally in stock compensation included in general and administrative expenses, and (ii) a gain on warrant derivatives of $0.7 million offset by a decrease in interest income of $0.1 million.

The Company reported a net loss for the six months ended June 30, 2010 of $4.6 million, or $0.20 per share, compared to a loss of $4.9 million or $0.22 per share for the six months ended June 30, 2009. The $0.3 million decrease in net loss from 2009 is attributable to the following items: (i) increased general and administrative costs of $0.7 million in 2010 primarily due to an increase in stock compensation due to options issued in January of 2010; (ii) increased legal, accounting and consulting costs of $0.1 million in 2010 due to fees associated with permitting issues; (iii) decreased technical services costs of $0.5 million in 2010 due to suspending site rehabilitation work in April 2009; and (iv) increased other income of $0.6 million in 2010 primarily due to a net gain in the fair market value of warrant derivatives.

We continue to reduce activity levels, including capital expenditures, until the timing for the receipt of the Record of Decision becomes more clear. We anticipate expenditures of approximately $3.6 million in the final six months of 2010, which we expect to consist of $2.1 million for general and administrative expenses and $1.5 million for ongoing expenses in preparation for the delineation drilling program, additional mine scoping studies, and responding to EIS comments. Depending on the amount and rate of progress with our permitting efforts and market conditions, the Company might seek additional financing before the end of 2010.

Read the The complete Report

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