Mines Management Inc (MGN, Financial) filed Quarterly Report for the period ended 2012-03-31.
Mines Mgmt Inc has a market cap of $42.5 million; its shares were traded at around $1.35 with and P/S ratio of 2128.3.
Some of the Companys issued and outstanding common share purchase warrants, which have exercise price reset features, qualify for treatment as a derivative liability. These common share purchase warrants were initially issued in connection with the Companys issuance of common shares in 2005 and were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. The warrants do not qualify for hedge accounting and, as such, all changes in the fair value of these warrants are recognized currently in earnings until such time as the warrants are exercised or expire. The original expiration date of the warrants was in October 2010, but the Company extended the expiration date to October 20, 2011. In October 2011, the Company further extended the expiration date of the 2005 warrants to April 20, 2012, at which time the warrants expired. The Company reported a gain from the change in fair value of these warrants of $336,920 and $1,327,184 in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2012 and 2011, respectively.
The following table reconciles weighted average shares of common stock used in the computations of basic and diluted earnings per share for the three month periods ended March 31, 2012 and 2011:
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Mines Mgmt Inc has a market cap of $42.5 million; its shares were traded at around $1.35 with and P/S ratio of 2128.3.
Highlight of Business Operations:
The preparation of financial statements in accordance with US GAAP 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 Companys condensed consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Companys consolidated financial position and results of operations. Operating results for the three month period ended March 31, 2012, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2012.Some of the Companys issued and outstanding common share purchase warrants, which have exercise price reset features, qualify for treatment as a derivative liability. These common share purchase warrants were initially issued in connection with the Companys issuance of common shares in 2005 and were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. The warrants do not qualify for hedge accounting and, as such, all changes in the fair value of these warrants are recognized currently in earnings until such time as the warrants are exercised or expire. The original expiration date of the warrants was in October 2010, but the Company extended the expiration date to October 20, 2011. In October 2011, the Company further extended the expiration date of the 2005 warrants to April 20, 2012, at which time the warrants expired. The Company reported a gain from the change in fair value of these warrants of $336,920 and $1,327,184 in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2012 and 2011, respectively.
The following table reconciles weighted average shares of common stock used in the computations of basic and diluted earnings per share for the three month periods ended March 31, 2012 and 2011:
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