Mines Management Inc (MGN) filed Quarterly Report for the period ended 2009-09-30.
Mines Management Inc is a U.S.-based mineral development company focused on the exploration and development of silver dominant deposits. Mines Management Inc has a market cap of $61.8 million; its shares were traded at around $2.7 with and P/S ratio of 3432.3.
Highlight of Business Operations:
The net cash expenditures for the nine months ended September 30, 2009 were $0.2 million for the purchase of equipment and completion of the water treatment plant and other site infrastructure and $5.7 million for operating activities. The Company believes that it has sufficient working capital to complete the rehabilitation of the Libby adit and commencement of delineation drilling. The Company estimates that it will require approximately $10.0 million of additional funds to complete the delineation drilling program and a bankable feasibility study.
The Company reported a net loss for the quarter ended September 30, 2009 of $2.3 million, or $0.10 per share, compared to a net loss of $3.1 million, or $0.14 per share, for the quarter ended September 30, 2008. The $0.8 million decrease in net loss in the third quarter of 2009 is attributable to decreases in operating expenses of $1.5 million over the third quarter of 2008, principally in general and administrative expenses of $0.6 million, technical services of $0.8 million, and legal, accounting, and consulting of $0.1 million, offset by a decrease in other income (loss) of $0.7 million. The decrease in other income (loss) resulted from a $0.6 million loss due to the change in fair market value of warrant derivatives and a decrease in net interest income of $0.1 million during the quarter ended September 30, 2009. The Company has reduced its
The Company reported a net loss for the nine months ended September 30, 2009 of $7.2 million, or $0.32 per share, versus a loss of $7.5 million or $0.33 per share for the nine months ended September 30, 2008. The decrease in net loss in 2009 is largely attributable to a decrease in general and administrative expenses of $1.1 million which is comprised of a decline in promotion and investor relations expenses of $0.2 million and a decrease in stock compensation of $0.9 million. Technical services costs increased by $0.2 million in 2009 for work on the Libby adit water treatment system including rehabilitation, sump and decant construction, and pumping station installation. Legal, accounting, and consulting expenses decreased by $0.2 million. Other income (loss) for the nine months ending September 30, 2009 decreased by $0.9 million from 2008 because of a $0.5 million loss from the change in fair market value of warrant derivatives and a reduction of net interest income of $0.4 million.
Liquidity During the nine months ended September 30, 2009, the net cash used for operating activities was $5.7 million, which consisted largely of permitting and technical expenses associated with increased activities at the Montanore Project site. The net cash used in investing activities during the period was $0.2 million, principally for construction in progress.
We continue to reduce activity levels, including capital expenditures, until the timing of the Record of Decision becomes more clear. We anticipate expenditures of approximately $2.0 million in the final quarter of 2009, which will consist of $1.0 million for general and administrative expenses and $1.0 million for ongoing expenses in preparation for the delineation drilling program, additional mine scoping studies, and responding to EIS comments. Given our current available funds of $14.2 million on September 30, 2009, we will require approximately $10.0 million of external financing in 2010 to fund the final phases of the advanced exploration program and delineation drilling program and completion of a bankable feasibility study. The Company continues to investigate financing opportunities and the potential for equity or debt financing during the current year.