Mines Management Inc (MGN, Financial) filed Quarterly Report for the period ended 2010-03-31.
Mines Management Inc has a market cap of $61.95 million; its shares were traded at around $2.7 with and P/S ratio of 4765.29. MGN is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The Company reported a net loss for the quarter ended March 31, 2010 of $3.4 million, or $0.15 per share, compared to a net loss of $3.0 million, or $0.13 per share, for the quarter ended March 31, 2009. The $0.4 million increase in net loss in the first quarter of 2010 is attributable to increases in general and administrative expenses of $0.8 million over the first quarter of 2009, principally due to the issuance of stock options in January 2010 of $0.9 million offset by merger and acquisition consulting fees in 2009 of $0.1 million. Technical service expenses were $0.5 million less in 2010 due to suspending work by our underground mining contractor, Small Mine Development, for site rehabilitation, sump construction and dewatering in April 2009. Legal and accounting expenses increased by $0.1 million in the first quarter of 2010 over the comparable 2009 period due to responding to a SEC comment letter, updating the title opinion on the Montanore property and responding to the EPA comments to the draft EIS.
Liquidity During the quarter ended March 31, 2010, the net cash used for operating activities was approximately $1.7 million, which consisted largely of permitting and technical expenses associated with activities at the Montanore Project site. This was offset by $0.1 million received from stock option exercises during the first quarter of 2010.
We are taking steps to continue to reduce activity levels, including capital expenditures, until the timing of the Record of Decision becomes more clear. We anticipate expenditures of approximately $4.5 million for the final three quarters of 2010, which will consist of $0.6 million per quarter for general and administrative expenses and $0.4 million per quarter for ongoing expense for the delineation drilling and mine scoping studies for the Montanore Project, and $0.5 million per quarter for ongoing permitting and environmental expenses to finalize the EIS. Given our current cash position and certificates of deposit of approximately $11.0 million on March 31, 2010, we expect to 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 intends to investigate financing opportunities and options from equity and debt financing during the current year.
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Mines Management Inc has a market cap of $61.95 million; its shares were traded at around $2.7 with and P/S ratio of 4765.29. MGN is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
The net decrease in cash and cash equivalents for the quarter ended March 31, 2010 was approximately $1.6 million. Management has reviewed the near term spending forecast and implemented a plan to diligently conserve cash where prudent. Given our current cash position and certificates of deposit of approximately $11.0 million on March 31, 2010, we expect to 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 intends to investigate financing opportunities and options from equity and debt financing during the current year.The Company reported a net loss for the quarter ended March 31, 2010 of $3.4 million, or $0.15 per share, compared to a net loss of $3.0 million, or $0.13 per share, for the quarter ended March 31, 2009. The $0.4 million increase in net loss in the first quarter of 2010 is attributable to increases in general and administrative expenses of $0.8 million over the first quarter of 2009, principally due to the issuance of stock options in January 2010 of $0.9 million offset by merger and acquisition consulting fees in 2009 of $0.1 million. Technical service expenses were $0.5 million less in 2010 due to suspending work by our underground mining contractor, Small Mine Development, for site rehabilitation, sump construction and dewatering in April 2009. Legal and accounting expenses increased by $0.1 million in the first quarter of 2010 over the comparable 2009 period due to responding to a SEC comment letter, updating the title opinion on the Montanore property and responding to the EPA comments to the draft EIS.
Liquidity During the quarter ended March 31, 2010, the net cash used for operating activities was approximately $1.7 million, which consisted largely of permitting and technical expenses associated with activities at the Montanore Project site. This was offset by $0.1 million received from stock option exercises during the first quarter of 2010.
We are taking steps to continue to reduce activity levels, including capital expenditures, until the timing of the Record of Decision becomes more clear. We anticipate expenditures of approximately $4.5 million for the final three quarters of 2010, which will consist of $0.6 million per quarter for general and administrative expenses and $0.4 million per quarter for ongoing expense for the delineation drilling and mine scoping studies for the Montanore Project, and $0.5 million per quarter for ongoing permitting and environmental expenses to finalize the EIS. Given our current cash position and certificates of deposit of approximately $11.0 million on March 31, 2010, we expect to 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 intends to investigate financing opportunities and options from equity and debt financing during the current year.
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