Mines Management, Inc. (TSX:MGT,NYSEMKT:MGN) reported financial and operating results for the second quarter, ended June 30th, 2013.
As quoted in the press release:
Overview Second Quarter 2013
* The Biological Consultation with U.S. Fish and Wildlife Service (“USFWS”) continued with work being advanced toward completion of the aquatics portion of the Biological Opinion (“BO”). A draft aquatics BO was completed and is currently being reviewed by USFWS staff, with completion anticipated by the agencies in the third quarter. The terrestrial portion of the biological opinion remains in draft form, and the U.S. Forest Service (“USFS”) and USFWS are working through the details of the document.
* The 404 Permit to be issued by the U.S. Army Corps of Engineers (“USACE”) advanced with a detailed mitigation plan sent to the U.S. Environmental Protection Agency (“EPA”), USFS, and Montana Dept. of Environmental Quality (“MDEQ”) for review and comments. Comments are due during the third quarter of 2013.
* The Final Environmental Impact Statement (“EIS”) is advancing with numerous sections already complete in draft form. The agency contractor responsible for writing the Final EIS, has provided the agencies with a draft and comments are being incorporated into the final version.
* At the Estrella project in Peru, the Company completed metallurgical analysis on main phase mineralized rock and advanced work to extend exploration permits. Exploration activities on the property have been reduced as part of the Company’s overall cost reduction initiative.
Financial and Operating Results
Quarter Ended June 30, 2013
The Company reported a net loss of $1.8 million for the quarter ended June 30, 2013 compared to a net loss of $2.4 million for the quarter ended June 30, 2012. The decrease in the net loss is attributable to the following items: (1) a $0.2 million decrease in general and administrative expenses including a $0.1 million decrease in salaries with one less executive officer in 2013 compared to 2012, and a $0.1 million reduction in consulting fees compared to 2012, (2) a $0.3 million decrease in technical services associated with the exploration of the Estrella Project, (3) a $0.2 million reduction in technical services expenditures associated with the Montanore project resulting from expenditures in the second quarter of 2012 which did not occur during 2013, including a grizzly bear study completed in 2012 and expenditures related to work on the Biological Opinion, and (4) a $0.1 million increase in legal, accounting, and consulting fees primarily associated with a litigation matter.
Six Months Ended June 30, 2013
The Company reported a net loss of $4.0 million for the six months ended June 30, 2013 compared to a net loss of $3.7 million for the six months ended June 30, 2012. The $0.3 million increase in net loss includes the following items: (1) a $0.2 million reduction in technical services which consists of a combined $0.1 million decrease in Estrella Project exploration costs and expenditures associated with a grizzly bear study completed in 2012, and a $0.1 million decrease in consulting fees and other costs associated with permitting and maintenance of the Montanore project, (2) an increase of $0.1 million in legal, accounting, and consulting fees primarily associated with a litigation matter as described in Part II, Item 1,and (3) a decrease of $0.4 million in the net gain on fair market value of warrant derivatives which expired in April of 2012.