The Silver Mines Limited (ASX: SVL) share price is up today following the release of the company's quarterly results.
At the time of writing, the Silver Mines share price is 23 cents, up 2.2% from Friday's closing price.
Let's take a closer look at the company's activities and balance sheet from the quarter ending 31 March 2021.
Silver Mines' balance sheet
In the most recent quarter, Silver Mines reported an earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $1.01 million.
That number doesn't include the government grants and tax incentives the company received this quarter, which were valued at a total of $41,000.
Silver Mines received $919,000 from the sale of entities over the quarter, including the sale of its the sale of its Webbs and Conrad Projects to Thomson Resources Ltd (ASX: TMZ). It also received $30 million from a capital raise it conducted in February.
Silver Mines also repaid just over $1 million worth of debt over the quarter.
After the costs of the company's capital raise, and an income from the exercise of options, the company's cash flow from financing activities was around $27.8 million.
Silver Mines ended the quarter with around $32.6 million in cash in the bank.
Quarterly activity highlights
During the March 2021 quarter, Silver Mines lodged a mining lease application for the development of the Bowdens Silver Project. The company advised there were no objections to the project from government agencies and it received large public support.
Currently, two diamond drilling rigs are operating at the project and testing for high-grade silver targets and extensions are ongoing. Bolstered by the outcomes of its current program, Silver Mines is now planning the expansion of drilling and other exploration activities.
During the quarter, the final drill assay results from the company's Tuena Gold Project were returned. Drilling found many potential mineralised structures of quartz and carbonate veining, both with and without pyrite.
As part of Silver Mines' capital raise, it issued around 136.3 million shares. A further 100,000 were issued following the exercise of options at 10 cents apiece, pursuant to Silver Mines' employee incentive plan.
Silver Mines share price snapshot
The positive reception to the company's quarterly results was much needed for the Silver Mines share price, which has had a tough time on the ASX lately.
Currently, the Silver Mines share price is down 11.5% year to date, although it is up by 155% over the last 12 months.
The company has a market capitalisation of around $267 million, with approximately 1.1 billion shares outstanding.
