Magnetite Mines Ltd (ASX: MGT) shares are soaring following the release of the company's (corrected) third-quarter results on Friday afternoon. At the time of writing, the Magnetite Mines share price is trading 10.71% higher at 6.2 cents.
Magnetite Mines initially released its activities and cash flow report shortly after midday on Friday. But within a few hours, the revised version copy hit the market barely 50 minutes before it closed for the week.
Let's take a look at the mining company's activities and results for the quarter ended 31 March 2021.
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Third-quarter financial results
Magnetite Mines spent $648,000 on exploration, evaluation and the purchasing of equipment over the quarter. It also reported staff and administration costs of $241,000.
The company stated that, during the quarter, it didn't conduct any drilling. This was because it had access to historical drill samples and datasets. Most of its spending was due to pre-feasibility studies from its Razorback Iron Project.
It ended the quarter with approximately $4.1 million in the bank. This means that if every quarter's expenses are similar to the one that's just been, Magnetite Mines has enough cash to fund over a year of operations without requiring further income.
What was Magnetite Mines up to over the quarter?
Magnetite Mines continued to work on the Razorback Iron Project's pre-feasibility study through the quarter. The company plans to release the study's results during the current quarter as it's still working on updating Razorback's resource estimate.
During the quarter, Magnetite Mines won the tender for the Muster Dam tenement package from the South Australian Department for Energy and Mines.
The Muster Dam Iron Project is within the Braemar Iron Formation, which is also home to the Razorback Iron Project. Muster Dam is around 110 kilometres northeast of the Razorback Iron Project.
A mineral resource estimate for Muster Dam was done in November 2011 by a previous tenement holder. It found the project contained 1.5 billion tonnes at 15.2% mass recovery.
This quarter, the company appointed Peter Schubert as its interim CEO, in addition to his role as executive chair, and Mark Eames as technical director.
Commentary from management
Schubert commented on the company's quarterly activities and results. He said:
In this last quarter, [Magnetite Mines] has made significant progress towards delivery of a robust high grade iron ore business. We are on budget and on track with our plans…
The Magnetite Mines team, together with our globally recognised technical specialist consultants, has worked with meticulous, singular vision and commitment to deliver an optimal [pre-feasibility study] outcome for shareholders…
While we are designing our project to compete through the cycle, we note that strong demand and a muted supply response support robust iron ore pricing and that the product we plan to produce is both valuable and in demand.
Magnetite Mines share price snapshot
The Magnetite Mines share price is having an incredible performance on the ASX, with Friday's news preceding its latest boost.
Currently, the Magnetite Mines share price is up 520% year to date. It's also up a humongous 6,100% over the last 12 months, having been trading for just 0.1 cents this time last year.
The mining company has a market capitalisation of around $161 million, with approximately 2.8 billion shares outstanding.
