Reyna Silver (RSLV.V) recently released its financial results for the second quarter, and we were happy to see the company is conserving its cash position quite nicely. As of the end of June, the company had about C$14.2M in cash and a net working capital position of approximately C$14.1M. With 100.1 million shares outstanding, the cash buffer represents approximately C$0.14/share.
Not that it’s very meaningful at this point in time as the purpose of an exploration company is obviously to spend the funds on drilling the exciting silver projects in the portfolio, but it certainly does underpin the valuation.
Additionally, Reyna Silver has about 11 million warrants with an exercise price of C$0.45 expiring in June next year and as all those warrants are currently in the money, Reyna Silver could expect an additional C$5M in cash to come in. Those C$0.45 warrants are consistently being exercised and in the first half of 2021, about 1.85 million warrants at C$0.45 and 12,500 warrants at C$0.90 were exercised. According to the ‘subsequent events’ note in the financial statements, an additional 335,000 warrants at C$0.45 were exercised over the past two months, but the company did not disclose if the remaining 1 million warrants at C$0.74 with an expiry date of August 17th (two weeks ago) have been exercised.
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