美国
证券交易委员会
华盛顿特区20549
表格
(标记一) | |
根据1934年证券交易法第13或15(d)节的季度报告 | |
| 截至季度结束日期的财务报告 |
| 或者 |
根据1934年证券交易法第13或15(d)条的过渡报告 | |
| 过渡期从________________到__________________ |
委员会文件号。
(在其宪章中的)小企业发行人的名称 |
| ||
(设立或组织的其他管辖区域) |
| (I.R.S.雇主识别号码) |
937 Tahoe Boulevard, Suite 210(总部地址) Incline Village, Nevada 89451(邮政编码)
(
公司电话号码,包括区号
在法案第12(b)条的规定下注册的证券:
每种类别的证券 | 交易标志 | 名称为每个注册的交易所: |
检查发行人是否 (1) 在过去12个月(或申请人需要提交这些报告的较短期限内)依据交易所法案第13或15(d)条的规定提交了所有要求提交的报告;和 (2) 在过去90天中一直遵守此类申报要求。
请以复选标记指示注册者是否在过去12个月内(或更短的期间)已经向根据法规S-t第405条规定提交和发布每个交互式数据文件的公司网站(如有)提交并发布了适用的交互式数据文件。
请用复选标记指示注册人是大型高速申报人、加速申报人、非加速申报人、较小的报告公司还是新兴成长公司。请参阅《交易所法》第120亿.2条中“大型高速申报人”、“加速申报人”、“较小的报告公司”和“新兴成长公司”的定义:
大型加速存取器 | ☐ | 加速存取器 | ☐ |
☒ | 小型报告企业 | ||
|
| 新兴成长公司 |
如果是新兴成长型公司,在选中复选标记的同时,如果公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则,则表明该公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则。☐
根据交易所法规120亿.2规定,标志着公司是否为壳公司的复选标记:
是的
仅适用于公司发行人:
2024年11月1日,
IDAHO战略资源有限公司
10-Q表格季度报告
对于本季度的期间
于2024年9月30日结束
目录
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目录 |
第一部分 - 财务信息
项目 1:基本报表
爱达荷战略资源公司。
汇编的综合资产负债表(未经审核)
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| 2020年9月30日 2024 |
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| 12月31日 2023 |
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资产 |
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流动资产: |
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现金及现金等价物 |
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债务证券投资 |
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黄金销售应收款 |
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政府补助应收款 |
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存货 |
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合营公司应收款 |
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股权投资 |
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其他资产 |
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总流动资产 |
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房地产、设备,减去累计折旧 |
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矿产物业,减去累计摊销 |
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投资于Buckskin Gold and Silver, Inc |
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创业公司投资 |
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非流动债务证券投资 |
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再生债券 |
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存款 |
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总资产 |
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负债和股东权益 |
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流动负债: |
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应付账款及应计费用 |
| $ |
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应计工资及相关工资支出 |
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应付票据,短期部分 |
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流动负债合计 |
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资产养老责任 |
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应付款项,长期 |
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长期负债总额 |
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负债合计 |
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履约承诺 5 号和 9 号注:原文为英文,已翻译。 |
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股东权益: |
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优先股,无面值,授权 1,000,000 股;未发行或流通股票。 |
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普通股,无面值,已授权发行2亿股;2024年9月30日-发行及流通股份为13,462,705股,2023年12月31日-发行及流通股份为12,397,615股 |
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累积赤字 |
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爱达荷战略资源公司股东权益总额 |
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非控制权益 |
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股东权益合计 |
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负债和股东权益总额 |
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随附说明是这些简明合并财务报表的一部分。
3 |
目录 |
爱达荷战略资源公司。
未经审计的简短综合业绩表(未经审计)
截至2024年和2023年9月30日的三个月和九个月期间
|
| 2024年9月30日 |
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| 2023年9月30日 |
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| 三个月份 |
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| 九个财务报表的股东赤字的简明综合报表 月份 |
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| 三个月 |
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| 九个月 |
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营业收入: |
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产品销售额 |
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总收入 |
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销售成本: |
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销售成本和其他直接生产成本 |
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折旧和摊销 |
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总销售成本 |
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毛利润 |
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其他营业费用: |
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勘探 |
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管理层 |
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专业服务 |
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ZSCALER, INC. |
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(设备)处置的损益 |
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其他营业费用 |
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营业利润 |
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其他(收入)支出:对Buckskin Gold and Silver公司投资的权益(收入)损失 |
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木材营业收入净额 |
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股权证券投资亏损 |
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利息收入 |
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利息支出 |
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329,573 |
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其他费用(收益)合计 |
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净收入 |
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归属于少数股东的净亏损 |
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Idaho Strategic Resources,Inc.净利润 |
| $ |
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| $ |
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基本每股净收益 |
| $ |
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基本普通股股份数量加权平均值 |
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每股普通股摊薄后净收益 |
| $ |
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| $ |
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| $ |
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加权平均稀释后普通股份 |
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随附说明是这些简明合并财务报表的一部分。
4 |
目录 |
爱达荷战略资源公司。
未经审计的压缩合并股东权益变动表
截至2024年和2023年9月30日的三个月和九个月期间
|
| 普通股 股份 |
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| 普通股 金额 |
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| 累积赤字归属于 爱达荷战略 资源股份有限公司 |
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| 非控股 利息 |
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| 总计 股东的 股权 |
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2023年1月1日的余额 |
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| $ |
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新泽西磨坊合资企业非控制股权贡献 |
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| - |
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发行普通股以换取现金,减去发行成本 |
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截至2023年3月31日的余额 |
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新泽西磨坊合资企业中的非控股权益贡献 |
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6月份结余2023年6月30日 |
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新泽西磨坊合资企业中的非控股权益贡献 |
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2023年9月30日结余 |
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2024年1月1日的余额为 |
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新泽西磨坊合资公司的非控股权益贡献 |
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发行普通股以换取现金,扣除发行成本后的净额 |
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发行普通股以换取warrants行使 |
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发行普通股以行使股票期权 |
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发行普通股以行使无现金期权 |
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2024年3月31日余额 |
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新泽西磨坊合资公司的非控股权益贡献 |
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发行普通股以换取现金,扣除发行成本净额 |
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发行普通股以换取认股权证 |
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发行普通股以换取期权 |
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发行普通股以换取免现期权 |
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2024年6月30日结余 |
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新泽西磨坊合资企业非控制权益投入 |
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发行普通股以换取现金,扣除发行成本净额 |
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发行普通股以换取行使的warrants |
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发行普通股以换取行使的期权 |
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发行普通股以换取无现金期权行使 |
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2024年9月30日的余额 |
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| $ |
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| $ | ( | ) |
| $ |
|
| $ |
|
随附说明是这些简明合并财务报表的一部分。
5 |
目录 |
爱达荷战略资源公司。
(未经审计)简明合并现金流量表
截至2024年9月30日和2023年结束的九个月期间
|
| 9月30日, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
经营活动现金流量: |
|
|
|
|
|
| ||
净利润 |
| $ |
|
| $ |
| ||
调整净利润以计入经营活动现金流量: |
|
|
|
|
|
|
|
|
折旧和摊销 |
|
|
|
|
|
| ||
设备处置损益 |
|
|
|
|
| ( | ) | |
资产退休责任的累积 |
|
|
|
|
|
| ||
股权证券投资亏损 |
|
|
|
|
|
| ||
在白银黄金公司的投资股权收入 |
|
| ( | ) |
|
| ( | ) |
Write down of reclamation bond |
|
|
|
|
|
| ||
经营性资产和负债的变化: |
|
|
|
|
|
|
|
|
黄金销售应收款 |
|
| ( | ) |
|
| ( | ) |
存货 |
|
| ( | ) |
|
| ( | ) |
政府补助应收款 |
|
| ( | ) |
|
|
| |
合营公司应收款 |
|
|
|
|
|
| ||
其他资产 |
|
| ( | ) |
|
| ( | ) |
应付账款和应计费用 |
|
|
|
|
| ( | ) | |
应计工资及相关工资支出 |
|
|
|
|
|
| ||
经营活动产生的现金流量净额 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
投资活动现金流量: |
|
|
|
|
|
|
|
|
购置固定资产 |
|
| ( | ) |
|
| ( | ) |
设备押金 |
|
| ( | ) |
|
| ( | ) |
出售设备的收益 |
|
|
|
|
|
| ||
矿产资产的增加 |
|
| ( | ) |
|
| ( | ) |
购买债券型的担保金 |
|
| ( | ) |
|
|
| |
返还开垦保证金 |
|
|
|
|
|
| ||
购买债券型投资 |
|
| ( | ) |
|
|
| |
出售股权证券投资的收益 |
|
|
|
|
|
| ||
股权证券的购买 |
|
|
|
|
| ( | ) | |
投资活动产生的净现金流出 |
|
| ( | ) |
|
| ( | ) |
|
|
|
|
|
|
|
|
|
筹集资金的现金流量: |
|
|
|
|
|
|
|
|
普通股销售收益,扣除发行成本 |
|
|
|
|
|
| ||
普通股发行收益,用于行权的期权 |
|
|
|
|
|
| ||
普通股发行收益,用于行权的股票期权 |
|
|
|
|
|
| ||
付款的注记还本 |
|
| ( | ) |
|
| ( | ) |
应付款项的本金偿还,关联方 |
|
|
|
|
| ( | ) | |
来自非控股权益的贡献 |
|
|
|
|
|
| ||
筹资活动产生的现金净额 |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
现金及现金等价物净变动额 |
|
|
|
|
|
| ||
现金及现金等价物期初余额 |
|
|
|
|
|
| ||
现金及现金等价物期末余额 |
| $ |
|
| $ |
| ||
|
|
|
|
|
|
|
|
|
非现金投资和筹资活动: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
存入资金用于购买设备 |
| $ |
|
| $ |
| ||
设备应付票据 |
| $ |
|
| $ |
| ||
矿产项目的应付款项 |
| $ |
|
| $ |
|
随附说明是这些简明合并财务报表的一部分。
6 |
目录 |
爱达荷战略资源公司
未经审计的简明合并财务报表注释
1. 公司及重大会计政策
这些未经审计的中期汇总的经营报表是由爱达荷战略资源公司(以下简称“IDR”,“爱达荷战略”或“公司”)的管理层按照美国一般公认的会计原则编制的,用于中期财务信息。因此,它们不包括一般公认会计原则要求的所有完整合并财务报表所需的信息和脚注。根据公司管理层的意见,已经包括了为了对中期汇总的经营报表作出公正陈述而认为必要的所有调整(仅包括正常的周期性应计。
根据美国通行的会计原则编制基本报表需要使用会计估计和假设,这些会计估计和假设会影响资产和负债的披露金额,已知的或存在的相关资产和负债以及财务报表发布日期前的披露,以及报告期间内的收入和支出金额。对这些估计和假设的不确定性在公司编制的合并基本报表中是固有的;因此,实际结果可能会与这些估计和假设有所不同,这可能会对公司的合并财务状况和经营业绩报告金额产生重大影响。截至2024年9月30日的三个和九个月的营运业绩未必能准确反映2024年12月31日年度末的预期结果。
For further information refer to the financial statements and footnotes thereto in the Company’s audited consolidated financial statements for the year ended December 31, 2023, in the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 25, 2024.
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiary, the New Jersey Mill Joint Venture (“NJMJV”). Intercompany accounts and transactions are eliminated. The portion of entities owned by other investors is presented as non-controlling interests on the condensed consolidated balance sheets and statements of operations.
Revenue Recognition
Gold Revenue Recognition and Receivables-Sales of gold sold directly to customers are recorded as revenues and receivables upon completion of the performance obligations and transfer of control of the product to the customer. For concentrate sales, the performance obligation is met, the transaction price can be reasonably estimated, and revenue is recognized generally at the time of shipment at estimated forward prices for the anticipated month of settlement. Due to the time elapsed from shipment to the customer and the final settlement with the customer, prices at which sales of concentrates will be settled are estimated. Previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement by the customer. For sales of doré and metals from doré, the performance obligation is met, the transaction price is known, and revenue is recognized at the time of transfer of control of the agreed-upon metal quantities to the customer by the refiner.
Sales and accounts receivable for concentrate shipments are recorded net of charges by the customer for treatment, refining, smelting losses, and other charges negotiated with the customers. Charges are estimated upon shipment of concentrates based on contractual terms, and actual charges typically do not vary materially from estimates. Costs charged by customers include fixed costs per ton of concentrate and price escalators. Refining, selling, and shipping costs related to sales of doré and metals from doré are recorded to cost of sales as incurred. See Note 4 for more information on our sales of products.
Other Revenue Recognition-Revenue from harvest of raw timber is recognized when the performance obligation under a contract and transfer of the timber have both been completed. Sales of timber found on the Company’s mineral properties are not a part of normal operations.
Inventories
Inventories are stated at the lower of full cost of production or estimated net realizable value based on current metal prices. Costs consist of mining, transportation, and milling costs including applicable overhead, depreciation, depletion, and amortization relating to the operations. Costs are allocated based on the stage at which the ore is in the production process. Supplies inventory is stated at the lower of cost or estimated net realizable value.
Mine Exploration and Development Costs
The Company expenses exploration costs as such in the period they occur. The mine development stage begins once the Company identifies ore reserves which is based on a determination whether an ore body can be economically developed. Expenditures incurred during the development stage are capitalized as deferred development costs and include such costs for drift, ramps, raises, and related infrastructure. Costs to improve, alter, or rehabilitate primary development assets which appreciably extend the life, increase capacity, or improve the efficiency or safety of such assets are also capitalized. The development stage ends when the production stage of ore reserves begins. Amortization of deferred development costs is calculated using the units-of-production method over the expected life of the operation based on the estimated recoverable mineral ounces.
Fair Value Measurements
When required to measure assets or liabilities at fair value, the Company uses a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used. The Company determines the level within the fair value hierarchy in which the fair value measurements in their entirety fall. The categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Level 1 uses quoted prices in active markets for identical assets or liabilities, Level 2 uses significant other observable inputs, and Level 3 uses significant unobservable inputs. The amount of the total gains or losses for the period that are included in earnings are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date. At December 31, 2023, the Company had equity securities measured at fair value using level 1 quoted prices and no liabilities required measurement at fair value. At September 30, 2024, the Company had no assets or liabilities that required measurement at fair value on a recurring basis.
7 |
Table of Contents |
Idaho Strategic Resources, Inc
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. The Company and Significant Accounting Policies (continued)
Accounting for Investments in Joint Ventures (“JV”) and Equity Method Investments
Investment in JVs-For JVs where the Company holds more than 50% of the voting interest and has significant influence, the JV is consolidated with the presentation of non-controlling interest. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and its representation on the venture’s management committee.
For JVs in which the Company does not have joint control or significant influence, the cost method is used. For those JVs in which there is joint control between the parties, the equity method is utilized whereby the Company’s share of the ventures’ earnings and losses is included in the statement of operations as earnings in JVs and its investments therein are adjusted by a similar amount. The Company periodically assesses its investments in JVs for impairment. If management determines that a decline in fair value is other than temporary it will write-down the investment and charge the impairment against operations.
Equity Method Investments-Investments in companies and joint ventures in which the Company has the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting. In determining whether significant influence exists, the Company considers its participation in policy-making decisions and representation on governing bodies. Under the equity method of accounting, our share of the net earnings or losses of the investee are included in net income (loss) in the consolidated statements of operations. We evaluate equity method investments whenever events or changes in circumstance indicate the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. At September 30, 2024, and December 31, 2023, the Company's
At September 30, 2024 and December 31, 2023, the Company’s percentage ownership and method of accounting for each JV and equity method investment is as follows:
|
| September 30, 2024 |
| December 31, 2023 | |||||||||||||
JV/Equity |
| % Ownership |
|
| Significant Influence? |
| Accounting Method |
| % Ownership |
|
| Significant Influence? |
| Accounting Method | |||
NJMJV |
|
| % |
| Yes |
| Consolidated |
|
| % |
| Yes |
| Consolidated | |||
Butte Highlands JV, LLC |
|
| % |
| No |
| Cost |
|
| % |
| No |
| Cost | |||
Buckskin |
|
| % |
| Yes |
| Equity |
|
| % |
| Yes |
| Equity |
Reclassifications
Certain prior period amounts have been reclassified to conform to the 2024 financial statement presentation. Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported.
Investments in Equity Securities
Investments in equity securities are generally measured at fair value. Unrealized gains and losses for equity securities resulting from changes in fair value are recognized in current earnings. If an equity security does not have a readily determinable fair value, we may elect to measure the security at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer. At the end of each reporting period, we reassess whether an equity investment security without a readily determinable fair value qualifies to be measured at cost less impairment, consider whether impairment indicators exist to evaluate if an equity investment security is impaired and, if so, record an impairment loss. At the end of each reporting period, unrealized gains and losses resulting from changes in fair value are recognized in current earnings. Upon sale of an equity security, the realized gain or loss is recognized in current earnings.
Investments in Debt Securities
The Company holds short term investments in United States Treasury notes and are classified as held to maturity based on management’s intent and ability to hold them to maturity. Such debt securities are stated at cost, adjusted for unamortized purchase premiums and discounts and are amortized using the interest method over the stated terms of the securities. Amortization of the premium or discount is included in interest income on the consolidated statement of operations.
Government Grant Income
The Company occasionally receives grant income from various government agencies. Government grant income is recognized in earnings on a systematic basis in a manner that mirrors the manner in which the Company recognizes the underlying costs for which the grant is intended to compensate. A grant receivable is recognized for expenses or losses already incurred but for which grant funding has not yet been received. Grant funding received in excess of expenses or losses incurred is recognized as deferred revenue.
8 |
Table of Contents |
Idaho Strategic Resources, Inc
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. The Company and Significant Accounting Policies (continued)
New Accounting Pronouncement
In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which clarifies the business combination accounting for joint venture formations. The amendments in the ASU seek to reduce diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures in separate financial statements. The amendments also seek to clarify the initial measurement of joint venture net assets, including businesses contributed to a joint venture. The guidance is applicable to all entities involved in the formation of a joint venture. The amendments are effective for all joint venture formations with a formation date on or after January 1, 2025. Early adoption and retrospective application of the amendments are permitted. We continue to evaluate the impact of this update on our consolidated financial statements and disclosures and don’t expect any changes to amounts currently reported.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, amending reportable segment disclosure requirements to include disclosure of incremental segment information on an annual and interim basis. Among the disclosure enhancements are new disclosures regarding significant segment expenses that are regularly provided to the chief operating decision-maker and included within each reported measure of segment profit or loss, as well as other segment items bridging segment revenue to each reported measure of segment profit or loss. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and are applied retrospectively. We continue to evaluate the impact of this update on our consolidated financial statements and disclosures and don’t expect any changes to our current reportable segments.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. We continue to evaluate the impact of this update our consolidated financial statements and don’t expect any changes to amounts currently reported.
Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.
2. Investments in Debt Securities
The table below provides the components of investments in debt securities held to maturity at amortized cost and fair value at September 30, 2024 and December 31, 2023.
September 30, 2024 | ||||||||||||||||
|
| Amortized Cost |
|
| Gross Unrealized gains |
|
| Gross Unrealized losses |
|
| Fair value |
| ||||
US Treasury notes, current |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
US Treasury notes, non-current |
| $ |
|
| $ |
|
| $ |
|
|
|
| ||||
| ||||||||||||||||
December 31, 2023 | ||||||||||||||||
US Treasury notes, current |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
US Treasury notes, non-current |
| $ |
|
| $ |
|
| $ |
|
|
|
|
Fair value of investments in debt securities is determined using Level 1 inputs.
3. Inventories
At September 30, 2024 and December 31, 2023, the Company’s inventories consisted of the following:
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
Concentrate inventory |
|
|
|
|
|
| ||
In process |
| $ |
|
| $ |
| ||
Finished goods |
|
|
|
|
|
| ||
Total concentrate inventory |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Supplies inventory |
|
|
|
|
|
|
|
|
Mine parts and supplies |
|
|
|
|
|
| ||
Mill parts and supplies |
|
|
|
|
|
| ||
Core drilling supplies and materials |
|
|
|
|
|
| ||
Total supplies inventory |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Total |
| $ |
|
| $ |
|
9 |
Table of Contents |
Idaho Strategic Resources, Inc
Notes to Condensed Consolidated Financial Statements (Unaudited)
4. Sales of Products
Our products consist of both gold flotation concentrates which we sell to a single broker (H&H Metals), and an unrefined gold-silver product known as doré which we sell to a precious metal refinery (Cascade Refining). At September 30, 2024, metals that had been sold but not finally settled included 5,496 ounces of which 1,539 ounces were sold at a predetermined price with the remaining 3,957 exposed to future price changes until prices are locked in based on the month of settlement. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable. Sales of products by metal type for the three and nine-month periods ended September 30, 2024 and 2023 were as follows:
|
| September 30, 2024 |
|
| September 30, 2023 |
| ||||||||||
|
| Three Months |
|
| Nine Months |
|
| Three Months |
|
| Nine Months |
| ||||
Gold |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
Silver |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Less: Smelter and refining charges |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
Total |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
Sales by significant product type for the three and nine-month periods ended September 30, 2024, and 2023 were as follows:
|
| September 30, 2024 |
|
| September 30, 2023 |
| ||||||||||
|
| Three Months |
|
| Nine Months |
|
| Three Months |
|
| Nine Months |
| ||||
Concentrate sales to H&H Metal |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
Doré sales to Cascade Refining |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total |
| $ |
|
| $ |
|
| $ |
|
| $ |
|
At September 30, 2024 and December 31, 2023 our gold sales receivable balance of $
5. Related Party Transactions
At September 30, 2024 and December 31, 2023, there were no notes payable to related parties. On May 10, 2023, the Company paid the remaining amount due to Ophir Holdings, a company owned by two officers and one former officer of the Company.
The Company leases office space from certain related parties on a month-to-month basis. $
September 30, 2024 |
|
| September 30, 2023 |
| ||||||||||
Three Months |
|
| Nine Months |
|
| Three Months |
|
| Nine Months |
| ||||
$ |
|
| $ |
|
| $ |
|
| $ |
|
6. JV Arrangements
NJMJV Agreement
Butte Highlands JV, LLC
On January 29, 2016,
10 |
Table of Contents |
Idaho Strategic Resources, Inc
Notes to Condensed Consolidated Financial Statements (Unaudited)
7. Earnings per Share
Net income (loss) per share is computed by dividing the net amount excluding net income (loss) attributable to a non-controlling interest by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants, and other convertible securities. Such common stock equivalents are included or excluded from the calculation of diluted net income (loss) per share for each period as follows:
|
| September 30, 2024 |
|
| September 30, 2023 |
| ||||||||||
|
| Three Months |
|
| Nine Months |
|
| Three Months |
|
| Nine Months |
| ||||
Incremental shares included in diluted net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Stock options |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Stock purchase warrants |
|
|
|
|
|
|
|
| - |
|
|
| - |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Potentially dilutive shares excluded from diluted net income per share as inclusion would have an antidilutive effect: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options |
|
| - |
|
|
| - |
|
|
|
|
|
|
| ||
Stock purchase warrants |
|
| - |
|
|
| - |
|
|
|
|
|
|
| ||
|
|
| - |
|
|
| - |
|
|
|
|
|
|
|
8. Property, Plant, and Equipment
Property, plant and equipment at September 30, 2024 and December 31, 2023 consisted of the following:
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
Mill |
|
|
|
|
|
| ||
Land |
| $ |
|
| $ |
| ||
Building |
|
|
|
|
|
| ||
Equipment |
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
Less accumulated depreciation |
|
| ( | ) |
|
| ( | ) |
Total mill |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Building and equipment |
|
|
|
|
|
|
|
|
Buildings |
|
|
|
|
|
| ||
Equipment |
|
|
|
|
|
| ||
|
|
|
|
|
|
| ||
Less accumulated depreciation |
|
| ( | ) |
|
| ( | ) |
Total building and equipment |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Land |
|
|
|
|
|
|
|
|
Bear Creek |
|
|
|
|
|
| ||
BOW |
|
|
|
|
|
| ||
Gillig |
|
|
|
|
|
| ||
Highwater |
|
|
|
|
|
| ||
Salmon property |
|
|
|
|
|
| ||
Total land |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Total |
| $ |
|
| $ |
|
Deposits on equipment in the statement of cash flows for the first nine months of 2024 of $
9. Mineral Properties
Mineral properties at September 30, 2024 and December 31, 2023 consisted of the following:
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
Golden Chest |
|
|
|
|
|
| ||
Mineral Property |
| $ |
|
| $ |
| ||
Infrastructure |
|
|
|
|
|
| ||
Total Golden Chest |
|
|
|
|
|
| ||
New Jersey |
|
|
|
|
|
| ||
McKinley-Monarch |
|
|
|
|
|
| ||
Butte Gulch |
|
|
|
|
|
| ||
Potosi |
|
|
|
|
|
| ||
Park Copper/Gold |
|
|
|
|
|
| ||
Eastern Star |
|
|
|
|
|
| ||
Oxford |
|
|
|
|
|
| ||
Less accumulated amortization |
|
| ( | ) |
|
| ( | ) |
Total |
| $ |
|
| $ |
|
11 |
Table of Contents |
Idaho Strategic Resources, Inc
Notes to Condensed Consolidated Financial Statements (Unaudited)
In February 2024
For the three and nine-month periods ended September 30, 2024 and 2023, interest expense was capitalized in association with the ramp access project at the Golden Chest Mine as follows.
September 30, 2024 |
|
| September 30, 2023 |
| ||||||||||
Three Months |
|
| Nine Months |
|
| Three Months |
|
| Nine Months |
| ||||
$ |
|
| $ |
|
| $ |
|
| $ |
|
10. Notes Payable
At September 30, 2024 and December 31, 2023, notes payable are as follows:
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
Building in Salmon, Idaho, 60-month note payable, |
| $ |
|
| $ |
| ||
Butte Gulch vacant mineral property, |
|
|
|
|
|
| ||
Resemin Muki Bolter, 36-month note payable, |
|
|
|
|
|
| ||
Paus 2 yd LHD, 60-month note payable, |
|
|
|
|
|
| ||
Paus 2 yd LHD, 60-month note payable, |
|
|
|
|
|
| ||
CarryAll transport, 36-month note payable, |
|
|
|
|
|
| ||
CarryAll transport, 36-month note payable, |
|
|
|
|
|
| ||
Two CarryAll transports, 36-month note payable, |
|
|
|
|
|
| ||
CarryAll transport, 36-month note payable, |
|
|
|
|
|
| ||
Two CarryAll transports, 48-month note payable, |
|
|
|
|
|
| ||
CarryAll transport, 48-month note payable, |
|
|
|
|
|
| ||
CarryAll transport, 48-month note payable, |
|
|
|
|
|
| ||
Sandvik LH203 LHD, 36-month note payable, |
|
|
|
|
|
| ||
Sandvik LH202 LHD, 36-month note payable, |
|
|
|
|
|
| ||
Doosan Compressor, 36-month note payable, |
|
|
|
|
|
| ||
Komatsu WX04 LHD, 24-month note payable, |
|
|
|
|
|
| ||
Caterpillar 306 excavator, 48-month note payable, |
|
|
|
|
|
| ||
Caterpillar R1600 LHD, 48-month note payable, |
|
|
|
|
|
| ||
Caterpillar R1600 LHD bucket, 24-month note payable, |
|
|
|
|
|
| ||
Caterpillar AD30 underground truck, 40-month note payable, |
|
|
|
|
|
| ||
Caterpillar 259D3 skid steer, 36-month note payable, |
|
|
|
|
|
| ||
Watermark Filter Press, 60-month note payable, |
|
|
|
|
|
| ||
BHS Sonthofen Batch Mixer, 60-month note payable, |
|
|
|
|
|
| ||
SBA Economic Injury Disaster (“EIDL”) Loan 30 year note payable, |
|
|
|
|
|
| ||
2022 Dodge Ram, 75-month note payable, |
|
|
|
|
|
| ||
2016 Dodge Ram, 75-month note payable, |
|
|
|
|
|
| ||
2020 Ford Transit Van, 72-month note payable, |
|
|
|
|
|
| ||
Total notes payable |
|
|
|
|
|
| ||
Due within one year |
|
|
|
|
|
| ||
Due after one year |
| $ |
|
| $ |
|
12 |
Table of Contents |
Idaho Strategic Resources, Inc
Notes to Condensed Consolidated Financial Statements (Unaudited)
All notes except the SBA EIDL loan are collateralized by the property or equipment purchased in connection with each note. Future principal payments of notes payable at September 30, 2024 are as follows:
12 months ended September 30, |
|
|
| |
2025 |
| $ |
| |
2026 |
|
|
| |
2027 |
|
|
| |
2028 |
|
|
| |
2029 |
|
|
| |
2030 |
|
|
| |
Thereafter |
|
|
| |
Total |
| $ |
|
11. Investment in Buckskin
The investment in Buckskin is being accounted for using the equity method and resulted in recognition of change of equity value on the investment of income of $
12. Stockholders’ Equity
Stock Issuance Activity
In the first nine months of 2024 the Company issued common stock as follows:
| · | Sold |
| · | Issued |
| · | Issued |
| · | Issued |
Stock Purchase Warrants Outstanding
The activity in stock purchase warrants is as follows: |
| Number of Warrants |
|
| Exercise Prices |
| ||
Balance December 31, 2022 and 2023 |
|
|
|
| $ |
| ||
Exercised |
|
| ( | ) |
| $ |
| |
Balance March 31, 2024 |
|
|
|
| $ |
| ||
Exercised |
|
| ( | ) |
| $ |
| |
Balance June 30, 2024 |
|
|
|
| $ |
| ||
Exercised |
|
| ( | ) |
| $ |
| |
Balance September 30, 2024 |
|
|
|
| $ |
|
These warrants expire as follows:
|
| Shares |
|
| Exercise Price |
|
| Expiration Date | |||
|
|
|
|
| $ |
|
| ||||
|
|
|
|
| $ |
|
| ||||
|
|
|
|
|
|
|
|
|
13 |
Table of Contents |
13. Stock Options
There were no stock options granted during the nine-months ended September 30, 2024 and 2023.
Activity in the Company’s stock options is as follows:
|
| Number of Options |
|
| Weighted Average Exercise Prices |
| ||
Balance December 31, 2022 |
|
|
|
| $ |
| ||
Forfeited |
|
| ( | ) |
| $ |
| |
Balance December 31, 2023 |
|
|
|
| $ |
| ||
Exercised |
|
| ( | ) |
| $ |
| |
Forfeited |
|
| ( | ) |
| $ |
| |
Balance March 31, 2024 |
|
|
|
| $ |
| ||
Exercised |
|
| ( | ) |
| $ |
| |
Balance June 30, 2024 |
|
|
|
| $ |
| ||
Exercised |
|
| ( | ) |
| $ |
| |
Forfeited |
|
| ( | ) |
| $ |
| |
Outstanding and exercisable at September 30, 2024 |
|
|
|
| $ |
|
In the three and nine-month periods ending September 30, 2024,
14. Subsequent Events
Subsequent to September 30, 2024:
| · | |
| · | |
| · |
14 |
Table of Contents |
Forward-Looking Statements
Certain statements contained in this Form 10-Q, including in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Quantitative and Qualitative Disclosures About Market Risk, are intended to be covered by the safe harbor provided for under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Our forward-looking statements include our current expectations and projections about future results, performance, results of litigation, prospects and opportunities, including reserves and other mineralization. We have tried to identify these forward-looking statements by using words such as “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “feel,” “plan,” “estimate,” “project,” “forecast” and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to, those set forth under Part I, Item 1A.–Risk Factors in our 2023 Form 10-K and in Part II, Item 1.A.-Risk Factors in this Form 10-Q. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Idaho Strategic or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
15 |
Table of Contents |
ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Plan of Operation
Idaho Strategic is a gold producer and critical minerals/rare earth element (“REE”) exploration company focused on a diversified asset base and cash flows from operations. Its portfolio of mineral properties are located in the historic producing silver and gold districts of the Coeur d’Alene Mining region of north Idaho and the Elk City region of north-central Idaho, as well as the historic REE-Thorium Belt located near the city of Salmon in central Idaho.
The Company’s plan of operation is to generate positive cash flow, increase its gold production and asset base over time while being mindful of corporate overhead. The Company’s management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a focus on gold production and exploration for REEs.
The Company’s gold properties include: the Golden Chest Mine (currently in production), and the New Jersey Mill (majority ownership interest), as well as the Eastern Star exploration property and other less advanced properties. The Company’s primary focus as it relates to its gold properties is to continue to grow production at the Golden Chest Mine and look to reinvest the cash flow into both the Golden Chest, the New Jersey Mill, and furthering its exploration efforts near the Golden Chest, as well as at its REE properties.
In addition to its gold properties, Idaho Strategic has three REE exploration properties in Idaho known as Lemhi Pass, Diamond Creek, and Mineral Hill. Following observation of industry dynamics and in early response to events impacting long-term domestic critical mineral supply and demand trends, the Company’s strategic expansion into REE’s also aids in diversifying its holdings. The Company believes the anticipated demand for these elements in the electrification of motorized vehicles, defense spending, and a renewed focus on the United States’ domestic critical minerals supply chain security may benefit domestic holders of such assets. The Company also believes it has a first-mover advantage with its addition of recognized REE land holdings in Idaho. To date, Idaho Strategic has conducted numerous exploration programs on its REE properties which include drilling, trenching, sampling, and mapping of certain areas within the Company’s 19,090-acre landholdings.
Idaho Strategic has been able to demonstrate and utilize its track record of operations and experience in mining, milling, and exploring at the Golden Chest to develop relationships with different state government agencies, universities, national labs, and other government and non-government entities to advance its REE exploration activities on multiple fronts. Idaho Strategic plans to continue to look for additional partnerships to find mutually beneficial solutions to advance the U.S.' domestic REE supply chain.
Critical Accounting Estimates
We have, besides our estimates of the amount of depreciation on our assets, two critical accounting estimates. The ounces of gold contained in our process and concentrate inventory is based on assays taken at the time the ore is processed and the ounces of gold contained in shipped concentrate which is based upon assays taken prior to shipment however subject to final assays at the refinery, these shipments are also subject to the fluctuation in gold prices between our shipment date and estimated and actual final settlement date. Also, the reclamation bond obligation on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations and may differ when we cease operations.
Our concentrate sales sometimes involve variable consideration, as they can be subject to changes in metals prices between the time of shipment and their final settlement. However, we can reasonably estimate the transaction price for the concentrate sales at the time of shipment using forward prices for the estimated month of settlement, and previously recorded sales and accounts receivable are adjusted to estimated settlement metals prices until final settlement for financial reporting purposes. The embedded derivative contained in our concentrate sales is adjusted to fair value through earnings each period prior to final settlement. It is unlikely a significant reversal of revenue for the concentrate receivable will occur upon final settlement of the lots. As such, we use the expected value method to price the concentrate until the final settlement date occurs, at which time the final transaction price is known. At September 30, 2024, metals that had been sold but not finally settled included 5,496 ounces of which 1,539 ounces were sold at a predetermined price with the remaining 3,957 exposed to future price changes until prices are locked in based on the month of settlement. The Company has received provisional payments on the sale of these ounces with the remaining amount due reflected in gold sales receivable.
16 |
Table of Contents |
The asset retirement obligation and asset on our balance sheet is based on an estimate of the future cost to recover and remediate our properties as required by our permits upon cessation of our operations and may differ when we cease operations. At September 30, 2024 we reviewed our December 31, 2023 estimate that the cost of the machine and man hours probable to be needed to put our properties in the condition required by our permits once we cease operations. The September 30, 2024 estimated costs would be $104,000 for the Golden Chest Mine property and $224,000 for the New Jersey Mine and Mill. For purposes of the estimate, we evaluated the expected life in years and costs that, initially, are comparable to rates that we would incur at the present. An expected present value technique is used to estimate the fair value of the liability. This includes inflating the estimated costs in today’s dollars using a reasonable inflation rate up to the date of expected retirement and discounting the inflated costs using a credit-adjusted risk-free rate. Upon initial recognition of the liability, the carrying amount of the related long-lived asset is increased by the same amount. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is amortized over the life of the related asset. We are adding to the liability each year, and amortizing the asset over the estimated life, which decreases our net income in total each year. Changes resulting from revisions to the timing or amount of the original estimate of undiscounted cash flows are recognized as either an increase or a decrease in the carrying amount of the liability for an asset retirement obligation and the related asset retirement cost capitalized as part of the carrying amount of the related long-lived asset. Upward revisions of the amount of undiscounted estimated cash flows are discounted using the current credit-adjusted risk-free rate. Downward revisions in the amount of undiscounted estimated cash flows are discounted using the credit-adjusted risk-free rate that existed when the original liability was recognized. The Company reviews, on an annual basis, unless otherwise deemed necessary, the asset retirement obligations. Separately, the Company accrues costs associated with environmental remediation obligations when it is probable that such costs will be incurred and able to be reasonably estimated.
Highlights during the third quarter of 2024 include:
REE Exploration
| · | Attended the Adamas Rare Earth Mines, Magnets and Motors Conference in Toronto, Canada during the quarter. |
| · | Subsequent to quarter end, Idaho Strategic representatives attended the International Rare Earth Elements Conference in Washington DC. |
Golden Chest/Operations
| · | At the Golden Chest, ore mined from underground stopes totaled approximately 10,500 tonnes with all of the tonnage coming from H-Vein stopes. |
| · | A total of 3,820 cubic meters of cemented rockfill (“CRF”) were placed during the quarter which is a new quarterly record. The Main Access Ramp (“MAR”) and associated attack ramps were advanced by approximately 154 meters during the quarter. |
| · | For the quarter ended September 30, 2024, a total of 10,470 dry metric tonnes (“dmt”) were processed at the Company’s New Jersey mill with a flotation feed head grade of 9.32 gpt gold and gold recovery of 93.1%. |
| · | An exploration program consisting of both underground and surface core drilling was continued during the third quarter. Underground drilling was focused on exploring the Klondike area and targeting the newly found Red Star zone and northerly projections of the H-vein. Surface drilling was completed in Butte Gulch and this rig was moved to the northern area of the Golden Chest. A third drill rig was moved to Wesp Gulch to drill down-dip on the Idaho fault and associated veining during the quarter. |
Results of Operations
Our financial performance during the quarter is summarized below:
| · | Revenue increased 86.4% from $3,301,221 to $6,153,287 for the three-month periods ended September 30, 2023 and 2024, respectively, Year to date revenue increased 84% from $9,879,332 to $18,177,607 for the nine-month periods ended September 30, 2023 and 2024, respectively. The increase in revenue is largely due to the increased gold production compared to previous periods as well as a higher average gold price recognized on ounces produced. Gold production is expected to remain at approximately this level for the remainder of the year. |
| · | Gross profit as a percentage of sales increased from 33.5% in the third quarter of 2023 to 48.7% in the third quarter of 2024. For the nine-month periods ending September 30, 2024 and 2023 gross profit as a percentage of sales increased to 49% from 28%. |
| · | Exploration expense increased in both the three-month and nine-month periods ending September 30, 2024, when compared to the same periods in 2023, due to an increase in surface and underground drilling activity at the Company’s Golden Chest Mine. Drilling is expected to continue throughout the fourth quarter which may result in an increased exploration expense when compared to prior periods. |
| · | Operating income for the three-month period ended September 30, 2024 was $1,439,534 which is an increase of $1,026,073 from operating income of $413,461 in the third quarter of 2023. For the nine-month period ending September 30, 2024, operating income of $5,677,103 increased by $4,960,632 over the same period in 2023. |
| · | Other income increased $559,452 from an expense of $9,478 in the third quarter of 2023, to income of $549,974 in the same period in 2024. Other income increased $575,621 from $27,520 in the nine months ending September 30, 2023, to $603,141 in the same period in 2024.The increase was from increased interest income and gains on treasuries from the company’s short term investment account due to having a higher cash balance as well as government grant income of $418,000 for an electrical upgrade at the Golden Chest Mine in 2024. |
| · | Net income increased $1,585,525 from net income of $403,983 for the three-month period ended September 30, 2023 to net income of $1,989,508 for the three-month period ending September 30, 2024. Net income increased $5,536,253 from net income of $743,991 in the nine-month period ending September 30, 2023, to net income of $6,280,244 in the same period in 2024. |
| · | The consolidated net income for the nine-month periods ending September 30, 2024 and 2023 included non-cash charges as follows: depreciation and amortization of $1,443,232 ($1,034,521 in 2023), loss on disposal of equipment of $1,431 (gain of $224 in 2023), accretion of asset retirement obligation of $13,954 ($11,874 in 2023), loss on investment in equity securities of $453 ($4,423 in 2023), equity income on investment in Buckskin of $1,579 ($2,965 in 2023), and write down of reclamation bond of $300 (none in 2023). |
| · | Cash cost per ounce for the three-month period ending September 30, 2024 remained relatively flat compared to the same period in 2023. For the nine-month period ending September 30, 2024, cash cost per ounce decreased due to a 53.7% increase in ounces produced compared to the nine-month period ending September 30, 2023. |
| · | All in sustaining cost per ounce increased during the three-month period ending September 30, 2024 compared to the same period in 2023 due to an increase in exploration costs from underground and surface drilling at the Golden Chest Mine. For the nine-month period ending September 30, 2024, all in sustaining costs decreased slightly as the increased exploration cost was largely made up for by the increased production when compared to the nine-month period ending September 30, 2023. Adjusted all in sustaining costs without exploration expenses were $1,109.79 and $1,128.78 per ounce for the three and nine-month periods ending September, 30 2024, respectively. |
17 |
Table of Contents |
Cash Costs and All In Sustaining Costs (“AISC”) Reconciliation to Generally Accepted Accounting Principles (“GAAP”)
Reconciliation of cost of sales and other direct production costs and depreciation, depletion, and amortization (GAAP) to cash cost per ounce and AISC per ounce (non-GAAP).
The table below presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion, and amortization to the non-GAAP measures of cash cost per ounce and all in sustaining costs per ounce for the Company’s gold production in the three and nine-month periods ended September 30, 2024, and 2023.
Cash cost per ounce is an important operating measure that we utilize to measure operating performance. AISC per ounce is an important measure that we utilize to assess net cash flow after costs for pre-development, exploration, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold do not capture all of the expenditures incurred to discover, develop, and sustain gold production. At September 30, 2024, the Company changed the way sustaining capital is calculated to better reflect actual costs required to sustain mining operations. Prior periods have been restated in the table below to reflect this change.
|
| September 30, 2024 |
|
| September 30, 2023 |
| ||||||||||
|
| Three Months |
|
| Nine Months |
|
| Three Months |
|
| Nine Months |
| ||||
Cost of sales and other direct production costs and depreciation and amortization |
| $ | 3,155,931 |
|
| $ | 9,268,589 |
|
| $ | 2,195,289 |
|
| $ | 7,114,218 |
|
Depreciation and amortization |
|
| (485,514 | ) |
|
| (1,443,232 | ) |
|
| (363,442 | ) |
|
| (1,034,521 | ) |
Change in concentrate inventory |
|
| (204,895 | ) |
|
| (94,826 | ) |
|
| (46,201 | ) |
|
| (83,180 | ) |
Cash Cost |
| $ | 2,465,522 |
|
| $ | 7,730,531 |
|
| $ | 1,785,646 |
|
| $ | 5,996,517 |
|
Exploration |
|
| 1,185,460 |
|
|
| 2,073,364 |
|
|
| 435,439 |
|
|
| 916,250 |
|
Less REE exploration costs |
|
| (54,492 | ) |
|
| (212,018 | ) |
|
| (150,693 | ) |
|
| (485,051 | ) |
Sustaining capital |
|
| 537,697 |
|
|
| 1,927,153 |
|
|
| 474,513 |
|
|
| 1,568,938 |
|
General and administrative |
|
| 203,732 |
|
|
| 543,851 |
|
|
| 117,178 |
|
|
| 504,241 |
|
Less stock-based compensation and other non-cash items |
|
| 2,573 |
|
|
| (14,259 | ) |
|
| (3,953 | ) |
|
| (13,108 | ) |
AISC |
| $ | 4,340,492 |
|
| $ | 12,048,622 |
|
| $ | 2,658,130 |
|
| $ | 8,487,787 |
|
Divided by ounces produced |
|
| 2,892 |
|
|
| 9,025 |
|
|
| 1,993 |
|
|
| 5,870 |
|
Cash cost per ounce |
| $ | 852.53 |
|
| $ | 856.57 |
|
| $ | 895.96 |
|
| $ | 1,021.55 |
|
AISC per ounce |
| $ | 1,500.86 |
|
| $ | 1,335.03 |
|
| $ | 1,333.73 |
|
| $ | 1,445.96 |
|
Financial Condition and Liquidity
|
| For the Nine-Months Ended September 30, |
| |||||
Net cash provided (used) by: |
| 2024 |
|
| 2023 |
| ||
Operating activities |
| $ | 8,104,122 |
|
| $ | 1,343,068 |
|
Investing activities |
|
| (9,782,116 | ) |
|
| (1,065,507 | ) |
Financing activities |
|
| 7,783,551 |
|
|
| 56,253 |
|
Net change in cash and cash equivalents |
|
| 6,105,557 |
|
|
| 333,814 |
|
Cash and cash equivalents, beginning of period |
|
| 2,286,999 |
|
|
| 1,638,031 |
|
Cash and cash equivalents, end of period |
| $ | 8,392,556 |
|
| $ | 1,971,845 |
|
The Company is currently producing profitably from underground at the Golden Chest Mine. In the past, the Company has been successful in raising required capital from sale of common stock, forward gold contracts, and debt. As a result of its profitable production, equity sales and potential debt borrowings or restructurings, management believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.
18 |
Table of Contents |
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not required for small reporting companies.
ITEM 4: CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
At September 30, 2024, our Vice President who also serves as our Chief Accounting Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), which disclosure controls and procedures are designed to insure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within required time periods specified by the Securities & Exchange Commission rules and forms.
Based upon that evaluation, it was concluded that our disclosure controls were effective as of September 30, 2024, to ensure timely reporting with the Securities and Exchange Commission. Specifically, the Company’s corporate governance and disclosure controls and procedures provided reasonable assurance that required reports were timely and accurately reported in our periodic reports filed with the Securities and Exchange Commission.
Changes in internal control over financial reporting
There was no material change in internal control over financial reporting in the quarter ended September 30, 2024.
19 |
Table of Contents |
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Neither the constituent instruments defining the rights of the Company’s securities filers nor the rights evidenced by the Company’s outstanding common stock have been modified, limited or qualified.
During the third quarter of 2024, 47,027 shares of common stock were issued in exchange for outstanding warrants for net proceeds of $263,351. 23,216 shares of common stock were issued in exchange for outstanding stock options for net proceeds of $130,010 and 34,030 shares of common stock were issued for outstanding stock options via cashless exercise.
The Company relied on the transaction exemption afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D Rule 506(b). The common shares are restricted securities which may not be publicly sold unless registered for resale with the Securities and Exchange Commission or exempt from the registration requirements of the Securities Act of 1933, as amended.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
The Company has no outstanding senior securities.
ITEM 4. MINE SAFETY DISCLOSURES
The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in exhibit 95 to this report.
ITEM 5. OTHER INFORMATION
None.
20 |
Table of Contents |
ITEM 6. EXHIBITS
Exhibits
| ||
| ||
| ||
| Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| Mine safety information listed in Section 1503 of the Dodd-Frank Act. | |
101.INS* |
| XBRL Instance Document |
101.SCH* |
| XBRL Taxonomy Extension Schema Document |
101.CAL* |
| XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* |
| XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* |
| XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* |
| XBRL Taxonomy Extension Presentation Linkbase Document |
* Filed herewith.
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Table of Contents |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| IDAHO STRATEGIC RESOURCES, INC |
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| By: | /s/ John Swallow |
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| John Swallow, |
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| its: | President and Chief Executive Officer |
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| Date | November 4, 2024 |
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| By: | /s/ Grant Brackebusch |
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| Grant Brackebusch, |
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| its: | Vice President and Chief Financial Officer |
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| Date: | November 4, 2024 |
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