Solitario Resources (XPL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual ...

Financial Performance - Net loss for the three months ended March 31, 2025, was $511,000, a reduction of 30% from the net loss of $730,000 for the same period in 2024[13]. - Total operating expenses decreased to $736,000 for Q1 2025, down 11.6% from $833,000 in Q1 2024[13]. - Shareholders' equity decreased to $22,291,000 as of March 31, 2025, from $22,520,000 as of December 31, 2024, a decline of 1.02%[12]. - Net cash used in operations decreased to $598,000 in Q1 2025 from $991,000 in Q1 2024, mainly due to lower exploration expenses and reduced cash use for accounts payable[79]. - Interest and dividend income decreased to $46,000 in Q1 2025 from $95,000 in Q1 2024, attributed to reduced short-term investment balances used for exploration and administrative expenditures[69]. Exploration Activities - Solitario anticipates using cash and short-term investments to fund exploration activities for its core mineral projects, including the Florida Canyon Project and Lik Project[19]. - The company has not developed any properties to date and primarily focuses on acquiring and exploring mineral properties[15]. - Solitario's exploration activities are subject to various macro-economic risks, including inflationary pressures and volatility in financial markets[24]. - As of March 31, 2025, Solitario's total exploration mineral properties amounted to $16,701,000, unchanged from December 31, 2024[30]. - Exploration expenses for the three months ended March 31, 2025, were $239,000, a decrease of 7% from $354,000 in the same period of 2024[31]. Marketable Securities - The company reported an unrealized gain on marketable equity securities of $385,000 for Q1 2025, compared to an unrealized gain of $8,000 in Q1 2024[13]. - The fair value of Solitario's marketable equity securities increased to $1,706,000 as of March 31, 2025, up from $1,322,000 at December 31, 2024, representing a 29% increase[37]. - Solitario recorded a cumulative unrealized loss on marketable equity securities of $266,000 as of March 31, 2025[37]. - The fair value of 100,000 shares of Kinross common stock increased from $927,000 at December 31, 2024 to $1,261,000 at March 31, 2025, while 134,055 shares of Vox common stock increased from $314,000 to $391,000 during the same period[67]. Cash and Investments - Cash and cash equivalents increased to $189,000 as of March 31, 2025, from $81,000 at the beginning of the period, marking a significant increase of 133.3%[14]. - As of March 31, 2025, the company had $4,162,000 in cash and short-term investments, with $3,973,000 in a money market account[73]. - Working capital decreased to $5,404,000 at March 31, 2025, from $5,624,000 at December 31, 2024, primarily due to changes in cash and current liabilities[75]. - The company provided $550,000 from net sales of short-term investments in Q1 2025, compared to $918,000 in Q1 2024[80]. Stock Options and Compensation - As of March 31, 2025, there were options outstanding under the 2013 Plan to acquire 2,395,000 shares, with an intrinsic value of $98,000[50]. - The total stock-based compensation expense for Q1 2025 was $126,000, up from $59,000 in Q1 2024, attributed to the amortization of options granted in 2024[66]. - The intrinsic value of outstanding stock options under the 2023 Plan as of March 31, 2025, was $4,000, with a weighted average life of 4.42 years[52]. Future Outlook - The company’s full-year 2025 exploration and development budget is approximately $3,910,000, which includes a potential drilling program at the Golden Crest Project budgeted at $1,911,000[64]. - The company anticipates continued use of funds from operations through 2025, primarily for exploration activities related to the Golden Crest and Lik Projects[79]. - The company plans to use cash and short-term investments to fund exploration activities for its core mineral projects, including the Florida Canyon Project and Lik Project[19]. Risk Factors - Solitario's exploration activities are primarily focused in North and South America, with core assets including the Golden Crest Project, Florida Canyon Project, and Lik Project[59]. - The company emphasizes the importance of considering risk factors that could lead to actual results differing from forward-looking statements[93]. - There are no material changes to the risk factors outlined in the 2024 Annual Report[93].

Mineral Property Assets - Solitario's core mineral property assets include the Golden Crest project in South Dakota, the Florida Canyon project in Peru, and the Lik project in Alaska[21]. - Solitario holds a 50% interest in the Lik project, which is estimated to contain a large tonnage, high-grade deposit potentially mineable by open-pit methods[32]. - The Florida Canyon project has a significant mineral resource, with Solitario being fully carried to production by its joint venture partner Nexa, which will increase its ownership to 70% by funding all project expenditures[32]. - The Florida Canyon and Lik projects have reported mineral resources, but their potential for upgrading to mineral reserves depends on additional geological work and economic evaluation[52]. - The Golden Crest and Cat Creek projects are early-stage exploration projects with no reported mineral resources or reserves, requiring significant additional work for potential future reporting[55][56]. - The Lik Zinc project consists of 47 contiguous mining claims covering approximately 6,075 acres, with annual rental payments to the State of Alaska for 2025 estimated at $9,000[203]. Financial Position and Funding - As of December 31, 2024, Solitario anticipates using cash and short-term investments to fund exploration projects and evaluate additional mineral property assets[22]. - The company anticipates needing to raise additional capital or enter into new joint venture arrangements to fund exploration activities and obligations related to its mineral properties[62]. - The company has recorded revenue in the past from the sale of mineral properties, but such revenues have not been a consistent annual source of cash[20]. - The company has reported losses in 28 of its 31 years of operations, with net income in only three years: 2015, 2003, and 2000[82]. - As of December 31, 2024, the company holds $4,523,000 in money market funds and approximately $44,000 in uninsured cash deposits, which could be adversely affected by the failure of financial institutions[87]. - The company has the authority to issue up to 100,000,000 shares of common stock and 10,000,000 shares of preferred stock, with an ATM program allowing the sale of up to $10,000,000 in shares[84]. Exploration Activities - The company has four full-time employees and utilizes consultants and contractors for exploration activities and administration[23]. - Solitario's exploration activities included extensive grid soil sampling and limited core drilling in 2024[124]. - The company is committed to best practices in exploration activities, minimizing surface disturbance and ensuring reclamation after sampling[155]. - Solitario plans a Phase-1 drilling program of approximately 4,000 meters in 2025, consisting of about 15 exploration core holes, with potential for a Phase-2 program depending on results and funding[156]. - Eleven core holes were completed in the 2024 drilling program, totaling 4,345.7 meters, with six holes intersecting gold grades exceeding 1 gpt[140][143]. Environmental and Regulatory Compliance - The company has a long history of committed environmental, social, and governance (ESG) practices, which are important to its investors and stakeholders[26]. - There were no material environmental incidents or known non-compliance with applicable environmental regulations during 2024[43]. - The company’s exploration activities are subject to various governmental regulations, and failure to comply could result in the loss of exploration or mining rights[42]. - The USFS issued a final Environmental Assessment and Draft Decision of No Significant Impact for the Golden Crest drilling program, allowing drilling to commence in June 2024[153]. - Environmental permits for exploration and development projects in Peru have been obtained, with additional permits being pursued for expanded drilling programs[168]. Market and Economic Risks - Solitario's exploration activities are subject to various macro-economic risks, including health epidemics, geopolitical tensions, and financial market volatility[27]. - The company’s operations are significantly affected by changes in the market price of commodities, particularly gold and zinc, which fluctuate daily and are influenced by factors beyond its control[57]. - The company does not hedge against currency or commodity fluctuations, which could materially affect its financial position[57]. - Exploration activities outside the United States are subject to political and economic risks that could adversely affect the value of certain assets[59]. - Increased costs due to various factors could negatively impact the company's exploration efforts and future development potential[88]. Joint Ventures and Partnerships - The company relies on joint ventures for project development, making its results dependent on the financial condition and operational expertise of its partners[76]. - Solitario holds a 50% interest in the Lik property through a joint venture with Teck, with annual exploration funding agreed upon since 2018[205][206]. - Nexa's expenditures for 2024 are approximately $2.0 million, focusing on upgrading access roads and community outreach programs[176]. - The company may pursue acquisitions of new mineral property assets, which could require substantial capital and involve significant risks[78]. Insurance and Risk Management - The company has limited insurance coverage for various risks, which may lead to material adverse effects on its business if uninsurable events occur[65]. - The company does not maintain "Key-Man" life insurance policies for its key executives, which could adversely affect its operations if these individuals are lost[75]. - The company is dependent on information technology systems, which are subject to cybersecurity risks that could materially affect its operations[89]. - The company has invested in cybersecurity controls and processes to mitigate risks associated with potential cyber-attacks[90]. Geological and Technical Information - Over twenty gold-enriched target areas have been identified by Solitario, with fourteen containing multi-gram gold per tonne[129]. - Significant multi-gram gold mineralization was intersected in four different areas during the drilling program, with high-grade paleo-placer gold found in hole GC-008[143]. - The Geyser Zone has been redefined as a single V-shaped zone, with a total of 515 rock grab samples collected, of which 99 samples returned values exceeding 1.0 gpt gold, and 36 samples exceeded 10 gpt gold[135]. - The Florida Canyon district has defined several zones of strong zinc mineralization, with the largest drilling amounts in the San Jorge, Karen-Milagros, and 1021 zones[184]. - Estimated Mineral Resources at Florida Canyon include 806,945 tonnes measured at 11.32% zinc and 1.39% lead, and 1,634,702 tonnes indicated at 10.28% zinc and 1.31% lead[193].

Financial Performance - Net loss for the three months ended September 30, 2024, was $2.276 million compared to a net loss of $1.292 million for the same period in 2023, representing a 76.4% increase in losses[9] - The net loss for the nine months ended September 30, 2024, was $3.768 million or $0.05 per share, compared to a net loss of $2.712 million or $0.04 per share for the same period in 2023[86] - Total shareholders' equity decreased to $23.994 million from $25.950 million, a decline of 7.5%[8] - The company reported a net loss of $2,276,000 or $0.03 per share for the three months ended September 30, 2024, compared to a net loss of $1,292,000 or $0.02 per share for the same period in 2023[74] Exploration Activities - Solitario is actively exploring its core mineral properties, including the Florida Canyon Project and the Lik Project, and has initiated work on the new Cat Creek Project in Colorado[14] - The company anticipates using its cash and short-term investments to fund exploration activities and potentially acquire additional mineral property assets[15] - The company budgeted approximately $3,900,000 for total exploration expenditures in 2024, which includes $1,700,000 specifically for drilling at the Golden Crest Project[77] - Exploration expenses for the nine months ended September 30, 2024, were $2.908 million, up from $1.748 million in the same period of 2023, an increase of 66.2%[9] - Exploration expenses increased to $2,067,000 for the three months ended September 30, 2024, up from $918,000 in the same period of 2023, primarily due to drilling at the Golden Crest Project[75] Cash and Investments - Cash and cash equivalents at the end of the period were $186 million, a slight decrease from $168 million at the end of the previous year[10] - Solitario's cash, excluding restricted cash, was $86,000 as of September 30, 2024, down from $200,000 on December 31, 2023[26] - As of September 30, 2024, the company had $6,484,000 in cash and short-term investments, with $6,398,000 held in a money market account[96] - The fair value of Solitario's marketable equity securities increased to $1,398,000 as of September 30, 2024, from $1,032,000 on December 31, 2023[36] Operating Expenses - The company recorded a total operating expense of $4.440 million for the nine months ended September 30, 2024, compared to $2.840 million for the same period in 2023, an increase of 56.2%[9] - Total operating expenses for the three months ended September 30, 2024, were $2,458,000, compared to $1,207,000 for the same period in 2023, representing a 104% increase[9] - General and administrative costs for the three months ended September 30, 2024, were $258,000, slightly up from $224,000 in the same period of 2023[76] - General and administrative costs for the nine months ended September 30, 2024, were $971,000, compared to $889,000 for the same period in 2023[88] Stock-Based Compensation - Solitario's stock-based compensation expense increased to $540,000 for the nine months ended September 30, 2024, compared to $184,000 in the same period in 2023, reflecting a significant rise in compensation costs[10] - Stock-based compensation expense for the three and nine months ended September 30, 2024, was $125,000 and $540,000, respectively, compared to $58,000 and $184,000 in 2023[60] - The intrinsic value of outstanding stock options under the 2013 Plan was $718,000 as of September 30, 2024[54] Liabilities - Total current liabilities increased to $762 million from $632 million, a rise of 20.5%[8] - The company recorded an asset retirement obligation of $125,000 as of September 30, 2024, for estimated reclamation costs at the Lik Project[32] - Solitario has recorded an asset retirement and reclamation liability obligation of $145,000 related to its Lik and Golden Crest projects[49] Market Activity - Solitario sold 100,000 shares of Highlander Silver Corp. for proceeds of $54,000 during the nine months ended September 30, 2024, realizing a gain of $54,000[40] - The company sold 1,802,060 shares under the ATM Agreement at an average price of $0.70 per share, generating net proceeds of $1,218,000[65] - The company issued common stock net of issuing costs amounting to $1,218,000 during the period, compared to $2,422,000 in the same period last year[10] Future Outlook - The company anticipates a significant increase in exploration expenses for the full year of 2024 compared to 2023[76] - The company anticipates continued use of funds from operations through the remainder of 2024, primarily for drilling expenditures and exploration activities[103] - The company has no off-balance sheet obligations as of September 30, 2024[109]

Financial Performance - Cash and cash equivalents decreased from $200 million to $176 million, while total current assets decreased from $9,941 million to $9,659 million[30]. - Total operating expenses for the three months ended June 30, 2024, were $1,149 million, an increase from $876 million for the same period in 2023, representing a 31% increase[31]. - The net loss for the six months ended June 30, 2024, was $1,492 million, compared to a net loss of $1,420 million for the same period in 2023, indicating a 5% increase in losses[34]. - The company reported a total of $387 million in other income for the three months ended June 30, 2024, compared to a loss of $164 million in the same period of 2023[31]. - For the three months ended June 30, 2024, Solitario reported a net loss of $762,000 or $0.01 per share, an improvement from a net loss of $1,040,000 or $0.02 per share for the same period in 2023[116]. - The company reported a net loss of $1,492,000 or $0.02 per share for the six months ended June 30, 2024, compared to a net loss of $1,420,000 or $0.02 per share for the same period in 2023[146]. Shareholder Information - The weighted average shares outstanding increased from 64,807 thousand to 81,113 thousand, reflecting a 25% increase in shares[31]. - As of June 30, 2024, there were options outstanding under the 2013 Plan to acquire 3,728,500 shares of Solitario common stock, with an intrinsic value of $1,562,000[79]. - As of June 30, 2024, there were options for 2,175,000 shares outstanding under the 2023 Plan, with an intrinsic value of $104,000[80]. - Solitario granted options for 2,125,000 shares under the 2023 Plan with an exercise price of $0.85 per share, resulting in a grant date fair value of $1,120,000[107]. Exploration and Project Development - The company anticipates using cash and short-term investments to fund exploration activities for its core mineral projects, including Florida Canyon, Lik, and Golden Crest[37]. - Solitario's exploration mineral properties totaled $16,701 million as of June 30, 2024, slightly up from $16,646 million at the end of 2023[44]. - Solitario added a new area to its Golden Crest Project, covering approximately 98 claims, with an initial cost of $43,000 capitalized as mineral properties[55]. - The company acquired a new early-stage exploration project, the Cat Creek Project, with an initial lease acquisition cost of $12,000 capitalized[55]. - Total exploration costs for the three months ended June 30, 2024, were $487,000, a decrease from $555,000 in the same period of 2023[56]. - Solitario's total exploration costs for the six months ended June 30, 2024, were $841,000, slightly up from $830,000 in the same period of 2023[56]. Cash Flow and Investments - Net cash used in operating activities for the six months ended June 30, 2024, was $1,570 million, a decrease from $1,765 million in the same period of 2023[34]. - As of June 30, 2024, Solitario had cash and short-term investments totaling $8,224,000, primarily held in a money market account[128]. - The company sold 1,802,060 shares of common stock under the ATM Agreement at an average price of $0.70 per share, generating net proceeds of $1,218,000[111]. - The company sold 100,000 shares of Highlander Silver Corp. for proceeds of $54,000, recording a gain of $54,000 on the sale[69]. - Cash proceeds from the sale of Kinross calls were $39,000 in the first half of 2024, up 29% from $31,000 in the same period of 2023[159]. Stock-Based Compensation - The company recorded stock-based compensation expense of $415 million for the six months ended June 30, 2024, compared to $126 million for the same period in 2023, representing a significant increase[34]. - Stock option compensation expense increased to $356,000 for the three months ended June 30, 2024, compared to $59,000 for the same period in 2023, due to the grant of 2,125,000 options[91]. - Stock option expense increased to $415,000 for the six months ended June 30, 2024, compared to $126,000 in the same period of 2023, due to the grant of options for 2,125,000 shares[149]. Marketable Securities - As of June 30, 2024, Solitario's marketable equity securities at fair value totaled $1,288,000, up from $1,032,000 as of December 31, 2023, representing a 24.8% increase[59]. - During the three months ended June 30, 2024, Solitario recorded a net gain of $302,000 on marketable equity securities, compared to a net loss of $227,000 for the same period in 2023[60]. - The fair value of Kinross common stock held by Solitario increased to $832,000 at June 30, 2024, up from $605,000 at December 31, 2023, reflecting a gain of $227,000[125]. - The company recorded an unrealized gain on marketable equity securities of $256,000 during the six months ended June 30, 2024, compared to a gain of $102,000 for the same period in 2023[125]. - Cumulative unrealized loss on marketable equity securities decreased to $(152,000) as of June 30, 2024, from $(408,000) as of December 31, 2023[58]. General and Administrative Costs - General and administrative costs were $301,000 for the three months ended June 30, 2024, compared to $257,000 for the same period in 2023[90]. - Solitario's general and administrative costs for the six months ended June 30, 2024 were $713,000, slightly higher than $665,000 for the same period in 2023[124]. Tax and Regulatory Matters - The company anticipates no currently payable income taxes during 2024 due to net operating losses[94]. - A valuation allowance has been recorded that fully offsets the company's net deferred tax assets, indicating uncertainty in realizing these assets[103]. - The company does not expect the adoption of ASU No. 2023-09 to have a material impact on its consolidated financial position or results of operations[38]. - The company does not anticipate early adoption of ASU 2023-05, which clarifies accounting for joint venture formations, effective January 1, 2025[50]. Other Information - There were no material changes to the Risk Factors associated with the business as of June 30, 2024[172]. - The company did not record any mineral property write-downs during the three and six months ended June 30, 2024 and 2023[163]. - There were no related party transactions or balances as of June 30, 2024[183].

Financial Performance - Net loss for the three months ended March 31, 2024, was $730,000, compared to a net loss of $380,000 for the same period in 2023, indicating an increase in loss of about 92.11%[17]. - Solitario reported a net loss of $730,000 or $0.01 per share for Q1 2024, compared to a net loss of $380,000 or $0.01 per share for Q1 2023, indicating an increase in net loss of 92.1%[70]. - Net cash used in operations increased to $991,000 for the three months ended March 31, 2024, compared to $685,000 for the same period in 2023[87]. Assets and Equity - Total assets decreased from $26,757,000 on December 31, 2023, to $25,705,000 on March 31, 2024, representing a decline of approximately 3.93%[13][14]. - Current assets decreased from $9,941,000 to $8,904,000, a reduction of about 10.43%[13]. - Shareholders' equity decreased from $25,950,000 on December 31, 2023, to $25,293,000 on March 31, 2024, a decline of approximately 2.53%[15]. - Solitario's shareholders' equity decreased to $25,293,000 at March 31, 2024, from $25,950,000 at December 31, 2023, primarily due to a net loss of $730,000[57]. - Working capital decreased to $8,657,000 as of March 31, 2024, down from $9,309,000 as of December 31, 2023[83]. Cash and Investments - Cash and cash equivalents decreased from $440,000 at the end of Q1 2023 to $141,000 at the end of Q1 2024, a decline of approximately 68.07%[19]. - As of March 31, 2024, the company has $7,659,000 in cash and short-term investments, with $7,518,000 in a money market account[81]. - The company anticipates using its cash and short-term investments to fund exploration activities and potentially acquire additional mineral property assets[24]. - Net cash provided from the sale of short-term investments was $918,000 in Q1 2024, compared to $809,000 in Q1 2023[89]. Operating Expenses - Total operating expenses increased from $757,000 in Q1 2023 to $833,000 in Q1 2024, marking an increase of approximately 10.03%[17]. - General and administrative costs were $413,000 in Q1 2024, slightly higher than $409,000 in Q1 2023, with travel and shareholder relation costs increasing to $186,000 from $139,000[73]. - Exploration expenses rose from $275,000 in Q1 2023 to $354,000 in Q1 2024, an increase of about 28.73%[35]. - Exploration expenses increased to $354,000 in Q1 2024 from $275,000 in Q1 2023, primarily due to higher costs at the Golden Crest Project, which rose to $335,000 from $241,000[71]. Marketable Securities - As of March 31, 2024, Solitario's marketable equity securities had a fair value of $1,040,000, up from $1,032,000 at December 31, 2023, reflecting an unrealized gain of $8,000[39]. - The company recorded an unrealized gain on marketable equity securities of $8,000 in Q1 2024, a significant decrease from $329,000 in Q1 2023[75]. - The company did not sell any marketable equity securities during the three months ended March 31, 2024, maintaining its investment strategy[39]. - The company did not sell any marketable equity securities during the three months ended March 31, 2024 or 2023[89]. Shareholder Activity - The company reported a weighted average of 79,624,000 shares outstanding for Q1 2024, compared to 64,801,000 shares for Q1 2023, reflecting an increase of approximately 22.76%[17]. - The company sold 1,651,309 shares of common stock under the ATM Agreement at a price of $0.68 per share, generating net proceeds of $1,085,000 in April 2024[61]. - The company entered into an ATM Agreement allowing for the sale of up to $10.0 million in common stock, but did not sell any shares during Q1 2024[86]. Internal Controls and Risk Factors - As of March 31, 2024, the management assessed the effectiveness of internal control over financial reporting and determined it to be effective based on COSO criteria[107]. - There were no changes in internal control over financial reporting during the quarter ended March 31, 2024, that materially affected its effectiveness[108]. - As of March 31, 2024, there were no material changes to the Risk Factors associated with the business compared to the 2023 Annual Report[110]. Other Financial Information - Solitario recorded an asset retirement obligation of $125,000 related to its Lik Project in Alaska[36]. - The total lease liability for Solitario's Wheat Ridge office lease is projected to be $85,000 through February 2026[42]. - As of March 31, 2024, the intrinsic value of outstanding stock options under the 2013 Plan is $491,000, with a weighted average life of 2.59 years[52]. - Solitario's deferred tax assets are fully offset by a valuation allowance, indicating uncertainty in realizing these assets[46]. - No options were exercised from the 2013 Plan during the three months ended March 31, 2023, indicating a potential lack of liquidity or market interest[52]. - There were no unregistered sales of equity securities during the quarter ended March 31, 2024[111]. - None of the Company's directors or officers adopted, modified, or terminated any trading arrangements during the quarter ended March 31, 2024[112].

Mineral Property Assets - Solitario's core mineral property assets include the Golden Crest project in South Dakota, the Florida Canyon project in Peru, and the Lik project in Alaska[21]. - Solitario holds a 50% operating interest in the Lik project, which is estimated to contain a large tonnage, high-grade deposit potentially mineable by open-pit methods[31]. - Nexa Resources, Solitario's joint venture partner at Florida Canyon, will increase its ownership to 70% by continuing to fund all project expenditures[31]. - The Florida Canyon project consists of 16 concessions covering 12,600 hectares, with Solitario holding a 39% interest and Nexa managing the project[141]. Financial Position and Risks - As of December 31, 2023, Solitario has incurred costs totaling $1,035,000 for staking, filing fees, legal, and other costs related to the Golden Crest project[33]. - The company anticipates using its cash and short-term investments to fund exploration of its projects and potentially acquire additional mineral property assets[22]. - The company has no reported mineral reserves as defined by SEC rules, which may hinder the ability to realize profits from property interests[47]. - The company may face significant financial risks due to the inherent uncertainties in mineral exploration, including potential impairments of investments[46]. - The market prices of gold and zinc are critical to the company's financial position, with fluctuations potentially leading to material adverse effects on operations[52]. - The company has reported losses in 27 of its 30 years of operations, with net income in only three years, indicating a significant historical financial challenge[81]. - The company has never paid cash dividends and does not intend to do so in the foreseeable future, meaning returns for shareholders will depend solely on stock price appreciation[82]. - The company may require additional funding for exploration and development, which could impair growth potential if not secured[56]. - Competition from other companies with greater resources may hinder the company's ability to effectively acquire and develop mineral properties[57]. - The title to mineral properties may be challenged, which could result in significant costs and adversely affect the company's financial position[61]. Exploration Activities - Solitario's exploration activities are subject to various risks, including fluctuations in commodity prices and macroeconomic uncertainties[28]. - The company has a total of six full-time employees and utilizes consultants and contractors for exploration activities[23]. - The company has fulfilled its $1,200,000 work commitment for the first three years of the GC Agreement, which includes a total of $3,000,000 in work expenditures over the first five years[102]. - The mineral exploration season at the Golden Crest project generally runs from early April to late November[107]. - Solitario plans to begin drilling at the Golden Crest project in the second quarter of 2024, pending permit approvals[130]. - Solitario plans to conduct a 5,000-meter drilling program in 2024, consisting of approximately eight to twelve exploration core holes, pending final permit approvals expected by the end of Q2 2024[137]. - The company has conducted various geochemical, geophysical, and geological activities intermittently from the late 1970s to 2011 to define drill targets[205]. Environmental and Regulatory Compliance - The company has a long history of committed environmental, social, and governance (ESG) practices, which are important to its stakeholders[27]. - The company has made expenditures to comply with increasingly restrictive environmental laws and regulations, which could substantially increase future operational costs[66]. - The final Environmental Assessment and Draft Decision of No Significant Impact for Solitario's Golden Crest Drilling Program was issued by the USFS in December 2023, allowing the project to proceed without additional environmental studies[135]. - The company is subject to changing laws and regulations, particularly regarding environmental compliance, which could delay operations and increase costs[64]. Joint Ventures and Partnerships - The company relies on joint ventures for project development, with significant dependence on the financial condition and operational expertise of its partners, which poses additional risks[72]. - The joint venture between the Company and Teck for the Lik property is governed by the Joint Operating Agreement, requiring unanimous approval for annual expenditures exceeding $1 million[187]. - Teck and the Company have agreed to annual exploration funding for the Lik project, with a Joint Exploration Agreement signed in July 2018 for a 50%/50% funding basis[188]. Geological and Resource Information - The Florida Canyon and Lik projects have reported mineral resources, but the potential for upgrading these to reserves depends on additional geological work and economic evaluations[48]. - The estimated mineral resources for the Florida Canyon deposit include 806,945 tonnes at 11.32% Zn and 1.39% Pb in the measured category, and 1,634,702 tonnes at 10.28% Zn and 1.31% Pb in the indicated category[173]. - The Lik deposit is a black shale-hosted stratiform zinc-lead-silver sedimentary-exhalative (SEDEX) deposit, with major sulfides including pyrite-marcasite, sphalerite, and galena[209]. - Significant drill hole intercepts include 58.8 meters at 12.0% zinc and 2.8% lead in the Sam zone, and 56.6 meters at 22.69% zinc and 1.15% lead in the San Jorge zone[156]. Cybersecurity and Operational Risks - The company has invested in cybersecurity controls and processes to mitigate risks associated with external attacks and data breaches[89]. - The company has limited insurance coverage for certain risks, which could have a material adverse effect on its financial position if uninsurable events occur[62]. - The company faces risks related to health epidemics and other outbreaks of communicable diseases, which could disrupt operations and adversely affect business[84].

Financial Performance - Net loss for the three months ended September 30, 2023, was $1,292,000, compared to a net loss of $1,057,000 for the same period in 2022, representing a 22.2% increase in losses[19]. - The company reported a basic and diluted loss per common share of $0.02 for the three months ended September 30, 2023, unchanged from the same period in 2022[19]. - The company reported a net loss of $1,292,000 or $0.02 per share for Q3 2023, compared to a net loss of $1,057,000 or $0.02 per share in Q3 2022[14]. - For the nine months ended September 30, 2023, the net loss was $2,712,000 or $0.04 per share, an improvement from a net loss of $3,262,000 or $0.05 per share in the same period of 2022[86]. Assets and Liabilities - Total assets as of September 30, 2023, increased slightly to $22,111,000 from $22,034,000 as of December 31, 2022, reflecting a growth of 0.35%[13][16]. - Current liabilities rose to $327,000 from $263,000, marking an increase of 24.4%[15]. - Total shareholders' equity slightly decreased to $21,599,000 from $21,646,000, a reduction of 0.22%[16]. - Cash and cash equivalents decreased to $168,000 as of September 30, 2023, down from $316,000 at the beginning of the period, a decline of 47%[20]. - Cash and short-term investments totaled $4,132,000 as of September 30, 2023, with $1,391,000 in USTS and $2,573,000 in a money market account[95]. - Working capital was $4,952,000 as of September 30, 2023, slightly down from $4,991,000 at the end of 2022, indicating sufficient liquidity for expected expenditures[97]. Exploration and Expenses - Exploration expenses for the nine months ended September 30, 2023, totaled $1,748,000, a decrease of 4.6% from $1,832,000 in the same period of 2022[19]. - Exploration expenses for Q3 2023 totaled $918,000, an increase of 40% from $655,000 in Q3 2022; total exploration costs for the nine months ended September 30, 2023, were $1,748,000, down from $1,832,000 in the same period of 2022[37]. - The company budgeted approximately $2,000,000 for full-year exploration expenditures in 2023, expecting to exceed 2022's exploration expenditures[76]. - Net exploration expense decreased to $1,748,000 for the nine months ended September 30, 2023, down from $1,832,000 for the same period in 2022, primarily due to reduced expenditures at the Lik project and reconnaissance exploration[87]. Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended September 30, 2023, was $2,684,000, compared to $1,948,000 for the same period in 2022, indicating a 37.7% increase in cash outflow[20]. - Net cash used in operations increased to $2,684,000 for the nine months ended September 30, 2023, compared to $1,948,000 in the same period of 2022, primarily due to pre-payment to a joint venture partner and increased administrative expenses[103]. - The company anticipates continued use of funds from operations through the remainder of 2023, primarily for exploration activities related to the Golden Crest and Lik projects[103]. Shareholder Equity and Stock Options - Shareholders' equity as of September 30, 2023, totaled $21,599,000, with a net loss of $1,292,000 for the quarter[61]. - The 2023 Solitario Stock and Incentive Plan reserves 5,000,000 shares for awards, with no awards granted as of September 30, 2023[55]. - As of September 30, 2023, there were options outstanding under the 2013 Plan for 5,195,000 shares, with an intrinsic value of $765,000[56]. - During the nine months ended September 30, 2023, Solitario recorded stock option compensation expense of $184,000, down from $271,000 in the same period of 2022[60]. Marketable Securities and Investments - Marketable equity securities at fair value increased to $910,000 as of September 30, 2023, from $949,000 at December 31, 2022, with a cumulative unrealized loss of $491,000[41]. - During the nine months ended September 30, 2023, Solitario sold no marketable equity securities, while realizing a net loss of $141,000 in Q3 2023[41][42]. - The company recorded a non-cash unrealized loss on marketable equity securities of $141,000 in Q3 2023, compared to an unrealized gain of $13,000 in Q3 2022[79]. - An unrealized loss on marketable equity securities was recorded at $39,000 for the nine months ended September 30, 2023, compared to a loss of $142,000 in the same period of 2022[90]. Private Placements and Financing - On July 31, 2023, Solitario completed a private placement of 4,166,667 shares at $0.60 per share, resulting in net proceeds of $2,422,000[63]. - On October 13, 2023, Solitario completed a private placement of 8,631,818 shares at $0.55 per share, generating total net proceeds of $4,747,500[66]. - The company received net proceeds of $2,422,000 from a private placement to Newmont during the nine months ended September 30, 2023, compared to $2,023,000 from the issuance of common stock under the ATM Program in the same period of 2022[106]. General and Administrative Costs - General and administrative costs decreased to $282,000 in Q3 2023 from $435,000 in Q3 2022, with a notable reduction in salaries and benefits[14]. - General and administrative costs increased to $889,000 during the nine months ended September 30, 2023, compared to $828,000 in the same period of 2022, driven by higher salary and benefit expenses[88]. Other Financial Information - A valuation allowance fully offsets Solitario's net deferred tax assets as of September 30, 2023, indicating uncertainty in realizing these assets[51]. - The company did not record any mineral property write-downs during the three and nine months ended September 30, 2023 and 2022[111]. - There were no changes in the company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2023[124].

Financial Performance - Net loss for the three months ended June 30, 2023, was $1,040,000, compared to a net loss of $1,691,000 for the same period in 2022, indicating an improvement of approximately 38.6%[19] - The company reported a basic and diluted loss per share of $0.02 for the three months ended June 30, 2023, compared to a loss of $0.03 for the same period in 2022[19] - As of June 30, 2023, Solitario recorded a net loss of $1,040,000 or $0.02 per share, compared to a net loss of $1,691,000 or $0.03 per share for the same period in 2022, indicating a reduction in losses[70] - The net loss for the six months ended June 30, 2023 was $1,420,000, or $0.02 per share, an improvement from a net loss of $2,205,000, or $0.03 per share, for the same period in 2022[88] Assets and Liabilities - Total assets decreased from $22,034,000 as of December 31, 2022, to $20,835,000 as of June 30, 2023, representing a decline of approximately 5.4%[13] - Current assets decreased from $5,254,000 to $3,990,000, a reduction of about 24.0%[13] - Total shareholders' equity decreased from $21,646,000 to $20,366,000, a decline of about 5.9%[17] - Working capital decreased to $3,716,000 as of June 30, 2023, compared to $4,991,000 as of December 31, 2022[102] Cash and Investments - Cash and cash equivalents increased from $316,000 at the beginning of the period to $496,000 at the end of June 30, 2023, reflecting a growth of approximately 56.9%[21] - Cash and short-term investments totaled $2,573,000 as of June 30, 2023, with $2,077,000 in USTS maturing in 30 days to 8 months[99] - The company anticipates continued use of funds from operations through the remainder of 2023, primarily for exploration related to its Golden Crest and Lik projects[107] - The company did not sell any marketable equity securities during the six months ended June 30, 2023, but anticipates potential sales depending on cash needs and market conditions[101] Exploration Activities - Exploration expenses for the six months ended June 30, 2023, were $830,000, down from $1,177,000 in the same period of 2022, a decrease of about 29.5%[19] - For the three months ended June 30, 2023, total exploration costs were $555,000, a decrease of 41.6% from $951,000 in the same period of 2022[37] - Net exploration expense decreased to $555,000 for the three months ended June 30, 2023, down from $951,000 for the same period in 2022, primarily due to reduced expenditures at the Lik project[78] - The company has budgeted approximately $2,000,000 for full-year exploration expenditures in 2023, including $1,723,000 for the Golden Crest project and $574,000 for the Lik project[78] Marketable Securities - Solitario's marketable equity securities at fair value increased to $1,051,000 as of June 30, 2023, compared to $949,000 at December 31, 2022[42] - During the three months ended June 30, 2023, Solitario recorded a net loss of $227,000 on marketable securities, compared to a loss of $446,000 in the same period of 2022[44] - The unrealized loss on marketable equity securities was $227,000 in Q2 2023, compared to $368,000 in Q2 2022, reflecting improved performance[70] - An unrealized gain on marketable equity securities of $102,000 was recorded for the six months ended June 30, 2023, compared to an unrealized loss of $155,000 in the same period of 2022[93] General and Administrative Expenses - General and administrative expenses increased to $315,000 in Q2 2023 from $277,000 in Q2 2022, reflecting higher operational costs[70] - General and administrative costs for the three months ended June 30, 2023 were $257,000, slightly down from $264,000 in the same period of 2022[79] - General and administrative costs for the six months ended June 30, 2023 were $664,000, compared to $638,000 for the same period in 2022, with increases in salary and benefit expenses[91] Strategic Transactions - The company is actively evaluating potential strategic transactions for acquiring new mineral properties and assets with exploration potential[23] - Solitario's joint venture partner, Nexa Resources, is continuing exploration at the Florida Canyon project, while the Lik project is being evaluated in collaboration with Teck American Incorporated[25] - Solitario entered into a Stock Purchase Agreement with Newmont for the sale of 4,166,667 shares at $0.60 per share, generating proceeds of $2,500,000 to support exploration activities[70] Internal Controls and Compliance - The company carried out an evaluation of the effectiveness of its disclosure controls and procedures, concluding they were effective as of June 30, 2023[125] - There were no changes in the company's internal control over financial reporting during the quarter ended June 30, 2023 that materially affected its internal control[127] - As of June 30, 2023, there were no material changes to the Risk Factors associated with the company's business[129]

Financial Performance - Net loss for the three months ended March 31, 2023, was $380,000, an improvement from a net loss of $514,000 in the same period of 2022, reflecting a reduction of 26.06%[17] - As of March 31, 2023, the company reported a net loss of $380,000, a decrease from a net loss of $514,000 for the same period in 2022, resulting in a loss per share of $0.01 for both years[63] - General and administrative costs rose to $476,000 in Q1 2023 from $387,000 in Q1 2022, driven by increased salaries and benefits expenses[66] - Net cash used in operations increased to $685,000 for the three months ended March 31, 2023, compared to $597,000 for the same period in 2022, driven by higher exploration expenses[81] Assets and Investments - Total assets decreased to $21,671,000 as of March 31, 2023, down from $22,034,000 at the end of 2022, representing a decline of 1.64%[12] - Current assets totaled $4,907,000, a decrease of 6.60% from $5,254,000 in the previous year[12] - Total shareholders' equity decreased to $21,333,000 as of March 31, 2023, down from $21,646,000 at the end of 2022, a decline of 1.45%[15] - The company holds $3,163,000 in short-term investments, primarily in U.S. Treasury Securities, as of March 31, 2023[31] - As of March 31, 2023, Solitario's marketable equity securities had a fair value of $1,278,000, up from $949,000 on December 31, 2022, representing a 35% increase[39] - The cumulative unrealized loss on marketable equity securities decreased to $162,000 as of March 31, 2023, from $491,000 at the end of 2022, indicating improved market conditions[41] - The company owned marketable equity securities valued at $1,278,000, including 7,750,000 shares of Vendetta common stock valued at $373,000 and 100,000 shares of Kinross common stock valued at $471,000[76] Exploration and Development - Exploration expenses increased to $275,000 for the three months ended March 31, 2023, compared to $226,000 in the prior year, marking a rise of 21.68%[35] - Exploration expenses increased to $275,000 in Q1 2023, up from $226,000 in Q1 2022, primarily due to higher costs at the Golden Crest project, which rose to $241,000 from $127,000[65] - The full-year exploration and development budget for 2023 is approximately $2,000,000, reflecting similar activity levels at the Golden Crest project compared to 2022[65] - Solitario anticipates using its cash and short-term investments to fund exploration activities and potentially acquire additional mineral property assets[24] - The company continues to evaluate potential strategic transactions for acquiring new mineral properties and assets with exploration potential[60] Cash and Liquidity - Cash and cash equivalents increased to $440,000 as of March 31, 2023, from $316,000 at the end of 2022, representing a growth of 39.62%[18] - As of March 31, 2023, the company had $440,000 in cash, which will be used for operational costs, exploration activities, and potential acquisitions[74] - The company received $809,000 in cash from the net sale of short-term investments during the three months ended March 31, 2023, compared to a cash use of $1,578,000 for net purchases in the same period of 2022[83] - The company anticipates continued use of funds from operations through the remainder of 2023, primarily for exploration related to the Golden Crest and Lik projects[82] Obligations and Commitments - The company has recorded an asset retirement obligation of $125,000 related to the Lik project for estimated reclamation costs[36] - Solitario has a recorded asset retirement obligation of $125,000 related to its Lik project in Alaska, highlighting ongoing commitments in its operational strategy[51] - The total lease payments for the Wheat Ridge office lease amount to $25,000 as of March 31, 2023, with cash lease payments of $11,000 made in both the current and prior year periods[42][43] - As of March 31, 2023, the total unrecognized stock option compensation cost related to non-vested options is $550,000, expected to be recognized over a weighted average period of 29 months[53] Market Conditions and Future Outlook - The company anticipates that interest income will decrease in 2023 due to the use of cash balances for operational costs and exploration[70] - The company does not expect the COVID-19 pandemic to materially affect its planned exploration activities for 2023[62] - No property impairments were recorded during the three months ended March 31, 2023 or 2022, indicating stable asset valuations[72] - No shares were sold under the ATM agreement during the three months ended March 31, 2023, while $2,023,000 was raised from the issuance of common stock under the ATM program in the same period of 2022[80] Reporting and Compliance - The company reported its Quarterly Report on Form 10-Q for the three months ended March 31, 2023, including financial statements and notes[107] - The Condensed Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022, were included in the report[107] - The Condensed Consolidated Statements of Operations for the three months ended March 31, 2023, and 2022, were provided[107] - The Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023, and 2022, were also included[107] - Certifications of the Chief Executive Officer and Chief Financial Officer were filed pursuant to the Sarbanes-Oxley Act of 2002[107] - There were no changes in internal control over financial reporting during the quarter ended March 31, 2023, that materially affected the company's internal control[100] - The company did not record any mineral property write-downs during the three months ended March 31, 2023 and 2022[89]