Perpetua Resources(US:PPTA)2024-11-13 21:30Financial Performance - The net loss for the nine months ended September 30, 2024, was $10,183,220, compared to a net loss of $14,902,939 for the same period in 2023, showing a reduction in losses[15]. - For the nine months ended September 30, 2024, the net loss was $10,183,220, compared to a net loss of $14,902,939 for the same period in 2023, representing a 31% improvement[20]. - The Company reported a net loss of $3.6 million for the three months ended September 30, 2024, compared to a net loss of $2.6 million for the same period in 2023, reflecting a $1.0 million increase in losses[92]. - The company reported a net cash used in operating activities of $11,838,617 for the nine months ended September 30, 2024, compared to $15,239,650 for the same period in 2023, showing a reduction of 22%[20]. Assets and Liabilities - Current assets increased to $20,957,691 as of September 30, 2024, compared to $6,853,926 on December 31, 2023, reflecting a significant growth in cash and receivables[13]. - Total liabilities increased to $12,089,868 as of September 30, 2024, from $10,789,730 on December 31, 2023, indicating a rise in financial obligations[13]. - The total assets of the company reached $89,294,891 as of September 30, 2024, compared to $83,087,238 at the end of 2023, indicating overall growth in asset base[13]. - As of September 30, 2024, total cash and cash equivalents were $11,210,662, an increase from $7,104,937 at the end of September 2023[20]. Exploration and Environmental Expenses - Exploration expenses for the three months ended September 30, 2024, were $14,510,853, up from $8,664,205 in the same period of 2023, indicating a 67% increase year-over-year[14]. - Environmental liability expense for the three months ended September 30, 2024, was $854,662, significantly higher than $22,285 in the same period of 2023, reflecting increased environmental commitments[14]. - The company incurred an environmental liability expense of $1,422,288 for the nine months ended September 30, 2024, compared to $604,222 for the same period in 2023, reflecting a significant increase[20]. - The Company’s total exploration expenses for the nine months ended September 30, 2024, were $31.5 million, which is $10.8 million, or 52%, higher than the same period in 2023[97]. Funding and Strategic Opportunities - The company plans to submit a financing application to the U.S. Export-Import Bank, with expectations of securing financing on acceptable terms to support the Stibnite Gold Project[8]. - The company continues to explore various strategic and funding opportunities, including the issuance of additional equity and project-specific debt[25]. - The company has engaged RBC Capital Markets and Endeavour Financial to assist with evaluating potential strategic and financing opportunities[25]. - The company expects its available cash resources to be exhausted by the second quarter of 2025, raising concerns about its ability to meet ongoing obligations[25]. Grant Income and Reimbursements - For the three months ended September 30, 2024, total grant income was $12,920,417, compared to $6,905,691 for the same period in 2023, representing an increase of 87.1%[69]. - The Defense Production Act (DPA) grant income recognized during the three months ended September 30, 2024, was $12,615,643, up from $4,655,183 in 2023, marking a 171.5% increase[69]. - The Company received $11,667,011 in reimbursements for costs incurred under the DPA grant during the three months ended September 30, 2024, compared to $6,185,455 in 2023, an increase of 88.5%[72]. - The Company recognized $12.6 million and $23.7 million as grant income related to the TIA for the three and nine months ended September 30, 2024, respectively[108]. Share-Based Compensation - The company reported share-based compensation of $2,905,772 for the nine months ended September 30, 2024, compared to $2,321,175 for the same period in 2023, indicating a 25% increase[20]. - The company granted 515,128 restricted share units (RSUs) during the nine months ended September 30, 2024, with a total fair value of approximately $1.6 million, compared to $1.3 million for 370,039 RSUs in 2023[48]. - The company recognized $525,969 in compensation expense related to PSUs and MPSUs for the three months ended September 30, 2024, compared to $292,971 in the same period of 2023, and $1,439,175 for the nine months ended September 30, 2024, compared to $801,108 in 2023[51]. - Corporate salaries and benefits increased by 45% and 34% for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to increased share-based compensation[94]. Commitments and Obligations - The company has a commitment of $335,000 annually for mining claim assessments to maintain claims in good standing[59]. - The company is obligated to make payments to the Stibnite Foundation ranging from $0.1 million to $1 million based on specific triggering events, with payments potentially starting in Q4 2024[60]. - A Settlement Agreement with the Nez Perce Tribe requires total payments of $5.0 million over four years, including $4.0 million for a water quality enhancement fund[119]. - The company has no off-balance sheet arrangements as of September 30, 2024[63].