Solitario(US:XPL)2022-08-10 17:14Financial Performance - Net loss for the six months ended June 30, 2022, was $2,205,000, compared to a net loss of $1,196,000 for the same period in 2021, representing an increase in loss of 84.23%[19][21] - For the three months ended June 30, 2022, Solitario reported a net loss of $1,691,000, or $0.03 per share, compared to a net loss of $668,000, or $0.01 per share, for the same period in 2021[68] - The company recorded a net loss of $2,205,000 or $0.03 per share for the six months ended June 30, 2022, compared to a net loss of $1,196,000 or $0.02 per share for the same period in 2021[81] Assets and Liabilities - Total assets increased slightly to $23,718,000 as of June 30, 2022, compared to $23,619,000 at December 31, 2021, reflecting a growth of 0.42%[13][17] - Current liabilities rose significantly to $532,000 from $276,000, marking an increase of 92.75%[15][16] - Total shareholders' equity decreased to $23,047,000 as of June 30, 2022, from $23,183,000 at December 31, 2021, a decline of 0.59%[17] - Working capital decreased to $6,705,000 as of June 30, 2022, down from $6,883,000 at December 31, 2021[94] Exploration Expenses - Exploration expenses for the three months ended June 30, 2022, were $951,000, up from $237,000 in the same period of 2021, indicating a growth of 301.69%[19] - Exploration expenses increased significantly to $1,177,000 for the six months ended June 30, 2022, compared to $384,000 in the same period of 2021, marking an increase of about 207.3%[99] - Net exploration expense increased to $951,000 for the three months ended June 30, 2022, compared to $237,000 for the same period in 2021, representing a 301% increase[69] Cash and Investments - Cash and cash equivalents decreased to $346,000 at the end of June 2022 from $462,000 at the beginning of the period, a decline of 25.12%[21] - Cash and short-term investments totaled $6,216,000 as of June 30, 2022, with $5,622,000 in USTS and a CD valued at $248,000[91] - The company expects to utilize proceeds from maturing USTS to fund exploration and general administrative expenditures, anticipating a decrease in interest income for the remainder of 2022[76] Marketable Securities - Unrealized loss on marketable equity securities for the six months ended June 30, 2022, was $155,000, compared to $270,000 for the same period in 2021, a decrease of 42.59%[21] - During the three months ended June 30, 2022, the company recorded a net loss on marketable securities of $446,000 compared to a loss of $142,000 in the same period of 2021[41] - The cumulative unrealized loss on marketable equity securities was $552,000 as of June 30, 2022, compared to $397,000 at the end of 2021[41] General and Administrative Expenses - General and administrative expenses rose to $277,000 in Q2 2022, compared to $256,000 in Q2 2021[68] - General and administrative costs were $264,000 for the three months ended June 30, 2022, compared to $210,000 for the same period in 2021, a 26% increase[72] - General and administrative costs for the six months ended June 30, 2022, were $638,000, up from $463,000 in the same period of 2021, reflecting an increase of approximately 37.8%[83] Shareholder Transactions - The company sold 2,650,724 shares of common stock under the ATM Agreement at an average price of $0.79 per share, resulting in net proceeds of $2,023,000 for the six months ended June 30, 2022[62] - The company sold 1,000,000 shares of Vendetta common stock for proceeds of $53,000 during the six months ended June 30, 2022, resulting in a loss of $159,000 on the sale[89] - Solitario sold 500,000 shares of Vendetta Mining Corp. for proceeds of $27,000 during the three months ended June 30, 2022, incurring a loss of $78,000 on the sale[41] Strategic Plans - The company plans to use cash and short-term investments to fund exploration activities for its core projects, including Florida Canyon, Lik, and Golden Crest[24][25] - Solitario anticipates potential strategic transactions for acquiring new mineral properties or assets with exploration potential[22][25] - The company anticipates full-year exploration expenditures for 2022 to exceed those of 2021, with a budget of approximately $2,350,000[69] Internal Controls and Compliance - The company conducted an evaluation of the effectiveness of its disclosure controls and procedures, concluding they were effective as of June 30, 2022[115] - There were no changes in the internal control over financial reporting during the quarter ended June 30, 2022 that materially affected the company's internal control[117] - The company has no significant accounting policy changes or critical accounting estimates reported for the three and six months ended June 30, 2022[109]