Solitario(US:XPL)2023-05-05 20:48Financial 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]