Solitario(US:XPL)2023-08-09 15:07Financial 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]