Solitario(US:XPL)2024-07-30 16:01Financial 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].