Idaho Strategic Resources(IDR) - 2020 Q3 - Quarterly Report

Financial Performance - Gold sales revenue for the three months ended September 30, 2020, was $1,556,070, a decrease of 16% compared to $1,852,636 for the same period in 2019[14] - The company reported a net loss of $7,327 for the three months ended September 30, 2020, compared to a net income of $165,242 for the same period in 2019[14] - Operating loss for the nine months ended September 30, 2020, was $686,418, compared to an operating income of $191,852 for the same period in 2019[14] - For the nine-month period ended September 30, 2020, the net loss was $382,028 compared to a net loss of $357,240 in the same period of 2019, indicating a 6.5% increase in losses year-over-year[19] - The company reported a gross loss of $107,237 for the three months and a gross profit of $24,033 for the nine months ending September 30, 2020, compared to a gross profit of $447,185 and $584,649 for the same periods in 2019[83] - Revenue decreased to $1,556,070 and $4,281,401 for the three and nine months ending September 30, 2020, down from $1,852,636 and $4,544,964 in 2019[83] - The company experienced an operating loss of $342,132 and $686,418 for the three and nine months ending September 30, 2020, compared to operating income of $191,852 and a loss of $340,741 in 2019[83] - Net loss was $7,327 and $382,028 for the three and nine months ending September 30, 2020, compared to net income of $165,242 and a net loss of $357,240 for the same periods in 2019[83] Assets and Liabilities - Total assets increased to $14,678,864 in September 2020, up from $10,852,181 in December 2019, representing a growth of 35.5%[12] - Total current assets rose significantly to $3,805,303 in September 2020, compared to $910,109 in December 2019, marking an increase of 317%[12] - The accumulated deficit increased to $12,345,684 as of September 30, 2020, from $12,029,910 at the end of 2019[12] - Total liabilities increased to $3,213,793 in September 2020, up from $2,195,204 in December 2019, reflecting a rise of 46.4%[12] - The total stockholders' equity reached $11,465,071 in September 2020, up from $8,656,977 in December 2019, indicating a growth of 32.9%[12] Cash Flow and Financing - Cash flows from operating activities provided $121,737, a decrease of 13.5% from $140,755 in the prior year[19] - The company reported a net cash used in investing activities of $1,149,669, a significant increase compared to net cash provided of $128,345 in 2019[19] - Financing activities generated net cash of $3,960,948, contrasting with a net cash used of $237,200 in the previous year, marking a substantial turnaround[19] - Cash and cash equivalents at the end of the period totaled $3,150,812, a significant increase from $280,666 at the end of the same period in 2019[19] - The company raised $200,000 from a private placement in April 2020 and $2,706,896 from another private placement in August 2020[99] Production and Sales - The company is currently producing from both open-pit and underground operations at the Golden Chest Mine, ensuring ongoing production[36] - For the three months ended September 30, 2020, total sales amounted to $1,556,070, a decrease from $1,852,636 in the same period of 2019, representing a decline of approximately 16%[42] - Gold sales for the nine months ended September 30, 2020, were $4,629,816, compared to $4,870,402 for the same period in 2019, reflecting a decrease of about 5%[42] - Concentrate sales to H&H for the three months ended September 30, 2020, were $1,476,395, down from $1,788,031 in 2019, indicating a decline of approximately 17%[42] - The company mined a total of 5,750 tonnes during the quarter, doubling the previous quarter's output[80] Inventory and Costs - The company incurred total costs of sales of $1,663,307 for the three months ended September 30, 2020, compared to $1,405,451 for the same period in 2019, an increase of 18.4%[14] - Cash cost per ounce increased to $1,856 and $1,373 for the three and nine months ending September 30, 2020, compared to $927 and $984 in 2019, while all-in sustaining costs rose to $2,368 and $1,629 for the same periods[86] - Gold concentrate inventory decreased to $164,455 from $197,862 at the end of 2019, reflecting a 16.9% decline[37] Strategic Initiatives - The company has successfully raised capital through the sale of common stock and convertible debt, indicating strong financing capabilities[36] - The company has established asset retirement obligations totaling $170,539 as of September 30, 2020, up from $163,369 at the beginning of the period[68] - The company expanded its strategic focus with the addition of the Roberts Rare Earth Element Project, which has shown grades in excess of 12% combined rare earth elements[83] - The company has established a forward gold purchase agreement with Ophir Holdings LLC, reflecting a commitment to secure future gold production[106] - New Jersey Mining Company filed various agreements and amendments related to mining leases and asset purchases, indicating ongoing strategic partnerships and expansions in mining operations[106] Compliance and Governance - Certifications pursuant to the Sarbanes-Oxley Act of 2002 were filed, ensuring compliance with regulatory standards and enhancing corporate governance[106] - The company has a code of ethical conduct in place, emphasizing its commitment to ethical business practices[106] - The registrant's annual report on Form 10-KSB for the year ended December 31, 2003, includes audit committee pre-approval policies, indicating a structured approach to financial oversight[106] - The leadership team, including the President and CEO John Swallow and CFO Grant Brackebusch, signed the report, indicating accountability and management oversight[109]