Idaho Strategic Resources(US:IDR)2024-11-04 11:31Financial Performance - Revenue increased by 86.4% from $3,301,221 in Q3 2023 to $6,153,287 in Q3 2024, and year-to-date revenue rose by 84% from $9,879,332 to $18,177,607[78]. - Gross profit as a percentage of sales improved from 33.5% in Q3 2023 to 48.7% in Q3 2024, and for the nine-month periods, it increased from 28% to 49%[78]. - Operating income for Q3 2024 was $1,439,534, up $1,026,073 from $413,461 in Q3 2023, while year-to-date operating income rose by $4,960,632 to $5,677,103[78]. - Net income for Q3 2024 increased by $1,585,525 to $1,989,508, and year-to-date net income rose by $5,536,253 to $6,280,244[78]. Cost Analysis - Cash cost per ounce remained flat in Q3 2024 compared to Q3 2023, while for the nine-month period, it decreased due to a 53.7% increase in ounces produced[78]. - All-in sustaining costs per ounce increased in Q3 2024 compared to Q3 2023 due to higher exploration costs, but decreased slightly for the nine-month period as increased production offset exploration expenses[78]. - For the three months ended September 30, 2024, cash cost per ounce was $852.53, a decrease from $895.96 in the same period of 2023, representing a 4.8% improvement[66]. - AISC (All-In Sustaining Cost) per ounce for the three months ended September 30, 2024, was $1,500.86, compared to $1,333.73 in the same period of 2023, indicating a 12.5% increase[66]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2024, was $8,104,122, significantly higher than $1,343,068 for the same period in 2023, reflecting a 503.5% increase[83]. - The company reported a net change in cash and cash equivalents of $6,105,557 for the nine months ended September 30, 2024, compared to $333,814 in the same period of 2023, marking a substantial increase[83]. - Cash and cash equivalents at the end of the period were $8,392,556, up from $1,971,845 at the end of September 2023[83]. Mining Operations - At the Golden Chest Mine, approximately 10,500 tonnes of ore were mined, and 10,470 dry metric tonnes were processed with a flotation feed head grade of 9.32 gpt gold and a recovery rate of 93.1%[77]. - The company placed a record 3,820 cubic meters of cemented rockfill during the quarter, and advanced the Main Access Ramp by approximately 154 meters[77]. - A total of 10,470 dry metric tonnes were processed at the New Jersey mill with a flotation feed head grade of 9.32 gpt gold and a recovery rate of 93.1%[77]. Exploration Activities - Exploration activities included both underground and surface drilling, with a focus on the Klondike area and the newly found Red Star zone[77]. - The company has three REE exploration properties and is actively seeking partnerships to enhance its REE supply chain initiatives[72]. - The company has conducted numerous exploration programs on its REE properties, including drilling and sampling, to advance its exploration activities[71]. - The company believes it has a first-mover advantage in the REE sector due to its recognized land holdings in Idaho[71]. - The company has three REE exploration properties in Idaho, aiming to diversify its asset base and capitalize on the anticipated demand for critical minerals[71]. Strategic Initiatives - The company issued 47,027 shares of common stock for net proceeds of $263,351 during the third quarter of 2024[87]. - The company is currently producing profitably from the Golden Chest Mine and plans to reinvest cash flow into further exploration and production efforts[68]. - The company expects continued exploration drilling throughout Q4 2024, which may lead to increased exploration expenses compared to prior periods[78]. Compliance and Governance - There was no material change in internal control over financial reporting in the quarter ended September 30, 2024[86]. - The company filed an Amended and Restated By-laws document with the SEC on October 27, 2021[20]. - A Purchase and Sale Agreement was executed on January 16, 2024, with Bell Run Properties, L.L.C., indicating ongoing strategic transactions[20]. - Certifications pursuant to the Sarbanes-Oxley Act of 2002 were filed, ensuring compliance with financial reporting standards[20]. - Mine safety information was disclosed in accordance with Section 1503 of the Dodd-Frank Act, reflecting the company's commitment to safety regulations[20].