Solitario(XPL) - 2024 Q3 - Quarterly Report

Financial Performance - Net loss for the three months ended September 30, 2024, was $2.276 million compared to a net loss of $1.292 million for the same period in 2023, representing a 76.4% increase in losses[9] - The net loss for the nine months ended September 30, 2024, was $3.768 million or $0.05 per share, compared to a net loss of $2.712 million or $0.04 per share for the same period in 2023[86] - Total shareholders' equity decreased to $23.994 million from $25.950 million, a decline of 7.5%[8] - The company reported a net loss of $2,276,000 or $0.03 per share for the three months ended September 30, 2024, compared to a net loss of $1,292,000 or $0.02 per share for the same period in 2023[74] Exploration Activities - Solitario is actively exploring its core mineral properties, including the Florida Canyon Project and the Lik Project, and has initiated work on the new Cat Creek Project in Colorado[14] - The company anticipates using its cash and short-term investments to fund exploration activities and potentially acquire additional mineral property assets[15] - The company budgeted approximately $3,900,000 for total exploration expenditures in 2024, which includes $1,700,000 specifically for drilling at the Golden Crest Project[77] - Exploration expenses for the nine months ended September 30, 2024, were $2.908 million, up from $1.748 million in the same period of 2023, an increase of 66.2%[9] - Exploration expenses increased to $2,067,000 for the three months ended September 30, 2024, up from $918,000 in the same period of 2023, primarily due to drilling at the Golden Crest Project[75] Cash and Investments - Cash and cash equivalents at the end of the period were $186 million, a slight decrease from $168 million at the end of the previous year[10] - Solitario's cash, excluding restricted cash, was $86,000 as of September 30, 2024, down from $200,000 on December 31, 2023[26] - As of September 30, 2024, the company had $6,484,000 in cash and short-term investments, with $6,398,000 held in a money market account[96] - The fair value of Solitario's marketable equity securities increased to $1,398,000 as of September 30, 2024, from $1,032,000 on December 31, 2023[36] Operating Expenses - The company recorded a total operating expense of $4.440 million for the nine months ended September 30, 2024, compared to $2.840 million for the same period in 2023, an increase of 56.2%[9] - Total operating expenses for the three months ended September 30, 2024, were $2,458,000, compared to $1,207,000 for the same period in 2023, representing a 104% increase[9] - General and administrative costs for the three months ended September 30, 2024, were $258,000, slightly up from $224,000 in the same period of 2023[76] - General and administrative costs for the nine months ended September 30, 2024, were $971,000, compared to $889,000 for the same period in 2023[88] Stock-Based Compensation - Solitario's stock-based compensation expense increased to $540,000 for the nine months ended September 30, 2024, compared to $184,000 in the same period in 2023, reflecting a significant rise in compensation costs[10] - Stock-based compensation expense for the three and nine months ended September 30, 2024, was $125,000 and $540,000, respectively, compared to $58,000 and $184,000 in 2023[60] - The intrinsic value of outstanding stock options under the 2013 Plan was $718,000 as of September 30, 2024[54] Liabilities - Total current liabilities increased to $762 million from $632 million, a rise of 20.5%[8] - The company recorded an asset retirement obligation of $125,000 as of September 30, 2024, for estimated reclamation costs at the Lik Project[32] - Solitario has recorded an asset retirement and reclamation liability obligation of $145,000 related to its Lik and Golden Crest projects[49] Market Activity - Solitario sold 100,000 shares of Highlander Silver Corp. for proceeds of $54,000 during the nine months ended September 30, 2024, realizing a gain of $54,000[40] - The company sold 1,802,060 shares under the ATM Agreement at an average price of $0.70 per share, generating net proceeds of $1,218,000[65] - The company issued common stock net of issuing costs amounting to $1,218,000 during the period, compared to $2,422,000 in the same period last year[10] Future Outlook - The company anticipates a significant increase in exploration expenses for the full year of 2024 compared to 2023[76] - The company anticipates continued use of funds from operations through the remainder of 2024, primarily for drilling expenditures and exploration activities[103] - The company has no off-balance sheet obligations as of September 30, 2024[109]