Perpetua Resources(PPTA)2025-03-19 20:35Financial Performance - The company has experienced continuing net losses and net negative working capital, raising substantial doubt about its ability to continue as a going concern [417]. - The net loss for 2024 was $14.5 million, a decrease from a net loss of $18.8 million in 2023, reflecting a reduction of approximately 22.5% [424]. - The accumulated deficit as of December 31, 2024, was approximately $595.2 million, up from $580.7 million in 2023 [430]. - The company reported a total net loss of $14,483,001 for the year ended December 31, 2024, down from $18,771,180 in 2023 [502]. - The U.S. net operating loss carryforward was approximately $42,705,202 as of December 31, 2024, compared to $42,897,060 in 2023 [503]. Assets and Equity - Total assets increased to $117.6 million in 2024 from $83.1 million in 2023, representing a growth of approximately 41.5% [422]. - Shareholders' equity increased to $108.9 million in 2024 from $72.3 million in 2023, an increase of about 50.7% [422]. - Cash and cash equivalents rose significantly to $44.1 million in 2024, up from $3.2 million in 2023, marking an increase of over 1,267% [428]. Exploration and Development - The company is focused on achieving its exploration, development, and environmental protection objectives for the Stibnite Gold Project [20]. - Exploration expenses surged to $45.3 million in 2024, compared to $29.9 million in 2023, indicating a year-over-year increase of approximately 51.5% [424]. - Exploration costs totaled $45,291,495 in 2024, up from $29,907,708 in 2023, with engineering costs increasing significantly to $23,155,660 [524]. Funding and Financing - The company plans to submit a financing application to the Export-Import Bank of the United States (U.S. EXIM) to secure funding for the Stibnite Gold Project [20]. - The company is reliant on timely access to capital and financing sources to fund its project development [20]. - The company is exploring various strategic and funding opportunities, including potential equity issuance and government funding [431]. - The company engaged RBC Capital Markets and Endeavour Financial to assist in evaluating potential strategic and financing opportunities [431]. Risks and Challenges - The company anticipates potential delays in obtaining required permits and governmental approvals, which could impact its business and financial condition [20]. - The company is subject to various risks including changes in commodity prices, regulatory changes, and competition within the mining industry [21]. - The company is assessing the impact of strategic transactions on its business and financial condition, including associated costs and risks [20]. Shareholder Information - The company reported a weighted average of 65.6 million common shares outstanding in 2024, compared to 63.2 million in 2023, reflecting an increase of approximately 3.8% [424]. - The company sold 1,834,104 common shares in 2024 for proceeds of approximately $10.4 million, compared to 894,882 shares for approximately $2.1 million in 2023, representing a 394.3% increase in proceeds [485]. - The company entered into an underwriting agreement on November 18, 2024, resulting in gross proceeds of approximately $33.2 million from the sale of 3,439,465 common shares [486]. Compensation and Expenses - Share-based compensation for the years ended December 31, 2024, and 2023 totaled $3,897,010 and $3,038,404, respectively, indicating a 28.4% increase [489]. - The company recognized $1,450,183 in compensation expense for Restricted Share Units (RSUs) in 2024, up from $1,262,926 in 2023, a rise of 14.9% [496]. - The company recognized compensation expenses related to PSUs and MPSUs of $1,984,866 and $1,089,214 for the years ended December 31, 2024 and 2023, respectively [497]. - The company expects to record an additional $2.3 million in compensation expense related to PSUs and MPSUs over the next 1.64 years [497]. Environmental and Legal Obligations - The company spent $2.3 million on environmental reclamation activities in 2024, significantly reduced from $10.9 million in 2023 [505]. - The Stibnite Foundation will receive total payments of $5 million over four years, including $4 million for water quality projects and $1 million for legal reimbursements [512]. - The company recognized a $5 million expense related to the CWA settlement in the second quarter of 2023 [512]. Accounting and Valuation - The company's financial information is based on the Financial Update for the Stibnite Gold Project, which is intended to supplement the 2020 Feasibility Study [35]. - The Company evaluates estimates related to deferred income tax asset valuations and share-based compensation, which may differ materially from actual results [436]. - The Company applies IAS 20 for accounting government grants, recognizing them when there is reasonable assurance that conditions will be met [465].