i-80 Gold (US:IAUX)2025-04-01 01:56Financial Performance - Total revenue for the three months ended September 30, 2024, was $11,509,000, a decrease of 13% compared to $13,215,000 for the same period in 2023[5] - Gross loss for the three months ended September 30, 2024, was $4,920,000, compared to a gross loss of $473,000 in the same period of 2023[5] - Net loss for the nine months ended September 30, 2024, was $103,803,000, significantly higher than the net loss of $53,601,000 for the same period in 2023[5] - The company reported a basic and diluted loss per share of $0.11 for the three months ended September 30, 2024, compared to $0.02 for the same period in 2023[5] - The company reported a net loss of $43.1 million for the three months ended September 30, 2024, compared to a net loss of $4.9 million for the same period in 2023[120] - Basic and diluted loss per share for the nine months ended September 30, 2024, was $0.30, compared to $0.20 for the same period in 2023[120] Assets and Liabilities - Total current assets increased to $46,269,000 as of September 30, 2024, from $39,813,000 as of December 31, 2023, representing a 16% increase[2] - Total liabilities decreased slightly to $308,208,000 as of September 30, 2024, from $308,987,000 as of December 31, 2023[2] - The company’s accumulated deficit increased to $267,088,000 as of September 30, 2024, from $163,285,000 as of December 31, 2023[2] - Long-term debt as of September 30, 2024, totaled $188.377 million, with significant components including $54.329 million from the Orion Convertible Loan and $71.694 million from Sprott Convertible Loan[52] - Total other liabilities increased to $30,770,000 as of September 30, 2024, compared to $23,022,000 at December 31, 2023, representing a 33.5% increase[79] Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended September 30, 2024, was $73,277,000, compared to $72,545,000 for the same period in 2023[7] - Cash, cash equivalents, and restricted cash at the end of the period were $61,675,000, down from $81,710,000 at the end of the previous year[7] Share Issuance and Financing - The company issued 69,698,050 shares in a brokered placement, raising $74,644,000[10] - The Company reported total gross proceeds of approximately $83.5 million (C$115 million) from a bought deal public offering of 69.7 million units at a price of C$1.65 per unit[30] - The Company issued 11.5 million common shares under the ATM Program at a weighted average share price of $1.14 per common share, resulting in total gross proceeds of $13.1 million[29] - The Company closed a private placement offering of $65 million principal amount of secured convertible debentures with an interest rate of 8.00% per annum, maturing on February 22, 2027[60] - The Company completed a non-brokered private placement of 13.1 million common shares at C$1.80 per share, raising gross proceeds of $17.4 million (C$23.5 million) on February 20, 2024[102] Inventory and Expenses - Total inventory increased from $11.387 million as of December 31, 2023, to $15.895 million as of September 30, 2024, with inventory write-downs of $12.1 million recognized for the nine months ended September 30, 2024[47] - The total amount of inventory recognized as an expense in cost of sales for the nine months ended September 30, 2024, was $43.6 million, compared to $31.0 million for the same period in 2023[47] - Exploration and evaluation expenses for the three months ended September 30, 2024, were $5,384,000, a decrease of 37% from $8,553,000 in 2023[124] - Total interest expense for the three months ended September 30, 2024, was $8,214,000, an increase of 20% from $6,845,000 in 2023[126] Agreements and Commitments - The Company has a working capital deficit and current operating losses, indicating material uncertainties regarding its ability to continue as a going concern within one year[16] - The Company is required to transition to U.S. GAAP reporting by January 1, 2025, and is currently evaluating the impact of new accounting standards on its financial statements[18][22] - The Company has entered into a second amending agreement with Orion Mine Finance to extend the deadline for gold deliveries until May 10, 2024, under the Gold Prepay Agreement[34] - The Gold Prepay Agreement requires the Company to deliver 30,400 troy ounces of gold to Orion, with an initial payment of $41.9 million[63] - The Silver Purchase Agreement mandates the delivery of 1.2 million ounces of silver, with an ongoing cash purchase price equal to 20% of the prevailing silver price[71] Fair Value and Derivatives - The company recognized a fair value loss of $0.6 million and a gain of $7.3 million related to embedded derivatives for the three and nine months ended September 30, 2024, respectively[53] - The company recorded a fair value loss of $3,000,000 related to the Gold Prepay Agreement embedded derivative for the three months ended September 30, 2024[90] - The company recognized a fair value loss of $1,300,000 related to the Silver Purchase Agreement embedded derivative for the three months ended September 30, 2024[91] - The Gold Prepay Agreement's gold price derivative had a fair value of $(9,589) thousand as of September 30, 2024, with a potential change in fair value of $4,402 thousand for a +/- 10% change in forecast gold price[144] - The Silver Purchase Agreement's silver price derivative had a fair value of $(4,681) thousand as of September 30, 2024, with a potential change in fair value of $2,606 thousand for a +/- 10% change in forecast silver price[144] Share-Based Payments and Options - The company recognized a share-based payment liability of $1,401,000 at September 30, 2024, up from $1,184,000 at December 31, 2023, indicating a 18.3% increase[88] - The total fair value of vested and unvested RSUs and DSUs at September 30, 2024, was C$5.8 million, up from C$2.4 million at December 31, 2023[117] - The Company recorded share-based payment expenses of $1.9 million for the nine months ended September 30, 2024, compared to $2.5 million for the same period in 2023[119] - The Company had 10.7 million stock options outstanding as of September 30, 2024, with a weighted average exercise price of C$2.43[112] - The weighted average share price at the date of exercise for stock options for the nine months ended September 30, 2024, was C$1.85, down from C$3.17 in 2023[111] Acquisitions - The acquisition of Paycore Minerals Inc. was completed for a total consideration of $88.416 million, including $66.037 million in share consideration[42] - The fair value of net assets acquired from Paycore was $88.416 million, including cash of $10.027 million and mineral properties valued at $92.081 million[45] - The Company issued 5.0 million common shares to Waterton in connection with the Paycore acquisition, and acquired 100% of Paycore's shares, issuing 25.5 million common shares to Paycore shareholders[107] - The company issued 5,016,991 common shares to Waterton, valued at $12.75 million, based on a share price of C$3.46 on the acquisition date[44] Other Information - The company had outstanding surety bonds totaling $132.8 million for environmental reclamation and exploration permitting as of September 30, 2024[134] - Capital expenditures for the nine months ended September 30, 2024, were $1,775,000, compared to $109,508,000 in the same period of 2023[130] - As of September 30, 2024, total assets were $655,127,000, compared to $654,283,000 as of December 31, 2023[130] - The company had one customer that made up trade receivables as of September 30, 2024, indicating a diversified customer base for its products[122] - The balance of Convertible Loans as of September 30, 2024, was $(1,777) thousand, reflecting fair value adjustments of $7,251 thousand during the period[144] - Sprott converted C$3.6 million in principal and C$0.9 million in interest of the Sprott Convertible Loan into 2.1 million common shares[59] - On October 31, 2024, the company issued 2.1 million common shares for the conversion of $3.6 million in principal and $0.9 million in interest under the Sprott Convertible Loan[145] - The company issued 6.2 million common shares under the ATM Program for total gross proceeds of $7.0 million after the period ended September 30, 2024[146]