Solitario(US:XPL)2025-05-02 13:18Financial Performance - Net loss for the three months ended March 31, 2025, was $511,000, a reduction of 30% from the net loss of $730,000 for the same period in 2024[13]. - Total operating expenses decreased to $736,000 for Q1 2025, down 11.6% from $833,000 in Q1 2024[13]. - Shareholders' equity decreased to $22,291,000 as of March 31, 2025, from $22,520,000 as of December 31, 2024, a decline of 1.02%[12]. - Net cash used in operations decreased to $598,000 in Q1 2025 from $991,000 in Q1 2024, mainly due to lower exploration expenses and reduced cash use for accounts payable[79]. - Interest and dividend income decreased to $46,000 in Q1 2025 from $95,000 in Q1 2024, attributed to reduced short-term investment balances used for exploration and administrative expenditures[69]. Exploration Activities - Solitario anticipates using cash and short-term investments to fund exploration activities for its core mineral projects, including the Florida Canyon Project and Lik Project[19]. - The company has not developed any properties to date and primarily focuses on acquiring and exploring mineral properties[15]. - Solitario's exploration activities are subject to various macro-economic risks, including inflationary pressures and volatility in financial markets[24]. - As of March 31, 2025, Solitario's total exploration mineral properties amounted to $16,701,000, unchanged from December 31, 2024[30]. - Exploration expenses for the three months ended March 31, 2025, were $239,000, a decrease of 7% from $354,000 in the same period of 2024[31]. Marketable Securities - The company reported an unrealized gain on marketable equity securities of $385,000 for Q1 2025, compared to an unrealized gain of $8,000 in Q1 2024[13]. - The fair value of Solitario's marketable equity securities increased to $1,706,000 as of March 31, 2025, up from $1,322,000 at December 31, 2024, representing a 29% increase[37]. - Solitario recorded a cumulative unrealized loss on marketable equity securities of $266,000 as of March 31, 2025[37]. - The fair value of 100,000 shares of Kinross common stock increased from $927,000 at December 31, 2024 to $1,261,000 at March 31, 2025, while 134,055 shares of Vox common stock increased from $314,000 to $391,000 during the same period[67]. Cash and Investments - Cash and cash equivalents increased to $189,000 as of March 31, 2025, from $81,000 at the beginning of the period, marking a significant increase of 133.3%[14]. - As of March 31, 2025, the company had $4,162,000 in cash and short-term investments, with $3,973,000 in a money market account[73]. - Working capital decreased to $5,404,000 at March 31, 2025, from $5,624,000 at December 31, 2024, primarily due to changes in cash and current liabilities[75]. - The company provided $550,000 from net sales of short-term investments in Q1 2025, compared to $918,000 in Q1 2024[80]. Stock Options and Compensation - As of March 31, 2025, there were options outstanding under the 2013 Plan to acquire 2,395,000 shares, with an intrinsic value of $98,000[50]. - The total stock-based compensation expense for Q1 2025 was $126,000, up from $59,000 in Q1 2024, attributed to the amortization of options granted in 2024[66]. - The intrinsic value of outstanding stock options under the 2023 Plan as of March 31, 2025, was $4,000, with a weighted average life of 4.42 years[52]. Future Outlook - The company’s full-year 2025 exploration and development budget is approximately $3,910,000, which includes a potential drilling program at the Golden Crest Project budgeted at $1,911,000[64]. - The company anticipates continued use of funds from operations through 2025, primarily for exploration activities related to the Golden Crest and Lik Projects[79]. - The company plans to use cash and short-term investments to fund exploration activities for its core mineral projects, including the Florida Canyon Project and Lik Project[19]. Risk Factors - Solitario's exploration activities are primarily focused in North and South America, with core assets including the Golden Crest Project, Florida Canyon Project, and Lik Project[59]. - The company emphasizes the importance of considering risk factors that could lead to actual results differing from forward-looking statements[93]. - There are no material changes to the risk factors outlined in the 2024 Annual Report[93].