Dakota Gold (DC) - 2025 Q4 - Annual Report

Part I - Financial Information Condensed Consolidated Interim Financial Statements (unaudited) The company's Q1 2025 financials show a significant increase in cash and total assets, driven by successful financing activities and a reduced net loss Condensed Consolidated Interim Balance Sheets The balance sheet grew substantially due to capital raised from stock offerings, with cash increasing to $46.6 million and total assets to $132.6 million Balance Sheet Summary (in $) | Balance Sheet Items | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | 46,604,648 | 9,408,270 | | Total current assets | 47,247,309 | 9,932,164 | | Mineral rights and properties | 82,733,264 | 82,713,264 | | Total assets | 132,573,493 | 95,353,530 | | Liabilities & Equity | | | | Total current liabilities | 1,795,672 | 2,746,295 | | Total liabilities | 2,217,919 | 3,201,580 | | Total stockholders' equity | 130,355,574 | 92,151,950 | Condensed Consolidated Interim Statements of Operations and Comprehensive Loss The company's Q1 2025 net loss improved to $3.7 million from $8.6 million year-over-year, primarily due to a sharp decrease in exploration expenses Statement of Operations Summary (in $) | Operating Metrics | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Exploration expenses | 1,913,229 | 6,545,658 | | General and administrative expenses | 1,900,868 | 2,247,899 | | Loss from operations | (3,814,097) | (8,793,557) | | Net loss | (3,745,543) | (8,594,581) | | Basic and diluted loss per share | (0.04) | (0.10) | Condensed Consolidated Interim Statements of Cash Flows Financing activities generated $41.1 million in Q1 2025, leading to a net cash increase of $37.2 million despite a $3.9 million operating cash outflow Cash Flow Summary (in $) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | (3,938,839) | (10,194,285) | | Net cash used in investing activities | - | (153,631) | | Net cash provided by (used in) financing activities | 41,135,217 | (92,500) | | Net change in cash and cash equivalents | 37,196,378 | (10,440,416) | Notes to the Condensed Consolidated Interim Financial Statements The company remains an exploration-stage entity, having raised significant capital and extended key agreements to ensure sufficient liquidity for the next year - The company is an exploration-stage business focused on mineral properties in the United States, with its properties not yet generating revenue[19][20] - Management believes the cash balance of approximately $46.6 million as of March 31, 2025, is sufficient to fund operations for at least the next twelve months[22] - On February 6, 2025, the company extended option agreements with Barrick Gold for the Richmond Hill and Homestake properties until December 31, 2028, for additional annual cash payments[28] - In March 2025, the company raised gross proceeds of approximately $35.1 million through a public offering of 12.4 million shares at $2.83 per share[38] - During Q1 2025, the company raised net proceeds of approximately $7.3 million by issuing 2,548,713 shares through its At-The-Market (ATM) program[39] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses its exploration strategy in South Dakota, highlighting reduced operating losses and sufficient liquidity for planned 2025 activities Overview The company aims to explore and develop gold properties in South Dakota's historically significant but underexplored Homestake District - The company's goal is to create value through the acquisition, exploration, and future development of high-caliber gold properties in the Homestake District of South Dakota[58] - The Homestake District has historically produced approximately 45 million ounces of gold and is considered underexplored outside the main mine area[59] Drill Programs and Results The company has completed over 400,000 feet of core drilling since 2022 and holds thirteen active permits, with drilling resuming in April 2025 - Since 2022, the company has completed over 250 drill holes for a total of over 400,000 feet (125,000 meters)[64] - The company holds thirteen active permits, with five on the Maitland Project, six on the Richmond Hill Project, one on the City Creek Project, and one on the Cambrian Unconformity Project[63] Planned Activities The 2025 plan focuses on an Initial Resource analysis for the Richmond Hill project, with a goal of completing a Feasibility Study by 2027 - Initial 2025 activities will focus on an S-K 1300 Initial Resource with Cash Flow analysis on the heap leachable portion of the Richmond Hill resource estimate[72] - The company is working towards a future Feasibility Study for the Richmond Hill Project, targeted for completion in 2027, to fast-track future mine permitting[72] - At the Maitland project, additional geological modeling will be completed for the JB and Unionville zones to assess the need for further drilling for a compliant resource estimate[73] Liquidity and Capital Resources With $45.5 million in working capital and a $46.6 million cash balance, the company has sufficient funds for its anticipated $25.0 million in 2025 expenditures Liquidity Position as of March 31, 2025 (in $) | Metric | Amount | | :--- | :--- | | Working Capital | ~45.5 million | | Cash Balance | ~46.6 million | | Accumulated Deficit | ~80.3 million | - The company anticipates cash expenditures of approximately $25.0 million for the twelve months ending December 31, 2025[79] - Management believes it has sufficient funds for the next twelve months, based on the current cash balance and the ability to scale down the exploration program if necessary[80] Results of Operations The operating loss for Q1 2025 decreased to $3.8 million from $8.8 million in Q1 2024, driven by a $4.6 million reduction in exploration expenses Operating Results Comparison (in $ millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Loss from Operations | 3.8 | 8.8 | (5.0) | | Net Loss | 3.7 | 8.6 | (4.9) | | Exploration Expenses | 1.9 | 6.5 | (4.6) | | G&A Expenses | 1.9 | 2.2 | (0.3) | - The decrease in exploration expenses was mainly due to a reduced level of drilling activity in Q1 2025 compared to the same period in 2024[82] Quantitative and Qualitative Disclosures About Market Risk This section is not applicable to the company for this reporting period - The company states that this item is not applicable[90] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[91] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[92] Part II - Other Information Legal Proceedings The company reported no legal proceedings during the period - None[94] Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes from the risk factors as previously disclosed in the Annual Report[95] Mine Safety Disclosures The company's properties were not subject to Federal Mine Safety and Health Administration regulation, requiring no disclosures for the quarter - During the three months ended March 31, 2025, the Company's exploration properties were not subject to regulation by the Federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977[98] Other Information No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the first quarter of 2025 - During the quarter, no director or Section 16 officer adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[99]