Austin Gold (AUST) - 2025 Q1 - Quarterly Report

Consolidated Financial Statements This section presents Austin Gold Corp.'s financial position, performance, and cash flows for the interim period ended March 31, 2025, highlighting key changes in assets, liabilities, equity, and operational results Condensed Interim Consolidated Statements of Financial Position Austin Gold Corp.'s total assets decreased to $9,047,041 by March 31, 2025, driven by reduced short-term investments, while total liabilities significantly decreased | Item | March 31, 2025 | December 31, 2024 | | :--------------------------------- | :------------- | :---------------- | | ASSETS | | | | Cash and cash equivalents | $614,892 | $381,899 | | Short-term investments | $4,200,240 | $4,914,382 | | Receivables and other | $53,394 | $116,966 | | Total Current Assets | $4,868,526 | $5,413,247 | | Exploration and evaluation ("E&E") assets | $4,161,085 | $4,077,474 | | Total assets | $9,047,041 | $9,512,870 | | LIABILITIES | | | | Accounts payable and accrued liabilities | $109,087 | $228,698 | | Total Current Liabilities | $109,087 | $228,698 | | SHAREHOLDERS' EQUITY | | | | Total shareholders' equity | $8,937,954 | $9,284,172 | | Total liabilities and shareholders' equity | $9,047,041 | $9,512,870 | Condensed Interim Consolidated Statements of Loss and Comprehensive Loss The Company reported a net loss of $499,509 for Q1 2025, a substantial improvement from the prior year, mainly due to reduced administrative expenses | Item | March 31, 2025 | March 31, 2024 | | :----------------------------------- | :------------- | :------------- | | Management salaries and consulting fees | $157,015 | $165,613 | | Share-based compensation | $140,197 | $354,478 | | Professional fees | $66,962 | $114,021 | | Investor relations and marketing | $20,179 | $77,149 | | Operating loss | $(544,879) | $(881,930) | | Interest and finance income | $50,276 | $108,473 | | Net loss and comprehensive loss | $(499,509) | $(775,669) | | Loss per share - basic and diluted | $(0.04) | $(0.06) | - Net loss decreased by 35.6% from $775,669 in Q1 2024 to $499,509 in Q1 2025[4] - Loss per share improved from $(0.06) in Q1 2024 to $(0.04) in Q1 2025[4] Condensed Interim Consolidated Statements of Cash Flows Cash and cash equivalents increased by $232,889 in Q1 2025, primarily from investing activities offsetting operating cash outflows | Cash Flow Activity | March 31, 2025 | March 31, 2024 | | :----------------------------------- | :------------- | :------------- | | Net cash used in operating activities | $(327,310) | $(397,628) | | Net cash generated by investing activities | $560,199 | $1,387,558 | | Increase in cash and cash equivalents | $232,889 | $989,930 | | Cash and cash equivalents, beginning of period | $381,899 | $907,551 | | Cash and cash equivalents, end of period | $614,892 | $1,895,612 | - Cash used in operating activities decreased by 17.7% from $397,628 in Q1 2024 to $327,310 in Q1 2025[5] - Net cash generated by investing activities decreased significantly from $1,387,558 in Q1 2024 to $560,199 in Q1 2025, mainly due to lower redemption of short-term investments[5] Condensed Interim Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity decreased to $8,937,954 by March 31, 2025, mainly due to the net loss, partially mitigated by vested share options and warrants | Item | December 31, 2024 | March 31, 2025 | | :----------------------------------- | :---------------- | :--------------- | | Share capital | $16,568,175 | $16,568,175 | | Other reserves | $3,390,199 | $3,543,490 | | Accumulated other comprehensive income (loss) | $(574,949) | $(574,949) | | Deficit | $(10,099,253) | $(10,598,762) | | Total Shareholders' Equity | $9,284,172 | $8,937,954 | | Net loss for the period | - | $(499,509) | | Value assigned to share options and warrants vested | - | $153,291 | Notes to the Unaudited Condensed Interim Consolidated Financial Statements This section provides detailed explanations and disclosures for the unaudited interim financial statements, covering accounting policies, risk management, and specific financial line items 1. Nature of Operations and Going Concern This section details the Company's mineral exploration operations in the western USA and affirms the going concern assumption despite ongoing losses, supported by sufficient working capital - The Company focuses on the acquisition, exploration, and evaluation of mineral resource properties, primarily in the western USA[8] - The Company has incurred a net loss of $499,509 for the three months ended March 31, 2025, and used $327,310 in operating activities[10] - As of March 31, 2025, the Company had a working capital surplus of $4,759,439 and an accumulated deficit of $10,598,762[10] - Management estimates current working capital will fund activities for at least the next twelve months, supporting the going concern assumption[12] 1. (a) Nature of operations This subsection describes Austin Gold Corp.'s core business of mineral resource exploration and evaluation, primarily in the western United States - Austin Gold Corp. was incorporated on April 21, 2020, in British Columbia, Canada, and its common shares are traded on the NYSE American stock exchange under the symbol 'AUST'[7] - The Company's core business is the acquisition, exploration, and evaluation of mineral resource properties, primarily located in the western United States[8] - Continued operation is dependent on discovering economically recoverable reserves, securing necessary financing for exploration and development, and future profitable production or disposition of properties[9] 1. (b) Going concern assumption This subsection addresses the Company's ability to continue operations, noting net losses and cash usage but affirming sufficient working capital for the next twelve months - The financial statements are prepared on a going concern basis, assuming the Company can meet commitments and continue operations for at least twelve months from March 31, 2025[10] - The Company incurred a net loss of $499,509 in Q1 2025 (compared to $775,669 in Q1 2024) and used $327,310 in operating activities (compared to $397,628 in Q1 2024)[10] - As of March 31, 2025, the Company had cash and cash equivalents of $614,892, a working capital surplus of $4,759,439, and an accumulated deficit of $10,598,762[10] - Management believes current working capital is sufficient to fund activities for at least the next twelve months[12] 2. Material Accounting Policy Information This section outlines compliance with IAS 34 and IFRS, details significant accounting estimates and judgments, and discusses the impact assessment of new standards like IFRS 18 - The financial statements are prepared in accordance with IAS 34, Interim Financial Reporting, using accounting policies consistent with IFRS Accounting Standards[13] - Significant accounting estimates and judgments include the fair value of share options, the going concern assessment, and impairment of E&E assets[17][19] - IFRS 18, Presentation and Disclosure in Financial Statements, issued in April 2024, will replace IAS 1 and is effective for periods beginning on or after January 1, 2027; the Company is assessing its impact[20] 2. (a) Statement of compliance This subsection confirms the financial statements' compliance with IAS 34 and IFRS Accounting Standards, specifying the functional currency as USD - The unaudited condensed interim consolidated financial statements comply with International Accounting Standard (IAS) 34, Interim Financial Reporting, and IFRS Accounting Standards[13] - The functional and presentation currency of the Company and its subsidiary is the United States dollar (USD)[15] 2. (b) Significant accounting estimates and judgments This subsection identifies key accounting judgments and estimation uncertainties, including going concern, E&E asset impairment, and fair value of share options - Key judgments include the assessment of the Company's ability to continue as a going concern and the application of the impairment policy for E&E assets[19] - Significant estimation uncertainty relates to the determination of the fair value of share options issued by the Company[17] - Management concluded that no impairment indicators exist for E&E assets as of March 31, 2025[19] 2. (c) New accounting standards and recent pronouncements This subsection discusses recent IFRS amendments and the upcoming IFRS 18, outlining their effective dates and the Company's assessment of their potential impact - Amendments to IFRS 9 and IFRS 7 (Classification and Measurement of Financial Instruments) were issued in May 2024, effective January 1, 2026, and are not expected to have a material impact[18][20] - IFRS 18, Presentation and Disclosure in Financial Statements, issued in April 2024, will replace IAS 1, focusing on updates to the statement of profit or loss, effective January 1, 2027. The Company is assessing its impact[20] 3. Cash and Cash Equivalents Cash and cash equivalents increased to $614,892 by March 31, 2025, consisting entirely of cash with no short-term deposits - Cash and cash equivalents amounted to $614,892 as of March 31, 2025, up from $381,899 at December 31, 2024[21] - The Company does not hold any term deposits with an original maturity date of less than three months[21] 4. Short-Term Investments Short-term investments decreased to $4,200,240 by March 31, 2025, comprising term deposits and RSTICs maturing between April and August 2025 Short-Term Investments Composition | Item | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Term deposits | $3,428,579 | $4,150,487 | | Redeemable short-term investment certificates | $771,661 | $763,895 | | Total Short-Term Investments | $4,200,240 | $4,914,382 | - Term deposits mature between April 21, 2025, and August 18, 2025, while RSTICs mature on July 22, 2025[22] 5. Receivables and Other Receivables and other current assets decreased to $53,394 by March 31, 2025, mainly due to reduced prepaid expenses and deposits Receivables and Other Composition | Item | March 31, 2025 | December 31, 2024 | | :------------------------ | :------------- | :---------------- | | Prepaid expenses and deposits | $47,866 | $100,898 | | Tax receivables | $5,528 | $16,068 | | Total Receivables and Other | $53,394 | $116,966 | 6. E&E Assets E&E assets increased to $4,161,085 by March 31, 2025, reflecting expenditures on Kelly Creek, Lone Mountain, and Stockade Mountain projects, with detailed option and lease terms E&E Assets Balances and Expenditures | Property | Balance - December 31, 2024 | Total E&E expenditures (Q1 2025) | Balance - March 31, 2025 | | :----------------- | :-------------------------- | :------------------------------- | :----------------------- | | Kelly Creek | $719,533 | $4,364 | $723,897 | | Lone Mountain | $1,379,437 | $45,979 | $1,425,416 | | Stockade Mountain | $1,978,504 | $33,268 | $2,011,772 | | Fourmile Basin | $- | $- | $- | | Total E&E Assets | $4,077,474 | $83,611 | $4,161,085 | - Total E&E expenditures for Q1 2025 amounted to $83,611, with the largest portions allocated to Lone Mountain ($45,979) and Stockade Mountain ($33,268)[24] 6. (a) Kelly Creek Project (Nevada, USA) This subsection details the option agreement for the Kelly Creek Project, including expenditure commitments to earn a 51% interest and subsequent royalty payments - The Company has an option to earn a 51% interest in the Kelly Creek Project by incurring C$2,500,000 in E&E expenditures by June 30, 2027, including $923,757 incurred as of June 3, 2024[25][26] - An additional 19% interest (total 70%) can be earned by incurring another C$2,500,000 in E&E expenditures with no time limit[27] Minimum Annual Royalty Payments (Hot Pot Agreement) | Date | Payment | | :----------------- | :------ | | September 16, 2024 | $20,000 | | September 16, 2025 | $20,000 | | September 16, 2026 | $25,000 | | September 16, 2027 | $30,000 | - Mineral production is subject to a 3.0% net smelter return royalty, reducible to 2.0% upon payment of $2,000,000[28] 6. (b) Lone Mountain Project (Nevada, USA) This subsection outlines pre-production payments, minimum E&E expenditures, and royalty terms for the Lone Mountain Project Pre-production Payments (Lone Mountain Project) | Date | Payment | | :----------------- | :------ | | November 1, 2024 | $30,000 | | November 1, 2025 | $30,000 | | (and every year thereafter, increasing by $10,000 annually to a max of $200,000) | | Minimum E&E Expenditures (Lone Mountain Project) | Date | Commitment | | :----------------- | :--------- | | September 1, 2025 | $250,000 | | September 1, 2026 | $300,000 | | September 1, 2027 | $300,000 | | September 1, 2028 | $400,000 | | September 1, 2029 | $400,000 | | (Work commitment terminates at $1,800,000 spent) | | - Mineral production is subject to a 3.0% net smelter return royalty, reducible to 2.5% for $2,000,000[31] - The Company has an option to purchase the entire interest (except royalty) for $2,000,000 (reduced by pre-production payments) upon discovery of 500,000 ounces of gold or completion of a pre-feasibility study[31] 6. (c) Stockade Mountain Project (Oregon, USA) This subsection specifies pre-production payments and royalty terms for the Stockade Mountain Project, noting a recent amendment to drilling requirements Pre-production Payments (Stockade Mountain Project) | Date | Payment | | :----------------- | :------ | | November 16, 2024 | $25,000 | | May 16, 2025 | $25,000 | | November 16, 2025 | $25,000 | | (and every six months thereafter) | | - The requirement for 2,000 meters of drilling by May 16, 2024, was eliminated by an amendment on February 28, 2024[32] - BMR retains a 2.0% net smelter return royalty on BMR-owned claims, reducible to 1.0% upon total payments of $10,000,000[33] 6. (d) Project reclamation requirements This subsection details the surety bonds held by the Company for reclamation requirements with the BLM and Oregon Department of Geology and Mineral Industries - As of March 31, 2025, the Company holds surety bonds totaling $38,863 in favor of the BLM and $43,252 in favor of the Oregon Department of Geology and Mineral Industries for reclamation requirements[34] 7. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities significantly decreased to $109,087 by March 31, 2025, primarily due to a reduction in trade payables Accounts Payable and Accrued Liabilities Composition | Item | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Trade payables | $78,195 | $183,717 | | Accrued liabilities | $30,892 | $44,981 | | Total Accounts Payable and Accrued Liabilities | $109,087 | $228,698 | 8. Share Capital and Other Reserves This section details the Company's share capital structure and the increase in other reserves to $3,543,490 by March 31, 2025, including share-based compensation expense - The authorized share capital includes an unlimited number of common shares and preferred shares without par value[36] Other Reserves | Item | March 31, 2025 | December 31, 2024 | | :---------------------- | :------------- | :---------------- | | Other reserve - Share options | $3,480,262 | $3,326,971 | | Other reserve - Warrants | $63,228 | $63,228 | | Total Other Reserves | $3,543,490 | $3,390,199 | - Share-based compensation expense related to share options for Q1 2025 was $153,291, with $140,197 expensed and $13,094 capitalized to E&E assets[38] 8. (a) Share capital This subsection describes the Company's authorized share capital, comprising an unlimited number of common and preferred shares without par value - The Company's authorized share capital consists of an unlimited number of common shares and an unlimited number of preferred shares, both without par value[36] 8. (b) Other reserves This subsection details the composition of other reserves, including share options and warrants, as of March 31, 2025, and December 31, 2024 Composition of Other Reserves | Item | March 31, 2025 | December 31, 2024 | | :---------------------- | :------------- | :---------------- | | Other reserve - Share options | $3,480,262 | $3,326,971 | | Other reserve - Warrants | $63,228 | $63,228 | | Total Other Reserves | $3,543,490 | $3,390,199 | 8. (c) Share options This subsection provides a summary of changes in share options, including outstanding numbers, weighted average exercise prices, and share-based compensation expense Changes in Share Options (Three Months Ended March 31) | Item | 2025 (Number of share options) | 2025 (Weighted average exercise price) | 2024 (Number of share options) | 2024 (Weighted average exercise price) | | :------------------------ | :----------------------------- | :------------------------------------- | :----------------------------- | :------------------------------------- | | Outstanding, January 1 | 3,621,666 | $1.01 | 3,463,333 | $1.06 | | Expired | - | - | (66,667) | $2.25 | | Outstanding, March 31 | 3,621,666 | $1.01 | 3,396,666 | $1.03 | Share Options Outstanding and Exercisable (March 31, 2025) | Exercise prices | Number of share options outstanding | Weighted average years to expiry | Number of share options exercisable | Weighted average exercise price | | :-------------- | :---------------------------------- | :------------------------------- | :---------------------------------- | :------------------------------ | | $0.51 - $1.00 | 3,055,003 | 3.37 | 1,701,253 | $0.82 | | $2.01 - $2.50 | 566,663 | 4.91 | 566,663 | $2.09 | | Total | 3,621,666 | 3.61 | 2,267,916 | $1.13 | - Share-based compensation expense for Q1 2025 was $153,291, a decrease from $401,759 in Q1 2024[38] 8. (d) Warrants This subsection details changes in warrants, including the number outstanding, warrant reserve, weighted average exercise price, and remaining life Changes in Warrants (Three Months Ended March 31) | Item | 2025 (Number of warrants) | 2025 (Warrant reserve) | 2024 (Number of warrants) | 2024 (Warrant reserve) | | :------------------------ | :------------------------ | :--------------------- | :------------------------ | :--------------------- | | Outstanding, January 1 | 100,000 | $63,228 | 100,000 | $59,702 | | Transactions during the period | - | - | - | $2,630 | | Outstanding, March 31 | 100,000 | $63,228 | 100,000 | $62,332 | - As of March 31, 2025, the weighted average exercise price for outstanding warrants is $0.81, with a weighted average remaining life of 0.59 years[39] 9. Related Party Transactions and Balances Related party transactions include key management compensation, which decreased to $336,117 in Q1 2025, and shared-services expenditures with P2 Gold Inc Directors and Key Management Compensation (Three Months Ended March 31) | Item | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Management salaries and consulting fees | $173,391 | $181,170 | | Share-based compensation | $144,495 | $388,614 | | Directors' fees | $18,231 | $18,337 | | Total Compensation | $336,117 | $588,121 | - The Company incurred $16,156 in Q1 2025 (2024 - $17,029) with P2 Gold Inc. for CFO shared-services[41] - Accounts payable and accrued liabilities include $38,903 owed to related parties as of March 31, 2025[42] - The Company has a joint venture agreement with Pediment (a subsidiary of URZ) for the Kelly Creek Project, and its VP Business Development and a director also serve as directors of URZ[43] 10. Financial Risk Management This section details the Company's management of market, credit, and liquidity risks, including currency exposure, investment strategies, and fair value estimation - The Company is exposed to market risk (currency and interest rate), credit risk, and liquidity risk[44] - The Company mitigates credit risk by investing cash and short-term investments with Canadian Tier 1 chartered financial institutions[50] - Liquidity risk is managed by monitoring cash flows and matching the maturity profile of financial assets and liabilities[51] 10. (a) Market risk This subsection describes the Company's exposure to currency and interest rate risks, detailing the potential impact of exchange rate fluctuations on pre-tax loss - The Company is exposed to currency risk on financial instruments denominated in CAD, with a 10% change in USD:CAD exchange rate having a potential impact on pre-tax loss[45][46] Impact of 10% Change in USD:CAD Exchange Rate on Pre-Tax Loss (March 31, 2025) | Item | 10% increase | 10% decrease | | :--------------------------------- | :----------- | :----------- | | Cash and cash equivalents | $5,915 | $(5,915) | | Receivables and other | $901 | $(901) | | Marketable securities | $838 | $(838) | | Accounts payable and accrued liabilities | $(6,386) | $6,386 | - The impact of a 1% change in variable interest rates on pre-tax loss as of March 31, 2025, would be nominal[48] 10. (b) Credit risk This subsection explains the Company's credit risk exposure, primarily from cash and short-term investments, and its mitigation strategies through investing with Tier 1 financial institutions - The Company's maximum credit exposure is represented by the carrying amount of its financial assets, primarily cash and cash equivalents and short-term investments[49][50] Maximum Credit Exposure (Carrying Amount of Financial Assets) | Item | March 31, 2025 | December 31, 2024 | | :---------------------- | :------------- | :---------------- | | Cash and cash equivalents | $614,892 | $381,899 | | Short-term investments | $4,200,240 | $4,914,382 | | Total | $4,815,132 | $5,296,281 | - Credit risk is mitigated by investing with Canadian Tier 1 chartered financial institutions, with management believing there is a nominal expected credit loss[50] 10. (c) Liquidity risk This subsection addresses the Company's liquidity risk management through monitoring cash flows and matching the maturity profiles of financial assets and liabilities - Liquidity risk is managed by monitoring cash flows and matching the maturity profile of financial assets and liabilities[51] Contractual Undiscounted Cash Flow Requirements (March 31, 2025) | Item | Carrying amount | Contractual cash flows | Due within 1 year | | :--------------------------------- | :-------------- | :--------------------- | :---------------- | | Accounts payable and accrued liabilities | $109,087 | $109,087 | $109,087 | 10. (d) Fair value estimation This subsection describes the fair value hierarchy used for financial instruments, categorizing them into Level 1, Level 2, and Level 3 based on input observability - Financial assets and liabilities are measured using a fair value hierarchy with three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[53] Financial Assets Measured at Fair Value (March 31, 2025) | Item | Carrying value | Level 1 | Level 2 | Level 3 | | :------------------ | :------------- | :------ | :------ | :------ | | Marketable securities | $8,380 | $8,380 | $- | $- | Financial Assets Measured at Fair Value (December 31, 2024) | Item | Carrying value | Level 1 | Level 2 | Level 3 | | :------------------ | :------------- | :------ | :------ | :------ | | Marketable securities | $12,404 | $12,404 | $- | $- | - Marketable securities are fair valued using URZ's share price on the TSX Venture Exchange[56] 11. Commitments This section details the BMR introductory agent agreement, outlining potential fees and royalties for acquired properties, though it is not currently active for any projects Introductory Agent Fees (BMR Agreement, if property acquired) | Payment Schedule | Fee | | :----------------------- | :------ | | Within 15 days of acquisition | $5,000 | | 6 months after acquisition | $5,000 | | 12 months after acquisition | $5,000 | | 18 months after acquisition | $5,000 | | 24 months after acquisition | $7,500 | | 30 months after acquisition | $7,500 | | 36 months after acquisition | $10,000 | | 42 months after acquisition | $10,000 | | 48 months after acquisition | $15,000 | | (and every six months thereafter) | | - If commercial production is achieved on a BMR-recommended property, the Company will pay a 0.5% net smelter return royalty, reducible to 0.25% after $1,000,000 in total payments (fees + royalties)[57] - As of March 31, 2025, the BMR Agreement is not in effect for any of the Company's mineral projects[58] 12. Segmented Information The Company operates as a single business segment focused on mineral project exploration and development, with all E&E assets located in the USA - The Company considers the exploration and development of mineral projects as its single business segment[59] - All of the Company's E&E assets are located in the USA[59]