Austin Gold (AUST) - 2025 Q2 - Quarterly Report

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION](index=2&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) Presents the company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and December 31, 2024 Condensed Interim Consolidated Statements of Financial Position | | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | ASSETS | | | | Cash and cash equivalents | $448,765 | $381,899 | | Short-term investments | $3,813,219 | $4,914,382 | | Receivables and other | $189,031 | $116,966 | | Total Current Assets | $4,451,015 | $5,413,247 | | Marketable securities | $13,736 | $12,404 | | Exploration and evaluation ("E&E") assets | $4,312,762 | $4,077,474 | | Property and equipment | $8,356 | $9,745 | | Total assets | $8,785,869 | $9,512,870 | | LIABILITIES | | | | Accounts payable and accrued liabilities | $95,892 | $228,698 | | Total Current Liabilities | $95,892 | $228,698 | | SHAREHOLDERS' EQUITY | | | | Share capital | $16,568,175 | $16,568,175 | | Other reserves | $3,591,014 | $3,390,199 | | Accumulated other comprehensive income (loss) | $(574,949) | $(574,949) | | Deficit | $(10,894,263) | $(10,099,253) | | Total shareholders' equity | $8,689,977 | $9,284,172 | | Total liabilities and shareholders' equity | $8,785,869 | $9,512,870 | CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS](index=3&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20LOSS%20AND%20COMPREHENSIVE%20LOSS) Details the company's financial performance, including net loss and comprehensive loss, for the three and six months ended June 30, 2025 and 2024 Condensed Interim Consolidated Statements of Loss and Comprehensive Loss | | For the three months ended June 30, 2025 | For the three months ended June 30, 2024 | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Management salaries and consulting fees | $155,619 | $156,155 | $312,634 | $321,768 | | Share-based compensation | $40,171 | $210,885 | $180,368 | $565,363 | | Operating loss | $(350,223) | $(717,627) | $(895,102) | $(1,599,557) | | Interest and finance income | $45,569 | $95,701 | $95,845 | $204,174 | | Loss before taxes | $(295,501) | $(615,126) | $(794,860) | $(1,390,645) | | Net loss and comprehensive loss for the period | $(295,501) | $(615,126) | $(795,010) | $(1,390,795) | | Loss per share - basic and diluted | $(0.02) | $(0.05) | $(0.06) | $(0.10) | | Weighted average number of shares | 13,271,750 | 13,271,750 | 13,271,750 | 13,271,750 | CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS](index=4&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Summarizes the cash inflows and outflows from operating, investing, and financing activities for the periods ended June 30, 2025 and 2024 Condensed Interim Consolidated Statements of Cash Flows | | For the three months ended June 30, 2025 | For the three months ended June 30, 2024 | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net cash used in operating activities | $(481,901) | $(749,490) | $(809,211) | $(1,147,118) | | Net cash generated by investing activities | $312,018 | $62,194 | $872,217 | $1,449,752 | | Increase (decrease) in cash and cash equivalents for the period | $(169,883) | $(687,296) | $63,006 | $302,634 | | Cash and cash equivalents, beginning of period | $614,892 | $1,895,612 | $381,899 | $907,551 | | Cash and cash equivalents, end of period | $448,765 | $1,207,937 | $448,765 | $1,207,937 | CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY](index=5&type=section&id=CONDENSED%20INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20SHAREHOLDERS%27%20EQUITY) Outlines changes in share capital, other reserves, accumulated other comprehensive income, and deficit for the periods ended June 30, 2025 and 2024 Condensed Interim Consolidated Statements of Changes in Shareholders' Equity | | Number of common shares | Share capital | Other reserves | AOCI | Deficit | Total | | :--------------------------------------- | :---------------------- | :------------ | :------------- | :--------- | :------------ | :------------ | | Balance - December 31, 2023 | 13,271,750 | $16,568,175 | $2,355,931 | $(574,949) | $(7,020,522) | $11,328,635 | | Net loss for the period (6 months ended June 30, 2024) | — | — | — | — | $(1,390,795) | $(1,390,795) | | Balance - June 30, 2024 | 13,271,750 | $16,568,175 | $3,002,864 | $(574,949) | $(8,411,317) | $10,584,773 | | Balance - December 31, 2024 | 13,271,750 | $16,568,175 | $3,390,199 | $(574,949) | $(10,099,253) | $9,284,172 | | Net loss for the period (6 months ended June 30, 2025) | — | — | — | — | $(795,010) | $(795,010) | | Balance - June 30, 2025 | 13,271,750 | $16,568,175 | $3,591,014 | $(574,949) | $(10,894,263) | $8,689,977 | NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS](index=6&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONDENSED%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Provides detailed explanations and disclosures supporting the condensed interim consolidated financial statements, covering accounting policies, risks, and specific financial items 1. NATURE OF OPERATIONS AND GOING CONCERN Austin Gold Corp. is a Canadian-incorporated company focused on mineral resource property acquisition, exploration, and evaluation primarily in the western USA. The company's financial statements are prepared on a going concern basis, despite ongoing losses and an accumulated deficit, with management expecting current working capital to fund activities for at least the next twelve months. The company's continued operation is dependent on discovering economically recoverable reserves and securing necessary financing - The Company focuses on acquisition, exploration, and evaluation of mineral resource properties primarily in the western USA[8] - The Company has not yet determined if its mineral resource properties contain economically recoverable mineral reserves[9] Key Financials related to Going Concern (Six months ended June 30) | Metric | 2025 ($) | 2024 ($) | | :-------------------------------- | :----------- | :----------- | | Net loss | $(795,010) | $(1,390,795) | | Cash used in operating activities | $(809,211) | $(1,147,118) | | Cash and cash equivalents (as of June 30) | $448,765 | N/A (Dec 31, 2024: $381,899) | | Working capital surplus (as of June 30) | $4,355,123 | N/A (Dec 31, 2024: $5,184,549) | | Accumulated deficit (as of June 30) | $(10,894,263) | N/A (Dec 31, 2024: $10,099,253) | - Management estimates current working capital will fund activities for at least the next twelve months[12] (a) Nature of operations Describes the primary business activities of Austin Gold Corp., focusing on mineral resource property exploration and evaluation (b) Going concern assumption Explains the basis for preparing financial statements under the assumption of continued operations, despite financial challenges 2. MATERIAL ACCOUNTING POLICY INFORMATION The interim financial statements comply with IAS 34 and IFRS Accounting Standards, using consistent policies with prior annual statements. Significant accounting estimates and judgments include the fair value of share options, the going concern assessment, and impairment of E&E assets. New standards like IFRS 18 (effective Jan 2027) are being assessed for their potential impact on financial statement presentation and disclosure - These unaudited condensed interim consolidated financial statements adhere to IAS 34, Interim Financial Reporting, and IFRS Accounting Standards[13] - Significant judgments include going concern assessment and E&E asset impairment, with share option fair value as a key estimation uncertainty[18][20] - IFRS 18, effective January 1, 2027, will replace IAS 1, focusing on profit or loss statement updates, with impact assessment ongoing[22] (a) Statement of compliance Confirms adherence to International Accounting Standard 34 and IFRS Accounting Standards for interim financial reporting (b) Significant accounting estimates and judgments Highlights key areas requiring management's judgment and estimation, such as share option valuation and asset impairment (c) New accounting standards and recent pronouncements Discusses the impact assessment of recently issued or amended accounting standards, including IFRS 18 3. CASH AND CASH EQUIVALENTS As of June 30, 2025, the Company's cash and cash equivalents totaled $448,765, an increase from $381,899 at December 31, 2024. The company does not hold any short-term deposits with original maturities less than three months Cash and Cash Equivalents | Date | Amount ($) | | :--- | :----------- | | June 30, 2025 | $448,765 | | December 31, 2024 | $381,899 | 4. SHORT-TERM INVESTMENTS Short-term investments decreased to $3,813,219 as of June 30, 2025, from $4,914,382 at December 31, 2024, primarily due to a reduction in term deposits, which mature between August and December 2025 Short-Term Investments | Type | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :----------- | :----------- | | Term deposits | $3,033,704 | $4,150,487 | | Redeemable short - term investment certificates ("RSTICs") | $779,515 | $763,895 | | Total | $3,813,219 | $4,914,382 | - As at June 30, 2025, the term deposits mature between August 18, 2025 and December 8, 2025 and the RSTICs mature on July 22, 2025[24] 5. RECEIVABLES AND OTHER Receivables and other assets increased to $189,031 at June 30, 2025, from $116,966 at December 31, 2024, driven mainly by an increase in prepaid expenses and deposits Receivables and Other | Type | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :----------- | :----------- | | Prepaid expenses and deposits | $178,549 | $100,898 | | Tax receivables | $10,482 | $16,068 | | Total | $189,031 | $116,966 | 6. E&E ASSETS Total Exploration and Evaluation (E&E) assets increased to $4,312,762 as of June 30, 2025, from $4,077,474 at December 31, 2024, reflecting ongoing expenditures across its Kelly Creek, Lone Mountain, and Stockade Mountain projects. The company has various option agreements, minimum expenditure requirements, and royalty obligations for these properties, and holds surety bonds for reclamation E&E Assets by Property and Expenditure (June 30, 2025) | Category | Kelly Creek ($) | Lone Mountain ($) | Stockade Mountain ($) | Fourmile Basin ($) | Total ($) | | :-------------------------- | :---------- | :------------ | :-------------- | :------------- | :----------- | | Balance - Dec 31, 2024 | $719,533 | $1,379,437 | $1,978,504 | $— | $4,077,474 | | Acquisition costs | — | — | $25,000 | — | $25,000 | | Consulting | — | $106,551 | $55,247 | $650 | $162,448 | | Share-based compensation | $6,815 | $6,816 | $6,816 | — | $20,447 | | Write-off of E&E assets | — | — | — | $(770) | $(770) | | Balance - June 30, 2025 | $726,348 | $1,509,017 | $2,077,397 | $— | $4,312,762 | - For Kelly Creek, the Company can earn a 51% interest by incurring C$2,500,000 in E&E expenditures by June 30, 2027, and an additional 19% for C$2,500,000 with no time limit[28][29] - The Lone Mountain Project requires minimum E&E expenditures, with $250,000 completed by September 1, 2025[32] - As of June 30, 2025, the Company holds surety bonds totaling $38,863 for BLM and $43,252 for Oregon Department of Geology for reclamation requirements[36] [(a) Kelly Creek Project (Nevada, USA)](index=10&type=section&id=(a)%20Kelly%20 Creek%20Project%20(Nevada,%20USA)) Details the Kelly Creek Project, including option agreements, expenditure requirements, and potential royalty obligations (b) Lone Mountain Project (Nevada, USA) Outlines the Lone Mountain Project's minimum expenditure requirements and royalty structure (c) Stockade Mountain Project (Oregon, USA) Describes the Stockade Mountain Project, including acquisition costs and royalty agreements (d) Project reclamation requirements Addresses the company's obligations and surety bonds for environmental reclamation of its mineral projects 7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities significantly decreased to $95,892 at June 30, 2025, from $228,698 at December 31, 2024, primarily due to a reduction in trade payables Accounts Payable and Accrued Liabilities | Type | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :----------- | :----------- | | Trade payables | $81,618 | $183,717 | | Accrued liabilities | $14,274 | $44,981 | | Total | $95,892 | $228,698 | 8. SHARE CAPITAL AND OTHER RESERVES Share capital remained unchanged, while other reserves increased to $3,591,014 at June 30, 2025, mainly due to the value assigned to share options. The number of outstanding share options decreased slightly due to forfeitures, and warrants remained stable with a weighted average remaining life of 0.34 years - At June 30, 2025, 13,271,750 common shares were outstanding from an unlimited authorized share capital[6][38] Other Reserves | Type | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :----------- | :----------- | | Other reserve - Share options | $3,527,786 | $3,326,971 | | Other reserve - Warrants | $63,228 | $63,228 | | Total | $3,591,014 | $3,390,199 | Changes in Share Options (Six months ended June 30) | Metric | 2025 | 2024 | | :------------------------ | :----------- | :----------- | | Outstanding, January 1 | 3,621,666 | 3,463,333 | | Forfeited | (62,500) | — | | Expired | — | (66,667) | | Outstanding, June 30 | 3,559,166 | 3,396,666 | - Share-based compensation expense for share options was $200,815 for the six months ended June 30, 2025, with $180,368 expensed and $20,447 capitalized to E&E assets[41] - At June 30, 2025, outstanding warrants have a weighted average exercise price of $0.81 and a remaining life of 0.34 years[42] (a) Share capital Details the authorized and outstanding common shares, which remained unchanged during the period (b) Other reserves Explains the components of other reserves, primarily related to share options and warrants (c) Share options Provides information on the company's share option plan, including changes in outstanding options and related compensation expense (d) Warrants Details the outstanding warrants, their exercise price, and remaining life 9. RELATED PARTY TRANSACTIONS AND BALANCES Key management compensation, including salaries, consulting fees, and share-based compensation, decreased significantly for the six months ended June 30, 2025, compared to the prior year. The Company has ongoing transactions with P2 Gold Inc. for CFO shared services and a joint venture with Pediment (a URZ subsidiary), where some directors serve on both boards, indicating intertwined relationships Directors and Key Management Compensation (Six months ended June 30) | Category | 2025 ($) | 2024 ($) | | :-------------------------------- | :----------- | :----------- | | Management salaries and consulting fees | $344,423 | $353,115 | | Share-based compensation | $187,510 | $623,285 | | Directors' fees | $36,866 | $36,566 | | Total | $568,799 | $1,012,966 | - As of June 30, 2025, $30,698 in accounts payable and accrued liabilities is owed to related parties[46] - The Company has a joint venture with Pediment (URZ subsidiary) for Kelly Creek, with shared directors indicating intertwined relationships[47] 10. FINANCIAL RISK MANAGEMENT The Company is exposed to market risk (currency and interest rate), credit risk, and liquidity risk. It manages currency risk without hedging instruments, credit risk by investing with Canadian Tier 1 financial institutions, and liquidity risk by monitoring cash flows. Financial instruments are measured using a fair value hierarchy, with marketable securities valued at Level 1 based on quoted prices - A 10% increase in USD:CAD exchange rate would impact pre-tax loss by $6,842 for cash, $1,415 for receivables, $1,374 for marketable securities, and $(3,388) for payables[49][50] - The Company mitigates credit risk by investing cash and short-term investments with Canadian Tier 1 financial institutions[55] Maximum Credit Exposure (Carrying Amount of Financial Assets) | Asset | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :----------- | :----------- | | Cash and cash equivalents | $448,765 | $381,899 | | Short-term investments | $3,813,219 | $4,914,382 | | Total | $4,261,984 | $5,296,281 | - Marketable securities are fair valued using URZ's TSX Venture Exchange share price, classified as Level 1 in the fair value hierarchy[61][62] (a) Market risk Identifies exposure to currency and interest rate risks, and the company's approach to managing them (b) Credit risk Describes the company's management of credit risk, primarily through investments with highly-rated financial institutions (c) Liquidity risk Explains how the company manages its liquidity risk by monitoring cash flows and maintaining sufficient working capital (d) Fair value estimation Outlines the methodology for estimating the fair value of financial instruments, particularly marketable securities 11. COMMITMENTS The Company has an introductory agent agreement with BMR, outlining fees for mineral properties recommended by BMR if acquired, along with potential net smelter return royalties. However, as of June 30, 2025, this agreement is not in effect for any of the Company's current mineral projects - The Company has an introductory agent agreement with BMR for escalating fees upon property acquisition and a potential 0.5% net smelter return royalty[63] - As of June 30, 2025, the BMR Agreement is not active for any current mineral projects[64] 12. SEGMENTED INFORMATION The Company operates as a single business segment focused exclusively on the exploration and development of mineral projects, with all its Exploration and Evaluation assets located within the USA - The Company operates as a single business segment focused on mineral project exploration and development[65] - All of the Company's E&E assets are located in the USA[65]