Idaho Strategic Resources(IDR) - 2022 Q1 - Quarterly Report

Financial Performance - The company reported a gross profit of $306,143 for the three-month period ended March 31, 2022, compared to a gross loss of $71,403 for the same period in 2021, primarily due to improved gold prices [74]. - Revenue increased to $2,044,417 for the three-month period ended March 31, 2022, from $1,586,627 in the comparable period of 2021, driven by higher realized gold prices and increased gold inventories [77]. - An operating loss of $426,166 was reported for the three-month period ended March 31, 2022, an improvement from an operating loss of $1,626,655 in the same period of 2021 [77]. - Net loss for the three-month period ended March 31, 2022, was $473,069, compared to a net loss of $1,662,404 for the same period in 2021 [77]. Cost Management - Cash costs per ounce decreased to $978.70 for the three-month period ended March 31, 2022, down from $1,476.24 in 2021, attributed to increased production and improved inventory valuation [77]. - All-in sustaining costs (AISC) per ounce decreased to $1,557.32 for the three-month period ended March 31, 2022, compared to $2,097.34 for the same period in 2021, due to the use of in-house core drilling [77]. - Cash cost per ounce decreased to $978.70 in Q1 2022 from $1,476.24 in Q1 2021, representing a reduction of approximately 33.8% [81]. - All-in sustaining cost (AISC) per ounce decreased to $1,557.32 in Q1 2022 from $2,097.34 in Q1 2021, a decrease of about 25.8% [81]. - General and administrative expenses significantly decreased to $201,312 in Q1 2022 from $513,835 in Q1 2021, a decrease of about 60.9% [81]. - Exploration expenses decreased to $396,124 in Q1 2022 from $717,707 in Q1 2021, a reduction of approximately 44.7% [81]. Cash Flow and Financing - Net cash provided by financing activities increased to $2,569,577 in Q1 2022 from $1,481,472 in Q1 2021, an increase of approximately 73.4% [82]. - Cash and cash equivalents at the end of Q1 2022 were $3,409,188, up from $3,112,376 at the end of Q1 2021, reflecting an increase of about 9.5% [82]. - Operating activities generated a net cash outflow of $848,086 in Q1 2022, compared to a net outflow of $719,167 in Q1 2021, indicating a worsening of approximately 17.9% [82]. - Management believes that cash flows from operations and existing cash are sufficient to meet contractual obligations for the next 12 months [82]. - The company has successfully raised capital through equity sales, forward gold contracts, and debt, supporting its planned production [82]. Exploration and Development - The company drilled 1,437 meters during the quarter and released core drilling results from the Klondike area of the Golden Chest mine [74]. - The company plans to conduct approximately $1 million worth of rare earth element drilling on its Diamond Creek property as part of the Idaho Global Entrepreneurial Mission (IGEM) Project [77]. - Exploration costs decreased in 2022 compared to 2021 due to the elimination of contract core drilling in the Paymaster/Joe Dandy [77].