Idaho Strategic Resources(IDR) - 2023 Q3 - Quarterly Report

Revenue and Income - Revenue increased by 89.15% from $1,745,278 in Q3 2022 to $3,301,221 in Q3 2023, and increased by 60.69% from $6,148,187 to $9,879,332 for the nine-month period ended September 30, 2023[79] - Operating income for Q3 2023 was $413,461, an increase of $2,301,505 from an operating loss of $1,888,044 in Q3 2022[80] - Net income increased by $2,313,407 from a net loss of $1,909,424 in Q3 2022 to net income of $403,983 in Q3 2023, and increased by $3,978,733 from a net loss of $3,234,742 in the nine months ended September 30, 2022, to net income of $743,991 in the same period in 2023[86] - Cash provided by operating activities was $1,343,068 in 2023, compared to a cash used of $(2,007,155) in 2022[87] - Other (income) expense improved from an expense of $21,380 in the nine-month period ended September 30, 2022, to an expense of $9,478 in the same period in 2023[86] Production and Costs - Gold production for the quarter included 10,430 dry metric tonnes processed at the New Jersey mill with a flotation feed head grade of 6.41 gpt gold and a gold recovery rate of 92.1%[79] - Cash cost per ounce decreased to $895.96 in Q3 2023 from $1,298.97 in Q3 2022, while all-in sustaining costs (AISC) per ounce decreased to $1,170.55 from $2,375.18[85] - The company reported a gross profit margin improvement from negative 13.1% in Q3 2022 to positive 33.5% in Q3 2023[79] - Cash cost and all-in sustaining cost per ounce decreased in 2023 compared to 2022 due to a higher ore grade mined[86] Exploration and Projects - Exploration expenses decreased in 2023 compared to 2022, primarily due to reduced drilling activity[79] - The company has traced greater than 23% total rare earth elements at the Mineral Hill Project, with ongoing geological mapping and additional assay results pending[77] - The company advanced its USFS permit for a core drilling program at Diamond Creek, with sampling results returning up to 5% TREE[79] - The company plans a core drilling exploration program for the Golden Chest in late Q3 and early Q4 2023, which may increase all-in sustaining costs in Q4 2023[86] Financial Position and Capital - Cash and cash equivalents at the end of the period were $1,971,845 in 2023, down from $2,255,688 in 2022[87] - The consolidated net income for the nine-month period ended September 30, 2023, included non-cash charges such as depreciation and amortization of $1,034,521, compared to $717,939 in 2022[86] - The company believes cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months[87] - The company has been successful in raising required capital from the sale of common stock, forward gold contracts, and debt[87] Partnerships and Supply Chain - The company plans to continue seeking partnerships to enhance the U.S. domestic rare earth elements supply chain[72]