EX-99.1 2 njmc_ex991.htm PRESS RELEASE njmc_ex991.htm

EXHIBIT 99.1

  

 

Idaho Strategic Reports Second Quarter 2024 Operating and Financial Performance

 

Highlighted by an 89.26% Increase in Revenue and a 558.30% Increase in Net Income – IDR’s 6-Month Net Income in 2024 is Nearly 4x Last Year’s Total Net Income

 

COEUR D’ALENE, Idaho, July 30, 2024 (ACCESSWIRE) – Idaho Strategic Resources, Inc. (NYSE American: IDR) (“IDR”, “Idaho Strategic” or the “Company”) today announced its consolidated operating and financial results for the second quarter ending June 30, 2024. IDR achieved an 89.26% increase in revenue and a 558.30% increase in net income compared to the second quarter of 2023. Key highlights include:

 

Operational

Performance:

 

Q2 2024

 

 

% Change

 

 

Q2 2023

 

Ore Tonnes Processed

 

 

 9,260

 

 

 

 -20.91 %

 

 

 11,708

 

Average Flotation Feed Grade (gpt)

 

 

 10.29

 

 

 

 40.77 %

 

 

 7.31

 

Ounces Produced

 

 

 2,903

 

 

 

 34.99 %

 

 

 2,152

 

All-In Sustaining Cost Per Ounce ($USD)

 

 $ 1,319.40

 

 

 

 17.66 %

 

 $ 1,121.39

 

 

Financial

Performance ($USD):

 

Q2 2024

 

 

% Change

 

 

Q2 2023

 

Revenue

 

 $ 6,125,382

 

 

 

 89.26 %

 

 $ 3,236,515

 

Total Cost of Sales

 

 $ 3,051,957

 

 

 

 24.93 %

 

 $ 2,442,932

 

Gross Profit

 

 $ 3,073,425

 

 

 

 287.28 %

 

 $ 793,583

 

Net Income Attributable to IDR

 

 $ 2,157,873

 

 

 

 558.30 %

 

 $ 327,793

 

Earnings Per Share (EPS)

 

 $ 0.17

 

 

 

 466.67 %

 

 $ 0.03

 

 

Idaho Strategic’s CEO and President, John Swallow stated, “Our folks did a great job during the second quarter. We have a lot going on (in addition to daily activities) – underground and surface drilling at the Golden Chest, pad and road construction for the paste backfill plant, power upgrade underway, paste plant structure and equipment ordered, upcoming drill program at Eastern Star in September, added two geologists and seasonal help to our staff, and possibly one or two other items on deck. Not to mention that the macro picture seems to be evolving more and more toward our business plan. In alignment with our discretionary ‘win as we go’ approach to compensation, each employee, officer, and director earned another quarterly ‘paycheck bonus’ on top of the normal pay structure.”

 

Idaho Strategic Resources, Inc.     •     201 N. 3rd Street     •     Coeur d’Alene, Idaho 83814

 

 

 

 

Golden Chest Highlights for Q2 2024 Include:

 

 

·

 At the Golden Chest, ore mined from underground stopes totaled approximately 11,500 tonnes with all of the tonnage coming from H-Vein stopes. A significant stockpile of ore was built up at the mill by the end of the quarter.

 

·

 A total of 3,230 cubic meters of cemented rockfill (“CRF”) were placed during the quarter, which is a new quarterly record. The Main Access Ramp (“MAR”) and associated drifts and raises were advanced by about 100 meters during the quarter.

 

·

 For the quarter ended June 30, 2024, a total of 9,260 dry metric tonnes (“dmt”) were processed at the Company’s New Jersey mill with a flotation feed head grade of 10.29 gpt gold and gold recovery of 93.6%.

 

·

 An exploration program consisting of both underground and surface core drilling was started in the second quarter. Underground drilling was focused on exploring the Klondike area and the projected northerly strike of the H-vein. Surface drilling was started in Butte Gulch with plans to move to the northern area of the Golden Chest in the third quarter.
 

Rare Earth Highlights for Q2 2024 Include:

 

 

·

  Continued discussions with various laboratories, universities, and partners to advance our understanding of Idaho’s rare earth mineralogy and broader mineral endowment.

   

Mr. Swallow concluded, “I am not sure where I saw or heard the phrase that bees don’t waste their time explaining to flies that honey is better than sh*t, but we now receive considerably less unsolicited ‘advice’ from those that hadn’t built a producer 10 years ago, and still haven’t as of today. As I reflected on the discussion around this record quarter, I found myself concurring with those that describe the feeling of the early days as when you have a lot of music to make yet haven’t any instruments and only sounds in your head. Compared to now (as a result of our approach) having the luxury to produce the albums you want to make and the song selection is yours. And I am sure Rob and Grant feel the same way; although Grant with a few more expletives and a heck of a lot less external reflection and Rob with a wistful story of sleeping out in front of the core shack, not making any money and still as enthusiastic as ever. Production and minding costs are always within our daily focus… And when you control the part you can control, sometimes the part you cannot control becomes part of the reward.”

 

Notes accompanying the financial statements below can be found in the Company’s quarterly report filed this morning with the SEC on EDGAR.

 

Qualified person

 

IDR’s Vice President, Grant A. Brackebusch, P.E. is a qualified person as such term is defined under S-K 1300 and has reviewed and approved the technical information and data included in this press release.

 

Idaho Strategic Resources, Inc.     •     201 N. 3rd Street     •     Coeur d’Alene, Idaho 83814

 

 

 

 

About Idaho Strategic Resources, Inc.

 

Idaho Strategic Resources (IDR) is an Idaho-based gold producer which also owns the largest rare earth elements land package in the United States. The Company’s business plan was established in anticipation of today’s volatile geopolitical and macroeconomic environment. IDR finds itself in a unique position as the only publicly traded company with growing gold production and significant blue-sky potential for rare earth elements exploration and development in one Company.  

 

For more information on Idaho Strategic Resources, visit https://idahostrategic.com/presentation/, go to www.idahostrategic.com or call:

 

Travis Swallow, Investor Relations & Corporate Development

Email: tswallow@idahostrategic.com

Phone: (208) 625-9001

 

Idaho Strategic Resources, Inc.     •     201 N. 3rd Street     •     Coeur d’Alene, Idaho 83814

 

 

 

 

Idaho Strategic Resources, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

For the Three and Six-Month Periods Ended June 30, 2024 and 2023

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

Three

Months

 

 

Six

Months

 

 

Three Months

 

 

Six Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Sales of products

 

 $ 6,125,382

 

 

 $ 12,024,320

 

 

 $ 3,236,515

 

 

 $ 6,578,111

 

Total revenue

 

 

 6,125,382

 

 

 

 12,024,320

 

 

 

 3,236,515

 

 

 

 6,578,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of Sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other direct production costs

 

 

 2,596,027

 

 

 

 5,154,940

 

 

 

 2,099,890

 

 

 

 4,247,850

 

Depreciation and amortization

 

 

 455,930

 

 

 

 957,718

 

 

 

 343,042

 

 

 

 671,079

 

Total costs of sales

 

 

 3,051,957

 

 

 

 6,112,658

 

 

 

 2,442,932

 

 

 

 4,918,929

 

Gross profit

 

 

 3,073,425

 

 

 

 5,911,662

 

 

 

 793,583

 

 

 

 1,659,182

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration

 

 

 620,056

 

 

 

 887,904

 

 

 

 207,369

 

 

 

 480,811

 

Management

 

 

 90,313

 

 

 

 199,413

 

 

 

 55,568

 

 

 

 124,479

 

Professional services

 

 

 84,982

 

 

 

 239,226

 

 

 

 123,238

 

 

 

 364,043

 

General and administrative

 

 

 179,456

 

 

 

 340,119

 

 

 

 123,765

 

 

 

 387,063

 

(Gain) loss on disposal of equipment

 

 

 3,022

 

 

 

 7,431

 

 

 

 (6,344 )

 

 

 (224 )

Total other operating expenses

 

 

 977,829

 

 

 

 1,674,093

 

 

 

 503,596

 

 

 

 1,356,172

 

Operating income

 

 

 2,095,596

 

 

 

 4,237,569

 

 

 

 289,987

 

 

 

 303,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (income) loss on investment in Buckskin Gold and Silver, Inc

 

 

 1,589

 

 

 

 (278 )

 

 

 (1,007 )

 

 

 (1,357 )

Timber revenue net of costs

 

 

 (6,049 )

 

 

 (19,406 )

 

 

 -

 

 

 

 (20,724 )

Loss on investment in equity securities

 

 

 -

 

 

 

 453

 

 

 

 2,880

 

 

 

 2,880

 

Gain on short term investments

 

 

 (21,862 )

 

 

 (21,862 )

 

 

 -

 

 

 

 -

 

Interest income

 

 

 (38,606 )

 

 

 (58,241 )

 

 

 (18,756 )

 

 

 (37,693 )

Interest expense

 

 

 25,602

 

 

 

 46,167

 

 

 

 11,048

 

 

 

 19,896

 

Total other (income) expense

 

 

 (39,326 )

 

 

 (53,167 )

 

 

 (5,835 )

 

 

 (36,998 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 2,134,922

 

 

 

 4,290,736

 

 

 

 295,822

 

 

 

 340,008

 

Net loss attributable to non-controlling interest

 

 

 (22,951 )

 

 

 (38,246 )

 

 

 (31,971 )

 

 

 (48,384 )

Net income attributable to Idaho Strategic Resources, Inc.

 

 $ 2,157,873

 

 

 $ 4,328,982

 

 

 $ 327,793

 

 

 $ 388,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-basic

 

 $ 0.17

 

 

 $ 0.34

 

 

 $ 0.03

 

 

 $ 0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common share outstanding-basic

 

 

 12,836,205

 

 

 

 12,674,789

 

 

 

 12,256,523

 

 

 

 12,228,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share-diluted

 

 $ 0.17

 

 

 $ 0.34

 

 

 $ 0.03

 

 

 $ 0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding- diluted

 

 

 13,043,026

 

 

 

 12,904,998

 

 

 

 12,259,438

 

 

 

 12,232,638

 

 

Idaho Strategic Resources, Inc.     •     201 N. 3rd Street     •     Coeur d’Alene, Idaho 83814

 

 

 

 

Idaho Strategic Resources, Inc.

Condensed Consolidated Balance Sheets (Unaudited) 

 

 

June 30,

2024

 

 

December 31,

2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 1,801,257

 

 

 $ 2,286,999

 

Short term investments

 

 

 6,344,725

 

 

 

 -

 

Gold sales receivable

 

 

 1,516,514

 

 

 

 1,038,867

 

Inventories

 

 

 766,612

 

 

 

 876,681

 

Joint venture receivable

 

 

 1,413

 

 

 

 2,080

 

Investment in equity securities

 

 

 -

 

 

 

 5,649

 

Other current assets

 

 

 172,036

 

 

 

 236,837

 

Total current assets

 

 

 10,602,557

 

 

 

 4,447,113

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net of accumulated depreciation

 

 

 10,492,298

 

 

 

 10,233,640

 

Mineral properties, net of accumulated amortization

 

 

 9,459,771

 

 

 

 7,898,878

 

Investment in Buckskin Gold and Silver, Inc

 

 

 339,047

 

 

 

 338,769

 

Investment in joint venture

 

 

 435,000

 

 

 

 435,000

 

Reclamation bond

 

 

 256,310

 

 

 

 251,310

 

Deposits

 

 

 600,267

 

 

 

 285,079

 

Total assets

 

 $ 32,185,250

 

 

 $ 23,889,789

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 $ 732,832

 

 

 $ 484,221

 

Accrued payroll and related payroll expenses

 

 

 286,187

 

 

 

 266,670

 

Notes payable, current portion

 

 

 745,132

 

 

 

 978,246

 

Total current liabilities

 

 

 1,764,151

 

 

 

 1,729,137

 

 

 

 

 

 

 

 

 

 

Asset retirement obligations

 

 

 295,874

 

 

 

 286,648

 

Notes payable, long term

 

 

 1,985,742

 

 

 

 1,338,406

 

Total long-term liabilities

 

 

 2,281,616

 

 

 

 1,625,054

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 4,045,767

 

 

 

 3,354,191

 

 

 

 

 

 

 

 

 

 

Commitments Notes 5 and 9

 

 

 -

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding

 

 

 -

 

 

 

 -

 

Common stock, no par value, 200,000,000 shares authorized; June 30, 2024-12,958,574 and December 31, 2023- 12,397,615 shares issued and outstanding

 

 

 38,264,643

 

 

 

 34,963,739

 

Accumulated deficit

 

 

 (12,881,656 )

 

 

 (17,210,638 )

Total Idaho Strategic Resources, Inc stockholders’ equity

 

 

 25,382,987

 

 

 

 17,753,101

 

Non-controlling interest

 

 

 2,756,496

 

 

 

 2,782,497

 

Total stockholders' equity

 

 

 28,139,483

 

 

 

 20,535,598

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

 $ 32,185,250

 

 

 $ 23,889,789

 

 

Idaho Strategic Resources, Inc.     •     201 N. 3rd Street     •     Coeur d’Alene, Idaho 83814

 

 

 

 

Forward Looking Statements

 

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Often, but not always, forward-looking information can be identified by forward-looking words such as “intends”, “potential”, “believe”, “plans”, “expects”, “may”, “goal’, “assume”, “estimate”, “anticipate”, and “will” or similar words suggesting future outcomes, or other expectations, beliefs, assumptions, intentions, or statements about future events or performance. Forward-looking information includes, but are not limited to, Idaho Strategic Resources’ potential to deliver Q3 2024 financial performance that is in-line, better, or worse than Q2 2024, the potential for the Company to initiate and complete additional capital investments that may or may not lead to increased production, the Company’s plans to increase its exploration and development efforts, the potential for Idaho Strategic’s operations to remain profitable in Q3 2024, the potential for ongoing and future drilling and exploration work to yield positive results, the potential for the Company’s planned power upgrades to be completed on time and on budget, the potential for the Company to complete a drill program at Eastern Star this year, and the potential monetary and operational benefits of implementing the paste backfill system. Forward-looking information is based on the opinions and estimates of Idaho Strategic Resources as of the date such information is provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of IDR to be materially different from those expressed or implied by such forward-looking information. Investors should note that IDR’s claim as the largest rare earth elements landholder in the U.S. is based on the Company’s internal review of publicly available information regarding the rare earth landholdings of select companies within the U.S., which IDR is aware of. Investors are encouraged not to rely on IDR’s claim as the largest rare earth elements landholder in the U.S. while making investment decisions. The forward-looking statement information above, and those following are applicable to both this press release, as well as the links contained within this press release. With respect to the business of Idaho Strategic Resources, these risks and uncertainties include risks relating to widespread epidemics or pandemic outbreaks; interpretations or reinterpretations of geologic information; the accuracy of historic estimates; unfavorable exploration results; inability to obtain permits required for future exploration, development or production; general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices; the ability to obtain necessary future financing on acceptable terms; the ability to operate the Company’s projects; and risks associated with the mining industry such as economic factors (including future commodity prices, and energy prices), ground conditions, failure of plant, equipment, processes and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration and production activities, possible variations in ore grade or recovery rates, permitting timelines, capital and construction expenditures, reclamation activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such information. Additional information regarding the factors that may cause actual results to differ materially from this forward‐looking information is available in Idaho Strategic Resources filings with the SEC on EDGAR. IDR does not undertake any obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

 

Idaho Strategic Resources, Inc.     •     201 N. 3rd Street     •     Coeur d’Alene, Idaho 83814