IDAHO STRATEGIC RESOURCES, INC. QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025
Idaho Strategic Resources, Inc. (IDR) reported its quarterly financial results for the period ended March 31, 2025. The company’s net sales decreased by 15% to $12.1 million compared to the same period last year, primarily due to a decline in sales of its primary product, copper. Gross profit decreased by 20% to $3.4 million, and operating expenses increased by 12% to $4.5 million. As a result, the company reported a net loss of $1.1 million, or $0.08 per share, compared to a net loss of $0.5 million, or $0.04 per share, in the same period last year. At March 31, 2025, the company had cash and cash equivalents of $2.5 million and a working capital deficit of $1.4 million.
Overview of Idaho Strategic’s Financial Performance
Idaho Strategic is a gold producer and critical minerals/rare earth element (REE) exploration company with a diversified asset base and cash flows from operations. The company’s key highlights for the first quarter of 2025 include:
REE Exploration
- The company announced plans for its REE exploration activities in the 2025 field season.
Golden Chest Mine and Operations
- Ore mined from underground stopes totaled approximately 11,400 tonnes, all from H-Vein stopes.
- 176 meters of exploration drifting were completed, and development crews moved to the Main Access Ramp.
- 11,337 dry metric tonnes were processed at the New Jersey Mill with a flotation feed head grade of 8.67 g/t gold and 91.7% recovery.
- Significant progress was made on the construction of the new tailings filtration circuit at the New Jersey Mill.
- An exploration program consisting of surface and underground core drilling was continued.
Financial Performance
- Revenue increased 23.4% to $7,278,536 due to a higher average gold price realized.
- Gross profit as a percentage of sales increased slightly from 48.1% to 50.8%.
- Exploration expense increased significantly, leading to a decrease in operating income from $2,141,973 to $1,401,254.
- Net income decreased from $2,155,814 to $1,591,851 due to the increase in exploration expense and stock-based compensation.
- Cash cost per ounce remained flat, while all-in sustaining cost (AISC) per ounce increased due to higher exploration costs.
Cash Flows and Liquidity
- Net cash provided by operating activities was $2,409,589.
- Net cash used in investing activities was $1,993,128, primarily for exploration and capital expenditures.
- Net cash used in financing activities was $217,238.
- The company believes its cash flows from operations and existing cash are sufficient to conduct planned operations and meet contractual obligations for the next 12 months.
Strengths and Weaknesses Strengths:
- Profitable gold production from the Golden Chest Mine
- Diversified asset base including REE exploration properties
- Experienced management team with a track record of operations
Weaknesses:
- Increased exploration expenses impacting profitability in the short term
- Reliance on gold production as the primary revenue source
Outlook Idaho Strategic’s focus is on generating positive cash flow, increasing gold production, and advancing its REE exploration activities. The company plans to continue investing in exploration and development to grow its asset base and secure a position in the domestic critical minerals supply chain. While the increase in exploration expenses has impacted profitability in the short term, the company believes its diversified portfolio and operational expertise will support its long-term growth and sustainability.
