Solitario Zinc Corp. (XPL) Bundle
A Brief History of Solitario Resources Corp.
Company Overview
Solitario Resources Corp. is a mineral exploration company focused on gold and silver projects in North America. As of 2024, the company is actively engaged in exploration activities, primarily in the United States, with significant projects including the Golden Crest Project in South Dakota and the Lik Project in Alaska.
Financial Performance
For the nine months ended September 30, 2024, Solitario recorded a net loss of $3,768,000, or $0.05 per basic and diluted share, compared to a net loss of $2,712,000, or $0.04 per share for the same period in 2023. This increase in net loss was attributed to rising exploration expenses and administrative costs.
Exploration Expenses
Solitario's exploration expenses increased significantly, totaling $2,908,000 during the nine months ended September 30, 2024, compared to $1,748,000 in the same period of 2023. The breakdown of exploration expenses by project is detailed in the following table:
| Project Name | 2024 Expenses (in $000) | 2023 Expenses (in $000) |
|---|---|---|
| Golden Crest | 2,742 | 1,458 |
| Lik | 105 | 172 |
| Cat Creek | 32 | - |
| Reconnaissance | 29 | 118 |
| Total | 2,908 | 1,748 |
General and Administrative Costs
General and administrative expenses, excluding stock-based compensation, amounted to $1,511,000 for the nine months ended September 30, 2024, up from $1,073,000 in 2023. The major components included:
- Salary and benefit expenses: $292,000 (2024) vs $371,000 (2023)
- Legal and accounting expenditures: $180,000 (2024) vs $193,000 (2023)
- Travel and shareholder relation costs: $395,000 (2024) vs $217,000 (2023)
Cash and Investment Position
As of September 30, 2024, Solitario had working capital of $7,222,000, down from $9,309,000 at the end of 2023. The cash and short-term investments were $6,484,000, with $6,398,000 held in a money market account. The company owns marketable equity securities valued at $1,398,000, which include:
| Security | Shares | Fair Value (in $000) |
|---|---|---|
| Kinross Gold Corp. | 100,000 | 936 |
| Vendetta Mining Corp. | 7,750,000 | 57 |
| Vox Royalty Corp. | 134,055 | 405 |
| Total | 1,398 |
Stock-Based Compensation
During the nine months ended September 30, 2024, Solitario recorded stock-based compensation expenses of $540,000, compared to $184,000 in 2023. This increase was primarily due to the grant of options for 2,125,000 shares during the period.
Market Environment
The mineral exploration sector remains challenging, influenced by fluctuating precious metal prices, geopolitical tensions, and general economic uncertainty. Solitario's strategic focus on exploration and potential acquisitions is expected to position the company favorably in the future.
A Who Owns Solitario Zinc Corp. (XPL)
Major Shareholders
As of 2024, the following are the major shareholders of Solitario Zinc Corp. (XPL):
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| Newmont Overseas Exploration Ltd. | 4,166,667 | 5.1% |
| Management and Directors | 1,200,000 | 1.5% |
| Public Float | 75,271,751 | 93.4% |
Stock Performance
As of September 30, 2024, Solitario Zinc Corp. has a total of 81,638,418 shares outstanding. The company reported a net loss of $2,276,000 for the three months ended September 30, 2024, which translates to a loss per share of $0.03.
Recent Financing Activities
Solitario entered into an at-the-market offering agreement with H.C. Wainwright & Co., LLC to issue and sell shares of common stock for aggregate sales proceeds of up to $10 million. In the nine months ended September 30, 2024, the company sold 1,802,060 shares at an average price of $0.70 per share for net proceeds of $1,218,000.
Marketable Equity Securities
As of September 30, 2024, Solitario holds the following marketable equity securities:
| Security | Shares Owned | Fair Value (USD) |
|---|---|---|
| Vendetta Mining Corp. | 7,750,000 | $57,000 |
| Kinross Gold Corporation | 100,000 | $936,000 |
| Vox Royalty Corp. | 134,055 | $405,000 |
Financial Overview
For the nine months ended September 30, 2024, total operating expenses were $4,440,000, which included exploration expenses of $2,908,000. The company reported a total cash balance of $6,484,000, primarily held in a money market account.
Working Capital and Liquidity
As of September 30, 2024, Solitario had working capital of $7,222,000, which consists of cash and short-term investments, along with marketable equity securities valued at $1,398,000.
Asset Retirement Obligations
Solitario recorded an asset retirement obligation of $125,000 related to its exploration activities.
Solitario Zinc Corp. (XPL) Mission Statement
The mission statement of Solitario Zinc Corp. focuses on the commitment to exploring and developing mineral resources with an emphasis on zinc. The company aims to maximize shareholder value through strategic exploration and the advancement of its mineral projects, particularly in North America. Solitario emphasizes sustainable practices and compliance with environmental standards in its operations.
Financial Overview
As of September 30, 2024, Solitario Zinc Corp. reported the following financial data:
| Financial Metric | Amount (in thousands USD) |
|---|---|
| Cash and Short-term Investments | $6,484 |
| Working Capital | $7,222 |
| Marketable Equity Securities | $1,398 |
| Net Loss (Nine months ended September 30, 2024) | ($3,768) |
| Net Loss per Share | ($0.05) |
| Stock-based Compensation Expense (Nine months ended September 30, 2024) | $540 |
| General and Administrative Expenses (Nine months ended September 30, 2024) | $1,511 |
| Exploration Expenses (Nine months ended September 30, 2024) | $2,908 |
| Total Operating Expenses (Nine months ended September 30, 2024) | $4,440 |
Exploration Projects
Solitario is actively engaged in the exploration of several mineral projects. The associated expenses for these projects as of September 30, 2024, are as follows:
| Project Name | Exploration Expense (in thousands USD) |
|---|---|
| Golden Crest | $2,742 |
| Lik | $105 |
| Cat Creek | $32 |
| Reconnaissance | $29 |
| Total Exploration Expense | $2,908 |
Equity and Stock Options
As of September 30, 2024, the equity structure and stock options of Solitario are detailed below:
| Equity Metric | Amount |
|---|---|
| Total Common Shares Outstanding | 81,638,418 |
| Shareholders' Equity | $23,994,000 |
| Options Outstanding (2013 Plan) | 3,173,500 |
| Options Outstanding (2023 Plan) | 2,175,000 |
| Total Intrinsic Value of Options | $728,000 |
Recent Developments
During the nine months ended September 30, 2024, Solitario entered into an At-the-Market (ATM) offering agreement, allowing it to issue shares for up to $10 million. The company sold 1,802,060 shares under this program at an average price of $0.70 per share, generating net proceeds of $1,218,000 after commissions.
Additionally, Solitario's exploration expenses increased significantly due to intensified drilling activities at the Golden Crest Project, with a budget of approximately $3,900,000 for exploration expenditures planned for the entirety of 2024.
Marketable Securities
As of September 30, 2024, Solitario’s holdings in marketable equity securities are as follows:
| Security Name | Shares Held | Fair Value (in thousands USD) |
|---|---|---|
| Kinross Gold Corp. | 100,000 | $936 |
| Vox Royalty Corp. | 134,055 | $405 |
| Vendetta Mining Corp. | 7,750,000 | $57 |
| Total Marketable Equity Securities | - | $1,398 |
How Solitario Zinc Corp. (XPL) Works
Overview of Operations
Solitario Zinc Corp. (XPL) is engaged primarily in mineral exploration, focusing on zinc and other base metals. The company operates several projects in North America, with significant activities in Alaska, South Dakota, and Colorado.
Financial Performance
For the nine months ended September 30, 2024, Solitario reported a net loss of $3,768,000, or $0.05 per share, compared to a net loss of $2,712,000, or $0.04 per share, for the same period in 2023. The increase in net loss was primarily attributed to higher exploration expenses and general administrative costs.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Loss | $3,768,000 | $2,712,000 |
| Loss per Share | $0.05 | $0.04 |
| Total Operating Expenses | $4,440,000 | $2,840,000 |
| Exploration Expense | $2,908,000 | $1,748,000 |
| General and Administrative Expense | $1,511,000 | $1,073,000 |
Exploration Projects
Solitario conducts exploration activities across multiple projects, with significant expenditure directed towards the Golden Crest Project. The total exploration expense for the Golden Crest Project during the nine months ended September 30, 2024 was $2,742,000.
| Project Name | 2024 Exploration Expense (9 months) | 2023 Exploration Expense (9 months) |
|---|---|---|
| Golden Crest | $2,742,000 | $1,458,000 |
| Lik Project | $105,000 | $172,000 |
| Cat Creek | $32,000 | $0 |
| Reconnaissance | $29,000 | $118,000 |
Cash and Investments
As of September 30, 2024, Solitario had cash and short-term investments totaling $6,484,000. This included $6,398,000 in a money market account. The company maintains a portfolio of marketable equity securities valued at $1,398,000.
| Investment Type | Value (as of September 30, 2024) |
|---|---|
| Cash and Short-term Investments | $6,484,000 |
| Marketable Equity Securities | $1,398,000 |
Shareholder Equity
As of September 30, 2024, the total shareholders' equity was reported at $23,994,000, down from $25,950,000 at the end of 2023. This decrease is primarily due to the net losses recorded during the period.
| Shareholder Equity Component | Amount (September 30, 2024) |
|---|---|
| Common Stock | $816,000 |
| Additional Paid-in Capital | $84,588,000 |
| Accumulated Deficit | $(61,410,000) |
| Total Shareholders' Equity | $23,994,000 |
Exploration Budget
For the full year of 2024, Solitario has budgeted approximately $3,900,000 for exploration expenditures, including about $1,700,000 specifically earmarked for drilling activities at the Golden Crest Project.
Market Conditions and Future Outlook
The mineral exploration sector is heavily influenced by fluctuations in commodity prices and market conditions. Solitario's exploration strategies and financial health will be closely tied to these external factors as they navigate their ongoing projects and potential acquisitions.
How Solitario Zinc Corp. (XPL) Makes Money
Revenue Generation
Solitario Zinc Corp. primarily generates revenue through the sale of marketable equity securities and short-term investments. In the nine months ended September 30, 2024, Solitario recorded cash proceeds of $54,000 from the sale of marketable equity securities, with no comparable sales during the same period in 2023. Additionally, during the nine-month period, the company received $2,038,000 from short-term investments, significantly up from $36,000 in the prior year.
Exploration Projects
The company is engaged in several mineral exploration projects, including the Lik Project in Alaska, the Golden Crest Project in South Dakota, and the Cat Creek Project in Colorado. As of September 30, 2024, Solitario reported total exploration mineral properties valued at $16,701,000, with the Lik Project accounting for $15,611,000.
Exploration Expenses
During the nine months ended September 30, 2024, Solitario's exploration expenses increased to $2,908,000, up from $1,748,000 in the same period of 2023. The Golden Crest Project alone accounted for $2,742,000 of these expenses.
General and Administrative Expenses
Solitario reported general and administrative expenses of $1,511,000 for the nine months ended September 30, 2024, compared to $1,073,000 for the same period in 2023.
Cash and Short-Term Investments
As of September 30, 2024, the company had cash and short-term investments amounting to $6,484,000, with $6,398,000 held in a money market account. This liquidity supports ongoing exploration activities and operational costs.
Marketable Equity Securities
Solitario's investment portfolio includes significant holdings in various companies. As of September 30, 2024, the fair value of its marketable equity securities was as follows:
| Security | Shares Held | Fair Value (USD) |
|---|---|---|
| Vendetta Mining Corp. | 7,750,000 | 57,000 |
| Kinross Gold Corp. | 100,000 | 936,000 |
| Vox Royalty Corp. | 134,055 | 405,000 |
Capital Raising Activities
In the nine months ending September 30, 2024, Solitario raised $1,218,000 through the issuance of 1,802,060 shares under its at-the-market (ATM) offering agreement. This program allows the company to sell shares at prevailing market prices, providing flexibility in capital generation.
Net Loss and Earnings Per Share
For the nine months ended September 30, 2024, Solitario reported a net loss of $3,768,000, or $0.05 per basic and diluted share, compared to a net loss of $2,712,000, or $0.04 per share in the same period of 2023.
Stock-Based Compensation
Stock-based compensation expenses totaled $540,000 for the nine months ended September 30, 2024, compared to $184,000 in the previous year.
Future Outlook
Looking ahead, Solitario anticipates utilizing its cash reserves and short-term investments to fund ongoing exploration and potential acquisitions of mineral properties. The exploration activities are expected to continue to drive expenses, necessitating effective cash management strategies.
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Resources:
- Solitario Zinc Corp. (XPL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Solitario Zinc Corp. (XPL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Solitario Zinc Corp. (XPL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.