Press release·03/31/2025 11:31:39

Overview of Idaho Strategic’s Financial Performance

Idaho Strategic Resources is a gold producer and critical minerals/REE exploration company focused on diversifying its asset base and generating positive cash flows from operations. The company’s key highlights for 2024 include:

• Produced 11,915 ounces of gold from the Golden Chest mine, with mining focused on the high-grade H-Vein.
• Completed 10,148 meters of core drilling at the Golden Chest to convert resources to reserves and explore the Klondike area.
• Made progress on its REE exploration properties, including attending industry conferences and continuing discussions with partners.
• Revenue from concentrate sales increased 88.7% to $25.8 million, driven by higher gold production and prices.
• Gross profit increased to $13 million, with gross margins improving from 29% to 50.3%.
• Net income grew significantly to $8.8 million, up from $1.1 million in 2023.

Financial Trends and Analysis

Idaho Strategic’s financial performance in 2024 showed strong improvements across key metrics compared to the prior year:

Revenue and Profitability:

• Revenue from concentrate sales increased 88.7% to $25.8 million, due to higher gold production and prices.
• Gross profit rose to $13 million, with gross margins improving from 29% to 50.3%.
• Net income grew substantially to $8.8 million, up from $1.1 million in 2023.

Cost Management:

• Cash costs per ounce of gold produced decreased from $966 in 2023 to $909.63 in 2024.
• All-in sustaining costs (AISC) per ounce remained relatively stable at $1,478.41 in 2024 compared to $1,450.34 in 2023.

Liquidity and Cash Flows:

• The company generated positive cash flow from operations of $10.8 million in 2024, up from $2.1 million in 2023.
• Cash and cash equivalents decreased to $1.1 million at the end of 2024, as the company invested $20.8 million in capital expenditures and exploration.
• Management believes the company can meet its obligations with continuing cash flows, existing cash, and potential future financings.

Strengths and Weaknesses

Strengths:

• Diversified asset base with both gold production and REE exploration properties.
• Successful ramp-up of production at the Golden Chest mine, with a focus on high-grade H-Vein ore.
• Improving financial performance, with significant growth in revenue, profitability, and cash flows.
• Experienced management team with a track record of operations and exploration.

Weaknesses:

• Reliance on a single producing asset (Golden Chest mine) for the majority of revenue and cash flows.
• Significant capital expenditures and exploration costs, which have reduced the company’s cash position.
• Exposure to commodity price fluctuations, particularly for gold.
• Limited diversification in terms of geographic locations and mineral commodities produced.

Outlook and Future Prospects

Idaho Strategic’s outlook appears positive, as the company focuses on growing production at the Golden Chest mine and advancing its REE exploration properties. Key priorities for the future include:

• Continuing to expand gold production and reserves at the Golden Chest through ongoing exploration and development.
• Leveraging the company’s operational expertise and relationships to advance its REE projects and find strategic partnerships.
• Maintaining a disciplined approach to capital allocation, with a focus on reinvesting cash flows into growth initiatives.
• Exploring opportunities to diversify the company’s asset base and revenue streams, either through acquisitions or new discoveries.

Overall, Idaho Strategic’s strong financial performance in 2024, coupled with its diversified asset portfolio and experienced management team, position the company well for continued growth and success in the years ahead.