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Note 11 - Investment in the Peak Gold, LLC | 12 Months Ended
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Jun. 30, 2022
Notes to Financial Statements |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 11. Investment in Peak Gold, LLC The Company recorded its investment at the historical book value of the assets contributed to the Peak Gold JV which was approximately $1.4 million. As of June 30, 2022, the Company has contributed approximately $19.4 million to the Peak Gold JV. KG Mining acquired 70% of the Peak Gold JV on September 30, 2020 in connection with the Kinross Transactions. As of June 30, 2022, the Company held a 30.0% membership interest in the Peak Gold JV. The following table is a roll-forward of our investment in the Peak Gold JV from January 8, 2015 (inception) to June 30, 2022:
|  | Investment |
|  | in Peak Gold, LLC |
Investment balance at June 30, 2014 |  | $ | — |
Investment in Peak Gold, LLC, at inception January 8, 2015 |  |  | 1,433,886 |
Loss from equity investment in Peak Gold, LLC |  |  | (1,433,886 | )
Investment balance at June 30, 2015 |  | $ | — |
Investment in Peak Gold, LLC |  |  | — |
Loss from equity investment in Peak Gold, LLC |  |  | — |
Investment balance at June 30, 2016 |  | $ | — |
Investment in Peak Gold, LLC |  |  | — |
Loss from equity investment in Peak Gold, LLC |  |  | — |
Investment balance at June 30, 2017 |  | $ | — |
Investment in Peak Gold, LLC |  |  | 2,580,000 |
Loss from equity investment in Peak Gold, LLC |  |  | (2,580,000 | )
Investment balance at June 30, 2018 |  | $ | — |
Investment in Peak Gold, LLC |  |  | 4,140,000 |
Loss from equity investment in Peak Gold, LLC |  |  | (4,140,000 | )
Investment balance at June 30, 2019 |  | $ | — |
Investment in Peak Gold, LLC |  |  | 3,720,000 |
Loss from equity investment in Peak Gold, LLC |  |  | (3,720,000 | )
Investment balance at June 30, 2020 |  | $ | — |
Investment in Peak Gold, LLC |  |  | 3,861,252 |
Loss from equity investment in Peak Gold, LLC |  |  | (3,861,252 | )
Investment balance at June 30, 2021 |  |  | — |
Investment in Peak Gold, LLC |  |  | 3,706,000 |
Loss from equity investment in Peak Gold, LLC |  |  | (3,706,000 | )
Investment balance at June 30, 2022 |  | $ | — |
In conjunction with the CORE Transactions, and Kinross assuming the role of manager of the Peak Gold JV, the Peak Gold JV converted its method of accounting from US GAAP to International Financial Reporting Standards (“IFRS”) and changed its fiscal year end from June 30 to December 31, effective for the quarter ended December 31, 2020. The condensed financial statements presented below have been converted from IFRS to US GAAP for presentation purposes for the fiscal year ended 2022. The following table presents the condensed balance sheets for the Peak Gold JV as of June 30, 2022 and 2021 in accordance with US GAAP:
|  | June 30, 2022 |  |  | June 30, 2021 |
ASSETS |  |  |  |  |  |  |  |
Current assets |  | $ | 9,022,315 |  |  | $ | 2,836,411 |
Non-current assets |  |  | 4,548,709 |  |  |  | 2,127,343 |
TOTAL ASSETS |  | $ | 13,571,024 |  |  | $ | 4,963,754 |
LIABILITIES AND MEMBERS’EQUITY |  |  |  |  |  |  |  |
Current liabilities |  | $ | 3,057,873 |  |  | $ | 3,138,804 |
Non-current liabilities |  |  | 416,081 |  |  |  | 387,102 |
TOTAL LIABILITIES |  | $ | 3,473,954 |  |  | $ | 3,525,906 |
MEMBERS’ EQUITY |  |  | 10,097,070 |  |  |  | 1,437,848 |
TOTAL LIABILITIES AND MEMBERS’ EQUITY |  | $ | 13,571,024 |  |  | $ | 4,963,754 |
The following table presents the condensed results of operations for the Peak Gold JV for the year ended June 30, 2022 and 2021, and for the period from inception through June 30, 2022 in accordance with US GAAP:
|  | Year Ended |  |  | Year Ended |  |  | Period from Inception January 8, 2015 to |
|  | June 30, 2022 |  |  | June 30, 2021 |  |  | June 30, 2022 |
EXPENSES: |  |  |  |  |  |  |  |  |  |  |  |
Exploration expense |  | $ | 9,534,764 |  |  | $ | 11,190,248 |  |  | $ | 58,411,527 |
General and administrative |  |  | 1,290,013 |  |  |  | 1,618,045 |  |  |  | 12,281,019 |
Total expenses |  |  | 10,824,777 |  |  |  | 12,808,293 |  |  |  | 70,692,546 |
NET LOSS |  | $ | 10,824,777 |  |  | $ | 12,808,293 |  |  | $ | 70,692,546 |
The Company’s share of the Peak Gold JV’s results of operations for the year ended June 30, 2022 was a loss of $3.3 million. The Company’s share in the results of operations for the year ended June 30, 2021 was a loss of $4.0 million. The Peak Gold, LLC loss does not include any provisions related to income taxes as Peak Gold, LLC is treated as a partnership for income tax purposes. As of June 30, 2022 and June 30, 2021, the Company’s share of the Peak Gold JV’s inception-to-date cumulative loss of $42.0 million and $38.7 million, respectively, exceeds the sum of the historical book value of our initial investment in Peak Gold, LLC, of $1.4 million and our subsequent contributions of $18.0 million. Therefore, the investment in Peak Gold, LLC had a balance of zero as of June 30, 2022. The investment also had a balance of zero at June 30, 2020. The Company is currently not obligated to make additional capital contributions to the Peak Gold JV and therefore only records losses up to the point of its cumulative investment which is $19.4 million. The portion of the cumulative loss that exceeds the Company’s investment will be suspended and recognized against earnings, if any, from the Company’s investment in the Peak Gold JV in future periods. The suspended losses for the period from inception to June 30, 2022 are $22.6 million.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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