Note 10 - Investment in Peak Gold, LLC

12 Months Ended

Dec. 31, 2024

Equity Method Investments and Joint Ventures Disclosure [Text Block]

10. Investment in Peak Gold, LLC

The Company recorded its initial investment at the historical book value of the assets contributed to the Peak Gold JV which was approximately $1.4 million. As of December 31, 2024, the Company has contributed approximately $106.2 million to the Peak Gold JV.

The following table is a roll-forward of our investment in the Peak Gold JV as of December 31, 2024:


	Investment
	in Peak Gold, LLC
Investment balance at December 31, 2023	$	28,064,405
Investment in Peak Gold LLC		15,450,000
Loss from equity investment in Peak Gold LLC		(140,253	)
Investment balance at March 31, 2024	$	43,374,152
Investment in Peak Gold LLC		11,790,000
Loss from equity investment in Peak Gold LLC		(695,633	)
Investment balance at June 30, 2024	$	54,468,519
Investment in Peak Gold LLC		4,050,000
Distributions received from Peak Gold, LLC		(19,500,000	)
Income from equity investment in Peak Gold LLC		28,525,857
Investment balance at September 30, 2024	$	67,544,376
Investment in Peak Gold LLC		—
Distributions received from Peak Gold, LLC		(21,000,000	)
Income from equity investment in Peak Gold LLC		13,979,246
Investment balance at December 31, 2024	$	60,523,622

The following table presents the condensed balance sheets for the Peak Gold JV as of December 31, 2024 and December 31, 2023 in accordance with US GAAP:


	December 31, 2024		December 31, 2023
ASSETS
Current assets	$	166,365,590	$	20,303,084
Non-current assets		218,643,898		207,706,448
TOTAL ASSETS	$	385,009,488	$	228,009,532

LIABILITIES AND MEMBERS’EQUITY
Current liabilities	$	45,985,161	$	23,303,400
Non-current liabilities		59,031,019		32,910,212
TOTAL LIABILITIES	$	105,016,180	$	56,213,612

MEMBERS’ EQUITY		279,993,308		171,795,920
TOTAL LIABILITIES AND MEMBERS’ EQUITY	$	385,009,488	$	228,009,532

The following table presents the condensed results of operations for the Peak Gold JV for the fiscal year ended December 31, 2024, the six month period ended December 31, 2023 and the fiscal year ended June 30, 2023 in accordance with US GAAP:


	Fiscal Year Ended			Six Months Ended			Fiscal Year Ended
	December 31, 2024			December 31, 2023			June 30, 2023
Revenue	$	344,859,461		$	-		$	-
Cost of sales		(168,125,264	)		—			—
Gross profit		176,734,197			—			—
Other expenses		(37,836,809	)		(6,914,374	)		(9,314,686	)
Net Income/(Loss)	$	138,897,388		$	(6,914,374	)	$	(9,314,686	)

The Company’s share of the Peak Gold JV’s results of operations for the fiscal year ended December 31, 2024 was income of $41.7 million. The Company’s share of the Peak Gold JV’s results of operations for the six months ended December 31, 2023 and fiscal year ended June 30, 2023 were a loss of $2.1 million and $2.8 million, respectively. The Peak Gold JV income and losses do not include any provisions related to income taxes as the Peak Gold JV is treated as a partnership for income tax purposes. The Company's cumulative investment in the Peak Gold JV exceeded its cumulative losses as of

December 31, 2024; therefore the Company’s investment in the Peak Gold JV as of December 31, 2024 was $60.5 million. The Company's cumulative investment in the Peak Gold JV, exceeded the Company's cumulative losses as of December 31, 2023, therefore, recorded a $28.1 million investment in Peak Gold JV as of December 31, 2023. For the fiscal year ended June 30, 2023, the Company’s share of the Peak Gold JV’s inception-to-date cumulative loss of $44.8 million, exceeded the Company's cumulative investment in the Peak Gold JV and the equity method of accounting was suspended, which resulted in suspended losses and an investment balance of zero at June 30, 2023. If the Company elects not to fund its interest in the Peak Gold JV, its interest would be diluted.