Note 15 - Derivatives and Hedging Activities

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

15. Derivatives and Hedging Activities

On August 2, 2023, CORE Alaska, a subsidiary of the Company, pursuant to an ISDA Master Agreement entered into with ING Capital Markets LLC (the “ING ISDA Master Agreement”) and an ISDA Master Agreement entered into with Macquarie Bank Limited (the “Macquarie ISDA Master Agreement”), in accordance with its obligations under that certain Credit and Guarantee Agreement, by and among the Company, its subsidiaries, ING Capital LLC and Macquarie Bank Limited, entered into a series of hedging agreements with ING Capital LLC and Macquarie Bank Limited for the sale of an aggregate of 124,600 ounces of gold at a weighted average price of $2,025 per ounce. On February 18, 2025 the Company amended the delivery of 15,000 hedged gold ounces into the first half of 2027 under the New Repayment Schedule. The hedge agreements have delivery obligations beginning in July 2024 and ending in June 2027, and represent approximately 45% of the Company’s interest in the projected production from the Manh Choh mine over the current anticipated life of the mine.

As of December 31, 2024, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships. The Company settled 37,861 ounces of gold related to the hedging agreements with 86,739 ounces of gold outstanding as of December 31, 2024. In February 18 2025, the Company amended the Facility agreement and extended the delivery of 15,000 hedged ounces of gold into the first half of 2027 (See Note18):


Period	Commodity	Volume		Weighted Average Price ($/oz)
2025	Gold		45,639	$	2,025.17
2026	Gold		41,100	$	2,025.17

Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023.


		As of December 31, 2024								As of December 31, 2023
Derivatives not designated as hedging instruments	Balance Sheet Location	Gross Recognized Assets / Liabilities			Gross Amounts Offset		Net Recognized Assets / Liabilities			Gross Recognized Assets / Liabilities			Gross Amounts Offset		Net Recognized Assets / Liabilities

Commodity Contracts	Derivative contract asset - current	$	—		$	—	$	—		$	—		$	—	$	—
Commodity Contracts	Derivative contract liability - current	$	(29,076,582	)	$	—	$	(29,076,582	)	$	(2,679,784	)	$	—	$	(2,679,784	)
Commodity Contracts	Derivative contract asset - noncurrent	$	—		$	—	$	—		$	—		$	—	$	—
Commodity Contracts	Derivative contract liability - noncurrent	$	(28,615,525	)	$	—	$	(28,615,525	)	$	(20,737,997	)	$	—	$	(20,737,997	)

As of December 31, 2024, the fair value of derivatives in a net liability position, which excludes any adjustment for nonperformance risk, related to these agreements was $57,692,107. As of December 31, 2024, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions as of December 31, 2024, it could have been required to settle its obligations under the agreements at their termination value of $57,692,107.

Effect of Derivatives Not Designated as Hedging Instruments on the Statement of Operations

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statement of Operations for the fiscal year ended December 31, 2024, six months ended December 31, 2023 and fiscal year ended June 30, 2023.


		Fiscal Year Ended December 31,			Six Months Ended December 31,			Fiscal Year Ended June 30,
		2024			2023			2023
		Amount of Gain or (Loss)			Amount of Gain or (Loss)			Amount of Gain or (Loss)
Derivatives Not Designated as Hedging	Location of Gain or (Loss)	Recognized in Statement of Operations			Recognized in Statement of Operations			Recognized in Statement of Operations
Instruments under Subtopic 815-20	Recognized in Income on Derivative	Derivative			Derivative			Derivative

Commodity Contracts	Unrealized loss on derivative contracts	$	(34,274,326	)	$	(23,417,781	)	$	—
Commodity Contracts	Realized loss on derivative contracts	$	(19,875,815	)	$	—		$	—
Total		$	(54,150,141	)	$	(23,417,781	)	$	—

Credit-risk-related Contingent Features

Cross Default. The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations.

Material adverse change. Certain of the Company's agreements with its derivative counterparties contain provisions where if a specified event or condition occurs that materially changes the Company's creditworthiness in an adverse manner, the Company may be required to fully collateralize its obligations under the derivative instrument.

Incorporation of loan covenants. The Company has an agreement with a derivative counterparty that incorporates the loan covenant provisions of the Company's indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement.

Metal Sales

In order to physically deliver the gold as stipulated in the hedge agreements, the Company purchases its 30% share of gold from the Peak Gold JV. The excess ounces purchased that are not delivered to meet its hedge obligations are sold to the derivative counterparties in accordance with their respective sale agreements, with the resulting gain or loss being recorded in "Other Income/(Expense)". The gains on metal sales for the fiscal year ended December 31, 2024 was $1.2 million. The Company did not have any gain or losses on metal sales for the comparative periods in 2023. The sales are accounted for under ASC 610 Other Income and not ASC 606 Revenue from Contracts with Customers, since the sales are incidental to the Company's primary contractual obligation and do not constitute the Company's ongoing or central operations.