Consolidated Results of Operations – Three Months Ended
September 30, 2021 Compared to Three Months Ended September 30,
2020
Sales, net. For
the three months ended September 30, 2021, consolidated sales,
net were $20.4 as compared to $15.9 million for the same period in
2020. The increase is attributable to higher sales volumes which
were partially offset with lower average realized prices. Third
quarter 2021 gold sales volumes increased 36% from the same period
in 2020 as a result of higher-grade ore processed. Average
realized price for gold in third quarter 2021 decreased 6% from the
same period in 2020.
Mine gross profit. For the three
months ended September 30, 2021, we recorded $9.6 million mine
gross profit compared to $5.1 million mine gross profit for the
same period in 2020. The change is attributable to higher sales, as
mentioned above, and slightly lower cash production costs.
General and administrative. For
the three months ended September 30, 2021, general and
administrative expenses totaled $1.4 million as compared to $0.6
million for the same period in 2020. The increase in 2021 was
primarily the result of fully staffing the Company post Spin-Off as
a standalone entity whereas the 2020 amount is an allocated amount
from GRC based on time spent.
Exploration expenses. For
the three months ended September 30, 2021, property exploration
expenses totaled $2.0 million as compared to $0.8 million for the
same period of 2020. The increased exploration expense was the
result of drilling at the Golden Mile property to further define
the resource and move toward a development decision.
Other expense, net. For the
three months ended September 30, 2021, other expense, net did not
materially change from the same period in 2020.
Income and mining tax expense.
For the three months ended September 30, 2021, income and mining
tax expense was $1.5 million as compared to $0.2 million for the
same period in 2020. The increase is the result of our
increased income before income and mining taxes and increased
Nevada net proceeds of minerals tax as a result of increased metal
sales. See Note 5 to the Condensed Consolidated
Financial Statements.
Net
income. For the
three months ended September 30, 2021 we recorded net income of $4.6 million
as compared to $3.5 million in the corresponding period for 2020.
The increase is due to the changes in our consolidated results of
operations as discussed above.
Consolidated Results of Operations – Nine Months Ended
September 30, 2021 Compared to Nine Months Ended September 30,
2020
Sales, net. For
the nine months ended September 30, 2021, consolidated sales,
net were $67.0 million as compared to $30.3 million for the same
period in 2020. The increase is primarily attributable to higher
sales volumes. For the nine months ended September 30, 2021, gold
sales volumes increased 118% from the same period in 2020 as a
result of higher-grade ore mined and processed.
Mine gross profit. For the nine
months ended September 30, 2021, we recorded $33.7 million mine
gross profit compared to $4.4 million for the same period in 2020.
The change is attributable to higher sales volumes and higher
average realized prices for gold and silver, resulting in a lower
cash cost after by-products per gold ounce sold. The lower
cash cost per ounce is due to mining efficiencies and higher-grade
ore mined in 2021 as compared to 2020 as well as no NRV expense
related to our inventory in 2021, whereas in 2020, we recorded a
$3.6 million NRV adjustment.
General and administrative. For
the nine months ended September 30, 2021, general and
administrative expenses totaled $8.7 million as compared to $1.8
million for the same period in 2020. The increase was
primarily the result of non-recurring stock-based compensation and
onboarding incentive compensation totaling $5.5 million relating to
building out the Company’s staffing needs post Spin-Off which was
recognized in the first quarter. While the Company
anticipated working under the MSA for a longer period, the Company
believed it would be prudent to fully staff up during the first
quarter. On April 21, 2021, the Company was delivered
official notice of cancellation of the MSA from GRC that the MSA
was being canceled. See Note 2 to the Condensed Consolidated
Financial Statements.