Consolidated Results of Operations – Three Months Ended June
30, 2022 Compared to Three Months Ended June 30, 2021
Sales,
net.
For the three
months ended June 30, 2022, consolidated sales, net were $24.0 as
compared to $25.9 million for the same period in 2021. The decrease
is attributable to lower sales volumes, partially offset by higher
average sales price. Second quarter 2022 gold sales volumes
decreased 11%, while the average realized price for gold increased
5%, from the same period in 2021. Sales volumes decreased as a
result of lower production due to lower-grade ore processed. The
Company began its phase-two mining with access to the mine’s
high-grade Pearl zone in the second quarter of 2022.
Mine gross profit. For the three
months ended June 30, 2022, we recorded $11.6 million mine gross
profit compared to $13.2 million mine gross profit for the same
period in 2021. The change is primarily attributable to lower
sales, as discussed above.
General and administrative. For
the three months ended June 30, 2022, general and administrative
expenses totaled $1.1 million as compared to $1.2 million for the
same period in 2021. The decrease in 2022 was primarily the result
of costs incurred in 2021 to fully staff the Company post spin-off
as a standalone entity.
Exploration expenses. For the
three months ended June 30, 2022, property exploration expenses
totaled $2.4 million as compared to $1.0 million for the same
period of 2021. 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 June 30, 2022, other expense, net did not
materially change from the same period in 2021.
Income and mining tax expense.
For the three months ended June 30, 2022, income and mining tax
expense was $1.4 million as compared to $2.6 million for the same
period in 2021. The decrease is the result of our lower income
before income and mining taxes and decreased Nevada net proceeds of
minerals tax as a result of decreased metal sales. See
Note
5 to
the Condensed Consolidated
Financial Statements.
Net
income. For the three
months ended June 30, 2022 we
recorded net income of $6.6 million as compared to $8.3 million in
the corresponding period for 2021. The decrease is due to the
changes in our consolidated results of operations as discussed
above.
Consolidated Results of Operations – Six Months Ended June 30,
2022 Compared to Six Months Ended June 30, 2021
Sales,
net.
For the six
months ended June 30, 2022, consolidated sales, net were $39.4 as
compared to $46.6 million for the same period in 2021. The decrease
is attributable to lower sales volumes, partially offset by higher
average sales price. Second quarter 2022 gold sales volumes
decreased 19%, while the average realized price for gold increased
4%, from the same period in 2021. Sales volumes decreased as a
result of lower production due to lower-grade ore processed. Mine
operations in the first quarter focused primarily on waste removal
of the phase one open-pit layback and began its phase-two mining
with access to the mine’s high-grade Pearl zone.
Mine gross profit. For the six
months ended June 30, 2022, we recorded $18.3 million mine gross
profit compared to $24.1 million mine gross profit for the same
period in 2021. The change is primarily attributable to lower
sales, as discussed above.
General and administrative. For
the six months ended June 30, 2022, general and administrative
expenses totaled $2.3 million as compared to $7.3 million for the
same period in 2021. The decrease in 2022 was primarily the result
of costs incurred in 2021 to fully staff the Company post spin-off
as a standalone entity.
Exploration expenses. For the six
months ended June 30, 2022, property exploration expenses totaled
$4.9 million as compared to $2.4 million for the same period of
2021. 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.