Solitario Resources Corp. (XPL, Financial) filed Amended Quarterly Report for the period ended 2008-09-30.
Solitario is a gold silver platinum-palladium and base metal exploration company actively exploring in Brazil Mexico and Peru. Solitario has significant business relationships with Anglo Platinum Newmont Mining and Votorantim Metais. Solitario has approximately US$24 million in cash and marketable securities and no debt. Solitario is traded on the American Stock Exchange (AMEX: XPL) and on the Toronto Stock Exchange (TSX: SLR). Solitario Resources Corp. has a market cap of $42.54 million; its shares were traded at around $1.18 with and P/S ratio of 425.4.
during the three months ended September 30, 2008 compared to the same period of 2007 discussed below. As a result of Anglo Platinum earning 15% of PBM during 2007, Anglo Platinum is now directly funding Pedra Branca exploration activities through capital contributions to PBM. PBM gross exploration, which amounted to $586,000 during the three months ended September 30, 2008, is consolidated into our net exploration expense. During the three months ended September 30, 2007, previous to Anglo Platinum earning their 15% of PBM, Anglo reimbursed exploration costs to us, which was netted against our gross exploration expense. During the three months ended September 30, 2008, exploration expenses of $28,000, for our management fees, were offset by joint venture reimbursements by Anglo Platinum on our Pedra Branca project. Pursuant to the Shareholders Agreement, we anticipate Anglo will meet its funding requirements to earn an additional 15% of PBM, to a total of 30%, by December, 31, 2008. During the three months ended September 30, 2007, gross exploration expenses of $456,000, including management fees, were reimbursed by Anglo Platinum, resulting in a net credit to exploration expense. During the three months ended September 30, 2008 we recorded exploration costs of $305,000 related to our newly acquired Chonta, Cajatambo and Twin Lakes projects in Peru and $111,000 related to our newly acquired La Purica and Paria Cruz properties in Mexico. We reduced our exploration expenditures during the three months ended September 30, 2008 on our Mercurio Project in Brazil to $35,000 compared to $228,000 in the three months ended September 30, 2007 when we were conducting a drilling program at Mercurio. We completely eliminated our exploration expenditures on our Titicayo and Triunfo Projects in Bolivia during the three months ended September 30, 2008 compared to exploration expenditures of $155,000 related to drilling programs during the same period of 2007. We continued to perform sampling and exploration in our Alliance Project Areas, discussed below under "Joint Ventures, royalty and the Strategic Alliance Properties," as well as reconnaissance efforts to add new prospects and ongoing geologic work to evaluate and advance our existing exploration properties and targets. As a result of some of this effort we added the Espanola Project in Bolivia during the three months ended September 30, 2008. We anticipate continuing to acquire mineral properties, either through staking, joint venture or lease, in Latin America during 2008 and have budgeted our related net exploration expenditure to be approximately $4,300,000 for the entire year of 2008. The primary factor in our decision to increase exploration expenditures in 2008 related to an increase in commodity prices during 2006 and 2007, which has allowed us to increase our existing and potential projects upon which to explore. We are currently evaluating our exploration budgets and plans for 2009, which will take into consideration the recent declines in commodity prices during the second half of 2008 and the potential for future changes in commodity prices.
General and administrative costs were a benefit of $792,000 during the three months ended September 30, 2008 compared to an expense of $1,191,000 in the three months ended September 30, 2007. The decrease in cost was primarily related to the recognition of a stock option compensation expense benefit in the third quarter of 2008 of $1,377,000 compared to an expense of $722,000 in the third quarter of 2007. This decrease in costs was partially offset by increases in other general and administrative costs including an increase in salary expense to $292,000 in the third quarter of 2008 compared to $214,000 in the third quarter of 2007; a loss in currency exchange during the three months ended September 30, 2008 of $42,000 compared to a loss of $17,000 during the same period of 2007; and an increase in certain shareholder and regulatory costs to $52,000 during the three months ended September 30, 2008 compared to $32,000 during the same period of 2007. The remaining general and administrative costs were comparable between the third quarter of 2008 and the third quarter of 2007.
We had net income of $271,000 or $0.01 per share for the nine months ended September 30, 2008 compared to a loss of $2,056,000 or $0.07 per share for the nine months ended September 30, 2007. The primary reasons for the income in the nine months ended September 30, 2008 compared to the loss in the same period of 2007 were (i) the sale of 192,920 shares of Kinross stock for proceeds of $4,430,000 and a gain on sale of $3,576,000 in the nine months ended September 30, 2008 compared to the sale of 300,000 shares of Kinross for proceeds of $3,977,000 and a gain on sale of $2,957,000 during the nine months ended September 30, 2007; (ii) we recorded an unrealized gain on derivative instruments of $1,966,000 during the nine months ended September 30, 2008 and there was no similar item during the same period of 2007; and (iii) our general and administrative expense decreased to $431,000 during the nine months ended September 30, 2008, compared to $2,835,000 in the same period of 2007. We also received a joint venture payment of $200,000 on our Bongará project, discussed above, during the nine months ended September 30, 2008 compared to a joint venture payment of $100,000 during the nine months ended September 30, 2007. These increases were partially mitigated by increases in our exploration expenditures and an increase in our deferred tax expense to $2,004,000 during the nine months ended September 30, 2008 compared to $369,000 during the nine months ended September 30, 2007. These items are discussed in more detail below.
Excluding the benefit of $1,360,000 and the expense of $1,339,000, respectively, of stock-option compensation expense during the nine months ended September 30, 2008 and 2007 discussed below, other general and administrative costs were $1,791,000 during the first nine months of 2008 compared to $1,496,000 in the same period of 2007. Salary and benefits expense increased to $899,000 during the nine months ended September 30, 2008 compared to $730,000 during the same period of 2007. The increase included salary increases granted during 2007 being effective for the entire year of 2008 and the addition of personnel in our Wheat Ridge, Colorado offices. Office and insurance expense increased to $154,000 in the first nine months of 2008 compared to $131,000 during the same period 2007. Legal and accounting costs increased to $221,000 in the first nine months of 2008 compared to $169,000 in the first nine months of 2007. Our travel and shareholder services expenses also increased to $346,000 during the nine months ended September 30, 2008 compared to $281,000 in the same period of 2007. Partially mitigating these increased costs were reductions for employment agency fees which were $30,000 in 2007, and there was no simiRead the The complete Report
Solitario is a gold silver platinum-palladium and base metal exploration company actively exploring in Brazil Mexico and Peru. Solitario has significant business relationships with Anglo Platinum Newmont Mining and Votorantim Metais. Solitario has approximately US$24 million in cash and marketable securities and no debt. Solitario is traded on the American Stock Exchange (AMEX: XPL) and on the Toronto Stock Exchange (TSX: SLR). Solitario Resources Corp. has a market cap of $42.54 million; its shares were traded at around $1.18 with and P/S ratio of 425.4.
Highlight of Business Operations:
We had net income of $3,193,000 or $0.11 per share for the three months ended September 30, 2008 compared to a loss of $1,135,000 or $0.04 per share for the three months ended September 30, 2007. As explained in more detail below, the reason we recorded net income for the three months ended September 30, 2008 compared to the loss in the same period of 2007 primarily related the following items: (i) We recorded an unrealized gain of $4,697,000 on our Kinross Collar during the three months ended September 30, 2008 and there was no similar item during the three months ended September 30, 2007; (ii) our general and administrative expense decreased to a benefit of $792,000 during the three months ended September 30, 2008 compared to an expense of $1,191,000 in the three months ended September 30, 2007, which included the recognition of a stock-option compensation expense benefit of $1,377,000 during the three months ended September 30, 2008, compared to $722,000 in stock-option compensation expense during the three months ended September 30, 2007; (iii) an increase in other income related to interest and dividend income of $63,000 during the three months ended September 30, 2008 compared to $22,000 during the three months ended September 30, 2007; (iv) an increase in the gain on sale of marketable equity securities during 2008 to $993,000 during the three months ended September 30, 2008 as a result of the sale of 50,000 shares of Kinross stock, compared to a gain of $889,000 during the same period of 2007 from the sale of 100,000 shares of Kinross stock, primarily as a result of the higher price per share for the sale of shares during 2008 compared to 2007; and the recognition of $200,000 in joint venture and property payments in the three months ended September 30, 2008 on our Bongará project from Votorantim compared to $100,000 in joint venture and property payments during the same period of 2007. These items were partially mitigated by an increase in (i) our exploration expense to $1,265,000 during the three months ended September 30, 2008 compared to $846,000 during the three months ended September 30, 2007; and (ii) an increase in our deferred tax expense to $2,347,000 during the three months ended September 30, 2008 compared to deferred tax expense of $83,000 during the three months ended September 30, 2007. In calculating our United States pre-tax loss to determine tax expense or benefit we provide a valuation allowance to exclude our foreign exploration expenses. The increase in deferred tax expense primarily relates to the increase in the unrealized gain on our derivative instrument discussed above. In calculating income tax expense, we provide a valuation allowance for any accumulated losses incurred in jurisdictions outside of the United States and do not provide an income tax benefit during the year for those losses. Each of these items is discussed in more detail below.during the three months ended September 30, 2008 compared to the same period of 2007 discussed below. As a result of Anglo Platinum earning 15% of PBM during 2007, Anglo Platinum is now directly funding Pedra Branca exploration activities through capital contributions to PBM. PBM gross exploration, which amounted to $586,000 during the three months ended September 30, 2008, is consolidated into our net exploration expense. During the three months ended September 30, 2007, previous to Anglo Platinum earning their 15% of PBM, Anglo reimbursed exploration costs to us, which was netted against our gross exploration expense. During the three months ended September 30, 2008, exploration expenses of $28,000, for our management fees, were offset by joint venture reimbursements by Anglo Platinum on our Pedra Branca project. Pursuant to the Shareholders Agreement, we anticipate Anglo will meet its funding requirements to earn an additional 15% of PBM, to a total of 30%, by December, 31, 2008. During the three months ended September 30, 2007, gross exploration expenses of $456,000, including management fees, were reimbursed by Anglo Platinum, resulting in a net credit to exploration expense. During the three months ended September 30, 2008 we recorded exploration costs of $305,000 related to our newly acquired Chonta, Cajatambo and Twin Lakes projects in Peru and $111,000 related to our newly acquired La Purica and Paria Cruz properties in Mexico. We reduced our exploration expenditures during the three months ended September 30, 2008 on our Mercurio Project in Brazil to $35,000 compared to $228,000 in the three months ended September 30, 2007 when we were conducting a drilling program at Mercurio. We completely eliminated our exploration expenditures on our Titicayo and Triunfo Projects in Bolivia during the three months ended September 30, 2008 compared to exploration expenditures of $155,000 related to drilling programs during the same period of 2007. We continued to perform sampling and exploration in our Alliance Project Areas, discussed below under "Joint Ventures, royalty and the Strategic Alliance Properties," as well as reconnaissance efforts to add new prospects and ongoing geologic work to evaluate and advance our existing exploration properties and targets. As a result of some of this effort we added the Espanola Project in Bolivia during the three months ended September 30, 2008. We anticipate continuing to acquire mineral properties, either through staking, joint venture or lease, in Latin America during 2008 and have budgeted our related net exploration expenditure to be approximately $4,300,000 for the entire year of 2008. The primary factor in our decision to increase exploration expenditures in 2008 related to an increase in commodity prices during 2006 and 2007, which has allowed us to increase our existing and potential projects upon which to explore. We are currently evaluating our exploration budgets and plans for 2009, which will take into consideration the recent declines in commodity prices during the second half of 2008 and the potential for future changes in commodity prices.
General and administrative costs were a benefit of $792,000 during the three months ended September 30, 2008 compared to an expense of $1,191,000 in the three months ended September 30, 2007. The decrease in cost was primarily related to the recognition of a stock option compensation expense benefit in the third quarter of 2008 of $1,377,000 compared to an expense of $722,000 in the third quarter of 2007. This decrease in costs was partially offset by increases in other general and administrative costs including an increase in salary expense to $292,000 in the third quarter of 2008 compared to $214,000 in the third quarter of 2007; a loss in currency exchange during the three months ended September 30, 2008 of $42,000 compared to a loss of $17,000 during the same period of 2007; and an increase in certain shareholder and regulatory costs to $52,000 during the three months ended September 30, 2008 compared to $32,000 during the same period of 2007. The remaining general and administrative costs were comparable between the third quarter of 2008 and the third quarter of 2007.
We had net income of $271,000 or $0.01 per share for the nine months ended September 30, 2008 compared to a loss of $2,056,000 or $0.07 per share for the nine months ended September 30, 2007. The primary reasons for the income in the nine months ended September 30, 2008 compared to the loss in the same period of 2007 were (i) the sale of 192,920 shares of Kinross stock for proceeds of $4,430,000 and a gain on sale of $3,576,000 in the nine months ended September 30, 2008 compared to the sale of 300,000 shares of Kinross for proceeds of $3,977,000 and a gain on sale of $2,957,000 during the nine months ended September 30, 2007; (ii) we recorded an unrealized gain on derivative instruments of $1,966,000 during the nine months ended September 30, 2008 and there was no similar item during the same period of 2007; and (iii) our general and administrative expense decreased to $431,000 during the nine months ended September 30, 2008, compared to $2,835,000 in the same period of 2007. We also received a joint venture payment of $200,000 on our Bongará project, discussed above, during the nine months ended September 30, 2008 compared to a joint venture payment of $100,000 during the nine months ended September 30, 2007. These increases were partially mitigated by increases in our exploration expenditures and an increase in our deferred tax expense to $2,004,000 during the nine months ended September 30, 2008 compared to $369,000 during the nine months ended September 30, 2007. These items are discussed in more detail below.
Excluding the benefit of $1,360,000 and the expense of $1,339,000, respectively, of stock-option compensation expense during the nine months ended September 30, 2008 and 2007 discussed below, other general and administrative costs were $1,791,000 during the first nine months of 2008 compared to $1,496,000 in the same period of 2007. Salary and benefits expense increased to $899,000 during the nine months ended September 30, 2008 compared to $730,000 during the same period of 2007. The increase included salary increases granted during 2007 being effective for the entire year of 2008 and the addition of personnel in our Wheat Ridge, Colorado offices. Office and insurance expense increased to $154,000 in the first nine months of 2008 compared to $131,000 during the same period 2007. Legal and accounting costs increased to $221,000 in the first nine months of 2008 compared to $169,000 in the first nine months of 2007. Our travel and shareholder services expenses also increased to $346,000 during the nine months ended September 30, 2008 compared to $281,000 in the same period of 2007. Partially mitigating these increased costs were reductions for employment agency fees which were $30,000 in 2007, and there was no simiRead the The complete Report
