Idaho Strategic Resources Reports 23.4% Revenue Growth in Q1 2025, Net Income Declines

Idaho Strategic Resources, Inc. reported a revenue increase of 23.4% for the first quarter of 2025, totaling $7.3 million compared to $5.9 million in the same period last year. This growth was primarily driven by a higher average gold price realized on ounces sold, which rose from $1,968.28 in Q1 2024 to $2,848.74 in Q1 2025. Despite the revenue growth, the company experienced a decline in net income, which fell to $1.6 million from $2.2 million year-over-year, attributed to increased exploration expenses and stock-based compensation costs.

The company's operating income also decreased to $1.4 million from $2.1 million in the prior year, reflecting a significant rise in exploration expenses, which surged to $1.4 million from $267,848 in Q1 2024. The increase in exploration spending is part of Idaho Strategic's strategy to enhance its gold production and advance its rare earth element (REE) exploration initiatives. The company processed 11,337 dry metric tonnes at its New Jersey Mill during the quarter, achieving a gold recovery rate of 91.7%.

Idaho Strategic's total assets increased to $48.1 million as of March 31, 2025, up from $44 million at the end of 2024. The company’s cash and cash equivalents also rose to $1.3 million, compared to $1.1 million at the end of the previous year. However, total liabilities increased significantly to $5.6 million from $3.6 million, primarily due to a rise in notes payable. The company’s stockholders' equity improved to $42.5 million, reflecting a positive trend in its financial position.

Operationally, the company has made significant progress in its REE exploration plans and has continued to develop its existing gold properties. During the first quarter, Idaho Strategic completed 4,230 meters of drilling across various targets, including the Paymaster and Jumbo areas. The construction of a new tailings filtration circuit at the New Jersey Mill is also nearing completion, with commissioning expected in the second quarter of 2025. The company aims to leverage its operational expertise to build a portfolio of producing mines while maintaining a focus on cost management.

Looking ahead, Idaho Strategic Resources plans to continue investing in exploration and development activities to enhance its production capabilities and expand its asset base. The company remains optimistic about the demand for critical minerals and aims to capitalize on its first-mover advantage in the REE sector. Management believes that cash flows from operations, along with existing cash reserves, will be sufficient to support planned operations and meet contractual obligations over the next 12 months.