Liberty Star Uranium & Metals Corp. Reports Net Income Turnaround to $926,992 for Q3 2024

Liberty Star Uranium & Metals Corp. reported a net income of $926,992 for the three months ended October 31, 2024, a significant turnaround from a net loss of $252,609 during the same period in 2023. For the nine-month period, the company achieved a net income of $2,387,518 compared to a net loss of $574,567 in the prior year. The positive shift in profitability was primarily attributed to a substantial gain of $1,289,458 from changes in the fair value of derivative liabilities, which contrasted with a much smaller gain of $86,112 in the previous year. Despite these gains, the company did not generate any revenue during the reported periods.

In terms of expenses, Liberty Star experienced an increase in geological and geophysical costs, which rose to $42,300 for the three months ended October 31, 2024, down from $112,104 in the same quarter of 2023. Salaries and benefits also saw a slight increase, totaling $56,806, while professional services expenses rose to $46,691. General and administrative expenses surged to $133,693, primarily due to increased stock-based compensation. Overall, net operating expenses for the quarter were $279,490, compared to $251,167 in the prior year.

The company's balance sheet showed total assets of $81,138 as of October 31, 2024, down from $104,099 at the end of January 2024. Current liabilities decreased significantly to $2,014,848 from $3,134,498, largely due to a reduction in derivative liabilities. The stockholders' deficit improved to $(1,966,110) from $(3,062,799) as of January 31, 2024, reflecting the net income generated during the period. Cash and cash equivalents were reported at $27,158, a decrease from $72,099 at the beginning of the fiscal year.

Strategically, Liberty Star has been active in securing financing to support its exploration activities. The company received advances totaling $210,000 from its Chairman, Pete O’Heeron, and entered into several promissory notes with him, totaling $250,000. Additionally, the company has engaged in stock compensation agreements and has plans for further exploration at its Hay Mountain Property, which includes drilling activities aimed at identifying commercially viable mineral deposits. The company is also pursuing an investment agreement with GHS Investments, LLC, which could provide up to $10 million for purchasing shares of common stock over a 24-month period.

Looking ahead, Liberty Star acknowledges the challenges it faces, including the need for additional financing to continue its exploration efforts and the inherent risks associated with mineral exploration. The company has expressed its intention to secure further funding through various means, including equity financing and joint ventures, to support its ongoing projects and operational needs.