Note 5 - Investment in the Peak Gold JV

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures Disclosure [Text Block]

5. Investment in the Peak Gold JV

The Company initially recorded its investment at the historical book value of the assets contributed to the Peak Gold JV, which was approximately $1.4 million. As of March 31, 2024 the Company has contributed approximately $90.4 million to the Peak Gold JV. As of March 31, 2024 the Company held a 30.0% membership interest in the Peak Gold JV.

The following table is a roll-forward of the Company’s investment in the Peak Gold JV as of March 31, 2024:


	Investment
	in Peak Gold, LLC
Investment balance at June 30, 2023	$	—
Investment in Peak Gold, LLC		34,380,000
Loss from equity investment in Peak Gold, LLC		(6,315,595	)
Investment balance at December 31, 2023	$	28,064,405
Investment in Peak Gold, LLC		15,450,000
Loss from equity investment in Peak Gold, LLC		(140,253	)
Investment balance at March 31, 2024	$	43,374,152

The following table presents the condensed unaudited results of operations for the Peak Gold JV for the three-month periods ended March 31, 2024 and 2023 in accordance with US GAAP:


	Three Months Ended		Three Months Ended
	March 30, 2024		March 31, 2023
EXPENSES:
Exploration expense	$	49,228	$	645,992
Production		271,259		—
Accretion		147,023		—
General and administrative		—		34,593
Total expenses		467,510		680,585
NET LOSS	$	467,510	$	680,585

The Company’s share of the Peak Gold JV’s results of operations for the three months ended March 31, 2024 was a loss of approximately $0.1 million. The Company’s share in the results of operations for the three months ended March 31, 2023 was a loss of approximately $0.2 million. The Peak Gold JV loss does not include any provisions related to income taxes as the Peak Gold JV is treated as a partnership for income tax purposes. As of March 31, 2024, the Company's cumulative investment in the Peak Gold JV exceeded its cumulative losses; therefore the Company's investment in the Peak Gold JV as at March 31, 2024 was $43.4 million. For March 31, 2023, the Company’s share of the Peak Gold JV’s inception-to-date results of operations was a cumulative loss of $43.4 million, which exceeded the Company's cumulative investment in the Peak Gold JV and the equity method of accounting was suspended, which resulted in suspended losses and an investment balance of $0. The portion of the cumulative loss that exceeded the Company's investment was suspended and recognized against earnings in the future periods.