Note 5 - Investment in the Peak Gold JV

6 Months Ended

Jun. 30, 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 June 30, 2024 the Company has contributed approximately $102.2 million to the Peak Gold JV. As of June 30, 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 June 30, 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
Investment in Peak Gold, LLC		11,790,000
Loss from equity investment in Peak Gold, LLC		(695,633	)
Investment balance at June 30, 2024	$	54,468,519

The following table presents the condensed unaudited results of operations for the Peak Gold JV for the three and six month periods ended June 30, 2024 and 2023 in accordance with US GAAP:


	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Revenue	$	—	$	—	$	—	$	—
Gross profit		—		—		—		—
Total expenses		2,318,775		4,534,216		2,786,285		5,214,801
NET LOSS	$	2,318,775	$	4,534,216	$	2,786,285	$	5,214,801

The Company’s share of the Peak Gold JV’s results of operations for the three and six months ended June 30, 2024 was a loss of approximately $0.7 million and 0.8 million respectively. The Company’s share in the results of operations for the three and six months ended June 30, 2023 was a loss of approximately $6.7 million and $11.8 million respectively. 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 June 30, 2024, the Company's cumulative investment in the Peak Gold JV exceeded its cumulative losses which allowed the Company to recognize its investment of $54.5 million. As of June 30, 2023, the Company’s share of the Peak Gold JV’s cumulative losses was $44.8 million, which exceeded the Company's cumulative investment in the Peak Gold JV and caused the equity method of accounting to be suspended, which resulted in suspended losses and an investment balance of $0. In such a situation, the portion of cumulative loss that exceeds the investment is suspended and recognized against earnings in the future periods.