Magellan Gold Corp Reports $769,810 Net Loss for Fiscal Year 2024

Magellan Gold Corp has reported its financial performance for the fiscal year ending December 31, 2024, revealing a net loss of $769,810, a decrease from the previous year's loss of $1,464,036. The company's total operating expenses for 2024 were $742,503, down from $1,424,336 in 2023, primarily due to a significant reduction in impairment expenses, which fell from $1,194,274 to $422,565. The decrease in operating expenses reflects a strategic shift in the company's focus and operational efficiency, although the company continues to face challenges in generating revenue, as it has not yet achieved profitable operations.

In terms of strategic developments, Magellan Gold Corp has made several acquisitions and agreements to expand its mineral exploration portfolio. Notably, the company entered into an asset purchase agreement with Gold Express Mines, Inc. in January 2023, acquiring multiple mining claims for a total purchase price of $1 million, paid in shares. Additionally, the company has engaged in a memorandum of understanding with Gold Express to earn a 50% working interest in the Kris Project, which involves a commitment to invest $400,000 over the next three years, contingent on obtaining necessary permits.

Operationally, the company has not reported any significant increases in customer counts or user statistics, as it remains in the exploration stage without established mineral reserves. The company’s employee headcount has not been disclosed, but it is noted that the current operational structure limits the segregation of duties, which has been identified as a material weakness in internal controls. The company has also recorded impairment expenses related to its mineral rights and properties, indicating challenges in asset valuation and development.

Looking ahead, Magellan Gold Corp's management has expressed uncertainty regarding its ability to continue as a going concern, primarily due to ongoing operating losses and a working capital deficit of $1,981,883 as of December 31, 2024. The company anticipates needing additional financing to support its operations and development plans, which may include loans from related parties or equity financing. The management's forward-looking statements highlight the potential for future exploration success, but they also acknowledge the inherent risks and uncertainties associated with mineral exploration and the need for substantial capital investment to achieve operational viability.