Magellan Gold Corporation, recently rebranded as Magellan Copper & Gold Inc., reported significant financial developments in its 10-Q filing for the period ending June 30, 2024. The company’s total assets surged to $526.5 million, a substantial increase from $100.1 million as of December 31, 2023, primarily due to the capitalization of mineral rights and properties, which rose to $522.6 million from $100,000. This increase reflects the company's ongoing acquisition strategy, including a recent purchase agreement with Gold Express Mines, Inc. for mineral assets valued at $422,565.

The company’s financial performance showed a marked increase in net losses, which reached $(204,402) for the six months ended June 30, 2024, compared to $(78,488) for the same period in 2023. This deterioration was attributed to higher operating expenses, which totaled $172.2 million, up from $101.6 million in the prior year, driven by increased professional fees and stock-based compensation. For the three months ended June 30, 2024, the net loss was $(74,137), compared to $(47,567) in the same quarter of 2023.

Operating expenses for the first half of 2024 included general and administrative costs of $172,181, reflecting a rise from $101,565 in 2023. The company also reported a total other expense of $(32,221) for the six months ended June 30, 2024, a significant shift from other income of $23,077 in the previous year, largely due to changes in derivative liability.

Cash flow analysis revealed that net cash used in operating activities increased to $(110,186) from $(54,247) year-over-year. The company ended the reporting period with $3,913 in cash, a notable rise from $99 at the end of December 2023. However, it reported a working capital deficit of $1,937,578, compared to $(1,784,671) at the end of the previous fiscal year.

The company’s capital structure also evolved, with common shares outstanding increasing to 25,412,072 as of June 30, 2024, from 19,577,072 at the end of 2023. Additional paid-in capital rose to $19.8 million, up from $19.3 million. Despite these changes, the accumulated deficit grew to $(21.2 million), raising concerns about the company's ability to continue as a going concern.

Management acknowledged material weaknesses in internal controls over financial reporting, citing a lack of segregation of duties and limited corporate governance. These issues may not be fully addressed until mining operations commence, which would facilitate the hiring of additional staff.