Minerva Gold Reports Net Losses, Cash Outflow, and Doubt Over Going Concern in Latest Quarter

Minerva Gold Inc., a junior mineral exploration company focused on precious metals in Kazakhstan, reported its financial results for the three and six months ended August 31, 2024. The company experienced a net loss of $4.982 million for the three-month period, compared to a net loss of $3.555 million for the same period in 2023. For the six months ended August 31, 2024, the net loss was $18.380 million, an increase from a net loss of $15.148 million in the prior year.

General and administrative expenses rose to $4.982 million for the three months ended August 31, 2024, up from $3.555 million in the same period of 2023. For the six-month period, these expenses totaled $18.380 million, compared to $15.148 million in the previous year. The increase in expenses contributed to the higher net losses reported.

The company reported net cash used by operating activities of $18.322 million for the six months ended August 31, 2024, compared to $15.233 million for the same period in 2023. This cash outflow was primarily driven by the net loss and depreciation expenses. In contrast, financing activities provided $18.322 million in the current period, significantly higher than the $433 reported in the previous year, primarily due to a loan from a related party.

As of August 31, 2024, Minerva Gold had no cash and cash equivalents, a decrease from $14.800 million at the beginning of the previous fiscal period. The company’s total assets were reported at $0, down from $58 as of February 29, 2024, while total liabilities increased to $52.032 million from $33.710 million during the same timeframe. Consequently, stockholders’ equity reflected a negative $52.032 million, worsening from negative $33.652 million.

The company has not established a consistent revenue source to cover its operating costs and has accumulated losses of $88.432 million since its inception in February 2021. Management has expressed substantial doubt regarding the company's ability to continue as a going concern within the next year, emphasizing the need for additional capital resources through funding from management, significant shareholders, and potential third-party financing.

Minerva Gold's strategic developments included the termination of a Mineral Property Option Agreement for the Arsy deposit due to unmet obligations. The company plans to secure additional capital to meet its long-term operating requirements, potentially through equity or debt financing, while anticipating increased operating expenses and capital expenditures in the future.