Premium Nickel Resources Ltd. (PNRL) reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company experienced a net loss of $31.1 million for the nine months ended September 30, 2024, an increase of $8.9 million compared to a net loss of $22.2 million for the same period in 2023. This increase is attributed to heightened exploration activities in Botswana, interest expenses from a term loan, and increased share-based payments.
Total assets decreased to $37.3 million as of September 30, 2024, from $38.0 million at the end of 2023. Current assets also saw a decline, falling to $20.7 million from $20.9 million. In contrast, total liabilities rose to $29.6 million, up from $28.2 million, primarily due to an increase in non-current liabilities related to the term loan, which increased from $22.3 million to $24.0 million.
General and administrative expenses for the three months ended September 30, 2024, were $2.3 million, up from $1.9 million in the same period last year. For the nine-month period, these expenses totaled $6.7 million, compared to $6.3 million in 2023. Exploration expenses also increased significantly, with $18.6 million reported for the nine months ended September 30, 2024, compared to $13.3 million in the prior year.
The company’s cash and cash equivalents decreased to $17.4 million from $19.2 million at the end of 2023. However, working capital slightly improved to $15.1 million from $15.0 million. PNRL has no current sources of operating cash flows and is reliant on external financing for its operations and exploration activities.
In terms of strategic developments, PNRL closed two tranches of a private placement in June 2024, raising approximately $27.5 million. The proceeds are earmarked for exploration and development of its mines in Botswana. The company is actively engaged in exploration at its Selebi and Selkirk mines, with ongoing drilling programs aimed at establishing a mineral resource estimate.
As of September 30, 2024, PNRL's total shareholders' equity stood at $7.7 million, down from $9.7 million at the end of 2023. The company continues to assess new properties for acquisition, contingent on geological potential and available financial resources.
About Premium Resources Ltd.
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