Idaho Strategic Resources, Inc. (IDR) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Idaho Strategic Resources, Inc. is a gold producer and critical minerals exploration company operating primarily in Idaho. Key assets include the producing Golden Chest Mine and a majority interest in the New Jersey Mill Joint Venture. The company is also advancing Rare Earth Element (REE) exploration projects.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $14,482,286 | $7,278,536 |
| Gross Profit | $9,564,898 | $3,698,086 |
| Operating Income | $7,582,160 | $1,401,254 |
| Net Income (Attributable to IDR) | $6,387,992 | $1,608,979 |
| Diluted EPS | $0.40 | $0.12 |
| Cash & Equivalents (End of Period) | $20,791,904 | $1,306,124 |
| Total Debt (Notes Payable) | $2,023,500 | $2,331,384 |
| Working Capital | $50,311,812 | N/A |
Non-GAAP Metrics: Cash cost per ounce was $1,190.33 (vs. $846.22 in Q1 2025). All-In Sustaining Cost (AISC) per ounce was $1,868.07 (vs. $1,419.05 in Q1 2025).
Material Changes vs. Prior Period
- Revenue Surge: Revenue increased 99% year-over-year, driven primarily by a 65% increase in the average realized gold price ($4,702/oz vs. $2,849/oz) and a 13% increase in ounces produced (3,234 oz vs. 2,900 oz).
- Profitability: Gross margin expanded from 50.8% to 66.1%. Net income increased 298% due to higher gold prices and production volumes.
- Liquidity: Cash and cash equivalents more than doubled to $20.8 million, supported by strong operating cash flow of $8.8 million and equity issuance proceeds of $1.98 million.
- Investment Portfolio Shift: The company liquidated all equity securities and mutual fund investments during the quarter, realizing a loss of $304,241, and reinvested proceeds into US Treasury notes.
- Tax Provision: The company recognized a $1.36 million income tax provision in Q1 2026, compared to $0 in Q1 2025, as it moved past its cumulative loss position.
Outlook, Commentary, and Risks
- Management Commentary: Management highlights successful production growth at the Golden Chest Mine and the delivery of long-lead items for a new mill. The company is actively exploring REE properties to diversify into critical minerals.
- Capital Allocation: The company is reinvesting cash flow into sustaining capital, exploration, and the new mill. Subsequent to quarter-end, approximately $8 million was invested in US Treasury notes.
- Risks & Contingencies:
- Price Volatility: Revenue is sensitive to gold prices; 717 ounces of concentrate sold remain exposed to price changes until final settlement.
- Asset Retirement Obligations: Estimated future reclamation costs are based on management estimates and may differ upon cessation of operations.
- Concentration Risk: Gold concentrate sales are made to a single broker (H&H Metals Corp.).
- Guidance: No specific numerical guidance was provided for the full year, though management expects an effective tax rate of approximately 17.48% for 2026.
Investor Verification Checklist
- Verify the final settlement price for the 717 ounces of gold concentrate currently exposed to market fluctuations.
- Confirm the timeline and capital requirements for the new mill construction at the Golden Chest Mine.
- Review the technical report for the Golden Chest Mine to validate reserve estimates used for amortization calculations.
- Monitor the progress of REE exploration programs at Mineral Hill and Lemhi Pass to assess diversification potential.
- Track the utilization of the $20.8 million cash balance against the stated plan for sustaining capital and exploration.