Paramount Gold Nevada Corp

Previous wording

We are a company engaged in the business of acquiring, exploring and developing precious metal projects in the United States of America. Paramount owns advanced stage exploration projects in the states of Nevada and Oregon. We enhance the value of our projects by implementing exploration and engineering programs that have the goal to expand and upgrade known mineralized material to reserves. The following discussion updates our outlook and plan of operations for the foreseeable future. It also analyzes our financial condition and summarizes the results of our operations for the three and nine months ended March 31, 2024 and compares these results to the results of the prior year three and nine months ended March 31, 2023.

Current wording

We are a company engaged in the business of acquiring, exploring and developing precious metal projects in the United States of America. Paramount owns advanced stage exploration projects in the states of Nevada and Oregon. We enhance the value of our projects by implementing exploration and engineering programs that have the goal to expand and upgrade known mineralized material to reserves. The following discussion updates our outlook and plan of operations for the foreseeable future. It also analyzes our financial condition and summarizes the results of our operations for the three months ended September 30, 2024 and compares these results to the results of the prior year three months ended September 30, 2023.

Previous wording

For the three and nine months ended March 31, 2024, the Company highlights include:

Current wording

For the three months ended September 30, 2024, the Company highlights include:

Previous wording

Comparison of Operating Results for the nine months ended March 31, 2024 and 2023

Current wording

Comparison of Operating Results for the three months ended September 30, 2024 and 2023

Previous wording

We did not earn any revenue from mining operations for the nine months ended March 31, 2024 and 2023.

Current wording

We did not earn any revenue from mining operations for the three months ended September 30, 2024 and 2023.

Previous wording

Our net loss for three months ended March 31, 2024 was $1,814,045 compared to a net loss of $1,647,760 in the previous three months ended March 31, 2023. The drivers of the increase in net loss of 10% are fully described below.

Current wording

Our net loss for three months ended September 30, 2024 was $1,572,138 compared to a net loss of $2,074,160 in the previous three months ended September 30, 2023. The drivers of the decrease in net loss of 24% are fully described below.

Previous wording

For the three months ended March 31, 2024 and 2023, exploration expenses were $965,938 and $597,315, respectively. This represents an increase of 62% or $368,623. Expenses related to our exploration or development activities are generally not comparable from period to period as activities will vary based on several factors. At Grassy Mountain the Company continued with permitting activities with state and federal permitting agencies. These expenses totaled $604,716. A significant amount of the expenses incurred were related to the State of Oregon completing its environmental evaluation of the proposed gold mine at Grassy Mountain. At Sleeper, the Company completed the conversion of several collection ponds from the previous mining operations to evaporation cells with expenses totaling $361,222. For the three months ended March 31, 2024 and 2023, $1,088,339 and $47,123 of the costs associated with the reclamation work have been reimbursed by an insurance policy and these reimbursements have been recorded as other income on the Statement of Operations, respectively. In the prior year comparable period, the Company focused its efforts on completing permit applications for the Grassy Mountain Project and incurred expenses related to reclamation activities its Sleeper Gold Project.

Current wording

For the three months ended September 30, 2024 and 2023, exploration expenses were $395,298 and $513,097, respectively. This represents an decrease of 23% or $117,799. Expenses related to our exploration or development activities are generally not comparable from period to period as activities will vary based on several factors. At Grassy Mountain, the Company continued with permitting activities with state and federal permitting agencies and these expenses totaled $337,069. A significant amount of the expenses incurred were related to the State of Oregon completing its environmental evaluation of the proposed gold mine at Grassy Mountain. At Sleeper, expense of $58,229 were related to general maintenance of operations and mining claims.

Previous wording

For the three month period ended March 31, 2024 and 2023, salary and benefits were $675,952 and $393,219, respectively. This represents an increase of 72%. Salary and benefits are comprised of cash and equity based compensation of the Company’s executive and corporate administration teams. The increase primarily reflects annual bonuses for 2023 paid to employees in the three month period ended March 31, 2024 compared to the three month period ended March 31, 2023. Included in the salary and benefits expense amount for the three months ended March 31, 2024 and 2023 was non-cash equity based compensation of $65,134 and $72,490, respectively.

Current wording

For the three month period ended September 30, 2024 and 2023, salary and benefits were $288,480 and $279,596, respectively. This represents an increase of 3%. Salary and benefits are comprised of cash and equity based compensation of the Company’s executive and corporate administration teams. The increase primarily reflects increases to base salaries paid to employees in the three month period ended September 30, 2024 compared to the three month period ended September 30, 2023. Included in the salary and benefits expense amount for the three months ended September 30, 2024 and 2023 was non-cash equity based compensation of $47,830 and $63,254, respectively.

Previous wording

For the three month period ended March 31, 2024 and 2023, directors’ compensation expenses were $90,076 and $55,366, respectively. This represents an increase of 63%. Directors’ compensation consists of cash and stock-based compensation of the Company’s board of directors. The increase reflects higher equity based compensation recorded in the current quarter compared to the prior year’s comparable period.

Current wording

For the three month period ended September 30, 2024 and 2023, directors’ compensation expenses were $51,530 and $29,033, respectively. This represents an increase of 77%. Directors’ compensation consists of cash and stock-based compensation of the Company’s board of directors. The increase reflects higher equity based compensation recorded in the current quarter compared to the prior year’s comparable period.

Previous wording

For the three months ended March 31, 2024 and 2023, professional fees were $52,156 and $12,919, respectively. This represents an increase of $39,237. The increase was mainly due to in one-time consulting fees and legal fees incurred in the period. Professional fees include legal, audit, advisory and consultant expenses incurred on corporate and operational activities being performed by the Company on a period-by-period basis.

Current wording

For the three months ended September 30, 2024 and 2023, professional fees were $171,997 and $55,252, respectively. This represents an increase of $116,745. The increase was mainly due to consulting fees and legal fees incurred in the current period that were not incurred in the previous year comparable period. Professional fees include legal, audit, advisory and consultant expenses incurred on corporate and operational activities being performed by the Company on a period-by-period basis.

Previous wording

For the three months ended March 31, 2024 and 2023, general and administration expenses decreased by 39% to $148,306 from $242,858. The decrease in general and administration expenses from the previous year’s comparable period was mainly due to lower insurance and travel costs.

Current wording

For the three months ended September 30, 2024 and 2023, general and administration expenses increased by 38% to $188,313 from $136,283. The increase in general and administration expenses from the previous year’s comparable period was mainly due to higher insurance, marketing and travel costs.

Previous wording

As an exploration and development company, Paramount funds its operations, reclamation activities and discretionary exploration programs with its cash on hand. At March 31, 2024, we had cash and cash equivalents of $7,012,365 compared to $824,920 as at June 30, 2023. We had working capital of approximately $4,245,018. Our plans to manage our liquidity position is described below under Going Concern and Capital Resources.

Current wording

As an exploration and development company, Paramount funds its operations, reclamation activities and discretionary exploration programs with its cash on hand. At September 30, 2024, we had cash and cash equivalents of $4,293,941 compared to $5,423,059 as at June 30, 2024. We had working capital of approximately $4,838,147. Our plans to manage our liquidity position is described below under Going Concern and Capital Resources.

Previous wording

In May 2020, the Company established an $8.0 million “at the market” equity offering program with Cantor Fitzgerald & Co. ("Cantor") and Canaccord Genuity LLC to proactively increase its financial flexibility. In March 2024, the Company established a new $3.1 million "at the market" offering program with Cantor and A.G.P./Alliance Global Partners. During the nine months ended March 31, 2024, the Company issued 4,261,515 shares under the program for net proceeds of $1,167,893. Subsequent to the period ended March 31, 2024, the Company sold 1,727,026 shares under the program for gross proceeds of $719,351.

Current wording

In May 2020, the Company established an $8.0 million “at the market” equity offering program with Cantor Fitzgerald & Co. ("Cantor") and Canaccord Genuity LLC to proactively increase its financial flexibility. In May 2024, the Company established a new $7 million "at the market" offering program with Cantor and A.G.P./Alliance Global Partners. During the three months ended September 30, 2024, the Company issued 114,918 shares under the program for net proceeds of $46,358.

Previous wording

The main uses of cash for the nine months ended March 31, 2024 were:

Current wording

The main uses of cash for the three months ended September 30, 2024 were:

Previous wording

Cash used in operating activities of $3,064,814 were mainly used to fund our permitting and exploration activities at our projects, salary and benefits costs of our employees and ongoing general and administration costs.

Current wording

Cash used in operating activities of $1,167,455 were mainly used to fund our permitting and exploration activities at our projects, salary and benefits costs of our employees and ongoing general and administration costs.

Previous wording

In addition to cash used in operating and investing activities, the Company received cash during the nine months ended March 31, 2024 as follows:

Current wording

In addition to cash used in operating and investing activities, the Company received cash during the three months ended September 30, 2024 as follows:

Previous wording

Cash provided by financing activities of $9,352,259 which included sales under the ATM program, proceeds from the issuance of the Debenture to Sprott which were offset by the repayment of the 2019 convertible notes and Seabridge Loan.

Current wording

Cash provided by financing activities of $46,358 from sales under the ATM program.

Previous wording

The Consolidated Financial Statements of the Company have been prepared on a “going concern” basis, which means that the continuation of the Company is presumed even though events and conditions exist that, when considered in aggregate, raise substantial doubt about the Company’s ability to continue as a going concern because it is possible that the Company will be required to adversely change its current business plan or may be unable to meet its obligations as they become due within one year after the date that these financial statements were issued.

Current wording

The Condensed Consolidated Financial Statements of the Company have been prepared on a “going concern” basis, which means that the continuation of the Company is presumed even though events and conditions exist that, when considered in aggregate, raise substantial doubt about the Company’s ability to continue as a going concern because it is possible that the Company will be required to adversely change its current business plan or may be unable to meet its obligations as they become due within one year after the date that these financial statements were issued.

Previous wording

$4.0 million on corporate, land claim maintenance and general expenses

Current wording

$3.9 million on corporate, land claim maintenance and general expenses

Previous wording

Historically, we have been successful in accessing capital through equity and debt financing arrangements or by the sale of royalties on its mineral properties, no assurance can be given that additional financing will be available to it in amounts sufficient to meet its needs, or on terms acceptable to the Company. In the event that we are unable to obtain additional capital or financing, our operations, exploration and development activities will be significantly adversely affected. The continuation of the Company as a going concern is dependent on having sufficient capital to maintain our operations. In considering our financing plans, our current working capital position and our ability to reduce operating expenses the Company believes there is substantial doubt about its ability to continue as a going concern twelve months after the date that our financial statements are issued.

Current wording

Historically, we have been successful in accessing capital through equity and debt financing arrangements or by the sale of royalties on our mineral properties, no assurance can be given that additional financing will be available to it in amounts sufficient to meet its needs, or on terms acceptable to the Company. In the event that we are unable to obtain additional capital or financing, our operations, exploration and development activities will be significantly adversely affected. The continuation of the Company as a going concern is dependent on having sufficient capital to maintain our operations. In considering our financing plans, our current working capital position and our ability to reduce operating expenses the Company believes there is substantial doubt about its ability to continue as a going concern twelve months after the date that our financial statements are issued.