Thu, May 15, 3:11 PM (34 days ago)
### Magellan Copper & Gold Corp. (MAGG) Q1 2025 Financial Summary **Company Overview:** Magellan Copper & Gold Corp. (MAGG) is a Nevada-based company focused on the acquisition and exploration of mineral resources. The company has not yet determined the economic recoverability of its mineral properties and relies heavily on equity financing and loans from significant shareholders to fund operations. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** MAGG reported no significant revenue for both periods. - **Operating Expenses:** Operating expenses decreased to $58,036,000 in Q1 2025 from $100,364,000 in Q1 2024, primarily due to reduced stock-based compensation. - **Net Loss:** Net loss increased to $184,140,000 in Q1 2025 from $130,265,000 in Q1 2024, driven by higher other expenses, including interest expense, loss on conversion of debt, and changes in derivative liability. - **Cash Flow:** Net cash used in operating activities was $21,708,000 in Q1 2025, compared to $73,917,000 in Q1 2024. Financing activities provided $26,610,000 in Q1 2025, primarily from the sale of common stock. **Financial Health:** - **Cash Position:** Cash increased to $5,798,000 at the end of Q1 2025 from $896,000 at the end of 2024. - **Working Capital Deficit:** The working capital deficit was $1,966,821,000 in Q1 2025, slightly improved from $1,981,883,000 in Q1 2024. - **Liabilities:** Total liabilities remained relatively stable at $1,972,619,000 in Q1 2025 compared to $1,982,779,000 in Q1 2024. **Key Metrics:** - **Profit Margins:** MAGG operates at a significant loss, with no positive profit margins reported. - **Earnings Changes:** The increase in net loss is primarily due to higher other expenses, including interest and derivative liabilities. **Trends and Uncertainties:** - **Operational Focus:** MAGG is focusing on advancing the Cable Project and the Copper Butte Project towards resource definition and development. - **Capital Constraints:** The company faces severe capital constraints, relying on equity financing and loans from significant shareholders. - **Future Operations:** Plans for existing and future projects are subject to the availability of capital on reasonable terms. **Future Outlook:** - **Funding:** MAGG anticipates continued reliance on equity financing and loans from officers, directors, or significant shareholders. - **Risk Factors:** The company faces substantial doubt about its ability to continue as a going concern, given its accumulated losses and lack of revenue. **Conclusion:** Magellan Copper & Gold Corp. continues to face significant financial challenges, with increasing net losses and reliance on external financing. The company's ability to advance its projects and achieve profitability will depend on securing additional capital and successfully developing its mineral properties.