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Exploration and evaluation
Exploration and evaluation costs were $5,070 for the year ended December 31, 2015, compared with
$8,558 for the same period in 2014. The decrease of $3,488 from the prior period was mostly the result of reduced
(1) engineering and development expenses of $1,167, (2) metallurgical testing costs of $807, (3) environmental,
health and safety costs of $761, (4) site administrative costs of $528, and (5) drilling program costs of $225.
Corporate administration
Corporate administration costs decreased to $4,042 for year ended December 31, 2015, compared with
$4,946 for the same period in 2014, a decrease of $904. The decrease from the prior period was due to a decrease in
stock-based compensation expense as well as the Company’s continual focus on containing costs. The decrease in
stock-based compensation expense of $263 was primarily the result of historically declining share prices, which
determine the strike price of the grant and are a significant driver of the expense to be incurred (as measured on the
grant date).
Non-operating income and expenses
Interest income
Interest income decreased to $28 for the year ended December 31, 2015, compared with $76 for the same
period in 2014. The decrease in interest income from the prior period is attributable to lesser average cash balances
held in interest bearing accounts during 2015 when compared with the prior year.
Gain/(loss) on currency translation
We report our financial statements in U.S. dollars. Therefore, any foreign currencies owned at the end of
the period are converted to U.S. dollars at the then-current exchange rate. We hold Canadian dollars as a result of
past financings that were denominated in Canadian dollars. While the majority of our expenses are in U.S. dollars,
we continue to hold Canadian dollars due to higher investment returns and ongoing Canadian dollar-denominated
expenses. A strengthening Canadian dollar will result in gains and a weakening Canadian dollar will result in losses
as long as we continue to hold Canadian dollars.
The loss on currency translation was $476 for the year ended December 31, 2015, compared with a loss of
$507 for the same period in 2014. The Canadian dollar weakened by 16.2% and 8.0% against the U.S. dollar during
the years ended December 31, 2015 and 2014, respectively. The average Canadian cash and cash equivalent
balances during the years ended December 31, 2015 and 2014 were CDN$2.5 million and CDN$7.4 million,
respectively.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
Operating Activities
Net cash used in operating activities was $9,335 for the year ended December 31, 2015, as compared with
$13,688 for the same period in 2014. The decrease in cash used of $4,353 from the prior period is mostly the result
of (a) decreases in spending associated with exploration and evaluation activities, accounting for a decreased use of
approximately $3,500; (b) the Company’s continual focus on cost containment within corporate administration
expenses, accounting for a decreased use of approximately $650; (c) timing in vendor payments affecting accounts
payable, accounting for a decreased use of $124; and (d) timing of cash outlays associated with prepaid expenses,
which accounted for a positive variance of $66.
Investing Activities
Net cash used in investing activities was $nil for the year ended December 31, 2015, compared with net
cash used in investing activities of $33 for the same period in 2014.