Operating income and expenses
Gain on disposition of mineral property interests, net
In January 2022, the Company received $2,500 to cancel the remaining 1% net smelter return royalty (“NSR”) at Awak Mas. Including recognition of the associated deferred option gain, the Company recognized a gain of $2,883 upon receipt of the payment.
In January and June 2021, the Company received a total of $2,100 for cancellation of its royalty interests and back-in right in Los Reyes. The January 2021 payment of $1,100 was initially recorded as deferred option gain, with the full $2,100 recognized as a gain upon receipt of the second payment in June 2021.
Exploration, property evaluation and holding costs
Exploration, property evaluation and holding costs were $916 and $2,269 for the three months ended September 30, 2022 and 2021, respectively; and $3,689 and $6,006 for the nine months ended September 30, 2022 and 2021, respectively. The decrease in 2022 for the comparative three-month periods was primarily attributable to the absence of spending of $1,115 for work on the 2022 FS and $493 on the 2021 drilling program, offset by higher spending of $229 for other discretionary programs. The decrease in 2022 for the comparative nine-month periods was primarily attributable to lower spending of $1,163 on the 2021 drilling program, $743 for work on the 2022 FS, and $441 for other site-related activities, partially offset by higher spending of $252 for other discretionary programs.
Corporate administration
Corporate administration costs were $779 and $818 during the three months ended September 30, 2022 and 2021, respectively; and $3,056 and $3,064 during the nine months ended September 30, 2022 and 2021, respectively. Administrative expenses continue to be relatively consistent from period to period.
Non-operating income and expenses
Other income/(loss)
During the quarter ended June 30, 2022, the Company reviewed and reversed a previously accrued amount of $240 for contingent reclamation costs because the associated costs are neither probable nor could be reasonably estimated. Also, the Company received cash of $196 in May 2022 as a value-added tax recovery from the previous sale of a non-core asset.
Financial Position, Liquidity and Capital Resources
Operating activities
Net cash used in operating activities was $5,750 and $7,438 for the nine months ended September 30, 2022 and 2021, respectively. The decrease in operating cash outflows in 2022 largely resulted from lower spending for drilling, partially offset by higher payments for the feasibility study.
Investing activities
Net cash provided by investing activities was $2,879 and $2,710 for the nine months ended September 30, 2022 and 2021, respectively. The sources of cash from investing activities during the nine months ended September 30, 2022 were a $2,500 final payment for the Awak Mas royalty cancellation and $384 upon maturity of short-term investments. Sources of cash from investing activities during the nine months ended September 30, 2021 were $2,100 for payments related to Los Reyes, $315 for payments related to Awak Mas and $400 from maturity of short-term investments, as partially offset by $105 for equipment purchases.