PATRIOT GOLD CORP Annual Report - How They Did This Year

I’ve put together this guide to help you understand Patriot Gold Corp’s performance. My goal is to turn complex filings into clear information to help you decide if this company fits your investment goals.

1. What does this company do?

Think of Patriot Gold as a "landlord" for gold mines. Instead of digging holes or processing rock, they own mining claims and partner with other companies to do the work. In exchange, Patriot Gold collects a royalty—a percentage of the gold and silver produced. Their current portfolio includes the Vernal and Windy Peak projects in Nevada. These are in the early exploration stage, meaning they are speculative assets that could provide future income if a partner develops them.

2. Financial performance: The "Royalty" Model

The company’s income depends entirely on their partners. They previously held stakes in the Moss Mine and the Bruner project, which they sold for cash and ongoing royalty payments.

The 2025 update: Royalty payments from the Moss Mine have stopped. Because the Moss Mine previously provided all of the company’s royalty income, revenue has dropped to near zero. The company currently has no active source of cash flow from production.

3. Financial health: The "Burn Rate"

With royalty payments paused, the company is relying on debt to stay operational. In 2025, they borrowed $900,000 CAD from a group controlled by management. These loans carry a 10% annual interest rate and are due within one year. Because cash reserves are low, management anticipates needing to borrow additional funds or sell more shares to cover basic office costs and property maintenance. Please note that selling more shares reduces your ownership percentage in the company.

4. Major wins and challenges

• The Strategy: Their model is "asset-light." By focusing on royalties rather than operations, they avoid the massive capital costs of building and running a mine, which can often exceed $50 million.
• The Risk: They are entirely dependent on their partners. If a partner stops production—as seen with the Moss Mine—Patriot Gold’s income stream vanishes. The company has no direct control over when or if a partner decides to restart production.
• Exploration: They continue to look for new opportunities. However, finding a profitable gold deposit is difficult and speculative, as only a tiny fraction of exploration sites ever become profitable mines.

5. Key risks

• Funding: The company is in "survival mode," borrowing money to cover daily expenses. If they cannot restart royalty income or secure new capital, they may face significant challenges in maintaining operations.
• Market Volatility: With a market value under $1 million USD, this is a "micro-cap" stock. These stocks are often highly sensitive to news and can be difficult to buy or sell without causing significant price swings.
• Regulatory Hurdles: Mining is heavily regulated. Changes in environmental or land-use laws can force a partner to stop work, which would render Patriot Gold’s royalty interest inactive until the partner achieves compliance.

6. The Bottom Line

Patriot Gold is a high-risk investment. The company is currently waiting for partners to resume production so that royalty checks can begin again. Until that happens, they are using borrowed cash to keep the lights on.

Decision Checklist:

• Are you comfortable with a "binary" outcome? This investment is essentially a bet on the Moss Mine restarting or a new discovery being made.
• Can you handle dilution? Be prepared for the possibility that the company will issue more shares to raise cash, which lowers the value of your existing stake.
• Is this part of a speculative portfolio? Given the lack of current revenue and the reliance on debt, this should be viewed as a high-risk, speculative position rather than a stable income-generating investment.