What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-05-07 compared with 2021-02-05 · 43 added, 36 removed, 130 unchanged (38% of the section changed)

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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 six-month period ended December 31, 2020 and compares these results to the results of the prior year three and six-month period ended December 31, 2019.

It also analyzes our financial condition and summarizes the results of our operations for the three and nine-month period ended March 31, 2021 and compares these results to the results of the prior year three and nine-month period ended March 31, 2020.

Operating Highlights:

During the six-month period ended December 31, 2020, the Company announced that the Oregon Water Resource Department (“OWRD”) had reviewed and approved the plans and specifications for the tailings dam proposed for the Grassy Mountain mine and stated that from a safety perspective the plans are construction ready.

During the three-month period ended March 31, 2021, Paramount entered into an agreement to purchase 152 unpatented lode mining claims (“South Sleeper Claims”) located two miles south of the Company’s Sleeper Gold Project.

Upon satisfaction of several closing conditions, Paramount has agreed to pay a total consideration of $350,000 in a combination of cash and common stock of the Company.

The mining claims are subject to a mineral production royalty based on net smelter returns of 1%.

The South Sleeper Claims are without known mineral reserves.

The transaction closed in April 2021 subsequent to the period ending March 31, 2021.

Also, during the three-month period ended March 31, 2021, Paramount continued to progress its permitting activities at its Grassy Mountain Project.

In addition to conducting several meetings with the State of Oregon to address comments Paramount received on its initial Consolidated Mining Application, the Company received acceptance of its wildlife baseline data report for its proposed gold mine in Malheur County.

To date, 20 of 22 baseline data reports have been accepted by the state regulators.

The final two reports, ground water and geochemistry, are expected to be filed in advance of submitting the revised Consolidated Permit Application.

During the nine-month period ended March 31, 2021, the Company announced that the Oregon Water Resource Department (“OWRD”) had reviewed and approved the plans and specifications for the tailings dam proposed for the Grassy Mountain mine and stated that from a safety perspective the plans are construction ready.

The OWRD reviewed the data within the Consolidated Permit Application which Paramount submitted in November 2019 and which included all tailings design drawings, safety analysis, field data collected and laboratory testing.

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(“Ausenco”) who managed the overall study and were responsible for processing and infrastructure design and oversaw metallurgical testing;

Development Associates (“MDA”) who updated the mineral resource estimate and completed the mine planning and reserves estimation;

Mine Development Associates (“MDA”) who updated the mineral resource estimate and completed the mine planning and reserves estimation;

Golder Associates designed the tailings storage facility and EM Strategies oversaw the environmental aspects of the FS.

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Video conferencing has replaced in-person participation in conferences, permitting and other corporate meeting and activities that typically required corporate travel.

Comparison of Operating Results for the three and six - months ended December 31 , 2020 and 2019

Comparison of Operating Results for the three and nine-months ended March 31, 2021 and 2020

Results of Operations

We did not earn any revenue from mining operations for the three and six-months ended December 31, 2020 and 2019.

During the six-month period ended December 31, 2020, we completed and filed a comprehensive feasibility study on the Grassy Mountain Project.

Our net loss for the three-months ended December 31, 2020 was $1,774,899 compared to a net loss of $2,342,517 in the previous year.

We did not earn any revenue from mining operations for the three and nine-months ended March 31, 2021 and 2020.

During the nine-month period ended March 31, 2021, we completed and filed a comprehensive feasibility study on the Grassy Mountain Project.

Our net loss for the three-months ended March 31, 2021 was $1,354,467 compared to a net loss of $1,440,372 in the previous year.

The drivers of the decrease in net loss of 6% are fully described below.

Our net loss for the six-months ended December 31, 2020 was $3,106,407 compared to a net loss of $3,349,016 in the previous year.

Our net loss for the nine-months ended March 31, 2021 was $4,460,874 compared to a net loss of $4,789,388 in the previous year.

The decrease in net loss of 7% is fully described below.

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Exploration and Land Holding Costs

For the three-month period ended December 31, 2020, exploration expenses were $874,488 compared to $1,808,632 in the prior year comparable period.

For the three-month period ended March 31, 2021, exploration expenses were $590,245 compared to $1,068,021 in the prior year comparable period.

This represents a decrease of 45% or $477,776.

During the three-month period ended December 31, 2020, the Company completed its previously announced feasibility study for the Grassy Mountain Project and it continued with permitting activities with the State of Oregon and the BLM.

In the prior year comparable period the company incurred full period costs related to completing the feasibility study and incurred a higher level of permitting costs to prepare and submit its comprehensive CPA with the State of Oregon.

During the three-month period ended March 31, 2021, the Company continued with permitting activities with the State of Oregon and the BLM for its Grassy Mountain Project and began a technical review of its Sleeper Gold Project.

In the prior year comparable period the company incurred full period costs related to completing the feasibility study.

Included were expenses related to the Company’s reclamation activities at the Sleeper Project.

Total exploration expenses at the Grassy Mountain Project during the current three-month period were $371,059.

For the three-month period ended December 31, 2020, land holding costs were $130,400 compared to $132,137 in the prior year comparable period.

For the three-month period ended March 31, 2021, land holding costs were $130,284 compared to $131,633 in the prior year comparable period.

The marginal decrease of land holding costs from the prior year comparable period was due to the expiry of a lease term on non-material BLM mining claims owned by a third party.

For the six-month period ended December 31, 2020, exploration expenses were $1,510,515 compared to $2,267,200 in the prior year comparable period.

For the nine-month period ended March 31, 2021, exploration expenses were $2,100,760 compared to $3,335,221 in the prior year comparable period.

This represents a decrease of 37% or $1,234,461.

During the six-month period ended December 31, 2020, the Company completed a feasibility study for its Grassy Mountain project.

The Company also has been working with the State of Oregon to address information requests required to advance the permitting process and submit and revised consolidated permit application.

During the nine-month period ended March 31, 2021, the Company completed a feasibility study for its Grassy Mountain project.

The Company also has been working with the State of Oregon to address information requests required to advance the permitting process and submit a revised consolidated permit application.

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Total exploration expenses at the Grassy Mountain Project during the current six-month period were $1,449,690.

For the six-month period ended December 31, 2020, land holding costs were $261,584 compared to $269,714 in the prior year comparable period.

For the nine-month period ended March 31, 2021, land holding costs were $391,867 compared to $401,346 in the prior year comparable period.

The marginal decrease of land holding costs from the prior year comparable period was due to the expiry of a lease term on non-material BLM mining claims owned by a third party.

Salaries and Benefits

For the three-month period ended December 31, 2020, salary and benefits increased by 91% or by $276,013 to $579,935 from the prior year’s three-month period ended December 31, 2019.

S alaries and Benefits

For the three-month period ended March 31, 2021, salary and benefits increased by 21% or by $48,680 to $277,360 from the prior year’s three-month period ended March 31, 2020.

Salary and benefits is comprised of cash and stock based compensation of the Company’s executive and corporate administration teams.

The increase primarily reflects incentive cash compensation and stock-based compensation to management and staff that was recorded during the three-month period ended December 31, 2020 compared to the three-month period ended December 31, 2019.

Included in the salary and benefits expense amount for the three-month period ended December 31, 2020 and 2019 was a non-cash stock-based compensation of $57,922 and $23,361, respectively.

For the six-month period ended December 31, 2020, salary and benefits increased by 63% or by $324,188 to $835,877 from the prior year’s six-month period ended December 31, 2019.

The increase primarily reflects incentive cash compensation and stock-based compensation to management and staff that was recorded during the six-month period ended December 31, 2020 compared to the six-

month period ended December 31, 2019.

Included in the salary and benefits expense amount for the six-month period ended December 31, 2020 and 2019 was a non-cash stock-based compensation of $ 116,851 and $ 34,970 , respectively.

The increase primarily reflects higher stock-based compensation to management and staff that was recorded during the three-month period ended March 31, 2021 compared to the three-month period ended March 31, 2020.

Included in the salary and benefits expense amount for the three-month period ended March 31, 2021 and 2020 was a non-cash stock-based compensation of $60,470 and $23,361, respectively.

For the nine-month period ended March 31, 2021, salary and benefits increased by 50% or by $372,868 to $1,113,237 from the prior year’s nine-month period ended March 31, 2020.

The increase primarily reflects higher incentive cash compensation and stock-based compensation to management and staff that was recorded during the nine-month period ended March 31, 2021 compared to the nine-month period ended March 31, 2020.

Included in the salary and benefits expense amount for the nine-month period ended March 31, 2021 and 2020 was a non-cash stock-based compensation of $273,382 and $34,970, respectively.

Directors’ Compensation

For the three-month period ended December 31, 2020, directors’ compensation increased by 266% or by $32,811 to $45,169 from the prior year’s three-month period ended December 31, 2019.

For the three-month period ended March 31, 2021, directors’ compensation increased by 41% or by $11,336 to $38,891 from the prior year’s three-month period ended March 31, 2020.

Directors’ compensation consists of cash and stock-based compensation of the Company’s board of directors.

The increase reflects the additional stock-based compensation recorded in the current quarter compared to the prior year’s comparable period.

For the six-month period December 31, 2020, directors’ compensation increased by 106% or by $39,167 to $76,111from the prior year’s six-month period ended December 31, 2019.

For the nine-month period March 31, 2021, directors’ compensation increased by 78% or by $50,503 to $115,002 from the prior year’s nine-month period ended March 31, 2020.

The increase reflects the additional stock-based compensation recorded in the current six-month period compared to the prior-year’s comparable period.

Professional Fees and General and Administration

For the three-month period ended December 31, 2020, professional fees were $28,699 compared to $65,695 in the prior year’s comparable period.

For the three-month period ended March 31, 2021, professional fees were $21,812 compared to $35,477 in the prior year’s comparable period.

This represents a decrease of 39% or $13,665.

Professional fees included legal, advisory and consultant expenses incurred on corporate and operational activities being performed by the Company on a period-by-period basis.

For the three-month period ended December 31, 2020, general and administration expenses decreased by 17% to $124,752 from $150,743 in the prior year comparable period.

For the three-month period ended March 31, 2021, general and administration expenses decreased by 19% to $130,615 from $160,868 in the prior year comparable period.

The decrease in general and administration expenses from the previous year’s comparable period the Company were due to reduced travel related expenses due to the travel restrictions resulting from the COVID-19 global pandemic.

For the six-month period ended December 31, 2020, professional fees were $73,151 compared to $89,332 in the prior year’s comparable period.

For the nine-month period ended March 31, 2021, professional fees were $94,964 compared to $124,809 in the prior year’s comparable period.

This represents a decrease of 24%.

Professional fees included legal, advisory and consultant expenses incurred on corporate and operational activities being performed by the Company on a period-by-period basis.

For the six-month period ended December 31, 2020, general and administration expenses decreased by 9% to $238,877 from $262,867 in the prior year comparable period.

For the nine-month period ended March 31, 2021, general and administration expenses decreased by 13% to $369,492 from $423,736 in the prior year comparable period.

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As an exploration and development company, Paramount funds its operations, reclamation activities and discretionary exploration programs with its cash on hand.

At December 31, 2020, we had cash and cash equivalents of $3,498,093 compared to $5,434,081 as at June 30, 2020.

At March 31, 2021, we had cash and cash equivalents of $4,607,317 compared to $5,434,081 as at June 30, 2020.

In May 2020, the Company established an $8.0 million “at the market” equity offering program with Cantor Fitzgerald & Co.

and Canaccord Genuity LLC to proactively increase its financial flexibility.

During the three and six-months ended December 31, 2020, the Company issued 132,500 and 727,781 shares for net proceeds of $131,660 and $897,356 under the program, respectively.

The main uses of cash for the six-month period ended December 31, 2020 comprised of the following material amounts:

During the three and nine-months ended March 31, 2021, the Company issued 1,897,863 and 2,625,644 shares for net proceeds of $2,238,270 and $3,135,626 under the program, respectively.

The main uses of cash for the nine-month period ended March 31, 2021 comprised of the following material amounts:

Cash used in operating activities which included general and administration expenses, land holding costs, exploration programs at our Grassy Mountain and Sleeper Gold Projects and reclamation activities of $3,962,390

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$0.5 million on corporate administration expenses (expenses include executive management and employee salaries, legal, audit, marketing and other general and administrative expenses)

$0.75 million to $1 million on the Sleeper Gold Project (expenses include exploration programs, reclamation costs, employee salary and benefits, and land holding costs)

$0.75 million to $1 million on the Sleeper Gold Project (expenses include exploration programs, reclamation costs, employee salary and benefits, and land holding costs) and approximately $0.09 million for the purchase of the South Sleeper claims

$0.8 million on the Grassy Mountain Project and Frost Project (expenses include consulting fees, land holding costs and general and administration expenses, environmental impact statement preparation, and costs associated with the State of Oregon permit revised CPA)

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On an ongoing basis, management evaluates these estimates, including those related to allowances for doubtful accounts receivable, long-lived assets and asset retirement obligations.

Management bases these estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying value of assets and

liabilities that are not readily apparent from other sources.

Actual results may differ from these estimates under different assumptions or conditions.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis