IDR

Idaho Strategic is, by the numbers, an exceptional small-cap operator. Revenue has compounded from $7.6M (2021) to $42.4M (2025) with five straight years of acceleration, and the company flipped from a $3.3M loss in 2021 to $16.7M net income in 2025 (+89.2% YoY). Margins are outstanding for a miner — 61.8% gross, 36.8% operating, 39.4% net — and the balance sheet is a fortress: liabilities are just 0.05x equity, long-term debt is only $2.33M against $108M of stockholders' equity, and operating cash flow of $19.1M comfortably funds the $6.71M capex build-out. This is a genuinely high-quality, self-funding business, not a story stock.

The catch is that this quality is priced in and cycle-dependent. At $33.47 the stock trades at 29.4x FY diluted EPS and 12.5x sales — extreme multiples that only make sense if today's near-40% net margins persist. Those margins are a direct function of the gold price, and the MD&A confirms the model is a single producing asset (the Golden Chest Mine) plus a majority-owned mill, with 'limited control over costs and not having the ability to control the market prices.' Record metals prices are doing much of the heavy lifting; a reversion in gold compresses these margins fast, and paying 29x what look like peak-cycle earnings is the core risk. Note too that ROE is a modest 15.5% despite the 39% net margin — equity ballooned +187% (shares +15.7%) as capital was raised, so returns on the enlarged capital base are more pedestrian than the income statement implies.