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Gold Reserve (97Z) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Gold Reserve disclosed 18 risk factors in its most recent earnings report. Gold Reserve reported the most risks in the “Finance & Corporate” category.

Risk Overview Q4, 2022

Source: the company's latest filing for the period ended Dec 31, 2022, filed Apr 27, 2023

Risk Distribution
18Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Gold Reserve disclosed risks per quarterNo. of Risks18Q4Showing: Q4, 2022
Risks removedRisks addedRisks changedGold Reserve Risk Factors
No changes from previous report

Risk Highlights Q4, 2022

Main Risk Category
Finance & Corporate
With 8 Risks
Number of Disclosed Risks
18
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Dec 2022
Number of Risk Changed
0
S&P 500 Average: 1

Risk Word Cloud

there are material tax risks associated with holding and selling or otherwise disposing of class a shares.material tax risksthe breach of one or more of the terms of the underlying agreements governing the formation of siembra minera and the future development of the siembra minera project by venezuela could have an adverse impact on the company.formation of siembra minerathe company's current or future plans to declare cash dividends or make distributions to shareholders are subject to inherent risks.make distributions to shareholderswe may have exposure to greater than previously anticipated tax liabilities, which could harm our business.previously anticipated tax liabilitiesany development activities on the siembra minera project will require additional exploration work and financing and there is no assurance that the project will be determined feasible.require additional exploration workbusiness activities concentrated in venezuela are subject to inherent local risks.subject to inherent local risksu.s. internal revenue service designation as a "passive foreign investment company" may result in adverse u.s. tax consequences to u.s. holders.internal revenue service designationthe company's current or future plans to declare cash dividends or make distributions to shareholders are subject to inherent risks.subject to inherent risksu.s. internal revenue service designation as a "passive foreign investment company" may result in adverse u.s. tax consequences to u.s. holders.passive foreign investment companyrisks inherent in the mining industry could adversely impact future operations.adversely impact future operations

Risk Factors Full Breakdown - Total Risks 18

Share Price & Shareholder Rights4 | 22.2%
  • Share Price & Shareholder Rights - Risk 1
    The price and liquidity of the Class A Shares may be volatile.

    The market price of the Class A Shares may fluctuate based on a number of factors, some of which are beyond our control, including: - we do not have an active market for the Class A Shares and large sell or buy transactions may affect the market price;- economic and political developments in Venezuela;- the impact of Sanctions on our ability to consummate the transactions contemplated by the Settlement Agreement or, even if there is a successful appeal or overturning of the resolution to revoke the mining rights of Siembra Minera, the terms of the mixed company arrangement related to the development of the Siembra Minera Project;- our operating performance and financial condition;- our ability to obtain additional financing for working capital, capital expenditures, acquisitions or general purposes;- the public's reaction to announcements or filings by us or other companies;- the public's reaction to negative news regarding Venezuela and/or international responses to Venezuelan domestic and international policies;- the price of gold, copper and silver;- the addition to or changes to existing personnel; and - general global economic conditions, including, without limitation, interest rates, general levels of economic activity, fluctuations in market prices of securities, participation by other investors in the financial markets, economic uncertainty, national and international political circumstances, natural disasters, public health crisis (such as the global outbreak of COVID-19). The effect of these and other factors on the market price of the Class A Shares has historically made our share price volatile and suggests that our share price will continue to be volatile in the future.

  • Share Price & Shareholder Rights - Risk 2
    We may issue additional Class A Shares, debt instruments convertible into Class A Shares or other equity-based instruments to fund future operations.

    We cannot predict the size of any future issuances of securities, or the effect, if any, that future issuances and sales of our securities will have on the market price of the Class A Shares. Any transaction involving the issuance of previously authorized but unissued shares, or securities convertible into shares, may result in dilution to present and prospective holders of shares.

  • Share Price & Shareholder Rights - Risk 3
    There are material tax risks associated with holding and selling or otherwise disposing of Class A Shares.

    There are material tax risks associated with holding and selling or otherwise disposing the Class A Shares. Each prospective investor is urged to consult its own tax advisor regarding the tax consequences to him or her with respect to the ownership and disposition of the Class A Shares.

  • Share Price & Shareholder Rights - Risk 4
    It may be difficult to bring certain actions or enforce judgments against the Company and/or its directors and executive officers.

    Investors in the U.S. or in other jurisdictions outside of Canada may have difficulty bringing actions and enforcing judgments against us, our directors or executive officers based on civil liability provisions of federal securities laws or other laws of the U.S. or any state thereof or the equivalent laws of other jurisdictions of residence. We are organized under the laws of Alberta, Canada. Some of our directors and officers, and some of the experts named from time to time in our filings, are residents of Canada or otherwise reside outside of the U.S. and all or a substantial portion of their and our assets, may be located outside of the U.S. As a result, it may be difficult for investors in the U.S. or outside of Canada to bring an action in the U.S. against our directors, officers or experts who are not residents in the U.S. It may also be difficult for an investor to enforce a judgment obtained in a U.S. court or a court of another jurisdiction of residence predicated upon the civil liability provisions of Canadian securities laws or U.S. federal securities laws or other laws of the U.S. or any state thereof against us or those persons.

Accounting & Financial Operations1 | 5.6%
Debt & Financing1 | 5.6%
Corporate Activity and Growth2 | 11.1%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.