REG - Cornish Metals Inc. - UNAUDITED FINANCIAL STATEMENTS FOR Q1 2025
15/05/2025 07:00
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RNS Number : 7295I Cornish Metals Inc. 15 May 2025
CORNISH METALS RELEASES UNAUDITED FINANCIAL STATEMENTS AND MANAGEMENT'S
DISCUSSION AND ANALYSIS FOR THE THREE MONTHS ENDED 31 MARCH 2025
Vancouver, May 14, 2025
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company"), a
mineral exploration and development company focused on advancing its 100%
owned and permitted South Crofty tin project in Cornwall, United Kingdom, is
pleased to announce that it has released its unaudited financial statements
and management, discussion and analysis ("MD&A") for the three months
ended March 31, 2025. The reports are available under the Company's profile on
SEDAR+ (www.sedarplus.ca (http://www.sedarplus.ca) ) and on the Company's
website (www.cornishmetals.com (http://www.cornishmetals.com/) ).
Highlights for the three months ended March 31, 2025 and for the period ending
May 14, 2025
(All figures expressed in Canadian dollars unless otherwise stated)
· Strategic investment and fundraise (the "Fundraise") (news releases
dated January 28-31, 202
(https://cornishmetals.com/contact/fundraise-jan-2025/) 5
(https://cornishmetals.com/contact/fundraise-jan-2025/) ):
o The Fundraise totalling £57.4 million announced on January 28-31, 2025
was anchored by the National Wealth Fund Limited ("NWF") and Vision Blue
Resources Limited ("Vision Blue"), investing £28.6 million and £18.1
million, respectively, with a further £10.7 million from existing
shareholders and new investors, including £1.4 million from a retail offer;
o The Fundraise is expected to provide financial runway through to the end
of Q1 2026 and will enable the Company to further de-risk South Crofty and
advance it towards a formal final investment decision;
· Senior management appointments (news release dated April 27, 2025
(https://investors.cornishmetals.com/announcements/6929801) ):
o Strengthening of the project and operations teams at South Crofty with the
appointments of Dave Howe as General Manager and Guillermo Alcaraz as Project
Director;
o Mr. Howe has 35 years of open pit and hard rock underground mining
(including narrow vein) operational and exploration experience, of which 24
years were in executive and senior management roles;
o Mr. Alcazar is a project executive with over two decades of global
experience leading and overseeing a multimillion-dollar complex portfolio of
mining, heavy industrial and infrastructure projects across diverse
development stages;
· Purchase of 4.5 acres of land from Cornwall Council (news release
dated April 1, 2025
(https://investors.cornishmetals.com/announcements/6893563) ):
o The purchased land is immediately adjacent to existing surface land owned
by Cornish Metals and provides direct access to the main road at Dudnance Lane
from where a new entrance to the mine site is planned and where a new mine
office, stores and workshop will be located.
· Mine dewatering and refurbishment of New Cook's Kitchen Shaft:
o Refurbishment of New Cook's Kitchen shaft ("NCK") is progressing and has
reached approximately 290 metres below surface. The water level in NCK shaft
is currently at approximately 300 metres below surface;
o Progress during the period under review has been slower than in prior
periods reflecting the staged maintenance of the submersible pumps in
preparation for the next phase of dewatering. Dewatering is currently
advancing at a rate of over 15,000 m(3) per day and this will increase to
approximately 25,000 m(3) per day once maintenance is completed.
Don Turvey, CEO and Director of Cornish Metals, stated: "We started the year
on a strong note successfully completing the £57.4 million fundraise that was
supported by existing and new shareholders, including Vision Blue and the UK's
National Wealth Fund. This funding will enable the Company to maintain its
strong momentum and further unlock South Crofty's potential by delivering
important milestones expected in the coming year including advancing mine
dewatering and shaft refurbishment, placing orders for long-lead items, the
start of early project works and concluding the project finance process. We
have also strengthened our project and operations teams at South Crofty with
senior appointments to the roles of Project Director and General Manager who
will be key to leading South Crofty through successful construction and to
full production."
Financial highlights for the three months ended March 31, 2025 and March 31,
2024
Three months ended
March 31, 2025 March 31, 2024
(Expressed in Canadian dollars)
Total operating expenses 3,189,723 2,759,198
Loss for the period 3,043,606 2,561,669
Net cash used in operating activities (2,190,616) (1,148,564)
Net cash used in investing activities (6,602,900) (7,895,388)
Net cash provided by (used in) financing activities 87,513,355 (85,646)
Cash at end of the period 88,954,141 17,015,749
· Operating expenses have risen reflecting increased professional fees
associated with more corporate activity as well as an increase in corporate
remuneration due to bonuses following completion of the Fundraise;
· Project related expenditure of $5.3 million relating to the
advancement of South Crofty, primarily relating to NCK shaft re-access &
refurbishment, preparation for the refurbishment of the pump station at 360
metres depth and ongoing project engineering studies;
· Dewatering costs of $1.5 million for power, reagents, sludge disposal
and maintenance of the water treatment plant ("WTP");
· Receipt of $87.5 million in net proceeds from the Fundraise after
repayment of the debt facility with Vision Blue which was settled through a
set-off with the Fundraise; and
· Cash increased by $78.7 million to $89.0 million at the period end
due to the proceeds received from the Fundraise offset by ongoing development
activities at South Crofty.
Outlook
As described above, the Company continues to advance and derisk South Crofty
towards production. The Company's near-term objectives are as follows:
· Complete dewatering of South Crofty mine and refurbishment of NCK
shaft;
· Advance detailed project engineering studies;
· Place orders for long lead items of plant and equipment;
· Commence early project works, including initial construction of the
groundworks for the processing plant; and
· Arrange project financing for South Crofty.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed mineral exploration and development company
(AIM and TSX-V: CUSN) that is advancing the South Crofty tin project towards
production. South Crofty:
· is a historical, high-grade, underground tin mine located in
Cornwall, United Kingdom and benefits from existing mine infrastructure
including multiple shafts that can be used for future operations;
· is permitted to commence underground mining (valid to 2071),
construct a new processing facility and for all necessary site infrastructure;
· has a 2024 Preliminary Economic Assessment that validates the
Project's potential (see news release dated April 30, 2024
(https://investors.cornishmetals.com/announcements/6315981) and the Technical
Report entitled "South Crofty PEA
(https://cornishmetals.com/site/assets/files/4962/0423037_south_crofty_pea_-_24_may_2024_sedar.pdf)
"):
o US$201 million after-tax NPV(8%) and 29.8% IRR
o 3-year after-tax payback
o 4,700 tonnes average annual tin production in years two through six
o Life of mine all-in sustaining cost of US$13,660 /tonne of payable tin
o Total after-tax cash flow of US$626 million from start of production
· would be the only primary producer of tin in Europe or North America.
Tin is a Critical Mineral as defined by the UK, American, and Canadian
governments as it is used in almost all electronic devices and electrical
infrastructure. Approximately two-thirds of the tin mined today comes from
China, Myanmar and Indonesia;
· benefits from strong local community, regional and national
government support with a growing team of skilled people, local to Cornwall,
and could generate up to 320 direct jobs.
The 2024 Preliminary Economic Assessment for South Crofty is preliminary in
nature and includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations applied to them
that would enable them to be categorised as Mineral Reserves. There is no
certainty that the 2024 Preliminary Economic Assessment will be realised.
Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability.
TECHNICAL INFORMATION
This news release has been reviewed and approved by Mr. Stephen Holley, BSc
(Hons), ACSM, MSc, MSCM, CEng MIMMM, Feasibility Study Manager for Cornish
Metals who is the designated Qualified Person as the term is defined in
Canadian National Instrument 43-101 and the AIM Rules for Companies, and a
Competent Person as defined under the JORC Code (2012). Mr. Holley consents to
the inclusion in this announcement of the matters based on his information in
the form and context in which it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
"Don Turvey"
Don Turvey
CEO and Director
Engage with us directly at our investor hub. Sign up at:
https://investors.cornishmetals.com/link/6eWEjP
(https://investors.cornishmetals.com/link/6eWEjP)
For additional information please contact:
Cornish Metals Fawzi Hanano investors@cornishmetals.com (mailto:investors@cornishmetals.com)
Irene Dorsman info@cornishmetals.com (mailto:info@cornishmetals.com)
Tel: +1 (604) 200 6664
SP Angel Corporate Finance LLP Richard Morrison Tel: +44 203 470 0470
(Nominated Adviser & Joint Broker) Charlie Bouverat
Grant Barker
Hannam & Partners Matthew Hasson cornish@hannam.partners (mailto:cornish@hannam.partners)
(Joint Broker) Andrew Chubb Tel: +44 207 907 8500
Jay Ashfield
BlytheRay Tim Blythe cornishmetals@blytheray.com (mailto:cornishmetals@blytheray.com)
(Financial PR) Megan Ray Tel: +44 207 138 3204
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Caution regarding forward looking statements
This news release may contain certain "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking statements").
Forward-looking statements include predictions, projections, outlook,
guidance, estimates and forecasts and other statements regarding future plans,
the realisation, cost, timing and extent of mineral resource or mineral
reserve estimates, estimation of commodity prices, currency exchange rate
fluctuations, estimated future exploration expenditures, costs and timing of
the development of new deposits, success of exploration activities, permitting
time lines, requirements for additional capital and the Company's ability to
obtain financing when required and on terms acceptable to the Company, future
or estimated mine life and other activities or achievements of Cornish Metals.
Forward-looking statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast",
"expect", "potential", "project", "target", "schedule", "budget" and "intend"
and statements that an event or result "may", "will", "should", "could",
"would" or "might" occur or be achieved and other similar expressions and
includes the negatives thereof. All statements other than statements of
historical fact included in this news release, are forward-looking statements
that involve various risks and uncertainties and there can be no assurance
that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements.
Forward-looking statements are subject to risks and uncertainties that may
cause actual results to be materially different from those expressed or
implied by such forward-looking statements, including but not limited to:
risks related to receipt of regulatory approvals, risks related to general
economic and market conditions; risks related to the availability of
financing; the timing and content of upcoming work programmes; actual results
of proposed exploration activities; possible variations in Mineral Resources
or grade; projected dates to commence mining operations; failure of plant,
equipment or processes to operate as anticipated; accidents, labour disputes,
title disputes, claims and limitations on insurance coverage and other risks
of the mining industry; changes in national and local government regulation of
mining operations, tax rules and regulations. The list is not exhaustive of
the factors that may affect Cornish's forward-looking statements.
Cornish Metals' forward-looking statements are based on the opinions and
estimates of management and reflect their current expectations regarding
future events and operating performance and speak only as of the date such
statements are made. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to differ from
those described in forward- looking statements, there may be other factors
that cause such actions, events or results to differ materially from those
anticipated. There can be no assurance that forward-looking statements will
prove to be accurate and accordingly readers are cautioned not to place undue
reliance on forward-looking statements. Cornish Metals does not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other than as
required by applicable law.
Caution regarding non-IFRS measures
This news release contains certain terms or performance measures commonly used
in the mining industry that are not defined under International Financial
Reporting Standards ("IFRS"), including "all-in sustaining costs". Non-IFRS
measures do not have any standardized meaning prescribed under IFRS, and
therefore they may not be comparable to similar measures employed by other
companies. The data presented is intended to provide additional information
and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS and should be read in conjunction
with Cornish Metals' consolidated financial statements and Management
Discussion and Analysis, available on its website and on SEDAR+ at
www.sedarplus.ca.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended.
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in Canadian dollars)
March 31, 2025 December 31, 2024
ASSETS
Current
Cash $ 88,954,141 $ 9,589,029
Marketable securities 3,078,376 2,874,696
Receivables 2,862,514 2,697,326
Prepaid expenses 673,554 504,902
Deferred financing fees - 637,718
95,568,585 16,303,671
Deposits 112,576 64,341
Property, plant and equipment 27,143,529 27,132,244
Exploration and evaluation assets 90,750,183 79,961,014
$ 213,574,873 $ 123,461,270
LIABILITIES
Current
Accounts payable and accrued liabilities $ 5,735,330 $ 4,045,083
Deferred income - 150,000
Loan liability - 13,457,169
5,735,330 17,652,252
NSR liability 9,826,144 9,869,289
15,561,474 27,521,541
SHAREHOLDERS' EQUITY
Capital stock 229,373,265 128,394,652
Capital contribution 2,007,665 2,007,665
Share-based payment reserve 1,604,784 1,353,933
Foreign currency translation reserve 11,528,569 7,640,757
Deficit (46,500,884) (43,457,278)
198,013,399 95,939,729
$ 213,574,873 $ 123,461,270
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
(Expressed in Canadian dollars)
Three months ended
March 31, 2025 March 31, 2024
EXPENSES
Travel and marketing $ 205,667 $ 214,138
Insurance 179,920 203,063
Office, miscellaneous and rent 91,226 56,505
Professional fees 541,343 275,093
Generative exploration costs - 1,191
Regulatory and filing fees 30,398 29,265
Share-based compensation 162,617 123,799
Salaries, directors' fees and benefits 1,978,552 1,856,144
Total operating expenses (3,189,723) (2,759,198)
Interest income 133,582 265,666
Interest expense (486,337) -
Foreign exchange gain (loss) 377,892 (18,900)
Gain on receipt of non-refundable deposit 150,000 -
Unrealized loss on marketable securities (29,020) (49,237)
Loss for the period (3,043,606) (2,561,669)
Foreign currency translation 3,887,812 1,413,937
Total comprehensive income (loss) for the period $ 844,206 $ (1,147,732)
Basic and diluted loss per share $ (0.00) $ (0.00)
Weighted average number of common shares outstanding 665,925,628 535,270,712
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended
March 31, 2025 March 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period $ (3,043,606) $ (2,561,669)
Items not involving cash:
Share-based compensation 162,617 123,799
Interest expense 486,337 -
Foreign exchange (gain) loss (377,892) 18,900
Gain on receipt of non-refundable deposit (150,000) -
Unrealized loss on marketable securities 29,020 49,237
Changes in non-cash working capital items:
(Increase) decrease in receivables (91,322) 19,706
Increase in prepaid expenses (214,282) (16,527)
Increase in accounts payable and accrued liabilities 1,008,512 1,217,990
Net cash used in operating activities (2,190,616) (1,148,564)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (81,585) (2,369,406)
Acquisition of exploration and evaluation assets (6,476,236) (5,525,982)
Increase in deposits (45,079) -
Net cash used in investing activities (6,602,900) (7,895,388)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the Fundraise 91,566,076 -
Share issue costs (4,052,721) -
Increase in deferred financing fees - (85,646)
Net cash provided by (used in) financing activities 87,513,355 (85,646)
Change in cash during the period 78,719,839 (9,129,598)
Cash, beginning of the period 9,589,029 25,791,552
Impact of foreign exchange on cash 645,273 353,795
Cash, end of the period $ 88,954,141 $ 17,015,749
Cash paid during the period for interest $ - $ -
Cash paid during the period for income taxes $ - $ -
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS'
EQUITY
(Unaudited)
(Expressed in Canadian dollars)
Foreign
Capital stock Share-based currency
Number of Capital payment translation Shareholders'
shares Amount contribution reserve reserve Deficit equity - total
Balance at December 31, 2023 535,270,712 $128,394,652 $ 2,007,665 $ 711,690 $ 1,369,146 $ (42,391,158) $ 90,091,995
Foreign currency translation - - - - 1,413,937 1,413,937
-
Share-based compensation - - - 178,149 - - 178,149
Loss for the period - - - - - (2,561,669) (2,561,669)
Balance at March 31, 2024 535,270,712 $128,394,652 $ 2,007,665 $ 889,839 $ 2,783,083 $ (44,952,827) $ 89,122,412
Balance at December 31, 2024 535,270,712 $128,394,652 $ 2,007,665 $ 1,353,933 $ 7,640,757 $ (43,457,278) $ 95,939,729
Share issuance pursuant to 717,143,367 105,361,387 - - - 105,361,387
-
Fundraise
Share issue costs - (4,382,774) - - - - (4,382,774)
Foreign currency translation - - - - 3,887,812 3,887,812
-
Share-based compensation - - - 250,851 - - 250,851
Loss for the period - - - - - (3,043,606) (3,043,606)
Balance at March 31, 2025 1,252,414,079 $229,373,265 $ 2,007,665 $ 1,604,784 $11,528,569 $ (46,500,884) $ 198,013,399
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