REG - Cornish Metals Inc. - UNAUDITED FINANCIAL STATEMENTS FOR Q2 2024
15/08/2024 07:00
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RNS Number : 4951A Cornish Metals Inc. 15 August 2024
CORNISH METALS RELEASES UNAUDITED FINANCIAL STATEMENTS AND MANAGEMENT'S
DISCUSSION AND ANALYSIS FOR THE SIX MONTHS ENDED 30 JUNE 2024
Vancouver, August 14, 2024
Cornish Metals Inc. (TSX-V/AIM: CUSN) ("Cornish Metals" or the "Company"), a
mineral exploration and development company focused on 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 six months ended June
30, 2024. 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 six months ended June 30, 2024 and for the period ending
August 14, 2024
(All figures expressed in Canadian dollars unless otherwise stated)
· Appointment of Don Turvey as Chief Executive Officer ("CEO") (news
release dated August 11, 2024
(https://investors.cornishmetals.com/announcements/6476418) ):
o Mr. Turvey appointed as CEO and an executive director of the Company
effective September 1, 2024, subject to approval of a UK work visa;
o Mr. Turvey is an experienced mining executive with more than 40 years of
experience, including successfully funding and advancing new projects and
historic mines through to production.
· South Crofty Preliminary Economic Assessment ("PEA") completed,
validating the Project's economic viability (news release dated April 30, 2024
(https://investors.cornishmetals.com/announcements/6315981) ):
o After-tax Net Present Value ("NPV") of US$201 million and Internal Rate of
Return ("IRR") of 29.8%;
o Average annual tin production of over 4,700 tonnes for years two through
six, totaling 49,310 tonnes over a 14-year Life of Mine ("LOM");
o Total after-tax cash flow of approximately US$626 million from start of
production.
· Commencement of second phase of refurbishment of New Cook's Kitchen
("NCK") shaft (news release dated July 10, 2024
(https://investors.cornishmetals.com/announcements/6426674) ):
o Shaft refurbishment progressing as planned with the on-schedule
installation of the Phase 2 work platform, enabling faster replacement of old
shaft timbers with new steel guides;
o Winders and cages installed, fully commissioned and in operation, and
certified to allow for safe transport of equipment and workers within NCK
shaft;
o Rephasing shaft refurbishment improves the functionality of NCK shaft and
enables larger equipment to access the mine at an earlier stage in its
re-development.
· Mine dewatering continues with the submersible pumps and Water
Treatment Plant ("WTP") operating to specifications (news release dated July
10, 2024 (https://investors.cornishmetals.com/announcements/6426674) ):
o Water level in NCK shaft being maintained at approximately 280 meters
below surface with the rate of dewatering being reduced to allow shaft
refurbishment and dewatering to proceed concurrently;
o Treated water being discharged to the Red River continues to exceed the
standards permitted by the Environment Agency.
· Purchase of land totaling 7.7 acres located immediately adjacent to
South Crofty surface infrastructure (news release dated May 21, 2024
(https://cornishmetals.com/site/assets/files/5657/2024-03-03_shaft_refurb.pdf)
):
o The purchased land removes reliance on existing right-of-passage
agreements, providing the Company with direct access to all surface
infrastructure as well as additional space for future site works,
opportunities for potential operating cost savings, renewable energy
initiatives and improved overall property security.
· Sale of Mactung and Cantung royalties for US$4.5 million in cash
consideration (news release dated July 21, 2024
(https://investors.cornishmetals.com/announcements/6442095) ):
o Completion of disposal of the Company's royalty interests on the Mactung
and Cantung tungsten projects located in Northern Canada to Elemental Altus
Royalties Corp. ("Elemental Altus").
· Sale of Nickel King property announced for a total consideration of
up to C$8.0 million (news release dated June 16, 2024
(https://investors.cornishmetals.com/announcements/6386443) ):
o Entered into a binding letter of intent with Northera Resources Ltd.
("Northera") for the sale of the Company's 100% interest in the Nickel King
Property for a total consideration of up to C$8 million;
o Initial consideration of C$100,000 received on June 14, 2024, with
transfer of Nickel King Property conditional on receipt of next tranche of
consideration of C$900,000 by September 2024.
· Samantha Hoe-Richardson joined the Board as independent non-executive
director effective January 8, 2024 (news release dated January 8, 2024
(https://investors.cornishmetals.com/announcements/6152972) ).
· As at August 13, 2024 the Company's cash position was C$7.9 million
(equivalent to £4.5 million).
Ken Armstrong, Interim CEO and Director of Cornish Metals, stated: "Momentum
and activity levels have remained high since the start of the year as the
Cornish Metals team continues to progress work plans and accomplish key
milestones, particularly the completion of the Preliminary Economic Assessment
of the South Crofty tin project that confirms the Project's potential to be a
low-cost and long-life tin mining operation. The sale of the Company's assets
in northern Canada provides near-term liquidity and demonstrates our priority
and focus on advancing South Crofty towards commencement of production in
2027.
"We are delighted to welcome Don Turvey as CEO of Cornish Metals and we are
confident that he will capably lead the Company forward to realise the best
potential for our stakeholders."
Review of activities
Appointment of permanent CEO
On August 11, 2024, the Company announced the appointment of Mr. Don Turvey as
CEO and an executive director of the Company. Regulatory approval has been
obtained in relation to the appointment, which is intended to be effective
September 1, 2024, subject to approval of a UK work visa for Mr. Turvey, who
will relocate from South Africa to Cornwall, where he will be based. Mr.
Turvey is an experienced mining executive with more than 40 years of
experience in the sector. He has been CEO of private, ASX and AIM-listed
mining companies where he has successfully funded and taken new projects and
historic mines through to production, as well as leading a number of M&A
transactions. Following Mr. Turvey's appointment, Patrick Anderson will return
to the position of non-executive Chair of the Board of Directors of the
Company, and Ken Armstrong as non-executive director.
Preliminary Economic Assessment completed for South Crofty Project
The results of the South Crofty Project PEA were released on April 30, 2024,
validating the Project's economic viability and potential to be a low-cost and
long-life tin mining operation with a current 14-year LOM. South Crofty is
expected to produce a clean, high-grade tin concentrate and to be an important
tin producer in Europe, supplying into the growing demand for this critical
metal that is essential for the energy transition.
Key highlights from the PEA include:
· After-tax NPV8% of US$201 million and 29.8% after-tax IRR at base
case tin price of US$31,000/tonne;
· Pre-production capital requirement of US$177 million;
· Capital pay-back period of three years after-tax;
· Total after-tax cash flow of US$626 million from start of production,
peaking at US$82 million in second year of production;
· Average annual earnings before interest, taxes, depreciation and
amortization ("EBITDA") of US$83 million and 62.1% EBITDA margin in years two
through six;
· 49,310 tonnes of tin metal in concentrate produced over a 14-year LOM
· Average annual tin production of over 4,700 tonnes for years two
through six, equivalent to approximately 1.6% of global mined tin production;
· LOM average all-in sustaining cash cost ("AISC") of US$13,661/tonne
of payable tin, positioning South Crofty as a low cost tin producer;
· Growth opportunities from additional in-mine and near-mine
exploration with the potential to materially extend the mine life and increase
production; and
· Potential to directly employ up to 320 people with permanent
high-skilled and well-paid jobs and create up to 1,000 indirect jobs.
Further details can be found in the news release dated April 30, 2024 and the
Technical Report entitled "South Crofty PEA
(https://cornishmetals.com/site/assets/files/4962/0423037_south_crofty_pea_-_24_may_2024_sedar.pdf)
" prepared in accordance with NI 43-101 and filed on SEDAR+.
Refurbishment of New Cook's Kitchen Shaft - second phase commenced
Phase 2 of NCK shaft refurbishment is underway, following the on-schedule
installation of a new double-deck equipping stage and modified main cage,
providing a safe and stable work platform enabling faster replacement of the
old shaft timbers with new steel buntons and guides (refer to news release
dated July 10, 2024). Rephasing shaft refurbishment, concurrent with mine
dewatering, will improve the functionality of NCK shaft, enable larger
equipment to access the mine at an earlier stage in its re-development and
ensure that high health and safety standards are applied as the underground
mine workings are accessed.
The NCK shaft winding engines and associated winding apparatus, including the
refurbished south headframe, have been fully commissioned and, following
successful third-party compliance testing, have been certified for use. This
system enables safe access to NCK shaft for personnel and materials as
required to facilitate the shaft refurbishment works and subsequent access to
the dewatered deep workings of the mine. Mine dewatering continues with the
submersible pumps and water treatment plant operating to specifications. The
water level in NCK shaft is being maintained at approximately 280 metres below
surface and the treated water being discharged to the Red River is
consistently well within the permitted standards.
Shaft refurbishment and mine dewatering is anticipated to reach the 195-fathom
level (approximately 350 metres below surface) in Q4-2024 and refurbishment of
the 195-fathom pump station and installation of permanent pumps is scheduled
to be completed in Q1-2025. Shaft refurbishment and mine dewatering are
expected to be complete by September 2025.
Land purchase adjacent to South Crofty surface infrastructure
On May 21, 2024, the Company announced the purchase of a 7.7 acre land package
situated to the south of Kerrier Way, immediately adjacent to important South
Crofty surface infrastructure. The land purchase removes reliance on existing
right-of-passage agreements, providing the Company with direct access to all
surface infrastructure, as well as additional space for future site works,
opportunities for potential operating cost savings, renewable energy
initiatives and improved overall property security.
Exploration drill program at Carn Brea South
A 9,000-meter exploration drill program was completed at the Wide Formation
target in the Carn Brea South exploration area in June 2024. The drill program
was designed to test the geometry and the continuity of tin mineralization
discovered by the Company at the Wide Formation target (refer to news release
dated January 10, 2023).
The mineralization style in the Wide Formation, comprising pervasive
tourmaline and quartz (termed 'blue peach'), is similar in character to that
associated with No. 8 Lode, one of the most prolific tin producing lodes in
the latter years of operation of the South Crofty mine. The drill program
tested an area measuring 2,500 meters along strike (northeast to southwest)
and 800 meters downdip (north to south).
Drill results from the first six holes (refer to news release dated February
4, 2024) confirm the Wide Formation structure over a 1.6km strike length, a
downdip extent of at least 525 meters and thicknesses ranging from 1.8 meters
- 4.8 meters. The structure remains open. Notable tin intercepts from the Wide
Formation include 1.21 meters grading 0.87% Sn in CB23_004.
Drilling also identified a new mineralized structure lying directly beneath
the Great Flat Lode (named the "Great Flat Lode Splay"), and several
high-grade, steeply dipping tin zones between the Great Flat Lode and the Wide
Formation. Notable tin intercepts from the newly identified Great Flat Lode
Splay include 3.38 meters grading 1.01% Sn in CB23_002.
Notable tin intercepts from multiple steeply-dipping, high-grade tin zones
mainly intersected between the Great Flat Lode and the Wide Formation include
3.09 meters grading 1.21% Sn in CB23_001.
All samples have been submitted for analysis and final assay results will be
reported when available.
Sale of Mactung and Cantung royalties
The Company completed the sale of its royalty interests on the Mactung and
Cantung tungsten projects located in Northern Canada to Elemental Altus for a
total cash consideration of US$4.5 million (refer news release dated July 21,
2024). The initial cash consideration of US$3.0 million was received by the
Company on August 1, 2024 (refer to news release dated August 4, 2024), with
the balance of US$1.5 million due by August 1, 2025.
Sale of Nickel King Property
On June 16, 2024, the Company entered into a binding letter of intent with
Northera for the sale of the Company's 100% interest in the Nickel King
Property for a total consideration of up to C$8 million (refer news release
dated June 16, 2024). Under the terms of the agreement, Northera made a
non-refundable cash payment of C$100,000 on June 14, 2024. Within 95 days of
signing the agreement, the Company will transfer the Nickel King Property upon
receipt of a further non-refundable cash payment of C$900,000. Upon completion
of a go-public transaction by Northera, resulting in a listing of securities
on the TSX Venture Exchange, or other stock exchange, Northera will issue to
the Company common shares in the capital of Northera having an aggregate
market value equal to C$7.0 million.
Appointment of Samantha Hoe-Richardson as independent non-executive director
On January 8, 2024, the Company announced that Samantha Hoe-Richardson joined
the Board of Directors as an independent non-executive director (refer to news
release dated January 8, 2024). Ms. Hoe-Richardson is an experienced
non-executive director from a global mining, infrastructure and insurance
background. She is currently a non-executive director of WE Soda Ltd, Assured
Guaranty UK Ltd, Ascot Underwriting Limited and an independent advisor on
climate change & sustainability to Laing O'Rourke. Ms. Hoe-Richardson was
Head of Environment & Sustainable Development at Network Rail until 2017
and prior to that spent 16 years at Anglo American plc, latterly as Head of
Environment. She previously worked in investment banking and audit. Ms.
Hoe-Richardson holds a Masters Degree in nuclear and electrical engineering
from the University of Cambridge, and is also a non-practicing Chartered
Accountant.
Financial highlights for the six months ended June 30, 2024 and July 31, 2023
Six months ended (unaudited)
June 30, 2024 July 31, 2023
(Expressed in Canadian dollars)
Total operating expenses 4,561,792 2,041,551
Loss for the period 4,126,256 887,399
Net cash used in operating activities 2,281,351 1,312,999
Net cash used in investing activities 17,830,778 15,622,535
Net cash used in financing activities 96,159 723
Cash at end of the period 6,048,987 39,897,599
· Increase in operating expenses impacted by higher travel and
marketing expenditure arising from increased investor & media engagement
and termination settlement payable to the former CEO;
· Expenditure of $1.7 million on new or replacement equipment for the
mine, including the final payments for the permanent pumps for the underground
pump station, cages and the new winders, and associated commissioning costs;
· Expenditure of $2.8 million on land adjacent to the surface
infrastructure at South Crofty;
· Dewatering costs of $2.9 million for power, reagents, sludge disposal
and maintenance of the WTP;
· Other project-related expenditure of $6.1 million relating to the
advancement of South Crofty, primarily relating to the ongoing feasibility
study and NCK shaft re-access & refurbishment;
· Costs of $1.6 million incurred for the completion of the exploration
program at the Wide Formation; and
· Cash decreased by $20.2 million to $6.0 million at the period end
mainly due to ongoing development activities at the South Crofty tin project.
The Company changed its financial year end from January 31 to December 31 with
effect from December 31, 2023 with the result that the current period of
reporting is the six months ended June 30, 2024. The comparative period of
reporting is the six months ended July 31, 2023.
The Company has allocated funding for near term opportunities to progress the
project, the most significant being the purchase of the land located
immediately adjacent to South Crofty surface infrastructure. As a consequence
of pursuing these opportunities, additional financing will be required before
the end of 2024.
Outlook
As described above, the Company is advancing the South Crofty tin project
towards the start of production in 2027. By the end of December 2025, the
Company's objectives are as follows:
· Dewater South Crofty mine and refurbish NCK shaft by September 2025;
· Advance basic and detailed project engineering studies;
· Place deposits 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 in 2025.
ABOUT CORNISH METALS
Cornish Metals is a dual-listed mineral exploration and development company
(AIM and TSX-V: CUSN) focused on advancing the South Crofty high-grade,
underground tin project through to a construction decision, as well as
exploring its additional mineral rights, located in Cornwall, United Kingdom.
· South Crofty is a historical, high-grade, underground tin mine that
started production in 1592 and continued operating until 1998 following over
400 years of continuous production;
· The Project possesses Planning Permission for underground mining
(valid to 2071), to construct new processing facilities and all necessary site
infrastructure, and an Environmental Permit to dewater the mine;
· South Crofty is one of the highest grade tin Mineral Resources
globally and benefits from existing mine infrastructure including multiple
shafts that can be used for future operations;
· The 2024 Preliminary Economic Assessment for South Crofty 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
· Tin is a Critical Mineral as defined by the UK, American, and
Canadian governments;
· Tin connects almost all electronic and electrical infrastructure,
making it critical to the energy transition - responsible sourcing of critical
minerals and security of supply are key factors in the energy transition and
technology growth;
· Approximately two-thirds of the tin mined today comes from China,
Myanmar and Indonesia;
· There is no primary tin production in Europe or North America;
· South Crofty benefits from strong local community, regional and
national government support.
· Cornish Metals has a growing team of skilled people, local to
Cornwall, and the Project 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 economic
viability.
TECHNICAL INFORMATION
This news release has been reviewed and approved by Mr. Owen Mihalop, MCSM,
BSc (Hons), MSc, FGS, MIMMM, CEng, Chief Operating Officer for Cornish Metals
Inc. who is the designated Qualified Person under NI 43-101 and a Competent
Person as defined under the JORC Code (2012). Mr. Mihalop 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
"Kenneth A. Armstrong"
Kenneth A. Armstrong P.Geo.
Engage with us directly at our investor hub. Sign up at:
https://investors.cornishmetals.com/link/0PQ3be
(https://investors.cornishmetals.com/link/0PQ3be)
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
Cavendish Capital Markets Limited Derrick Lee Tel: +44 131 220 6939
(Joint Broker) Neil McDonald
Leif Powis Tel: +44 207 220 0500
Hannam & Partners Matthew Hasson cornish@hannam.partners (mailto:cornish@hannam.partners)
(Financial Adviser) 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 contains 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
and operations, 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, including but not limited to: the balance of
the cash consideration due to Cornish in respect of the sale of the Mactung
and Cantung royalty interests; mineralisation at South Crofty, mine dewatering
and construction requirements; the development, operational and economic
results of the preliminary economic assessment, including cash flows, capital
expenditures, development costs, extraction rates, recovery rates, mining cost
estimates and returns; estimation of mineral resources; statements about the
estimate of mineral resources and production of minerals; magnitude or quality
of mineral deposits; anticipated advancement of the South Crofty project mine
plan; exploration potential and project growth opportunities for the South
Crofty tin project and other Cornwall mineral properties, the Company's
ability to evaluate and develop the South Crofty tin project and other
Cornwall mineral properties, strategic vision of Cornish Metals and
expectations regarding the South Crofty mine, timing and results of projects
mentioned. 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; outcome of any future feasibility studies; 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. Accordingly, readers should not 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)
June 30, 2024 December 31, 2023
ASSETS
Current
Cash $ 6,048,987 $ 25,791,552
Marketable securities 2,839,060 2,665,454
Receivables 847,899 1,112,638
Prepaid expenses 561,510 591,264
Deferred financing fees 416,449 135,242
10,713,905 30,296,150
Deposits 73,209 85,954
Property, plant and equipment 27,143,216 23,788,325
Exploration and evaluation assets 64,739,056 50,050,323
$ 102,669,386 $ 104,220,752
LIABILITIES
Current
Accounts payable and accrued liabilities $ 4,714,065 $ 5,063,940
4,714,065 5,063,940
NSR liability 9,380,774 9,064,817
14,094,839 14,128,757
SHAREHOLDERS' EQUITY
Capital stock 128,394,652 128,394,652
Capital contribution 2,007,665 2,007,665
Share-based payment reserve 929,026 711,690
Foreign currency translation reserve 3,760,618 1,369,146
Deficit (46,517,414) (42,391,158)
88,574,547 90,091,995
$ 102,669,386 $ 104,220,752
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Unaudited)
(Expressed in Canadian dollars)
Three months ended Six months ended
June 30, 2024 July 31, 2023 June 30, 2024 July 31, 2023
EXPENSES
Travel and marketing $ 233,349 $ 156,470 $ 447,487 $ 246,060
Insurance 196,444 174,626 399,507 347,056
Office, miscellaneous and rent 61,702 56,428 118,207 108,040
Professional fees 533,674 335,578 808,767 536,314
Generative exploration expense 4,513 2,626 5,704 5,233
Regulatory and filing fees 22,396 22,148 51,661 55,422
Share-based compensation 7,000 25,549 130,799 25,549
Salaries, directors' fees and benefits 743,516 344,006 2,599,660 717,877
Total operating expenses (1,802,594) (1,117,431) (4,561,792) (2,041,551)
Interest income 142,888 418,910 408,554 807,294
Foreign exchange gain (loss) (9,140) 10,987 (28,040) 381,878
Gain on receipt of non-refundable deposit 91,296 - 91,296 -
Unrealized gain (loss) on marketable securities
12,963 6,938 (36,274) (35,020)
Loss for the period (1,564,587) (680,596) (4,126,256) (887,399)
Foreign currency translation 977,535 (334,156) 2,391,472 2,629,567
Total comprehensive income (loss) for the period $ (587,052) $ (1,014,752) $ (1,734,784) $ 1,742,168
Basic and diluted income (loss) per share $ (0.00) $ (0.00) $ (0.00) $ 0.00
Weighted average number of common shares outstanding: 535,270,712 535,270,712 535,270,712 535,267,950
CONSOLIDATED CONDENSED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in Canadian dollars)
For the six months ended
June 30, 2024 July 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the period $ (4,126,256) $ (887,399)
Items not involving cash:
Share-based compensation 130,799 25,549
Unrealized loss on marketable securities 36,274 35,020
Gain on receipt of non-refundable deposit (91,296) -
Foreign exchange loss (gain) 28,040 (381,878)
Changes in non-cash working capital items:
Decrease (increase) in receivables 264,739 (298,864)
Decrease in prepaid expenses 64,364 66,214
Increase in accounts payable and accrued liabilities 1,411,985 128,359
Net cash used in operating activities (2,281,351) (1,312,999)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment (5,968,493) (8,032,282)
Acquisition of exploration and evaluation assets (11,968,598) (7,561,503)
Proceeds from disposal of mineral property 91,296 -
Decrease (increase) in deposits 15,017 (28,750)
Net cash used in investing activities (17,830,778) (15,622,535)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in deferred financing fees (96,159) -
Lease payments - (723)
Net cash used in financing activities (96,159) (723)
Change in cash during the period (20,208,288) (16,936,257)
Cash, beginning of the period 25,791,552 55,495,232
Impact of foreign exchange on cash 465,723 1,338,624
Cash, end of the period $ 6,048,987 $ 39,897,599
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)
Share Foreign
Capital stock subscriptions Share-based currency
Number of received in Capital payment translation Shareholders'
shares Amount advance contribution reserve reserve Deficit equity - total
Balance at January 31, 2023 535,020,712 $128,377,152 $17,500 $ 2,007,665 $384,758 $(648,962) $(39,677,003) $90,461,110
Warrant exercises 250,000 17,500 (17,500) - - - - -
Foreign currency translation - - - - - 2,629,567 2,629,567
-
Share-based compensation - - - - 25,549 - - 25,549
Loss for the period - - - - - - (887,399) (887,399)
Balance at July 31, 2023 535,270,712 $128,394,652 $ - $ 2,007,665 $410,307 $1,980,605 $ (40,564,402) $ 92,228,827
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 - - - - - 2,391,472 2,391,472
-
Share-based compensation - - - - 217,336 - - 217,336
Loss for the period - - - - - - (4,126,256) (4,126,256)
Balance at June 30, 2024 535,270,712 $128,394,652 $ - $ 2,007,665 $929,026 $3,760,618 $ (46,517,414) $88,574,547
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