LUCA MINING CORP. ALTALEY MINING CORPORATION
(Formerly Telson Mining Corporation)
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2021 and 2020
UNAUDITED
(Expressed in thousands of Canadian dollars)
_______________________________________
ALTALEY MINING CORPORATION
(Formerly Telson Mining Corporation)
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2021 and 2020
NOTICE OF NO AUDITOR REVIEW
The accompanying unaudited condensed interim consolidated financial statements of Altaley Mining Corporation (the "Company") have been prepared by and are the responsibility of Company's management and approved by the Company's Audit Committee and Board of Directors.
The Company's independent auditor has not performed a review of these condensed interim consolidated financial statements in accordance with the standards established by CPA Canada for a review of interim financial statements by the entity's auditor.
November 22, 2021
Altaley Mining Corporation (Formerly Telson Mining Corporation) Condensed Interim Consolidated Statements of Financial Position (Expressed in thousands of Canadian dollars)
As at September 30, 2021 | As at December 31, 2020 | |||
Assets | ||||
Current assets: | ||||
Cash | $ | 7,466 | $ | 257 |
Restricted funds (Note 4) | 4,046 | - | ||
Marketable securities (Note 5) | 3,882 | 4,271 | ||
Accounts receivable (Note 6) | 1,638 | 599 | ||
Prepaid expenses and deposits | 3,554 | 1,759 | ||
Inventories (Note 7) | 8,162 | 5,980 | ||
Non-current assets: | 28,748 | 12,866 | ||
Mineral interest and development assets (Note 8) | 21,165 | 16,585 | ||
Property, plant and equipment (Note 9) | 23,547 | 17,063 | ||
Taxes receivable long-term (Note 6) | 5,738 | 5,056 | ||
Other assets (Note 11) | 2,067 | 1,354 | ||
52,517 | 40,058 | |||
Total assets | $ | 81,265 | $ | 52,924 |
Liabilities | ||||
Current liabilities: | ||||
Accounts payable and accrued liabilities | $ | 18,990 | $ | 29,955 |
Due to Nyrstar Mining Ltd (Note 8(b) and 10) | 3,350 | 13,985 | ||
Short-term debt (Note 11) | 8,536 | 27,650 | ||
Empress royalty stream (Note 12) | 2,765 | - | ||
Current portion of lease liabilities (Note 13) | 303 | 1,355 | ||
Obligation under share purchase agreement (Note 8(a)) | 255 | 255 | ||
Non-current liabilities: | 34,199 | 73,200 | ||
Long-term debt (note 11) | 28,658 | 531 | ||
Long-term due to Nyrstar Mining Ltd (Note 8(b) and 10) | 3,206 | - | ||
Long-term Empress royalty stream (Note 12) | 3,605 | - | ||
Lease liabilities (Note 13) | 299 | 266 | ||
Provision for site reclamation and closure | 5,837 | 5,638 | ||
41,605 | 6,435 | |||
Total liabilities | $ | 75,804 | $ | 79,635 |
Equity (deficiency) | ||||
Share capital (Note 14) | $ | 79,920 | $ | 65,317 |
Equity reserves (Note 15) | 12,207 | 10,591 | ||
Accumulated other comprehensive loss | (1,569) | (1,867) | ||
Deficit | (85,097) | (100,752) | ||
Total equity (deficiency) | 5,461 | (26,711) | ||
Total liabilities and equity (deficiency) | $ | 81,265 | $ | 52,924 |
Going concern (Note 1)
Subsequent events (Note 21)
Approved by the Board of Directors on November 22, 2021, and signed on the Company's behalf by:
"David Rhodes" | "Ralph Shearing" |
Director | Director |
The accompanying notes form an integral part of these condensed interim consolidated financial statements
Altaley Mining Corporation (Formerly Telson Mining Corporation)
Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in thousands of Canadian dollars, except shares and per share amounts)
Three months ended September 30, | Nine months ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenues | ||||||||
Gross sales | $ | 23,076 | $ | 11,148 | $ | 68,781 | $ | 25,483 |
Treatment and selling costs | (5,364) | (4,451) | (18,854) | (11,951) | ||||
17,712 | 6,697 | 49,927 | 13,532 | |||||
Cost of Sales | ||||||||
Production cost | $ | 7,254 | $ | 5,794 | $ | 23,743 | $ | 12,701 |
Royalties | 644 | 231 | 1,663 | 462 | ||||
Accretion of provision for site reclamation and closure | 111 | 88 | 328 | 271 | ||||
Depreciation and amortization (Note 9) | 145 | 111 | 390 | 318 | ||||
8,154 | 6,224 | 26,124 | 13,752 | |||||
Mine operating profit (loss) | 9,558 | 473 | 23,803 | (220) | ||||
General Expenses: | ||||||||
Consulting fees, wages and benefits (Note 17) | $ | 524 | $ | (464) | $ | 1,632 | $ | 1,790 |
Legal and professional fees | 231 | 89 | 579 | 220 | ||||
Office, rent and administration | 1,375 | 112 | 2,334 | 490 | ||||
Amortization of right-of-use assets (Note 9 and 13) | 33 | 55 | 60 | 110 | ||||
Regulatory, transfer agent and shareholder information | 24 | (4) | 43 | 17 | ||||
Travel, promotion and investor relations | 142 | 53 | 608 | 180 | ||||
Share-based compensation (Note 15(a) and 17) | 339 | 23 | 1,055 | 23 | ||||
2,668 | (136) | 6,311 | 2,830 | |||||
Other expense (income): | ||||||||
Interest income and other | $ | (212) | $ | 119 | $ | (425) | $ | (247) |
Accretion of provision for site reclamation and closure | 7 | 8 | 22 | 24 | ||||
Change in fair value of marketable securities (Note 5) | 135 | (54) | 275 | (521) | ||||
Interest expense and other | 613 | 286 | 3,120 | 972 | ||||
Other expenses (income) | 1,912 | - | (825) | - | ||||
Foreign exchange (gain) | 151 | (4,127) | (330) | (1,334) | ||||
2,606 | (3,768) | 1,837 | (1,106) | |||||
Net Income (loss) for the period | $ | 4,284 | $ | 4,377 | $ | 15,655 | $ | (1,944) |
Other comprehensive income (loss) | ||||||||
Items that will be reclassified subsequently to profit or (loss) | ||||||||
Foreign currency translation adjustment | 281 | (4,019) | 298 | (166) | ||||
Total items that may be reclassified subsequently to | ||||||||
profit or (loss) | 281 | (4,019) | 298 | (166) | ||||
Total net comprehensive income (loss) for the period | $ | 4,565 | $ | 358 | $ | 15,953 | $ | (2,110) |
Weighted average number of common shares outstanding | ||||||||
Basic | 253,166,462 | 173,976,734 | 229,684,783 | 161,810,840 | ||||
Diluted | 286,989,017 | 173,976,734 | 261,907,338 | 161,810,840 | ||||
Earnings (loss) per share | ||||||||
Basic earnings (loss) per share | $ | 0.02 | $ | 0.03 | $ | 0.07 | $ | (0.01) |
Diluted earnings (loss) per share | $ | 0.01 | $ | 0.03 | $ | 0.06 | $ | (0.01) |
The accompanying notes form an integral part of these condensed interim consolidated financial statements
Altaley Mining Corporation (Formerly Telson Mining Corporation)
Condensed Interim Consolidated Statements of Changes in Equity (Deficiency) (Expressed in thousands of Canadian dollars, except for number of common shares)
Number of | Share | Share | Equity | Accumulated | Deficit | Total | |||||||
common | capital | subscriptions | reserves | other | |||||||||
shares | received in | comprehensive | |||||||||||
advance | income (loss) | ||||||||||||
Balance as at December 31, 2019 | 139,579,152 | $ | 59,743 | $ | 795 | $ | 6,423 | $ | (1,964) | $ | (89,128) | $ | (24,131) |
Subscriptions received in advance | - | - | 1,543 | - | - | - | 1,543 | ||||||
Shares issued on private placement, net of | |||||||||||||
issuance cost (Note 14) | 35,420,577 | 3,484 | (2,338) | - | - | - | 1,146 | ||||||
Share-based compensation (Note 15) | - | - | - | 23 | - | - | 23 | ||||||
Finder's fees (Note 14) | 361,239 | 36 | - | - | - | - | 36 | ||||||
Fair value of warrants issued in private placements | - | (1,396) | - | 1,396 | - | - | - | ||||||
Loss and comprehensive income for the period | - | - | - | - | (166) | (1,944) | (2,110) | ||||||
Balance as at September 30, 2020 | 175,360,968 | $ | 61,867 | $ | - | $ | 7,842 | $ | (2,130) | $ | (91,072) | $ | (23,493) |
Balance as at As at December 31, 2020 | 182,766,619 | $ | 65,317 | $ | - | $ | 10,591 | $ | (1,867) | $ | (100,752) | $ | (26,711) |
Shares issued on private placement, net of | |||||||||||||
issuance cost (Note 14) | 50,400,000 | 9,574 | - | - | - | - | 9,574 | ||||||
Shares Issued upon settlement of obligations | 14,600,000 | 2,920 | - | - | - | - | 2,920 | ||||||
Bonus shares and warrants issued on | |||||||||||||
modification of debt (Note 11 and 14) | 500,000 | 385 | - | 812 | 1,197 | ||||||||
Stock options exercised (Note 14) | 3,073,335 | 428 | - | - | - | - | 428 | ||||||
Fair value of stock options allocated to | |||||||||||||
share capital issued on exercise (Note 14) | - | 401 | - | (401) | - | - | - | ||||||
Warrants excercised (Note 14) | 3,165,000 | 687 | - | - | - | - | 687 | ||||||
Fair value of warrants allocated to | |||||||||||||
share capital issued on exercise (Note 14) | - | 208 | - | (208) | - | - | - | ||||||
Share-based compensation (Note 15) | - | - | - | 1,413 | - | - | 1,413 | ||||||
Income and comprehensive income for the period | - | - | - | - | 298 | 15,655 | 15,953 | ||||||
Balance as at September 30, 2021 | 254,504,954 | 79,920 | - | 12,207 | (1,569) | (85,097) | 5,461 |
The accompanying notes form an integral part of these condensed interim consolidated financial statements
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Altaley Mining Corporation published this content on 23 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 November 2021 02:28:02 UTC.
