Calibre Mining : Earnings Document

Condensed Interim Consolidated Financial Statements

For the Three and Six Months Ended June 30, 2022 and 2021

(Unaudited and stated in thousands of United States dollars)

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Condensed Interim Consolidated Statements of Operations and Comprehensive Income

Three and Six Months Ended June 30, 2022 and 2021

(Unaudited - Stated in thousands of United States Dollars, except per share amounts, unless otherwise noted)

			Three months ended June 30,			Six months ended June 30,
	Notes		2022		2021			2022		2021
Revenue		$	111,260	$	78,785	$	210,825	$	160,819
Cost of sales
Production costs	4		(65,237)		(43,137)			(116,692)		(84,602)
Royalty and production taxes			(4,720)		(3,206)			(8,686)		(6,417)
Refinery and transportation			(248)		(219)			(453)		(476)
Depreciation and amortization			(12,802)		(7,919)			(25,206)		(15,060)
Total cost of sales			(83,007)		(54,481)			(151,037)		(106,555)
Income from mine operations			28,253		24,304			59,788		54,264
Expenses
General and administrative	5		(3,165)		(1,820)			(6,284)		(3,815)
Exploration expenses			1,169		-			-		-
Share-based compensation	13		(50)		(1,421)			(1,325)		(2,105)
Due diligence and transactions costs	3		(47)		-			(4,787)		-
Foreign exchange gain (loss)			87		(154)			(388)		(261)
Other expenses			(23)		(287)			(500)		(315)
Operating profit			26,224		20,622			46,504		47,768
Interest income			166		132			322		241
Finance expense	6		(529)		(288)			(1,047)		(578)
Other income, net	7		37		48			(5)		90
Income before taxes			25,898		20,514			45,774		47,521
Current tax expense			(9,919)		(5,199)			(16,937)		(12,364)
Deferred tax expense			(551)		(3,430)			(1,708)		(6,627)
Net income		$	15,428	$	11,885	$	27,129	$	28,530
Other comprehensive income
Items that may be reclassified subsequently to profit and loss:
Foreign currency translation differences			417		68			389		261
Comprehensive income		$	15,845	$	11,953	$	27,518	$	28,791
Income per share - basic		$	0.03	$	0.04	$	0.06	$	0.08
Income per share - diluted		$	0.03	$	0.03	$	0.06	$	0.08
Weighted average number of shares outstanding (in thousands)
- basic			448,735		337,163			439,893		335,723
- diluted			470,116		365,799			459,487		363,545

The accompanying notes are an integral part of these unaudited, condensed interim consolidated financial statements.

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Condensed Interim Consolidated Statement of Financial Position

As at June 30, 2022 and December 31, 2021

(Unaudited - Stated in thousands of United States Dollars, except per share amounts, unless otherwise noted)

As at:	Notes	June 30, 2022		December 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	92,323	$	78,454
Receivables, prepaids and other current assets	8			14,227		8,249
Inventories	9			90,386		54,407
Total current assets				196,936		141,110
Non-current assets
Mineral interests, plant and equipment	10			427,559		290,086
Other assets	11			7,872		6,333
Total assets	$	632,367	$	437,529
LIABILITIES
Current liabilities
Accounts payable and accruals	$	42,996	$	21,042
Income and other taxes payable				12,817		13,502
Current portion of provisions	12			5,673		5,391
Current portion of share based liabilities	13			1,889		3,440
Current portion of lease liability				248		43
Total current liabilities				63,623		43,418
Non-current liabilities
Provisions	12			78,108		65,384
Lease liability				633		-
Share based liabilities	13			787		601
Deferred tax liability				55,223		38,674
Total liabilities				198,374		148,077
SHAREHOLDERS' EQUITY
Share capital	13			290,455		175,712
Contributed surplus				21,339		19,059
Accumulated other comprehensive income				3,321		2,932
Retained earnings				118,878		91,749
Total shareholders' equity				433,993		289,452
Total liabilities and shareholders' equity	$	632,367	$	437,529

APPROVED ON BEHALF OF THE BOARD ON AUGUST 9, 2022:

Signed "Darren Hall"

, DIRECTOR

Signed "Edward Farrauto"

, DIRECTOR

The accompanying notes are an integral part of these unaudited, condensed interim consolidated financial statements.

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Condensed Interim Consolidated Statements of Cash Flows

Three and Six Months Ended June 30, 2022 and 2021

(Unaudited - Stated in thousands of United States Dollars, except per share amounts, unless otherwise noted)

		Three months ended June 30,			Six months ended June 30,
	Notes		2022		2021			2022		2021
Cash provided by operations
Net income		$	15,428	$	11,885	$	27,129	$	28,530
Payments against rehabilitation liabilities	12		(114)		(127)			(151)		(281)
Non-cash adjustments
Share-based compensation	13		(834)		1,764			172		2,618
Depreciation and amortization			13,073		7,967			25,579		15,133
Accretion expense	6		504		284			1,008		568
Other			247		217			201		256
Deferred tax expense			551		3,430			1,708		6,627
Working capital adjustments	14		14,382		3,928			5,846		1,419
Net cash provided by operating activities			43,237		29,348			61,492		54,870
Investing activities
Expenditures on mineral properties, plant and equipment	10		(35,544)		(24,193)			(64,673)		(44,859)
Cash receipt from Rio Tinto			1,085		-			1,599		-
Cash paid for the Fiore acquisiton	3		-		-			(8,000)		-
Cash obtained from the Fiore acquisition	3		-		-			13,607		-
Surety bond refund	8		5,249		-			5,249		-
Proceeds on disposal of assets			-		390			-		393
Net cash used in investing activities			(29,210)		(23,803)			(52,218)		(44,466)
Financing activities
Exercise of share options and warrants	13		1,525		2,510			5,390		2,698
Payment of lease liability and interest			(535)		(29)			(790)		(58)
Net cash provided by financing activities			990		2,481			4,600		2,640
Effect of exchange rate changes on cash			(15)		54			(5)		82
Change in cash and cash equivalents			15,002		8,080			13,869		13,126
Cash and cash equivalents, beginning of period			77,321		58,221			78,454		53,175
Cash and cash equivalents, end of period		$	92,323	$	66,301	$	92,323	$	66,301
Other information
Interest paid - cash		$	23	$	5	$	39	$	10
Taxes paid - cash		$	3,626	$	3,558	$	17,622	$	10,377

Supplemental Cash Flow Information - Note 14

The accompanying notes are an integral part of these unaudited, condensed interim consolidated financial statements.

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity

Three and Six Months Ended June 30, 2022 and 2021

(Unaudited - Stated in thousands of United States Dollars, except per share amounts, unless otherwise noted)

						Accumulated Other Comprehensive Income
	Number of Shares				Contributed		Foreign Currency				Retained
	(in thousands)	Share Capital		Surplus		Translation Reserve		Other		Earnings		Total
Balances at December 31, 2020	333,821	$	170,591	$	22,267	$	1,863	$	1,877	$	33,550	$	230,148
Exercise of options and warrants (Note 13)	4,139		3,454		(756)		-		-		-		2,698
Exercise of restricted share units (Note 13)	1,215		729		(729)		-		-				-
Share based compensation (Note 13)	-		-		2,709		-		-		-		2,709
Foreign exchange translation	-		-		-		261		-		-		261
Net income	-		-		-		-		-		28,530		28,530
Balances at June 30, 2021	339,175	$	174,774	$	23,491	$	2,124	$	1,877	$	62,080	$	264,346
Balances at December 31, 2021	340,269	$	175,712	$	19,059	$	2,177	$	755	$	91,749	$	289,452
Shares issued on purchase of Fiore Gold (Note 3)	101,322		107,205		-		-		-		-		107,205
Replacement options granted on purchase of Fiore Gold (Note 3)	-		-		3,182		-		-		-		3,182
Exercise of options and warrants (Note 13)	5,720		5,936		(546)		-		-		-		5,390
Exercise of restricted and performance share units (Note 13)	1,467		1,602		(1,602)		-		-		-		-
Share based compensation (Note 13)	-		-		1,246		-		-		-		1,246
Foreign exchange translation	-		-		-		389		-		-		389
Net income	-		-		-		-		-		27,129		27,129
Balances at June 30, 2022	448,778	$	290,455	$	21,339	$	2,566	$	755	$	118,878	$	433,993

The accompanying notes are an integral part of the unaudited, condensed interim consolidated financial statements.

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