Fortune Minerals : Q1 March 31, 2022 Financials (PDF 217 KB)

Interim Condensed Consolidated Financial Statements

Fortune Minerals Limited

March 31, 2022

Fortune Minerals Limited

NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Under National Instrument 51-102, Part 4, Subsection 4.3(3)(a), if an auditor has not performed a review of the interim condensed consolidated financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.

The accompanying unaudited consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.

The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements by an entity's auditor.

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Fortune Minerals Limited

Incorporated under the laws of Ontario

CONSOLIDATED STATEMENTS OF

FINANCIAL POSITION

(expressed in Canadian dollars)

Unaudited

As at	March 31,	December 31,
	2022	2021
ASSETS
Current assets	1,190,040
Cash and cash equivalents [note 10]	1,802,920
Reclamation security deposits [note 7]	25,265	25,249
Accounts receivable	66,415	194,039
Prepaid expenses	70,628	65,922
Total current assets	1,352,348	2,088,130
Reclamation security deposits [note 7]	151,185	151,088
Capital assets, net [note 8]	302,432	316,988
Mining properties [note 3]	76,298,172	76,049,941
	78,104,137	78,606,147
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	213,581
Accounts payable and accrued liabilities	440,266
Lease liability [note 12]	44,906	43,665
Current debt [note 11i]	11,824,618	11,426,277
Total current liabilities	12,083,105	11,910,208
Provision for environmental rehabilitation [note 7]	23,936	23,409
Lease liability [note 12]	259,247	271,250
Long-term debts [note 11ii]	1,412,578	1,343,008
Derivatives [note 5ii[a]]	275,000	1,200,000
Total liabilities	14,053,866	14,747,875
SHAREHOLDERS' EQUITY	174,493,165
Share capital [note 5]	174,430,765
Other reserves [notes 5 and 6]	15,786,482	15,810,882
Deficit	(126,229,376)	(126,383,375)
Total shareholders' equity	64,050,271	63,858,272
	78,104,137	78,606,147

See accompanying notes to the consolidated financial statements

See note 2 going concern uncertainty

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Fortune Minerals Limited

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

(expressed in Canadian dollars)

Unaudited

For the three-months ended March 31,	2022	2021
REVENUE AND OTHER INCOME	2,776
Interest and other income [note 14]	7,001
EXPENSES	2,776	7,001
252,863
General and administrative	190,835
Stock-based compensation [note 6]	-	299,205
Interest	472,598	359,615
Corporate development	33,760	25,917
Amortization [note 8]	14,556	14,973
Change in fair value related to derivative liability [note 5ii.[a]]	(925,000)	2,930,014
	(151,223)	3,820,559
Net income (loss) and comprehensive income (loss) for the period	153,999	(3,813,558)
Basic and diluted income (loss) per share [note 18]	0.00	(0.01)
See accompanying notes to the consolidated financial statements

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Fortune Minerals Limited

CONSOLIDATED STATEMENTS OF

CASH FLOWS

(expressed in Canadian dollars)

	Unaudited
For the three-months ended March 31,	2022	2021
OPERATING ACTIVITIES	153,999
Net income (loss) for the period from continuing operations	(3,813,558)
Add (deduct) items not involving cash	527
Accretion	693
Amortization	14,556	14,973
Flow-through share premium	-	(6,407)
Stock-based compensation	-	299,205
Non-cash portion of loan discount [note 11]	285,015	212,506
Non-cash portion of lease expense	(10,762)	(9,724)
Change in fair value related to derivative liability	(925,000)	2,930,014
Changes in non-cash working capital balances
related to operations	127,624
Accounts receivable	(29,847)
Prepaid expenses	(4,706)	(7,831)
Accounts payable and accrued liabilities	(226,685)	(34,431)
Accrued interest on debt	182,896	141,834
Cash used in operating activities	(402,536)	(302,573)
INVESTING ACTIVITIES	(101,662)
Increase in exploration and evaluation expenditures, net	(62,928)
Purchase of capital assets, including in mining properties	(146,569)	(25,534)
Posting of security for reclamation security deposits, net	(113)	(133)
Receipt of reclamation security deposit	-	45,000
Cash used in investing activities	(248,344)	(43,595)
FINANCING ACTIVITIES	-
Proceeds on issuance of units, net	(3,729)
Proceeds on exercise of warrants	-	10,000
Proceeds on exercise of options	38,000	34,500
Cash provided by financing activities	38,000	40,771
Increase (decrease) in cash and cash equivalents
during the period, net	(612,880)	(305,397)
Cash and cash equivalents, beginning of period	1,802,920	1,078,884
Cash and cash equivalents, end of period [note 10]	1,190,040	773,487

See accompanying notes to the consolidated financial statements

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