Interim Condensed Consolidated Financial Statements
Fortune Minerals Limited
June 30, 2021
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.
Fortune Minerals Limited
Incorporated under the laws of Ontario
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
(expressed in Canadian dollars)
Unaudited
As at | June 30, | December 31, |
2021 | 2020 | |
ASSETS | ||
Current assets | 1,049,962 | |
Cash and cash equivalents [note 10] | 1,078,884 | |
Reclamation security deposits [note 7] | 25,217 | 25,186 |
Accounts receivable | 75,089 | 68,537 |
Prepaid expenses | 68,449 | 55,719 |
Total current assets | 1,218,717 | 1,228,326 |
Reclamation security deposits [note 7] | 150,899 | 195,671 |
Capital assets, net [note 8] | 345,216 | 375,153 |
Mining properties [note 3] | 74,746,412 | 74,541,391 |
76,461,244 | 76,340,541 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current liabilities | 152,460 | |
Accounts payable and accrued liabilities | 186,482 | |
Lease Liability [note 12] | 41,571 | 39,495 |
Flow-through share premium | 260,555 | 273,835 |
Total current liabilities | 454,586 | 499,812 |
Provision for environmental rehabilitation [note 7] | 22,442 | 30,775 |
Lease Liability [note 12] | 293,391 | 314,915 |
Long-term debts [note 11] | 10,721,996 | 10,008,154 |
Derivatives [note 5ii[a]] | 2,652,800 | 1,306,541 |
Total liabilities | 14,145,215 | 12,160,197 |
SHAREHOLDERS' EQUITY | 173,090,476 | |
Share capital [note 5] | 172,538,621 | |
Other reserves [notes 5 and 6] | 15,987,782 | 15,611,882 |
Deficit | (126,762,229) | (123,970,159) |
Total shareholders' equity | 62,316,029 | 64,180,344 |
76,461,244 | 76,340,541 |
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 | ||||
Three months ended | Six months ended | |||
June 30, | June 30, | |||
2021 | 2020 | 2021 | 2020 | |
REVENUE AND OTHER INCOME | ||||
Interest and other income [note 14] | 7,103 | 22,207 | 14,104 | 48,796 |
EXPENSES | 7,103 | 22,207 | 14,104 | 48,796 |
173,212 | 364,047 | |||
General and administrative | 234,915 | 563,083 | ||
Stock-based compensation [note 6] | - | - | 299,205 | - |
Interest | 364,779 | 322,310 | 724,394 | 640,174 |
Corporate development | 16,415 | 27,997 | 42,332 | 74,741 |
Amortization [note 8] | 14,964 | 3,473 | 29,937 | 6,946 |
Change in fair value related to derivative liability [note 5ii.[a]] | (1,583,755) | 490,526 | 1,346,259 | (138,729) |
(1,014,385) | 1,079,221 | 2,806,174 | 1,146,215 | |
Net income (loss) and comprehensive income (loss) for the period | 1,021,488 | (1,057,014) | (2,792,070) | (1,097,419) |
Basic and diluted income (loss) per share [note 18] | - | - | (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 six-month periods ended June 30, | 2021 | 2020 |
OPERATING ACTIVITIES | (2,792,070) | |
Net loss for the period from continuing operations | (1,097,419) | |
Add (deduct) items not involving cash | (8,333) | |
Accretion | (10,350) | |
Amortization | 29,937 | 6,946 |
Flow-through share premium | (13,280) | (24,599) |
Stock-based compensation | 299,205 | - |
Non-cash portion of loan discount [note 11] | 429,650 | 368,929 |
Non-cash portion of lease expense | (19,448) | - |
Gain on disposal of capital assets | - | (552) |
Change in fair value related to derivative liability | 1,346,259 | (138,729) |
Changes in non-cash working capital balances | ||
related to operations | (6,552) | |
Accounts receivable | 451,386 | |
Prepaid expenses | (12,730) | 11,022 |
Accounts payable and accrued liabilities | (34,022) | (23,419) |
Accrued interest on debentures | 284,192 | 271,245 |
Cash used provided in operating activities | (497,192) | (185,540) |
INVESTING ACTIVITIES | (69,884) | |
Increase in exploration and evaluation expenditures, net | (342,536) | |
Purchase of capital assets, including in mining properties | (37,842) | (16,064) |
Posting of security for reclamation security deposits, net | (259) | (1,215) |
Receipt of reclamation security deposit | 45,000 | - |
Proceeds on disposal of capital assets | - | 1,354 |
Cash used in investing activities | (62,985) | (358,461) |
FINANCING ACTIVITIES | 486,755 | |
Proceeds on issuance of units, net | - | |
Proceeds on exercise of warrants | 10,000 | - |
Proceeds of government loan | - | 30,000 |
Proceeds on exercise of options | 34,500 | - |
Cash provided by financing activities | 531,255 | 30,000 |
Decrease in cash and cash equivalents | ||
during the period, net | (28,922) | (514,001) |
Cash and cash equivalents, beginning of period | 1,078,884 | 2,104,901 |
Cash and cash equivalents, end of period [note 10] | 1,049,962 | 1,590,900 |
See accompanying notes to the consolidated financial statements
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Fortune Minerals Limited published this content on 19 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 11:53:03 UTC.