GOLDQUEST MINING CORP.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
(UNAUDITED)
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 financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. 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.
The accompanying unaudited interim financial statements of GoldQuest Mining Corp. for the nine months ended September 30, 2023 have been prepared by the management of the Company and approved by the Company's Audit
Committee and the Company's Board of Directors.
The accompanying unaudited interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.
Table of Contents
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (unaudited)................. 6
5. Long-term investments ............................................................................................................................. 11
6. Equipment ................................................................................................................................................. 11
7. Evaluation and exploration assets ............................................................................................................ 12
8. Evaluation and exploration costs .............................................................................................................. 13
9. Accounts payable and accrued liabilities .................................................................................................. 13
10. Share capital .............................................................................................................................................. 14
11. Related party transactions and balances .................................................................................................. 15
12. Commitment ............................................................................................................................................. 16
13. Segmented information ............................................................................................................................ 16
14. Capital management ................................................................................................................................. 17
15. Financial instruments ................................................................................................................................ 17
Condensed Consolidated Interim Statements of Financial Position (unaudited) (Expressed in Canadian Dollars)
ASSETS |
Current assets |
10,031,523 | 12,017,938 |
42,750 | 64,219 |
TOTAL ASSETS | 10,074,273 | 12,082,157 |
TOTAL LIABILITIES | 194,955 | 140,719 |
Equity attributable to owners of the Company | 9,879,318 | 11,941,438 |
TOTAL SHAREHOLDERS' EQUITY | 9,879,318 | 11,941,438 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 10,074,273 | 12,082,157 |
As at | September 30, | December 31, | |
2023 | 2022 | ||
Note(s) | $ | $ | |
Cash and cash equivalents | 4 | 9,818,919 | 11,796,562 |
Amounts receivable | 70,847 | 71,456 | |
Prepaid expenses | 117,861 | 127,843 | |
Deposits | 23,896 | 22,077 | |
Non-current assets | |||
Long-term investments | 5 | 18,000 | 22,500 |
Equipment | 6 | 24,749 | 41,718 |
Evaluation and exploration assets | 7 | 1 | 1 |
LIABILITIES | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 9, 11 | 194,955 | 140,719 |
SHAREHOLDERS' EQUITY | |||
Share capital | 10 | 73,461,074 | 73,461,074 |
Stock options reserve | 10 | 2,212,572 | 2,138,732 |
Additional paid-in capital | 10 | 18,691,628 | 18,621,296 |
Deficit | (84,479,956) | (82,278,164) | |
Accumulated other comprehensive income (loss) | (6,000) | (1,500) | |
Corporate information and continuance of operations | 1 | ||
Commitments | 12 | ||
Segmented information | 13 |
These unaudited condensed consolidated interim financial statements were approved for issue by the Board of Directors and signed on its behalf by:
/s/ Luis Santana Director
/s/ Florian Siegfried Director
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (unaudited) (Expressed in Canadian Dollars)
For the three months endedFor the nine months endedNote(s)September 30, 2023 $
September 30, 2022 $
September 30, 2023 $
September 30, 2022 $
Expenses |
18,000 18,000
Consulting fees Depreciation
Evaluation and exploration costs Foreign exchange (gain) loss General and administrative Investor relations and promotion Management and directors' fees Professional fees
Project evaluation costs Regulatory and filing fees Rent
Salaries and wages Share-based payments Travel
6 7
6,000
5,847
18,000 6,102
18,077 18,259
189,163
178,141 1,004,904 348,480
40,839
(40,261)
98,471
(18,079)
43,821
47,789
184,186 125,027
3,149
27,740
54,092 61,092
11 11
130,420
238,429
414,580 424,429
43,131
43,703 -
143,898 186,632
11,541
11,541
-
20,571
2,319
56,739 46,490
20,831
9,534
65,084 24,026
11 10, 11
61,881
63,355
197,977 173,232
99,298
103,628
144,172 449,567
(108)
7,123
3,912 12,942
(676,384) | (705,602) | (2,415,633) | (1,870,097) |
Other income Interest income
49,138
69,712
213,841
114,157
Net loss | (627,246) | (635,890) | (2,201,792) | (1,755,940) |
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss:
Change in fair value on available-for-sale investments
5
-
(1,500)
(4,500)
(12,000)
Total comprehensive loss | (627,246) | (637,390) | (2,206,292) | (1,767,940) |
Basic and diluted loss per share for the period attributable to common shareholders ($ per common share)
(0.00)
(0.00)
(0.01)
(0.01)Weighted average number of common shares outstanding - basic and diluted
259,442,384
259,442,384
259,442,384
259,442,384
GoldQuest Mining Corp
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity (unaudited)
(Expressed in Canadian Dollars)
Note(s)Accumulated other
Stock options | Additional | comprehensive | ||||
Share capital | reserve | paid-in capital | Deficit | income (loss) | TOTAL | |
# | $ | $ | $ | $ | $ | $ |
Balance as of December 31, 2022 | 259,442,384 | 73,461,074 | 2,138,732 | 18,621,296 | (82,278,164) | (1,500) | 11,941,438 | |
Share-based payments | 10 | - | - | 144,172 | - | - | - | 144,172 |
Loss and comprehensive loss | - | - | - | - | (2,201,792) | (4,500) | (2,206,292) | |
Balance as of September 30, 2023 | 259,442,384 | 73,461,074 | 2,282,904 | 18,621,296 | (84,479,956) | (6,000) | 9,879,318 |
Balance as of December 31, 2021 | 259,442,384 | 73,461,074 | 3,663,448 | 16,552,713 | (79,568,866) | 7,500 | 14,115,869 | |
Reclassification of grant-date fair value on expired stock options | 10 | - | - | (2,068,583) | 2,068,583 | - | - | - |
Share-based payments | 10 | - | - | 449,567 | - | - | - | 449,567 |
Loss and comprehensive loss | - | - | - | - | (1,755,940) | (12,000) | (1,767,940) | |
Balance as of September 30, 2022 | 259,442,384 | 73,461,074 | 2,044,432 | 18,621,296 | (81,324,806) | (4,500) | 12,797,496 |
Condensed Consolidated Interim Statements of Cash Flows (unaudited) (Expressed in Canadian Dollars)
For the nine months ended
Cash flow from (used in) |
OPERATING ACTIVITIES |
Cash flow used in operating activities | (1,976,535) | (1,250,757) |
Cash flow used in investing activities | (1,108) | (2,761) |
Decrease in cash and cash equivalents | (1,977,643) | (1,253,518) |
Cash and cash equivalents, beginning of period | 11,796,562 | 14,052,296 |
Cash and cash equivalents, end of period | 9,818,919 | 12,798,778 |
September 30, | September 30, | ||
2023 | 2022 | ||
Note(s) | $ | $ | |
Net loss | (2,201,792) | (1,755,940) | |
Depreciation | 6 | 18,077 | 18,259 |
Share-based payments | 10 | 144,172 | 449,567 |
Net changes in non-cash working capital items: | |||
Amounts receivable | 609 | (20,531) | |
Prepaid expenses | 9,982 | 25,334 | |
Deposits | (1,819) | (2,977) | |
Accounts payable and accrued liabilities | 54,236 | 35,531 | |
INVESTING ACTIVITIES | |||
Purchase of equipment | 6 | (1,108) | (2,761) |
Supplemental cash flow information | |||
Reclassification of grant-date fair value on expired stock | |||
70,332 | 2,068,583 | ||
options | 10 | ||
Cash paid for income taxes | - | - | |
Cash paid for interest | - | - |
(Expressed in Canadian Dollars)
1. CORPORATE INFORMATION AND CONTINUANCE OF OPERATIONS
GoldQuest Mining Corp. (the "Company" or "GoldQuest") is a publicly listed company incorporated in British Columbia on July 12, 1989 and its shares are listed on the TSX Venture Exchange under the symbol "GQC". The Company together with its subsidiaries (collectively referred to as the "Company") is engaged in the identification, acquisition and exploration of mineral properties. The Company's registered office is located at Suite 2600, 595
Burrard Street, Vancouver, British Columbia, V7X 1L3.
The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of the carrying value of evaluation and exploration properties and the Company's continued existence is dependent upon the preservation of its interest in the underlying properties, the discovery of economically recoverable reserves, the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary, or alternatively upon the Company's ability to dispose of its interests on an advantageous basis. Changes in future conditions could require material write-downs of the carrying values. The Company's exploration assets are located outside of Canada and are subject to the risk of foreign investment, including political uncertainty, increases in taxes and royalties, renegotiation of contracts and currency exchange fluctuations.
Although the Company has taken steps to verify title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company's title. Property title may be subject to unregistered
prior agreements, unregistered claims, other land claims and non-compliance with regulatory and environmental requirements.
These unaudited condensed consolidated interim financial statements have been prepared on the assumption that the Company and its subsidiaries will continue as a going concern, meaning it will continue in operation for the foreseeable future and will be able to realize assets and discharge liabilities in the ordinary course of operations.
Different bases of measurement may be appropriate if the Company is not expected to continue operations for the foreseeable future. As at September 30, 2023, the Company had not advanced its property to commercial production and is not able to finance day to day activities through operations. The Company's continuation as a
going concern is dependent upon the successful results from its mineral property exploration activities and its ability to attain profitable operations and generate funds there from and/or raise equity capital or borrowings sufficient to meet current and future obligations. Management intends to fund operating costs over the next twelve months with cash and cash equivalents and through further equity financings.
Financial Reporting and Disclosure during Economic Uncertainty
In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic; the Company has not been significantly impacted by the spread of COVID-19. However, the ongoing COVID-19 pandemic, inflationary pressures, rising interest rates, the global financial climate and the conflict in Ukraine are affecting current economic conditions and increasing economic uncertainty, which may impact the Company's operating performance, financial position and the Company's ability to raise funds at this time.
The unaudited condensed consolidated interim financial statements of GoldQuest for the nine months ended September 30, 2023 were approved by the Board of Directors on November 29, 2023.
(Expressed in Canadian Dollars)
2. SIGNIFICANT ACCOUNTING STANDARDS AND BASIS OF PREPARATION
Statement of compliance to International Financial Reporting Standards
These unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). These financial statements comply with International Accounting Standard 34, Interim Financial
Reporting.
Basis of presentation
These unaudited condensed consolidated interim financial statements include the accounts of GoldQuest and its subsidiaries. This interim financial report does not include all of the information required of a full annual financial report and is intended to provide users with an update in relation to events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the end of the last annual reporting period. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Company for the year ended December 31, 2022.
New accounting standards
There were no new or amended IFRS pronouncements effective January 1, 2023 that impacted these condensed consolidated interim financial statements.
3. JOINT OPERATION
On January 17, 2020, the Company entered into a joint agreement with Precipitate Gold Corporation that is accounted for as a joint operation under IFRS 11 Joint Arrangements. The purpose of the joint operation was to acquire exploration equipment that can be used by both parties on their respective projects.
The joint operation was made through the incorporation of Toro Negro drilling S.R.L ("Toro Negro"), a company incorporated under the laws of the Dominican Republic on January 30, 2020. The participating interests of both parties at the time of the joint operation is 50% with each party responsible for payment of its proportionate share of operating and capital costs. Upon formation of the joint operation, a management committee (the
"Management Committee") consisting of two representatives of each party and holding voting rights in accordance with each party's participating interest, was established which shall make all decisions which are
required to be made by the joint operation participants.
The Management Committee shall be responsible for managing the exploration equipment acquired.
4. CASH AND CASH EQUIVALENTS
The Company's cash and cash equivalents are broken down as follows:
September 30, 2023 | December 31, 2022 | |
$ | $ | |
Cash | 3,232,018 | 10,996,997 |
Cash equivalents | 6,586,901 | 799,565 |
9,818,919 | 11,796,562 | |
Page 9 of 20 |
Notes to the Condensed Consolidated Interim Financial Statements (unaudited) For the Nine Months Ended September 30, 2023
(Expressed in Canadian Dollars)
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Goldquest Mining Corporation published this content on 25 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 17:38:04 UTC.