GUANAJUATO SILVER COMPANY LTD. Condensed Consolidated Interim Financial Statements
For the three and six months ended
June 30, 2022 and 2021 (Unaudited)
Condensed consolidated interim statements of financial position (Unaudited - Expressed in US dollars)
June 30 | December 31 | ||||||
Notes | 2022 | 2021 | |||||
ASSETS | |||||||
Current assets | $ | 4,509,396 | |||||
Cash and cash equivalents | $ | 8,234,043 | |||||
Amounts receivable | 4 | 4,371,825 | 2,620,908 | ||||
Inventories | 5 | 696,005 | 1,586,140 | ||||
Prepaid expenses and deposits | 776,732 | 554,354 | |||||
Other current assets | 6 | 771,700 | 1,622,935 | ||||
11,125,658 | 14,618,380 | ||||||
Non-current assets | 7 | 16,986,680 | |||||
Property, plant and equipment | 18,310,696 | ||||||
Mineral properties | 7 | 12,422,421 | 13,867,915 | ||||
Exploration and evaluation assets | 7 | 3,003,489 | 2,797,365 | ||||
Other assets | 4 | 1,403,347 | 1,725,520 | ||||
$ | 44,941,595 | $ | 51,319,876 | ||||
LIABILITIES | |||||||
Current liabilities | $ | 4,855,324 | |||||
Accounts payable and accrued liabilities | $ | 3,467,293 | |||||
Advance payment | 8 | 868,819 | 1,293,103 | ||||
Current portion of loan payable | 9 | 6,680,433 | 7,285,522 | ||||
Current portion of lease liabilities | 142,898 | 152,354 | |||||
Other current liabilities | 23(b) | 624,445 | 750,000 | ||||
Non-current liabilities | 13,171,919 | 12,948,272 | |||||
9 | 1,717,940 | ||||||
Loan payable | 895,827 | ||||||
Lease liabilities | 206,073 | 425,389 | |||||
Provision for reclamation and rehabilitation | 10 | 6,177,849 | 6,249,826 | ||||
21,273,781 | 20,519,314 | ||||||
SHAREHOLDERS' EQUITY | 11 | 61,368,341 | |||||
Share capital | 60,688,534 | ||||||
Reserves | 18,541,287 | 18,150,184 | |||||
Accumulated other comprehensive income | 1,670,880 | 1,417,390 | |||||
Share subscription received | 3,395 | - | |||||
Deficit | (57,916,089) | (49,455,546) | |||||
23,667,814 | 30,800,562 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' | $ | 44,941,595 | $ | 51,319,876 | |||
Commitments and contingencies (note 23) | |||||||
Subsequent events (note 24) | |||||||
"James Anderson" | "Ramon Davila" | ||||||
Director | Director |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
2
Condensed consolidated interim statements of loss and comprehensive loss (Unaudited - Expressed in US dollars, except share and per share amounts)
For the three months ended | For the six months ended | ||||||||||||
June 30 | June 30 | June 30 | June 30 | ||||||||||
Notes | 2022 | 2021 | 2022 | 2021 | |||||||||
Restated- | Restated- | ||||||||||||
Note 3 | Note 3 | ||||||||||||
Revenues | 14 | $ | 6,133,989 | $ | - | $ | 12,520,627 | $ | - | ||||
Cost of sales | 15 | 7,790,285 | - | 15,914,046 | - | ||||||||
Mine operating loss | (1,656,296) | - | (3,393,419) | - | |||||||||
General and administration | 16 | 1,342,039 | 959,542 | 2,561,620 | 1,392,282 | ||||||||
Share based compensation | 12(b) | 231,594 | 455,182 | 641,807 | 1,560,718 | ||||||||
Exploration expenses | 975,393 | 265,243 | 1,592,224 | 866,526 | |||||||||
Foreign exchange loss (gain) | 9,152 | (232,542) | 299,151 | 312,066 | |||||||||
Other operating expense (income) | (3,524) | 201,617 | (6,520) | 201,617 | |||||||||
Operating loss | (4,210,950) | (1,649,042) | (8,481,701) | (4,333,209) | |||||||||
Interest and finance costs, net | 17 | (654,350) | (6,494) | (1,289,155) | (7,313) | ||||||||
Gain on derivative | 18 | 1,220,275 | - | 977,462 | - | ||||||||
Other finance (expense) income, net | 123,634 | (6,032) | 332,851 | 251 | |||||||||
Net loss for the period | $ | (3,521,391) | $ | (1,661,568) | $ | (8,460,543) | $ | (4,340,271) | |||||
Other comprehensive income, net of tax | |||||||||||||
Foreign currency translation differences | 21,814 | 453,317 | 253,490 | 464,993 | |||||||||
Total other comprehensive income for the | 21,814 | 453,317 | 253,490 | 464,993 | |||||||||
period | |||||||||||||
Total comprehensive loss for the period | $ | (3,499,577) | $ | (1,208,251) | $ | (8,207,053) | $ | (3,875,278) | |||||
Basic and diluted loss per common share | 13 | $ | (0.02) | $ | (0.01) | $ | (0.04) | $ | (0.03) | ||||
Weighted average number of common | 226,033 | 195,275 | 225,300 | 161,017 | |||||||||
shares outstanding (000's) | |||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements
3
Condensed consolidated interim statements of changes in equity
(Unaudited - Expressed in US dollars, except share and per share amounts)
Number of | Equity settled | Total | ||||||||
Common | Common | Share | share-based | Accumulated | Accumulated | shareholders' | ||||
Notes | Shares | Shares | subscriptions | payments | Warrants | Reserves Total | deficit | OCI | equity | |
Balance, December 31, 2020 | 111,037,351 | $32,300,211 | $1,588,267 | $7,254,070 | $2,529,339 | $9,783,409 | $(37,605,745) | $1,591,106 | $7,657,251 | |
Private placement | 11(b) | 56,500,000 | 9,482,192 | (1,588,267) | - | 3,932,925 | 3,932,925 | - | - | 11,826,850 |
Share and warrants issued for finders fee | 518,139 | 123,025 | - | - | 506,472 | 506,472 | - | - | 629,492 | |
Share issue cost | 11(b) | - | (803,465) | - | - | - | - | - | - | (803,465) |
Shares issued on asset acquisition | 7 | 21,331,058 | 9,835,451 | - | - | - | - | - | - | 9,835,451 |
Options exercise for cash | 11(b) | 1,233,334 | 218,553 | - | (113,473) | - | (113,473) | - | - | 105,080 |
Warrant exercise for cash | 11(b) | 10,490,590 | 2,316,990 | - | - | (130,891) | (130,891) | - | - | 2,186,099 |
Share-based compensation | - | - | - | 1,560,718 | - | 1,560,718 | - | - | 1,560,718 | |
Subscriptions received | - | - | 43,569 | - | - | - | - | - | 43,569 | |
Comprehensive loss for the period | - | - | - | - | - | - | (4,340,271) | 464,993 | (3,875,278) | |
Balance, June 30, 2021 (1) | 201,110,472 | 53,472,957 | 43,569 | 8,701,315 | 6,837,845 | 15,539,160 | (41,946,016) | 2,056,099 | 29,165,769 | |
Private placement | 11(b) | 17,304,306 | 5,826,280 | (43,569) | - | 1,624,403 | 1,624,403 | - | - | 7,407,114 |
Share issue cost | 11(b) | - | (110,896) | - | - | - | - | - | - | (110,896) |
Shares issued on settlement of VAT | 901,224 | 387,487 | - | - | - | - | - | - | 387,487 | |
Options exercise for cash | 11(b) | 179,166 | 42,905 | - | - | - | - | - | - | 42,905 |
Warrant exercise for cash | 11(b) | 4,720,863 | 1,069,802 | - | - | - | - | - | - | 1,069,802 |
Share-based compensation | - | - | - | 986,621 | - | 986,621 | - | - | 986,621 | |
Comprehensive loss for the period | - | - | - | - | - | - | (7,509,530) | (638,709) | (8,148,239) | |
Balance, December 31, 2021 (1) | 224,216,031 | 60,688,534 | - | 9,687,936 | 8,462,248 | 18,150,184 | (49,455,546) | 1,417,390 | 30,800,562 | |
Options exercise for cash | 11(b) | 50,000 | 31,814 | - | (27,853) | - | (27,853) | - | - | 3,961 |
Warrant exercise for cash | 11(b) | 1,863,248 | 647,993 | - | - | (222,851) | (222,851) | - | - | 425,142 |
Share-based compensation | - | - | - | 641,807 | - | 641,807 | - | - | 641,807 | |
Subscriptions received | - | - | 3,395 | - | - | - | - | - | 3,395 | |
Comprehensive loss for the period | - | - | - | - | - | - | (8,460,543) | 253,490 | (8,207,053) | |
Balance, June 30, 2022 | 226,129,279 | $61,368,341 | $3,395 | $10,301,895 | $8,239,402 | $18,541,287 | $(57,916,089) | $1,670,880 | $23,667,814 |
- The figures presented for the period from December 31, 2020 to June 30, 2021 and from June 30, 2021 to December 31, 2021 have been restated to reflect the change in presentation currency (Note 3 (c)).
The accompanying notes are an integral part of these condensed consolidated interim financial statements
4
Condensed consolidated interim statements of cash flows (Unaudited - Expressed in US dollars)
For the three months ended | For the six months ended | |||||||||||
June 30 | June 30 | June 30 | June 30 | |||||||||
Notes | 2022 | 2021 | 2022 | 2021 | ||||||||
Restated- Note3 | Restated-Note3 | |||||||||||
Operating activities | ||||||||||||
Net loss for the period | $ | (3,521,391) | $ | (1,661,568) | $ | (8,460,543) | $ | (4,340,271) | ||||
Items not involving cash and cash equivalents: | ||||||||||||
Depreciation and amortization | 1,736,333 | 139,194 | 3,537,274 | 155,045 | ||||||||
Accretion | 140,369 | 6,045 | 293,795 | 6,045 | ||||||||
Gain on settlement of debt | (195,910) | 6,283 | (195,910) | - | ||||||||
Gain on derivatives | (1,220,275) | - | (977,462) | - | ||||||||
Interest | 535,721 | - | 1,017,559 | - | ||||||||
Impairment of advance receivable | - | 201,616 | - | 201,616 | ||||||||
Share-based compensation | 231,594 | 455,182 | 641,807 | 1,560,718 | ||||||||
Unrealized foreign exchange | (114,388) | (61,596) | 98,067 | 64,666 | ||||||||
Changes in non-cash operating working capital: | - | - | - | |||||||||
Amounts receivable | 4 | 286,754 | (2,229,889) | (1,428,744) | (2,341,045) | |||||||
Inventories | 5 | 13,013 | - | 862,538 | - | |||||||
Prepaid expenses and deposits | (88,937) | (552,988) | (222,379) | (481,394) | ||||||||
Purchases of gold and silver bullion | (1,649,690) | - | (3,281,890) | - | ||||||||
Proceeds from sale of gold and silver bullion | - | - | 1,643,708 | - | ||||||||
Accounts payable and accrued liabilities | (1,719) | 392,013 | 1,252,138 | 435,199 | ||||||||
Other current assets | 72,277 | - | 72,277 | - | ||||||||
Settlement of advance payment | 8 | (304,230) | - | (476,643) | - | |||||||
Net cash and cash equivalents used in operating | (4,080,479) | (3,305,708) | (5,624,408) | (4,739,422) | ||||||||
activities | ||||||||||||
Investing activities | ||||||||||||
Acquisition of property, plant and equipment | (969,814) | (1,444,267) | (1,303,815) | (1,666,153) | ||||||||
Acquisition of the El Cubo Complex | - | (7,553,997) | - | (7,553,997) | ||||||||
Option payments to acquire royalties | - | - | - | (17,962) | ||||||||
Payments to acquire royalties | (206,124) | - | (206,124) | - | ||||||||
Net cash and cash equivalents used in investing | (1,175,938) | (8,998,264) | (1,509,939) | (9,238,112) | ||||||||
activities | ||||||||||||
Financing activities | ||||||||||||
Proceeds from issuance of units | - | - | - | 11,826,850 | ||||||||
Share issuance costs | - | - | - | (268,488) | ||||||||
Net proceeds from OCIM Loan refinancing | 9 | 2,913,610 | - | 2,913,610 | - | |||||||
Proceeds from the exercise of options and warrants | 57,655 | 1,483,198 | 429,103 | 2,227,137 | ||||||||
Repayment of loan payable | 9 | (72,621) | (7,619) | (86,162) | (9,929) | |||||||
Payments of lease obligations | (39,050) | (19,429) | (103,736) | (19,429) | ||||||||
Share subscriptions received | 3,395 | (35,238) | 3,395 | 43,305 | ||||||||
Net cash and cash equivalents provided by | 2,862,989 | 1,420,912 | 3,156,210 | 13,799,446 | ||||||||
financing activities | ||||||||||||
Effect on cash and cash equivalents of foreign | 16,264 | 5,596 | 253,490 | 399,580 | ||||||||
exchange | ||||||||||||
(2,377,164) | (3,724,647) | |||||||||||
Change in cash and cash equivalents | (10,877,464) | 221,493 | ||||||||||
Cash and cash equivalents, beginning of period | 6,886,559 | 15,278,919 | 8,234,043 | 4,179,962 | ||||||||
Cash and cash equivalents, end of period | $ | 4,509,396 | $ | 4,401,455 | $ | 4,509,396 | $ | 4,401,455 | ||||
Cash and cash equivalents are consisted of: | ||||||||||||
Cash | $ | 4,470,594 | $ | 4,312,005 | $ | 4,470,594 | $ | 4,312,005 | ||||
Redeemable guaranteed investment certificate | 38,802 | 89,449 | 38,802 | 89,449 | ||||||||
("GIC") | ||||||||||||
Total cash and cash equivalents, end of | $ | 4,509,396 | $ | 4,401,455 | $ | 4,509,396 | $ | 4,401,455 | ||||
period | ||||||||||||
Supplemental cash flow information (Note 22)
The accompanying notes are an integral part of these condensed consolidated interim financial statements
5
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Guanajuato Silver Company Ltd. published this content on 24 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2022 00:27:07 UTC.
