HIGHLAND COPPER COMPANY INC. Condensed interim consolidated financial statements
For the three and six months ended December 31, 2021
In US dollars
Unaudited
NOTICE TO READER
The accompanying unaudited condensed interim consolidated financial statements of Highland Copper Company Inc. 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 unaudited condensed interim consolidated financial statements.
Highland Copper Company Inc.
Condensed Interim Consolidated Statements of Financial Position
December 31, | June 30, | |
(unaudited, in US dollars) | 2021 | 2021 |
$ | $ | |
ASSETS | ||
Current | ||
Cash and cash equivalents (Note 4) | 15,586,181 | 2,982,600 |
Sales taxes receivable | 42,019 | 6,822 |
Prepaid expenses and other | 53,335 | 32,048 |
15,681,535 | 3,021,470 | |
Non-current | ||
Environmental bond (Note 5) | 1,676,149 | - |
Capital assets | 26,405 | 29,446 |
Exploration and evaluation assets (Note 5) | 21,440,794 | 38,740,479 |
TOTAL ASSETS | 38,824,883 | 41,791,395 |
LIABILITIES | ||
Current | ||
Accounts payable and accrued liabilities | 915,162 | 2,236,842 |
Credit facility (Note 6) | - | 6,218,415 |
Promissory note (Note 7) | - | 17,754,189 |
915,162 | 26,209,446 | |
Non-current | ||
Environmental liability (Note 8) | 872,673 | 274,275 |
TOTAL LIABILITIES | 1,787,835 | 26,483,721 |
SHAREHOLDERS' EQUITY | ||
Share capital (Note 9) | 83,948,587 | 66,137,274 |
Contributed surplus | 14,887,859 | 11,961,512 |
Deficit | (63,085,657) | (63,970,379) |
Cumulative translation adjustment | 1,286,259 | 1,179,267 |
TOTAL EQUITY | 37,037,048 | 15,307,674 |
TOTAL LIABILITIES AND EQUITY | 38,824,883 | 41,791,395 |
Going concern (Note 2).
The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements.
On behalf of the Board,
/s/ Denis Miville-Deschênes | /s/ Caroline Donally | |
Denis Miville-Deschênes, Director | Caroline Donally, Director |
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Highland Copper Company Inc.
Condensed Interim Consolidated Statements of Income (loss) and Comprehensive Income (loss)
Three months ended December 31, | Six months ended December 31, | |||
(unaudited, in US dollars) | 2021 | 2020 | 2021 | 2020 |
$ | $ | |||
Expenses and other items | ||||
Exploration and evaluation (Note 11) | 334,052 | 201,298 | 538,960 | 382,611 |
Management and administration (Note 12) | 448,359 | 199,816 | 1,045,217 | 469,481 |
Depreciation and amortization | 1,236 | 2,766 | 2,739 | 18,240 |
Share-based compensation (Note 10) | 72,583 | - | 72,583 | - |
Gain on disposal of exploration and evaluation assets (Note 5) | - | - | (2,946,908) | - |
Accretion on environmental liability (Note 8) | 2,625 | 2,031 | 5,250 | 4,062 |
Finance expenses (Note 13) | - | 571,046 | 322,147 | 1,121,471 |
Finance income | (13,184) | (10) | (16,838) | (19) |
Loss (gain) on foreign exchange | 38,333 | (259,190) | 92,128 | (359,171) |
Net income (loss) for the period | (884,004) | (717,757) | 884,722 | (1,636,675) |
Other comprehensive income (loss) | ||||
Item that may be subsequently reclassified to income | ||||
Foreign currency translation adjustment | 64,811 | (285,883) | 106,992 | (376,500) |
Comprehensive income (loss) for the period | (819,193) | (1,003,640) | 991,714 | (2,013,175) |
Basic and diluted loss per common share | (0.00) | (0.00) | (0.00) | (0.00) |
Weighted average number of common shares - basic and diluted | 736,363,619 | 472,933,689 | 652,584,076 | 472,933,689 |
The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements.
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Highland Copper Company Inc.
Condensed Interim Consolidated Statements of Shareholders' Equity
Number of issued | |
and outstanding | |
(unaudited, in US dollars) | common shares |
Balance at June 30, 2021 | 472,933,689 |
Private placement (Note 9) | 263,429,930 |
Share issue expenses (Note 9) | - |
Share-based compensation (Note 10) | - |
Net income for the period | - |
Foreign currency translation adjustment | - |
Balance at December 31, 2021 | 736,363,619 |
Balance at June 30, 2020 | 472,933,689 |
Below market element of credit facility | - |
Net loss for the period | - |
Foreign currency translation adjustment | - |
Balance at December 31, 2020 | 472,933,689 |
Cumulative | Total | |||
Share | Contributed | translation | shareholders' | |
capital | Surplus | Deficit | adjustment | equity (deficit) |
$ | $ | $ | $ | $ |
66,137,274 | 11,961,512 | (63,970,379) | 1,179,267 | 15,307,674 |
17,971,063 | 2,853,764 | - | - | 20,824,827 |
(159,750) | - | - | - | (159,750) |
- | 72,583 | - | - | 72,583 |
- | - | 884,722 | - | 884,722 |
- | - | - | 106,992 | 106,992 |
83,948,587 | 14,887,859 | (63,085,657) | 1,286,259 | 37,037,048 |
66,137,274 | 11,872,108 | (81,650,160) | 1,740,956 | (1,899.822) |
- | 176,182 | - | - | 176,182 |
- | - | (1,636,675) | - | (1,636,675) |
- | - | - | (376,500) | (376,500) |
66,137,274 | 12,048,290 | (83,286,835) | 1,364,456 | (3,736,815) |
The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements.
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Highland Copper Company Inc.
Condensed Interim Consolidated Statements of Cash Flows
Six months ended December 31, | ||
(unaudited, in US dollars) | 2021 | 2020 |
$ | $ | |
Operating activities | ||
Net income (loss) for the period | 884,722 | (1,636,675) |
Adjustments | ||
Share-based compensation (Note 10) | 72,583 | - |
Depreciation and amortization | 2,739 | 18,240 |
Gain on disposal of exploration and evaluation assets (Note 5) | (2,946,908) | - |
Accretion on environmental liability (Note 8) | 5,250 | 4,062 |
Unrealized loss (gain) on foreign exchange | 92,128 | (359,171) |
Finance expense (Note 13) | 322,147 | 1,119,763 |
Changes in working capital items | ||
Sales taxes receivable | (35,549) | (1,348) |
Prepaid expenses and other | (22,134) | (27,402) |
Accounts payable and accrued liabilities | (1,281,935) | 526,127 |
(2,906,957) | (356,404) | |
Investing activities | ||
Environmental bond (Note 5) | (1,676,149) | - |
Acquisition of assets | (4,266) | - |
Proceeds from sale of exploration and evaluation assets (Note 5) | 3,000,000 | - |
Additions to exploration and evaluation assets (Note 5) | (126,025) | (122,275) |
1,193,560 | (122,275) | |
Financing activities | ||
Issue of share capital (Note 9) | 20,824,827 | - |
Share issue expenses (Note 9) | (159,750) | - |
Credit facility | - | 500,000 |
Reimbursement of credit facility (Note 6) | (6,337,766) | - |
Reimbursement of note payable | - | (55,000) |
Repayment of lease liabilities | - | (12,537) |
14,327,311 | 432,463 | |
Effect of exchange rate changes on cash held in foreign currency | (10,333) | 19,252 |
Net change in cash and cash equivalents | 12,603,581 | (26,964) |
Cash, beginning of period | 2,982,600 | 164,327 |
Cash and cash equivalents, end of period | 15,586,181 | 137,363 |
Supplemental cash flow information | ||
Additions to exploration and evaluation assets, included in accounts payable and accrued liabilities | - | 31,378 |
Additions to exploration and evaluation assets and to environmental liability | 593,148 | - |
Below-market element of credit facility in contributed surplus | - | 176,182 |
The accompanying notes form an integral part of these unaudited condensed interim consolidated financial statements.
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Highland Copper Company Inc. published this content on 25 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 17:06:05 UTC.
