Highlights During and After the Quarter
During the three months ended
- On
June 1, 2023 , the Company announced in-situ assay results at over 30% Nickel and 4.7% Cobalt at Bihor Sud. Additionally, surface trench assay results indicate a zone of Pb-Zn-Ag mineralisation.
Subsequent to
- On
August 23, 2023 , company announced the closing of the non-brokered private placement financing. Pursuant to the Private Placement, the Company has issued 21,739,130 units at a price ofC$0.115 per unit for aggregate gross proceeds ofC$2,500,000 .
Results of Operations
Three Months Ended
During the three months ended
Three Months Ended
During the three months ended
Specific expenses of note during three months ended
(i) incurred
(ii) incurred
(iii) incurred a total of
(iv) incurred research, development and general exploration expense of
(v) incurred
Selected Financial Data
The following selected financial information is derived from the unaudited condensed consolidated interim financial statements of the Company prepared in accordance with IFRS.
Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | ||||||
Three Months Ended | $ | 2023 $ | 2023 $ | 2022 $ | 2022 $ | 2022 $ | 2022 $ | 2021 $ |
Operations | ||||||||
Expenses | (313,950) | (1,048,182) | (570,549) | (425,075) | (419,050) | (433,894) | (1,874,407) | (583,391) |
Other items | (8,442) | (187,421) | (66,586) | 308,721 | (190,659) | (356,226) | (219,942) | 28,466 |
Comprehensive profit/(loss) | (322,392) | (1,235,603) | (637,135) | (116,354) | (609,709) | (790,120) | (2,094,349) | (554,925) |
Basic Profit/(loss) per share | (0.00) | (0.01) | (0.00) | (0.00) | (0.00) | (0.01) | (0.01) | (0.00) |
Diluted profit/(loss) per share | (0.00) | (0.01) | (0.00) | (0.00) | (0.00) | (0.01) | (0.01) | (0.00) |
Financial Position | ||||||||
Working capital | 848,952 | 1,344,044 | 2,124,643 | 1,365,657 | 1,686,095 | 2,396,484 | 3,236,870 | 2,350,166 |
Total assets | 23,584,544 | 24,181,654 | 24,845,430 | 23,832,418 | 24,827,062 | 25,000,847 | 30,597,341 | 28,756,406 |
Total non-current liabilities | (5,109,575) | (5,404,808) | (5,556,603) | (5,292,618) | (6,159,922) | (6,045,964) | (10,812,012) | (9,946,686) |
Financial Condition / Capital Resources
During the three months ended
Outlook
As mentioned in our last quarterly update1, there are numerous new political and legislative initiatives to support mining and processing of critical raw materials in the EU. We are pleased to see the increasing political support focused on these key themes given their importance, tying together the issues of climate change, resilient supply chains for products needed to sustain our way of life, decreased dependance on regions which may not share our western values and future jobs. We feel that our Company has an important role to play in this reality and have projects particularly well positioned to benefit from these trends.
In addition to the EU Critical Raw Materials Act, which is well in process towards becoming legislation, there are increasing suggestions2 for various ways the EU could stimulate direct funding of underlying projects in the short to midterm. Again, reading between the lines, we conclude that there is a definite sense of urgency in
As reported, the Company did a recent private placement raising gross proceeds of
In terms of our assets and the underlying materials needed for the green transition, natural graphite remains a particularly interesting commodity according to many analysts3. This because graphite is a core component in almost all lithium-ion chemistries, with extreme dependance on Asian supply chains and importance to help decarbonize battery anodes. Many analysts predict a six- to sevenfold increase in graphite demand by 20304, amongst the most severe of any commodity.
We maintain our built and permitted Woxna graphite mine and plant on care and maintenance, while monitoring market signals to consider a restart of graphite concentrate production, as the first step to developing a downstream anode business. Despite the looming demand-supply deficit graphite prices have remained weak to date this year.5
The attractiveness of owning a built mine once the underlying commodity increases in value can’t be overstated. This is why we are confident that Woxna will offer us a tremendous opportunity to benefit from the demand-supply imbalance.
Additionally, there are signs that bifurcated markets are developing for battery materials, those from
Norra Kärr
At our Norra Kärr development project, we are progressing work with a Natura 2000 permit application. As this is done based on the new 2021 design of this project, we are benefitting from authorities and other stakeholders evaluating the merits of the project based on recent plans that substantially reduce the potential for environmental risk. In parallel, we have started working towards a new mining lease application as well as evaluating the most appropriate next stages of feasibility development.
Quite a bit has been happening recently in the rare earth and permanent magnet space. Prices for the magnet metals have increased8 because of supply concerns in
Across the
Bihor Sud Nickel-Cobalt Exploration Project
Since having obtained permission to enter our underground galleries in January, this project has been advancing rapidly. Results are encouraging: in the first target gallery G7 we have encountered visual Co-Ni mineralization over 135 m until a collapsed zone in mineralized rocks which is currently being cleaned out to open another 900 m of gallery. This is important since it appears that mineralized zone continues beyond the collapsed rocks. Further extensive Co-Ni mineralization has been identified 50 m above G7 in a cross cut coming from the higher level gallery G4.
As communicated, in situ samples from G7 gallery walls have assayed up to 30% Ni and 4.7% Co while surface trench assay results indicate a zone of Pb-Zn-Ag mineralization. These results confirm our belief that this is a high prospective exploration project with potential for both scale and high-grade mineralization.
Line sampling of the Co-Ni-mineralization in G7 and the Pb-Zn-Cu-Ag mineralization in G4 was completed and samples sent for assaying. Results are expected shortly, and follow-up channel sampling is currently underway.
We are working towards doing a surface drill program on 50-100 m deep geophysical anomalies and to explore the depth extent of G7 Co-Ni-mineralization, as well as an underground drill program from inside G4 and G7.
Financial Information
The annual audited consolidated financial statements for the year ending
The Company also announces that in connection with the recently private placement closed on
On behalf of the Board of Directors,
For further information, please contact the Company at:
info@leadingedgematerials.com
www.leadingedgematerials.com
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About
Additional Information
The Company’s unaudited consolidated financial statements for the nine months ended
The information was submitted for publication through the agency of the contact person set out above, on
Reader Advisory
Certain information in this news release may constitute forward-looking statements or forward-looking information within the meaning of applicable Canadian securities laws (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, addressing activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are Forward-Looking Statements. Forward-Looking Statements are often, but not always, identified by the use of words such as “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might” occur or be achieved and other similar expressions. Forward-Looking Statements are based upon the opinions and expectations of the Company based on information currently available to the Company. Forward-Looking Statements are subject to a number of factors, risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the Forward-Looking Statements including, among other things, the Company has yet to generate a profit from its activities; there can be no guarantee that the estimates of quantities or qualities of minerals disclosed in the Company’s public record will be economically recoverable; uncertainties relating to the availability and costs of financing needed in the future; competition with other companies within the mining industry; the success of the Company is largely dependent upon the performance of its directors and officers and the Company’s ability to attract and train key personnel; changes in world metal markets and equity markets beyond the Company’s control; the possibility of write-downs and impairments; the risks associated with uninsurable risks arising during the course of exploration; development and production; the risks associated with changes in the mining regulatory regime governing the Company; the risks associated with tenure to the Norra Karr property; the risks associated with the various environmental regulations the Company is subject to; rehabilitation and restitution costs; the Woxna project has never defined a mineral reserve or a feasibility study and the associated increased risk of technical and economic failure in case of restarting production; risks relating to the preliminary and non-binding nature of the MOU with Sicona. On
1 https://leadingedgematerials.com/leading-edge-materials-reports-quarterly-results-to-april-30-2023/
2 https://www.transportenvironment.org/discover/expansion-of-the-eu-innovation-fund-needed-for-battery-supply-chain/
3 https://www.fastmarkets.com/insights/graphite-market-outlook-five-key-factors-to-watch
4 https://www.economist.com/finance-and-economics/2023/09/11/how-to-avoid-a-green-metals-crunch
5 https://source.benchmarkminerals.com/article/why-battery-material-prices-slumped-under-pressure-in-the-first-half-of-2023?mc_cid=1c25ba3e5d&mc_eid=33b1527344
6 https://aheadoftheherd.com/import-ban-on-goods-made-with-chinese-slave-labor-extended-to-electric-car-batteries-richard-mills/
7 https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/north-american-graphite-market-to-disconnect-from-chinese-prices-76963809
8 https://www.reuters.com/markets/commodities/chinese-rare-earth-prices-hit-20-month-high-myanmar-supply-worry-2023-09-07/
9 http://news.chinatungsten.com/en/component/content/article/14-tungsten-news-en/tungsten-product-news/158697-tpn-12740.html
10 https://energydigital.com/articles/neo-produces-specialised-magnets-for-clean-energy-tech
Attachments
- 2023-09-20 LEM 2023Q3 press release
- FinacialreportQ3
Source:
2023 GlobeNewswire, Inc., source