NOVO RESOURCES CORP. NOVO RESOURCES CORP.
(TSX: NVO; OTCQX: NSRPF)
CONDENSED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 30, 2022 AND 2021
(Expressed in Canadian Dollars)
Novo Resources Corp.
(Expressed in Canadian Dollars)
Condensed Interim Consolidated Statements of Financial Position
(Unaudited)
June 30, | December 31, | ||
2022 | 2021 | ||
Note | $'000 | $'000 | |
ASSETS | |||
Current assets | |||
Cash | 74,737 | 32,345 | |
Short-term investments | 147 | 108 | |
Inventory | 3 | 12,803 | 9,646 |
Receivables | 4 | 4,418 | 6,127 |
Prepaid expenses and deposits | 1,055 | 1,159 | |
Financial asset | 5 | 16,281 | - |
Non-current asset classified as held for sale - marketable security | 6 | 38,947 | - |
Total current assets | 148,388 | 49,385 | |
Non-current assets | |||
Marketable securities | 6 | 18,958 | 156,209 |
Exploration and evaluation assets | 7 | 144,598 | 149,928 |
Property, plant and equipment | 8 | 64,541 | 74,337 |
Right of use assets | 9 | 5,411 | 25,778 |
Mine development assets | 10 | 3,353 | 6,968 |
Gold specimens | 73 | 77 | |
Total non-current assets | 236,934 | 413,297 | |
Total assets | 385,322 | 462,682 | |
LIABILITIES | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 11 | 18,454 | 16,894 |
Provisions | 11 | 6,312 | 2,911 |
Lease liabilities | 12 | 7,987 | 12,453 |
Credit facility | 13 | 51,544 | 6,339 |
Derivative liability | 13 | 17 | - |
Sumitomo funding liability | 15 | - | 5,780 |
Sumitomo written call option | 15 | - | 1,083 |
Tax payable | 6 | 1,509 | - |
Total current liabilities | 85,823 | 45,460 | |
Non-current liabilities | |||
Lease liabilities | 12 | 5,094 | 18,530 |
Credit facility | 13 | - | 37,384 |
Derivative liability | 13 | - | 378 |
Rehabilitation provision | 14 | 33,248 | 36,342 |
Deferred tax liability | 6 | 8,630 | 10,326 |
Total non-current liabilities | 46,972 | 102,960 | |
Total liabilities | 132,795 | 148,420 | |
SHAREHOLDERS' EQUITY | |||
Share capital | 16 | 391,961 | 388,781 |
Reserves | 16 | 59,193 | 57,445 |
Accumulated other comprehensive gain | 16 | (8,944) | 25,972 |
Accumulated deficit | (189,683) | (157,936) | |
Total shareholders' equity | 252,527 | 314,262 | |
Total shareholders' equity and liabilities | 385,322 | 462,682 |
These condensed interim consolidated financial statements are authorized for issue by the Board of Directors on August 15, 2022. They are signed on the Company's behalf by:
"Ross Hamilton" | "Michael Barret" | |
Ross Hamilton | Michael Barrett |
1
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Novo Resources Corp.
(Expressed in Canadian Dollars)
Condensed Interim Consolidated Statements of Profit or Loss and Other Comprehensive Income
(Unaudited)
Three months ended June 30 | Six months ended June 30 | |||||
2021 | 2021 | |||||
2022 | restated Note 2 | 2022 | restated Note 2 | |||
$'000 | $'000 | $'000 | $'000 | |||
Revenue | 17 | 29,685 | 31,704 | 61,560 | 39,422 | |
Cost of goods sold | 18 | (42,524) | (31,704) | (79,899) | (39,422) | |
Gross loss from mine operations | (12,839) | - | (18,339) | - | ||
General administration | 19 | (3,553) | (7,409) | (7,554) | (15,052) | |
Exploration expenditure | 20 | (11,351) | (2,097) | (15,389) | (4,945) | |
(Loss) / profit on disposal of exploration asset | 7 | - | (191) | - | 14,749 | |
Loss from operations | (27,743) | (9,697) | (41,282) | (5,248) | ||
Other income, net | 22 | 18,283 | 2,915 | 18,953 | 1,006 | |
Finance items | ||||||
Finance income | 23 | 183 | 12 | 193 | 20 | |
Finance costs | 23 | (7,340) | (9,750) | (7,413) | (11,184) | |
Net loss for the period before tax | (16,617) | (16,520) | (29,549) | (15,406) | ||
Income tax expense | (2,198) | - | (2,198) | - | ||
Net loss for the period after tax | (18,815) | (16,520) | (31,747) | (15,406) | ||
Other comprehensive income / (loss) | ||||||
Change in fair value of marketable securities, net of tax - not to be | ||||||
reclassified to profit or loss in subsequent periods | 16 | (10,196) | 704 | (28,894) | (1,981) | |
Foreign exchange on translation of subsidiaries - to be reclassified to | ||||||
profit or loss in subsequent periods | 16 | (9,451) | (6,824) | (6,022) | (12,082) | |
Total other comprehensive loss | (19,647) | (6,120) | (34,916) | (14,063) | ||
Comprehensive loss for the period | (38,462) | (22,640) | (66,663) | (29,469) | ||
Weighted average number of common shares outstanding | 248,541,466 | 236,525,772 | 248,293,389 | 233,849,893 | ||
Basic and diluted loss per common share ($ per share) | (0.08) | (0.07) | (0.13) | (0.07) |
2
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Novo Resources Corp.
(Expressed in Canadian Dollars)
Condensed Interim Consolidated Statements of Changes in Equity
For the six months ended June 30, 2022 and 2021
(Unaudited)
Fair value | |||||||||||
Comet Well | reserve of | Foreign | |||||||||
Deferred | financial | currency | |||||||||
Number of | Share Capital | Treasury | Warrant | Considerati | assets at | translation | Accumulated Shareholders' | ||||
Shares | Amount | Shares | Option Reserve | Reserve | on Reserve | FVTOCI | reserve | Deficit | Equity | ||
Note | (unrounded) | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
Balance - December 31, 2020 as previously reported | 230,353,507 | 347,166 | (2,571) | 31,137 | 16,293 | 3,354 | 6,028 | 5,557 | (77,525) | 329,439 | |
Change in accounting policy - adopted in 2021 | 2 | - | - | - | - | - | - | - | (5,258) | (79,707) | (84,965) |
Balance - December 31, 2020 restated | 230,353,507 | 347,166 | (2,571) | 31,137 | 16,293 | 3,354 | 6,028 | 299 | (157,232) | 244,474 | |
Other comprehensive loss for the period | - | - | - | - | - | - | (1,981) | (12,082) | - | (14,063) | |
Loss for the period | - | - | - | - | - | - | - | - | (15,406) | (15,406) | |
Comprehensive loss for the period | - | - | - | - | - | - | (1,981) | (12,082) | (15,406) | (29,469) | |
Stock option exercises | 16 | 625,000 | 838 | - | - | - | - | - | - | - | 838 |
Share-based payments | 16 & 19 | - | - | - | 6,987 | - | - | - | - | - | 6,987 |
Queens project share issuance | 7 | 584,215 | 1,875 | - | - | - | - | - | - | - | 1,875 |
Comet Well share issuance | 7 | 1,198,395 | 3,354 | - | - | - | (3,354) | - | - | - | - |
Malmsbury project share issuance | 7 | 1,575,387 | 3,450 | - | - | - | - | - | - | - | 3,450 |
Movement in treasury shares - Investment in associate | - | - | 40 | - | - | - | - | - | - | 40 | |
Conversion of special warrants | 16 | 10,353,000 | 31,027 | - | - | - | - | - | - | - | 31,027 |
Share issue costs | 16 | - | (59) | - | - | - | - | - | - | - | (59) |
Balance - June 30, 2021 | 244,689,504 | 387,651 | (2,531) | 38,124 | 16,293 | - | 4,047 | (11,783) | (172,638) | 259,163 | |
Balance - December 31, 2021 | 245,939,504 | 388,781 | - | 41,152 | 16,293 | - | 40,369 | (14,397) | (157,936) | 314,262 | |
Other comprehensive loss for the period | - | - | - | - | - | - | (28,894) | (6,022) | - | (34,916) | |
Loss for the period | - | - | - | - | - | - | - | - | (31,747) | (31,747) | |
Comprehensive loss for the period | - | - | - | - | - | - | (28,894) | (6,022) | (31,747) | (66,663) | |
Share-based payments | 16 & 19 | - | - | - | 1,748 | - | - | - | - | - | 1,748 |
Share issuance - Sumitomo | 15 | 3,382,550 | 3,180 | - | - | - | - | - | - | - | 3,180 |
Balance - June 30, 2022 | 249,322,054 | 391,961 | - | 42,900 | 16,293 | - | 11,475 | (20,419) | (189,683) | 252,527 |
3
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Novo Resources Corp.
(Expressed in Canadian Dollars)
Condensed Interim Consolidated Statements of Cash Flows
(Unaudited)
Three months ended June 30 | |||
2021 | |||
2022 | restated Note 2 | ||
Note | $'000 | $'000 | |
Operating activities | |||
Net loss for the period | (16,617) | (16,520) | |
Adjustments: | |||
Finance income | 23 | (183) | (12) |
Finance costs | 23 | 6,902 | 8,230 |
Depreciation - fixed assets | 8 | 7,225 | 389 |
Depreciation - right of use assets | 9 | 3,097 | 3,294 |
Foreign exchange | 2,009 | 1,869 | |
Share-based payments | 19 | 456 | 2,660 |
Share of profit in associate | - | (2,545) | |
Profit on sale of tenements | 7 | - | 191 |
Change in fair value change of derivative asset | (18,509) | - | |
Change in fair value of marketable securities | 6 | 292 | (208) |
Total non-cash adjustments | 1,289 | 13,868 | |
Changes in non-cash operating working capital: | |||
Accounts payable and accrued liabilities | 6,353 | 2,171 | |
Prepaid expenses and deposits | (166) | (533) | |
Receivables | 770 | 3,476 | |
Inventory | (2,603) | (3,875) | |
4,354 | 1,239 | ||
Interest income | 183 | 12 | |
Interest paid | 14 | (1,208) | (1,097) |
Net cash used in operating activities | (11,999) | (2,498) | |
Investing activities | |||
Purchase of property, plant and equipment | 8 | (448) | (768) |
Payments for mine development | 10 | (691) | (445) |
Proceeds from sale of exploration assets | 7 | - | - |
Proceeds from sale of marketable securities | 6 | 68,888 | 577 |
Acquisition of exploration and evaluation assets | 7 | - | (240) |
Net cash used in / (generated from ) investing activities | 67,749 | (876) | |
Financing activities | |||
Proceeds from credit facility | 14 | - | 6,288 |
Credit facility transaction costs | 14 | - | (135) |
Payment of Comet Well deferred consideration | 7 | - | - |
Issuance of special warrants | 16 | - | 25,563 |
Share issue costs | 16 | - | (59) |
Payment of principal portion of lease liabilities | 12 | (2,895) | (2,698) |
Sumitomo funding | 342 | - | |
Net cash (used in) / generated from financing activities | (2,553) | 28,959 | |
Net change in cash | 53,197 | 25,585 | |
Effect of exchange rate changes on cash | (243) | (160) | |
Cash, beginning of the period | 21,783 | 20,801 | |
Cash, end of the period | 74,737 | 46,226 |
Six months ended June 30
2021
2022 restated Note 2
$'000$'000
(29,549)(15,406)
- (20)
6,4059,634
14,249 | 777 |
6,155 | 6,327 |
- (2,552)
1,748 | 6,987 |
- | (1,579) |
- | (14,749) |
(18,509) | - |
221 | (1,374) |
9,672 | 3,451 |
5,360 | 6,447 |
103(640)
1,709(3,465)
(3,156)(6,178)
4,016(3,836)
19320
(2,346)(2,093)
(18,014)(17,864)
(2,322)(2,665)
- (7,526)
- 9,432
68,888964
- (240)
65,802(35)
- 6,288
- (135)
- (2,946)
- 25,563
- (59)
(5,681)(4,905)
342-
(5,339)23,806
42,4495,907
- (175)
32,34540,494
74,73746,226
4
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Novo Resources Corp. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 21:36:14 UTC.
