Sandfire Resources America : Q1 Sandfire Resources America Inc. FS

SANDFIRE RESOURCES AMERICA INC.

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

SANDFIRE RESOURCES AMERICA INC. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2021 and JUNE 30, 2021 (Unaudited - Expressed in Canadian Dollars)

					September 30, 2021		June 30, 2021
ASSETS
Current
	Cash and cash equivalents		$	4,674,087	$	4,164,711
	Prepaid expenses and other assets			148,314		141,118
	Reclamation bond (Note 7)			-		220,542
Non-current			4,822,401		4,526,371
	Property, plant, and equipment (Note 5)			11,530,494		10,161,986
	Resource properties (Note 7)			7,297,832		6,974,172
	Right of use assets (Note 6)			147,012		155,293
	Reclamation bond (Note 7)			561,976		19,846
	Prepaid mining property tax (Note 7)			553,812		542,057
						20,091,126		17,853,354
Total assets		$	24,913,527	$	22,379,725
LIABILITIES
Current
	Accounts payable and accrued liabilities (Note 8)	$	1,136,459	$	951,530
	Lease liabilities - current portion (Note 6)		49,432		44,214
	Loan payable - related party (Note 10)			3,801,911
	Loan payable - land (Note 11)			101,540		-
Long-term			5,089,342		995,744
	Lease liabilities (Note 6)			97,660		108,999
	Accrued reclamation and remediation (Note 9)		2,462,699		2,397,912
	Loan payable - land (Note 11)			886,990
Total liabilities			8,536,691		3,502,655
SHAREHOLDERS' EQUITY
Share capital (Note 12)			140,073,275		140,073,275
Share-based payment reserve (Note 13)			8,007,572		8,007,572
Foreign currency reserve			(5,116)		(382,441)
Accumulated deficit			(131,698,895)		(128,821,336)
Total shareholders' equity			16,376,836		18,877,070
Total shareholders' equity and liabilities		$	24,913,527		22,379,725
	NATURE OF OPERATIONS AND GOING CONCERN (Note 1)
	COMMITMENTS AND CONTINGENCIES (Note 16)
	SUBSEQUENT EVENTS (Note 19)
	Approved by the Board on November 12, 2021
	"Robert Scargill"	"Matt Fitzgerald"
	Director			Director
									3

The accompanying notes are an integral part of these consolidated financial statements.

SANDFIRE RESOURCES AMERICA INC.

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (Unaudited - Expressed in Canadian Dollars)

		2021		2020
EXPENSES
Director and management fees (Note 14)	$	13,595	$	13,750
Depreciation (Notes 5, 6)		65,721		62,014
Salary and wages		100,500		100,500
Exploration and evaluation costs (Note 7)		2,173,523		1,862,329
Foreign exchange loss (gain)		16		2,690
Office, administration and miscellaneous		214,988		169,963
Professional fees		296,515		240,914
Share-based payments (Notes 13)		-		3,350
Accretion (Note 9)		12,701		-
Loss from operations		(2,877,559)		(2,455,510)
OTHER ITEMS
Interest expense (Note 10)		-		(167,237)
Loss before income tax		-		(2,622,747)
Income tax provision		-		-
Net loss for the period		(2,877,559)		(2,622,747)
Other comprehensive income gain (loss)
Foreign currency reserve gain (loss)		377,325		(38,951)
Net other comprehensive income (loss)		377,325		(38,951)
TOTAL COMPREHENSIVE LOSS FOR THE
PERIOD	$	2,500,234	$	(2,661,698)
BASIC AND DILUTED LOSS PER SHARE	$	(0.00)	$	(0.00)
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING		1,023,252,794		821,613,031

4

The accompanying notes are an integral part of these consolidated financial statements.

SANDFIRE RESOURCES AMERICA INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (Unaudited - Expressed in Canadian Dollars)

		Share capital	Share-based	Foreign
				Payment	Currency	Accumulated
		Number of	Amount	Reserve	Reserve	Deficit	Total
		Shares	$	$	$	$	$
	Balance at July 1, 2020	821,613,031	110,007,994	8,054,356	417,568	(117,839,188)	640,730
	Loss for the period	-	-	-	-	(2,622,747)	(2,622,747)
	Other comprehensive gain	-	-	-	(38,951)	-	(38,951)
	-		-
	Share-based payments	-	3,350	-	3,350
	Balance at September 30, 2020	821,613,031	110,007,994	8,057,706	378,617	(120,461,935)	(2,017,618)
	Balance at July 1, 2021	1,023,252,794	140,073,275	8,007,572	(382,441)	(128,821,336)	18,877,070
	Loss for the period	-	-	-	-	(2,877,559)	(2,877,556)
	Other comprehensive loss	-	-	-	377,325	-	377,325
	Balance at September 30, 2021	1,023,252,794	140,073,275	8,007,572	(5,116)	(131,698,895)	16,376,836

5

The accompanying notes are an integral part of these consolidated financial statements.

SANDFIRE RESOURCES AMERICA INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (Unaudited - Expressed in Canadian Dollars)

		2021		2020
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net loss for the period	$	(2,877,559)	$	(2,622,747)
Items not involving cash:
Depreciation (Notes 5 and 6)		65,721		62,020
Accretion of accrued reclamation and remediation (Note 9)		12,701		-
Accretion of interest on lease liabilities (Note 6)		1,648		1,691
Share-based payments (Note 13)		-		3,350
Changes in operating assets and liabilities		(2,797,489)
Prepaid expenses and other assets		(7,196)		(552,419)
Prepaid mining property tax (Note 7)		(11,755)		-
Accounts payable and accrued liabilities		184,929		1,217,239
Cash used in operating activities		(2,631,511)		(1,890,866)
INVESTING ACTIVITIES
Purchase of property, plant, and equipment (Note 5)		(214,095)		(2,817,627)
Refund (deposit) of reclamation bond (Note 7)		(311,523)		-
Acquisition of resource properties (Note 7)		(172,546)		(148,722)
Cash used in investing activities		(698,164)		(2,966,349)
FINANCING ACTIVITIES
Payments on leases (Note 6)		(11,030)		(5,698)
Proceeds from loan payable - related party (Note 10)		3,801,911		6,790,235
Cash provided by financing activities		3,790,881		6,784,537
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS DURING THE PERIOD		461,206		1,927,322
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS		48,170		(127,265)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		4,164,711		213,392
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	4,674,087	$	2,013,449

6

The accompanying notes are an integral part of these consolidated financial statements.