ASANTE GOLD CORPORATION
Condensed Interim Consolidated Financial Statements
For the three and six months ended July 31, 2023 and 2022
(Unaudited - Expressed in thousands of Canadian dollars)
Notice of Disclosure of Non-auditor Review of the Condensed Interim Consolidated Financial Statements for the Three and Six Months Ended July 31, 2023 and 2022
Pursuant to National Instrument 51-102Continuous Disclosure Obligations, part 4, subsection 4.3(3)(a) issued by the Canadian Securities Administrators, if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the interim financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of Asante Gold Corporation for the interim periods ended July 31, 2023 and 2022, have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as issued by the International Accounting Standards Board, and are the responsibility of management.
The independent auditors, Ernst & Young LLP, have not performed a review of these unaudited condensed interim consolidated financial statements.
September 14, 2023
Asante Gold Corporation
Condensed Interim Consolidated Statements of Financial Position (Unaudited - Expressed in thousands of Canadian dollars)
July 31, | January 31, | |||||
Note | 2023 | 2023 | ||||
ASSETS | $ | $ | ||||
Current | 11,785 | 2,811 | ||||
Cash | ||||||
Restricted cash | 15(b) | 30,837 | 31,845 | |||
Accounts receivable | 6 | 11,756 | 14,022 | |||
Current portion of prepaid expenses | 7 | 18,641 | 12,017 | |||
Marketable securities | 8 | 4,734 | 6,213 | |||
Inventories | 9 | 82,840 | 83,532 | |||
160,593 | 150,440 | |||||
Prepaid expenses | 7 | 7,078 | 5,529 | |||
Reclamation bonds | 10 | 10,843 | 10,986 | |||
Property, plant and equipment | 11 | 386,847 | 400,924 | |||
Mineral properties | 12 | 370,522 | 397,335 | |||
Loans receivable | 358 | 362 | ||||
Exploration and evaluation assets | 13 | 26,281 | 12,056 | |||
Total assets | 962,522 | 977,632 | ||||
LIABILITIES | ||||||
Current | 420,473 | 324,069 | ||||
Trade and other payables | 14 | |||||
Due to related parties | 22 | 4,508 | 3,203 | |||
Current portion of loans payable | 15 | 39,328 | 46,991 | |||
Current portion of deferred payments | 16 | 126,752 | 129,136 | |||
Current portion of rehabilitation provision | 17 | 332 | 340 | |||
Deferred revenue | 18 | 34,134 | 66,750 | |||
Other current liabilities | 5, 19 | 139,668 | 141,438 | |||
765,195 | 711,927 | |||||
Loans payable | 15 | 15,388 | - | |||
Deferred payments | 16 | 48,153 | 47,847 | |||
Rehabilitation provision | 17 | 85,840 | 85,247 | |||
Total liabilities | 914,576 | 845,021 | ||||
SHAREHOLDER'S EQUITY | 296,395 | 245,120 | ||||
Share capital | 20(b) | |||||
Reserve for share-based payments | 20(c)(e) | 28,546 | 27,948 | |||
Reserve for warrants | 20(d) | 7,237 | 359 | |||
Accumulated other comprehensive income | 15,736 | 17,624 | ||||
Accumulated deficit | (324,269) | (193,727) | ||||
Equity attributable to shareholders of the Company | 23,645 | 97,324 | ||||
Non-controlling interest | 21 | 24,301 | 35,287 | |||
Total shareholders' equity | 47,946 | 132,611 | ||||
Total liabilities and shareholders' equity | 962,522 | 977,632 | ||||
Nature of operations and going concern (Note 1) | ||||||
Subsequent event (Note 28) | ||||||
Approved and authorized for issue on behalf of the Board of Directors: | ||||||
/s/ "Alex Heath" | /s/ "David Anthony" | |||||
Director | Director |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
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Asante Gold Corporation
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited - Expressed in thousands of Canadian dollars, except per share amount and number of shares)
Three months ended July 31, | Six months ended July 31, | ||||
Note | 2023 | 2022 | 2023 | 2022 | |
$ | $ | ||||
Revenue | 23 | 135,761 | - | 267,631 | - |
Cost of sales | 178,531 | - | 361,230 | - | |
Gross loss | (42,770) | - | (93,599) | - | |
Operating expenses | 2,981 | 8,636 | |||
Accretion | 16, 17 | - | - | ||
Advertising, trade shows and promotions | 209 | 169 | 545 | 311 | |
Depreciation and depletion | 11, 12 | - | 8,742 | - | 11,805 |
Finance charges | 15, 16 | 5,338 | 6,184 | 9,939 | 6,222 |
Foreign exchange gain | (6,419) | (7,971) | (8,245) | (7,564) | |
General and administrative expenses | 3,192 | 119 | 6,717 | 223 | |
Management and consulting fees | 22 | 2,721 | 1,350 | 4,733 | 4,100 |
Professional fees | 22 | 2,537 | 299 | 3,680 | 514 |
Share-based payments | 22 | 139 | 3,626 | 733 | 18,019 |
Shareholder communications | 122 | 99 | 206 | 264 | |
Transfer agent and regulatory fees | 93 | 88 | 110 | 249 | |
Travel expenses | 747 | 129 | 1,457 | 232 | |
Operating loss | (54,430) | (12,834) | (122,110) | (34,375) | |
Other income (expenses) | - | 3,371 | |||
Gain on modification of loan | 16 | - | - | ||
Interest income | - | 173 | - | 173 | |
Loss on amendment of purchase agreement | 5 | (8,818) | - | (15,830) | - |
Unrealized loss on marketable securities | 8 | (592) | (4,290) | (1,479) | (4,592) |
Net loss before income tax | (63,840) | (16,951) | (136,048) | (38,794) | |
Income tax expense | (3,722) | - | (5,269) | - | |
Net loss | (67,562) | (16,951) | (141,317) | (38,794) | |
Other comprehensive income | |||||
Gain (loss) on translation of foreign subsidiaries | (9,902) | (2,099) | |||
to presentation currency | 2,972 | 2,693 | |||
Total comprehensive loss | (77,464) | (13,979) | (143,416) | (36,101) | |
Net loss attributed to: | (62,382) | (130,542) | |||
Shareholders of the Company | (16,076) | (37,613) | |||
Non-controlling interest | (5,180) | (875) | (10,775) | (1,181) | |
(67,562) | (16,951) | (141,317) | (38,794) | ||
Total comprehensive loss attributed to: | (71,482) | (132,430) | |||
Shareholders of the Company | (13,104) | (34,920) | |||
Non-controlling interest | (5,982) | (875) | (10,986) | (1,181) | |
(77,464) | (13,979) | (143,416) | (36,101) | ||
Net loss per share: | (0.14) | (0.31) | |||
Basic and diluted | (0.05) | (0.12) | |||
Weighted average number of shares: | 440,442,897 | 416,241,208 | |||
Basic and diluted | 315,372,571 | 305,189,650 |
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
4
Asante Gold Corporation
Condensed Interim Consolidated Statements of Cash Flows (Unaudited - Expressed in thousands of Canadian dollars)
Six months ended July 31, | ||
2023 | 2022 | |
Operating activities: | $ | $ |
(141,317) | ||
Net loss | (38,794) | |
Items not affecting cash: | 8,636 | |
Accretion | - | |
Depreciation and depletion included in cost of sales | 72,893 | - |
Depreciation and depletion included in operating expenses | - | 11,805 |
Finance charges | 9,029 | 559 |
Share-based payments | 733 | 18,019 |
Gain on modification of loan | (3,371) | - |
Loss on amendment of purchase agreement | 15,830 | - |
Unrealized foreign exchange loss | 1,008 | - |
Unrealized loss on marketable securities | 1,479 | 4,592 |
Changes in non-cash working capital: | 2,266 | |
Accounts receivable | (380) | |
Prepaid expenses | (5,874) | (6,225) |
Inventories | 12,467 | (22,123) |
Loans receivable | 4 | (236) |
Trade and other payables | 81,120 | 655 |
Due to related parties | 1,305 | (34) |
Deferred revenue | (32,264) | 130,150 |
Other current liabilities | - | 1,235 |
Cash provided by operating activities | 23,944 | 99,223 |
Investing activities: | (23,108) | |
Purchases of property, plant and equipment | (54,846) | |
Expenditures on mineral properties | (26,277) | - |
Investment in marketable securities | - | (3,000) |
Expenditures on exploration and evaluation assets | (573) | (1,315) |
Repayment of deferred payments | (8,799) | (38,229) |
Cash used in investing activities | (58,757) | (97,390) |
Cash flows from financing activities | 27,348 | |
Proceeds from private placement financing | 102,256 | |
Issuance costs | - | (3,224) |
Proceeds from options exercised | 190 | 83 |
Proceeds from warrants exercised | 9,678 | 479 |
Advances from loans payable | 34,579 | - |
Repayment of loans payable | (29,745) | - |
Cash provided by financing activities | 42,050 | 99,594 |
Effect of foreign exchange on cash | 1,737 | 1,297 |
Change in cash | 8,974 | 102,724 |
Cash, beginning of period | 2,811 | 5,849 |
Cash, end of period | 11,785 | 108,573 |
Cash paid during the period for: | - | |
Income taxes | - | |
Interest expense | 2,820 | - |
Supplemental cash flow disclosures (Note 25)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
5
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Asante Gold Corporation published this content on 15 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2023 05:44:05 UTC.