NEW PACIFIC METALS CORP. UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
For the three and nine months ended March 31, 2024 and 2023 (Expressed in United States Dollars)
New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Financial Position
(Expressed in US dollars)
Notes | March 31, 2024 | June 30, 2023 | |||
ASSETS | |||||
Current Assets | |||||
Cash and cash equivalents | $ | 23,463,182 | $ | 6,296,312 | |
Short-term investments | 265,909 | 198,375 | |||
Receivables | 334,965 | 421,860 | |||
Deposits and prepayments | 444,712 | 631,402 | |||
24,508,768 | 7,547,949 | ||||
Non-current Assets | |||||
Other tax receivable | 3 | 5,646,545 | 5,530,422 | ||
Equity investments | 325,314 | 283,081 | |||
Plant and equipment | 5 | 1,303,928 | 1,339,839 | ||
Mineral property interests | 6 | 106,772,250 | 103,606,250 | ||
TOTAL ASSETS | $ | 138,556,805 | $ | 118,307,541 | |
LIABILITIES AND EQUITY | |||||
Current Liabilities | |||||
Accounts payable and accrued liabilities | $ | 810,749 | $ | 2,280,553 | |
Due to a related party | 7 | 30,752 | 56,102 | ||
841,501 | 2,336,655 | ||||
Total Liabilities | 841,501 | 2,336,655 | |||
Equity | |||||
Share capital | 8 | 181,875,121 | 155,840,052 | ||
Share-based payment reserve | 19,310,483 | 18,636,297 | |||
Accumulated other comprehensive income | 9,847,383 | 10,227,980 | |||
Deficit | (73,162,566) | (68,623,306) | |||
Total equity attributable to the equity holders of the Company | 137,870,421 | 116,081,023 | |||
Non-controlling interests | 9 | (155,117) | (110,137) | ||
Total Equity | 137,715,304 | 115,970,886 | |||
TOTAL LIABILITIES AND EQUITY | $ | 138,556,805 | $ | 118,307,541 | |
Approved on behalf of the Board: |
(Signed) Maria Tang
Director
(Signed) Andrew Williams
Director
See accompanying notes to the unaudited condensed consolidated interim financial statements
Page | 1
New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Loss
(Expressed in US dollars)
Three months ended March 31, | Nine months ended March 31, | |||||||||
Notes | 2024 | 2023 | 2024 | 2023 | ||||||
Operating expense | ||||||||||
Project evaluation and corporate development | $ | (6,539) | $ | (154,017) | $ | (196,076) | $ | (340,114) | ||
Depreciation | 5 | (49,194) | (50,465) | (154,152) | (156,657) | |||||
Filing and listing | (61,274) | (59,558) | (228,305) | (264,784) | ||||||
Investor relations | (100,046) | (226,827) | (244,149) | (495,176) | ||||||
Professional fees | (74,929) | (116,987) | (268,020) | (287,513) | ||||||
Salaries and benefits | (493,889) | (412,395) | (1,595,001) | (1,171,969) | ||||||
Office and administration | (301,456) | (412,825) | (1,013,917) | (1,132,622) | ||||||
Share-based compensation | 8(b) | (634,919) | (944,406) | (1,710,018) | (2,515,235) | |||||
(1,722,246) | (2,377,480) | (5,409,638) | (6,364,070) | |||||||
Other income | ||||||||||
Net income from investments | 4 | $ | 440,991 | $ | 119,438 | $ | 736,285 | $ | 161,219 | |
Gain on disposal of plant and equipment | 5 | - | - | 51,418 | - | |||||
Foreign exchange gain (loss) | 10,699 | (18,683) | 77,694 | (32,540) | ||||||
451,690 | 100,755 | 865,397 | 128,679 | |||||||
Net loss | $ | (1,270,556) | $ | (2,276,725) | $ | (4,544,241) | $ | (6,235,391) | ||
Attributable to: | ||||||||||
Equity holders of the Company | $ | (1,269,136) | $ | (2,275,519) | $ | (4,539,260) | $ | (6,231,420) | ||
Non-controlling interests | 9 | (1,420) | (1,206) | (4,981) | (3,971) | |||||
Net loss | $ | (1,270,556) | $ | (2,276,725) | $ | (4,544,241) | $ | (6,235,391) | ||
Loss per share attributable to the equity holders of the Company | ||||||||||
Loss per share - basic and diluted | $ | (0.01) | $ | (0.01) | $ | (0.03) | $ | (0.04) | ||
Weighted average number of common shares - basic and diluted | 171,197,304 | 157,104,944 | 166,605,297 | 156,883,251 |
See accompanying notes to the unaudited condensed consolidated interim financial statements
Page | 2
New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Comprehensive (Loss) Income
(Expressed in US dollars)
Three months ended March 31, | Nine months ended March 31, | |||||||||
Notes | 2024 | 2023 | 2024 | 2023 | ||||||
Net loss | $ | (1,270,556) | $ | (2,276,725) | $ | (4,544,241) | $ | (6,235,391) | ||
Other comprehensive loss, net of taxes: | ||||||||||
Items that may subsequently be reclassified to net income or loss: | ||||||||||
Currency translation adjustment, net of tax of $nil | (948,976) | 45,715 | (420,596) | (1,765,613) | ||||||
Other comprehensive income (loss), net of taxes | $ | (948,976) | $ | 45,715 | $ | (420,596) | $ | (1,765,613) | ||
Attributable to: | ||||||||||
Equity holders of the Company | $ | (946,825) | $ | 43,818 | $ | (380,597) | $ | (1,753,895) | ||
Non-controlling interests | 9 | (2,151) | 1,897 | (39,999) | (11,718) | |||||
Other comprehensive Income (loss), net of taxes | $ | (948,976) | $ | 45,715 | $ | (420,596) | $ | (1,765,613) | ||
Total comprehensive loss, net of taxes | $ | (2,219,532) | $ | (2,231,010) | $ | (4,964,837) | $ | (8,001,004) | ||
Attributable to: | ||||||||||
Equity holders of the Company | $ | (2,215,961) | $ | (2,231,701) | $ | (4,919,857) | $ | (7,985,315) | ||
Non-controlling interests | 9 | (3,571) | 691 | (44,980) | (15,689) | |||||
Total comprehensive loss, net of taxes | $ | (2,219,532) | $ | (2,231,010) | $ | (4,964,837) | $ | (8,001,004) |
See accompanying notes to the unaudited condensed consolidated interim financial statements
Page | 3
New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Cash Flows (Expressed in US dollars)
Three months ended March 31, | Nine months ended March 31, | |||||||
Notes | 2024 | 2023 | 2024 | 2023 | ||||
Operating activities | ||||||||
Net loss | $ | (1,270,556) | $ | (2,276,725) | $ | (4,544,241) | $ | (6,235,391) |
Add (deduct) items not affecting cash: | ||||||||
Net income from investments | 4 | (440,991) | (119,438) | (736,285) | (161,219) | |||
Depreciation | 5 | 49,194 | 50,465 | 154,152 | 156,657 | |||
Gain on disposal of plant and equipment | 5 | - | - | (51,418) | - | |||
Share-based compensation | 8(b) | 634,889 | 963,181 | 1,669,387 | 2,578,039 | |||
Unrealized foreign exchange (gain) loss | (10,699) | 18,683 | (77,694) | 32,540 | ||||
Changes in non-cash operating working capital | 13 | (372,125) | 30,196 | (659,554) | (1,064,068) | |||
Interest received | 4 | 319,166 | 79,521 | 619,887 | 329,745 | |||
Net cash used in operating activities | (1,091,122) | (1,254,117) | (3,625,766) | (4,363,697) | ||||
Investing activities | ||||||||
Mineral property interest | ||||||||
Capital expenditures | (688,367) | (5,207,500) | (3,567,116) | (14,710,083) | ||||
Proceeds on disposals | - | - | - | 2,986,188 | ||||
Plant and equipment | ||||||||
Additions | 5 | (1,487) | (10,684) | (137,193) | (90,827) | |||
Proceeds on disposals | 5 | - | - | 58,776 | - | |||
Changes in other tax receivable | (11,657) | (483,181) | (116,123) | (1,740,792) | ||||
Net cash used in investing activities | (701,511) | (5,701,365) | (3,761,656) | (13,555,514) | ||||
Financing activities | ||||||||
Proceeds from issuance of common shares for bought deal | 8(c) | - | - | 24,446,086 | - | |||
Proceeds from issuance of common shares for option exercised | - | 244,471 | 135,684 | 504,988 | ||||
Net cash provided by financing activities | - | 244,471 | 24,581,770 | 504,988 | ||||
Effect of exchange rate changes on cash | (581,341) | 22,356 | (27,478) | (1,284,053) | ||||
Increase (decrease) in cash | (2,373,974) | (6,688,655) | 17,166,870 | (18,698,276) | ||||
Cash and cash equivalent, beginning of the period | 25,837,156 | 17,312,883 | 6,296,312 | 29,322,504 | ||||
Cash and cash equivalent, end of the period | $ | 23,463,182 | $ | 10,624,228 | $ | 23,463,182 | $ | 10,624,228 |
Supplementary cash flow information | 13 |
See accompanying notes to the unaudited condensed consolidated interim financial statements
Page | 4
New Pacific Metals Corp.
Unaudited Condensed Consolidated Interim Statements of Change in Equity
(Expressed in US dollars)
Share capital | ||||||||||||
Total equity | ||||||||||||
Number of | Share-based Accumulated other | attributable to the | Non- | |||||||||
common | payment | comprehensive | equity holders of | controlling | ||||||||
Notes | shares issued | Amount | reserve | income (loss) | Deficit | the Company | interests | Total equity | ||||
Balance, July 1, 2022 | 156,631,827 | $ 153,707,576 | $ 15,395,486 | $ | 11,704,949 | $ (60,527,857) | $ | 120,280,154 | $ | (71,199) | $ 120,208,955 | |
Options exercised | 245,000 | 438,104 | (153,558) | - | - | 284,546 | - | 284,546 | ||||
Restricted share units distributed | 236,922 | 757,127 | (757,127) | - | - | - | - | - | ||||
Private placement | 90,090 | 220,442 | - | - | - | 220,442 | - | 220,442 | ||||
Share-based compensation | - | - | 3,602,858 | - | - | 3,602,858 | - | 3,602,858 | ||||
Net loss | - | - | - | - | (6,231,420) | (6,231,420) | (3,971) | (6,235,391) | ||||
Currency translation adjustment | - | - | - | (1,753,895) | - | (1,753,895) | (11,718) | (1,765,613) | ||||
Balance, March 31, 2023 | 157,203,839 | $ 155,123,249 | $ 18,087,659 | $ | 9,951,054 | $ (66,759,277) | $ | 116,402,685 | $ | (86,888) | $ 116,315,797 | |
Options exercised | 200,000 | 454,862 | (134,734) | - | - | 320,128 | - | 320,128 | ||||
Restricted share units distributed | 87,333 | 261,941 | (261,941) | - | - | - | - | - | ||||
Share-based compensation | - | - | 945,313 | - | - | 945,313 | - | 945,313 | ||||
Net loss | - | - | - | - | (1,864,029) | (1,864,029) | (712) | (1,864,741) | ||||
Currency translation adjustment | - | - | - | 276,926 | - | 276,926 | (22,537) | 254,389 | ||||
Balance, June 30, 2023 | 157,491,172 | $ 155,840,052 | $ 18,636,297 | $ | 10,227,980 | $ (68,623,306) | $ | 116,081,023 | $ | (110,137) | $ 115,970,886 | |
Options exercised | 8(b)(i) | 85,000 | 197,213 | (61,529) | - | - | 135,684 | - | 135,684 | |||
Restricted share units distributed | 8(b)(ii) | 467,112 | 1,391,770 | (1,391,770) | - | - | - | - | - | |||
Common shares issued through | 8(c) | 13,208,000 | 24,446,086 | - | - | - | 24,446,086 | - | 24,446,086 | |||
bought deal financing | ||||||||||||
Share-based compensation | 8(b) | - | - | 2,127,485 | - | - | 2,127,485 | - | 2,127,485 | |||
Net loss | - | - | - | - | (4,539,260) | (4,539,260) | (4,981) | (4,544,241) | ||||
Currency translation adjustment | - | - | - | (380,597) | - | (380,597) | (39,999) | (420,596) | ||||
171,251,284 | $ 181,875,121 | $ 19,310,483 | $ | 9,847,383 | $ (73,162,566) | $ | 137,870,421 | $ | (155,117) | $ 137,715,304 |
See accompanying notes to the unaudited condensed consolidated interim financial statements
Page | 5
New Pacific Metals Corp.
Notes to Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2024 and 2023
(Expressed in US dollars)
1. CORPORATE INFORMATION
New Pacific Metals Corp. along with its subsidiaries (collectively, the "Company" or "New Pacific") is a Canadian mining issuer engaged in exploring and developing mineral properties in Bolivia. The Company is in the stage of exploring and advancing the development of its mineral properties and has not yet determined if they contain economically recoverable mineral reserves. The underlying value and the recoverability of the amounts shown for mineral property interests are entirely dependent upon the existence of recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of the mineral properties, and future profitable production or proceeds from the disposition of the mineral property interests.
The Company is publicly listed on the Toronto Stock Exchange ("TSX") under the symbol "NUAG" and on the NYSE American stock exchange ("NYSE-A") under the symbol "NEWP". The head office, registered address and records office of the Company are located at 1066 Hastings Street, Suite 1750, Vancouver, British Columbia, Canada, V6E 3X1.
2. MATERIAL ACCOUNTING POLICY INFORMATION
- Statement of Compliance and Basis of Preparation
These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB"). These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended June 30, 2023. These unaudited condensed consolidated interim financial statements follow the same accounting policies, estimates and judgements set out in Note 2 to the audited consolidated financial statements for the year ended June 30, 2023, except as set out in Note 2(c) below.
These unaudited condensed consolidated interim financial statements have been prepared on a going concern basis.
The unaudited condensed consolidated interim financial statements of the Company as at and for the three and nine months ended March 31, 2024 were approved and authorized for issuance in accordance with a resolution of the Board of Directors (the "Board") dated on May 6, 2024.
- Basis of Consolidation
These unaudited condensed consolidated interim financial statements include the accounts of the Company and its wholly or partially owned subsidiaries.
Subsidiaries are consolidated from the date on which the Company obtains control up to the date of the disposition of control. Control is achieved when the Company has power over the subsidiary, is exposed or has rights to variable returns from its involvement with the subsidiary; and has the ability to use its power to affect its returns. For non-wholly-owned subsidiaries over which the Company has control, the net assets attributable to outside equity shareholders are presented as "non-controlling interests" in the equity section of the consolidated statements of financial position. Net income or loss for the period that is attributable to the non-controlling interests is calculated based on the ownership of the non-controlling interest shareholders in the subsidiary.
Page | 6
New Pacific Metals Corp.
Notes to Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2024 and 2023
(Expressed in US dollars)
Balances, transactions, income and expenses between the Company and its subsidiaries are eliminated on consolidation.
Details of the Company's significant subsidiaries which are consolidated are as follows:
Proportion of ownership interest held | |||||
Country of | March 31, | June 30, | Mineral | ||
Name of subsidiaries | Principal activity | incorporation | 2024 | 2023 | properties |
New Pacific Offshore Inc. | Holding company | BVI (i) | 100% | 100% | |
SKN Nickel & Platinum Ltd. | Holding company | BVI | 100% | 100% | |
Glory Metals Investment Corp. Limited | Holding company | Hong Kong | 100% | 100% | |
New Pacific Investment Corp. Limited | Holding company | Hong Kong | 100% | 100% | |
New Pacific Andes Corp. Limited | Holding company | Hong Kong | 100% | 100% | |
Fortress Mining Inc. | Holding company | BVI | 100% | 100% | |
New Pacific Success Inc. | Holding company | BVI | 100% | 100% | |
New Pacific Forward Inc. | Holding company | BVI | 100% | 100% | |
Minera Alcira S.A. | Mining company | Bolivia | 100% | 100% | Silver Sand |
NPM Minerales S.A. | Mining company | Bolivia | 100% | 100% | |
Colquehuasi S.R.L. | Mining company | Bolivia | 100% | 100% | Silverstrike |
Minera Hastings S.R.L. | Mining company | Bolivia | 100% | 100% | Carangas |
Qinghai Found Mining Co., Ltd. | Mining company | China | 82% | 82% | |
(i) British Virgin Islands ("BVI") |
- Changes in Accounting Policies
The accounting policies applied in the preparation of these unaudited condensed consolidated interim financial statements are consistent with those applied and disclosed in the Company's audited consolidated financial statements for the year ended June 30, 2023 with the exception of the mandatory adoption of certain amendments noted below:
- Amendments to IAS 1 - Presentation of Financial Statements and IFRS Practice Statement 2 - Making Materiality Judgments - Disclosure of Accounting Policies
The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The amendments replace all instances of the term "significant accounting policies" with "material accounting policy information." Accounting policy information is material if, when considered together with other information included in an entity's financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.
The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The IASB has also developed guidance and examples to explain and demonstrate the application of the 'four-step materiality process' described in IFRS Practice Statement 2.
The amendments were applied effective July 1, 2023 and did not have a material impact on the Company's unaudited condensed consolidated interim financial statements.
Page | 7
New Pacific Metals Corp.
Notes to Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2024 and 2023
(Expressed in US dollars)
- Amendments to IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors- Definition of Accounting Estimates
The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty." The definition of a change in accounting estimates was deleted. However, the IASB retained the concept of changes in accounting estimates in the Standard with the following clarifications:
- A change in accounting estimate that results from new information or new developments is not the correction of an error; and
- The effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors.
The amendments were applied effective July 1, 2023 and did not have a material impact on the Company's unaudited condensed consolidated interim financial statements.
3. OTHER TAX RECEIVABLE
Other tax receivable is composed of value-added tax ("VAT") imposed by the Bolivian government. The Company had VAT outputs through its exploration costs and general expenses incurred in Bolivia. These VAT outputs are deductible against future VAT inputs that will be generated through sales.
4. INCOME FROM INVESTMENTS
Income from investments consist of:
Three months ended March 31, | Nine months ended March 31, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Fair value change on equity investments | $ | 54,005 | $ | (11,121) | $ | 48,864 | $ | (186,412) | |
Fair value change on bonds | 67,820 | 51,038 | 67,534 | 17,886 | |||||
Interest income | 319,166 | 79,521 | 619,887 | 329,745 | |||||
Net income from investments | $ | 440,991 | $ | 119,438 | $ | 736,285 | $ | 161,219 |
Page | 8
New Pacific Metals Corp.
Notes to Unaudited Condensed Consolidated Interim Financial Statements for the three and nine months ended March 31, 2024 and 2023
(Expressed in US dollars)
5. PLANT AND EQUIPMENT
Land and | Office equipment | Computer | ||||||||||
Cost | building | Machinery | Motor vehicles | and furniture | software | Total | ||||||
Balance, July 1, 2022 | $ | 630,000 | $ | 408,358 | $ | 579,032 | $ | 266,364 | $ | 193,774 | $ | 2,077,528 |
Additions | - | 77,259 | - | 15,576 | - | 92,835 | ||||||
Disposals | - | - | - | (12,259) | (99,442) | (111,701) | ||||||
Foreign currency translation impact | - | - | - | (2,406) | (817) | (3,223) | ||||||
Balance, June 30, 2023 | $ | 630,000 | $ | 485,617 | $ | 579,032 | $ | 267,275 | $ | 93,515 | $ | 2,055,439 |
Additions | 115,237 | 1,022 | - | 20,934 | - | 137,193 | ||||||
Disposals | - | - | (110,838) | (30,709) | - | (141,547) | ||||||
Reclassifed among asset groups | - | (18,296) | 18,296 | - | - | - | ||||||
Reclassifed to mineral property interests | - | (10,685) | - | - | - | (10,685) | ||||||
Foreign currency translation impact | - | - | - | (2,248) | (2,139) | (4,387) | ||||||
Balance, March 31, 2024 | $ | 745,237 | $ | 457,658 | $ | 486,490 | $ | 255,252 | $ | 91,376 | $ | 2,036,013 |
Accumulated depreciation and amortization | ||||||||||||
Balance, July 1, 2022 | $ | - | $ | (113,640) | $ | (198,572) | $ | (156,000) | $ | (146,468) | $ | (614,680) |
Depreciation | - | (57,272) | (98,338) | (35,170) | (22,751) | $ | (213,531) | |||||
Disposals | - | - | - | 12,259 | 99,442 | $ | 111,701 | |||||
Foreign currency translation impact | - | - | - | 1,627 | (717) | $ | 910 | |||||
Balance, June 30, 2023 | $ | - | $ | (170,912) | $ | (296,910) | $ | (177,284) | $ | (70,494) | $ | (715,600) |
Depreciation | - | (45,579) | (74,007) | (25,753) | (8,813) | $ | (154,152) | |||||
Disposals | - | - | 110,837 | 23,352 | - | $ | 134,189 | |||||
Foreign currency translation impact | - | - | - | 1,837 | 1,641 | $ | 3,478 | |||||
Balance, March 31, 2024 | $ | - | $ | (216,491) | $ | (260,080) | $ | (177,848) | $ | (77,666) | $ | (732,085) |
Carrying amount | ||||||||||||
Balance, June 30, 2023 | $ | 630,000 | $ | 314,705 | $ | 282,122 | $ | 89,991 | $ | 23,021 | $ | 1,339,839 |
Balance, March 31, 2024 | $ | 745,237 | $ | 241,167 | $ | 226,410 | $ | 77,404 | $ | 13,710 | $ | 1,303,928 |
For the three and nine months ended March 31, 2024, certain plant and equipment were disposed for proceeds of $nil and $58,776, respectively (three and nine months ended March 31, 2023 - $nil and $nil, respectively) and gain of $nil and $51,418, respectively (three and nine months ended March 31, 2023 - $nil and $nil, respectively).
Page | 9
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New Pacific Metals Corp. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 16:22:04 UTC.
