ALMADEN MINERALS LTD. Condensed Consolidated Interim Financial Statements of
Almaden Minerals Ltd.
For the three and nine months ended September 30, 2023 (Unaudited)
NOTICE OF NO AUDITOR REVIEW OF CONDENSED
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
The accompanying unaudited condensed consolidated interim financial statements of Almaden Minerals Ltd ("the Company") for the three and nine months ended September 30, 2023 have been prepared by the management of the Company and approved by the Company's Audit Committee and the Company's Board of Directors.
Under National Instrument 51-102, Part 4, subsection 4.3 (3) (a), if an auditor has not performed a review of the consolidated interim financial statements, they must be accompanied by a notice indicating that an auditor has not reviewed the financial statements.
The accompanying unaudited condensed consolidated interim financial statements of the Company have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by CPA Canada for a review of the condensed consolidated interim financial statements by an entity's auditor.
Almaden Minerals Ltd.
Condensed consolidated interim statements of financial position
(Unaudited - Expressed in Canadian dollars)
September 30, | December 31, | |
2023 | 2022 | |
$ | $ | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents (Note 13) | 4,671,429 | 6,658,076 |
Gold in trust (Note 8) | 1,004,470 | 974,397 |
Accounts receivable and prepaid expenses (Note 4) | 198,081 | 259,471 |
5,873,980 | 7,891,944 | |
Non-current assets | ||
Right-of-use assets (Note 5) | 356,028 | 432,319 |
Property, plant and equipment (Note 6) | 6,602,786 | 6,610,871 |
Exploration and evaluation assets (Note 7) | 63,783,837 | 63,115,076 |
70,742,651 | 70,158,266 | |
TOTAL ASSETS | 76,616,631 | 78,050,210 |
LIABILITIES | ||
Current liabilities | ||
Trade and other payables (Note 11 (c)) | 160,107 | 340,509 |
Current portion of lease liabilities (Note 5) | 97,362 | 88,295 |
257,469 | 428,804 | |
Non-current liabilities | ||
Long-term portion of lease liabilities (Note 5) | 303,348 | 377,635 |
Gold loan payable (Note 8) | 4,325,203 | 3,929,015 |
Warrant liability (Note 9) | 330 | 102,787 |
Derivative financial liabilities (Note 8) | 174,284 | 306,084 |
Deferred income tax liability | 3,090,208 | 3,090,208 |
7,893,373 | 7,805,729 | |
Total liabilities | 8,150,842 | 8,234,533 |
EQUITY | ||
Share capital (Note 10) | 141,040,654 | 141,040,654 |
Reserves (Note 10) | 23,289,223 | 22,546,373 |
Deficit | (95,864,088) | (93,771,350) |
Total equity | 68,465,789 | 69,815,677 |
TOTAL EQUITY AND LIABILITIES | 76,616,631 | 78,050,210 |
These condensed consolidated interim financial statements are authorized for issue by the Board of Directors on November 10, 2023.
They are signed on the Company's behalf by:
/s/Duane Poliquin | /s/ Elaine Ellingham |
Director | Director |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
Almaden Minerals Ltd.
Condensed consolidated interim statements of comprehensive loss
(Unaudited - Expressed in Canadian dollars)
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2023 | 2022 | 2023 | 2022 | |
$ | $ | $ | $ | |
Expenses | ||||
Professional fees (Note 11(a)) | 135,820 | 174,069 | 587,374 | 609,897 |
Salaries and benefits (Note 11(a)) | 349,007 | 341,529 | 1,057,538 | 1,045,039 |
Travel and promotion | 14,721 | 21,890 | 44,533 | 75,932 |
Depreciation (Note 6) | 2,785 | 3,509 | 8,352 | 10,898 |
Office and license (Note 11(b)) | 28,420 | 32,310 | 118,164 | 134,629 |
Amortization of right-of-use assets (Note 5) | 25,430 | 25,430 | 76,291 | 81,360 |
Occupancy expenses (Note 5) | 9,894 | 9,894 | 29,964 | 32,761 |
Interest expense on lease liabilities (Note 5) | 9,620 | 11,611 | 30,422 | 36,241 |
Interest, accretion and standby fees on gold loan payable (Note 8) | 138,604 | 123,497 | 400,485 | 342,149 |
Listing and filing fees | 24,845 | 10,727 | 183,334 | 144,831 |
Insurance | 27,326 | 23,864 | 76,164 | 72,204 |
Directors' fees (Note 11(a)) | 33,750 | 36,250 | 106,250 | 108,750 |
Share-based payments (Note 10(c) and 11(a)) | 370,350 | - | 742,850 | 1,149,550 |
1,170,572 | 814,580 | 3,461,721 | 3,844,241 | |
Other income (loss) | ||||
Administrative services fees (Note 11(b)) | 286,213 | 219,204 | 837,927 | 654,999 |
Interest and other income | 107,339 | 49,168 | 264,368 | 103,342 |
Unrealized gain on derivative financial liabilities (Note 8) | 55,410 | 56,232 | 130,068 | 108,504 |
Unrealized gain (loss) on gold in trust (Note 8) | (17,148) | (76,638) | 32,721 | (81,573) |
Unrealized foreign exchange gain (loss) on gold loan payable (Note 8) | (91,301) | (244,720) | 6,029 | (307,187) |
Unrealized foreign exchange gain (loss) on gold in trust (Note 8) | 21,159 | 59,106 | (2,648) | 75,744 |
Unrealized gain on warrant liability (Note 9) | 261 | 181,794 | 102,457 | 565,013 |
Gain on debt forgiveness | - | 177,200 | - | 177,200 |
Foreign exchange gain (loss) | 48,591 | 266,777 | (1,939) | 355,449 |
410,524 | 688,123 | 1,368,983 | 1,651,491 | |
Total comprehensive loss for the period | (760,048) | (126,457) | (2,092,738) | (2,192,750) |
Basic and diluted net loss per share (Note 12) | (0.01) | (0.00) | (0.02) | (0.02) |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
Almaden Minerals Ltd.
Condensed consolidated interim statements of cash flows
(Unaudited - Expressed in Canadian dollars)
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2023 | 2022 | 2023 | 2022 | |
$ | $ | $ | $ | |
Operating activities | ||||
Net loss for the period | (760,048) | (126,457) | (2,092,738) | (2,192,750) |
Items not affecting cash | ||||
Depreciation | 2,785 | 3,509 | 8,352 | 10,898 |
Amortization of right-of-use assets | 25,430 | 25,430 | 76,291 | 81,360 |
Interest expenses on lease liability | 9,620 | 11,611 | 30,422 | 36,241 |
Interest, accretion and standby fees on gold loan payable | 138,604 | 123,497 | 400,485 | 342,149 |
Unrealized gain on derivative financial liabilities | (55,410) | (56,232) | (130,068) | (108,504) |
Unrealized (gain) loss on gold in trust | 17,148 | 76,638 | (32,721) | 81,573 |
Unrealized foreign exchange (gain) loss on gold loan payable | 91,301 | 244,720 | (6,029) | 307,187 |
Unrealized foreign exchange (gain) loss on gold in trust | (21,159) | (59,106) | 2,648 | (75,744) |
Unrealized gain on warrant liability | (261) | (181,794) | (102,457) | (565,013) |
Share-based payments | 370,350 | - | 742,850 | 1,149,550 |
Changes in non-cash working capital components | ||||
Accounts receivable and prepaid expenses | 33,932 | (40,197) | 61,390 | (96,553) |
Trade and other payables | (79,156) | (263,961) | (190,944) | (277,154) |
Net cash used in operating activities | (226,864) | (242,342) | (1,232,519) | (1,306,760) |
Investing activities | ||||
Property, plant and equipment - purchase | - | - | (267) | (4,536) |
Exploration and evaluation assets - recovery (costs) | 12,300 | (548,129) | (658,219) | (1,492,069) |
Net cash used in investing activities | 12,300 | (548,129) | (658,486) | (1,496,605) |
Financing activities | ||||
Repayment of lease liabilities | (32,156) | (31,331) | (95,642) | (98,725) |
Net cash used in financing activities | (32,156) | (31,331) | (95,642) | (98,725) |
Change in cash and cash equivalents | (246,720) | (821,802) | (1,986,647) | (2,902,090) |
Cash and cash equivalents, beginning of period | 4,918,149 | 8,090,088 | 6,658,076 | 10,170,376 |
Cash and cash equivalents, end of period | 4,671,429 | 7,268,286 | 4,671,429 | 7,268,286 |
Supplemental cash flow information (Note 13) |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
Almaden Minerals Ltd.
Condensed consolidated interim statements of changes in equity
(Unaudited - Expressed in Canadian dollars)
Share capital | Reserves | |||||||||
Share- | ||||||||||
Number of | based | Total | ||||||||
shares | Amount | payments | Warrants | reserves | Deficit | Total | ||||
$ | $ | $ | $ | $ | $ | |||||
Balance, January 31, 2022 | 137,221,408 | 141,040,654 | 20,352,305 | 715,968 | 21,068,273 | (81,924,790) | 80,184,137 | |||
Share-based payments | - | - | 1,149,550 | - | 1,149,550 | - | 1,149,550 | |||
Total comprehensive loss for the period | - | - | - | - | - | (2,192,750) | (2,192,750) | |||
Balance, September 30, 2022 | 137,221,408 | 141,040,654 | 21,501,855 | 715,968 | 22,217,823 | (84,117,540) | 79,140,937 | |||
Share-based payments | - | - | 328,550 | - | 328,550 | - | 328,550 | |||
Total comprehensive loss for the period | - | - | - | - | - | (9,653,810) | (9,653,810) | |||
Balance, December 31, 2022 | 137,221,408 | 141,040,654 | 21,830,405 | 715,968 | 22,546,373 | (93,771,350) | 69,815,677 | |||
Share-based payments | - | - | 742,850 | - | 742,850 | - | 742,850 | |||
Total comprehensive loss for the period | - | - | - | - | - | (2,092,738) | (2,092,738) | |||
Balance, September 30, 2023 | 137,221,408 | 141,040,654 | 22,573,255 | 715,968 | 23,289,223 | (95,864,088) | 68,465,789 |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
Almaden Minerals Ltd.
Notes to the condensed consolidated interim financial statements
For the three and nine months ended September 30, 2023
Unaudited - Expressed in Canadian dollars
1. Nature of operations
Almaden Minerals Ltd. (the "Company" or "Almaden") was formed by amalgamation under the laws of the Province of British Columbia, Canada on February 1, 2002. The Company is an exploration stage public company that is engaged directly in the exploration and development of exploration and evaluation property in Mexico. The address of the Company's registered office is Suite 1710 -1177 West Hastings Street, Vancouver, BC, Canada V6E 2L3.
The Company is in the business of exploring and developing mineral projects and its principal asset is the Ixtaca precious metals project located on its Tuligtic claim in Mexico. The Company has not yet determined whether this project has economically recoverable mineral reserves. The recoverability of amounts shown for mineral properties is dependent upon the establishment of a sufficient quantity of economically recoverable reserves, the ability of the Company to obtain the necessary financing or participation of joint venture partners to complete development of the properties, and upon future profitable production or proceeds from the disposition of exploration and evaluation assets.
2. Basis of presentation
(a) Statement of Compliance with International Financial Reporting Standards ("IFRS")
These condensed consolidated interim financial statements, including comparatives, have been prepared in accordance and compliance with International Accounting Standard ("IAS") 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC").
(b) Basis of preparation
These condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. This interim financial report does not include all of the information required of a full annual financial report and is intended to provide users with an update in relation to events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the end of the last annual reporting period. It is therefore recommended that this financial report be read in conjunction with the annual audited consolidated financial statements of the Company for the year ended December 31, 2022. However, this interim financial report provides selected significant disclosures that are required in the annual audited consolidated financial statements under IFRS.
Except as described below, these condensed consolidated interim financial statements follow the same accounting policies and methods of application as the annual audited consolidated financial statements for the year ended December 31, 2022.
The changes in accounting policies are also expected to be reflected in the Company's consolidated financial statements as at and for the year ending December 31, 2023.
Certain amounts in prior years have been reclassified to conform to the current period presentation.
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Almaden Minerals Ltd.
Notes to the condensed consolidated interim financial statements
For the three and nine months ended September 30, 2023
Unaudited - Expressed in Canadian dollars
3. Significant accounting policies
These condensed consolidated interim financial statements do not include all note disclosures required by IFRS for annual financial statements and, therefore, should be read in conjunction with the annual financial statements for the year ended December 31, 2022. In the opinion of management, all adjustments considered necessary for fair presentation of the Company's financial position, results of operations and cash flows have been included. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
4. Accounts receivable and prepaid expenses
Accounts receivable and prepaid expenses consist of the following:
Accounts receivable (Note 11(b)) Prepaid expenses
September 30, | December 31, |
2023 | 2022 |
$ 107,009 | $ 198,942 |
91,072 | 60,529 |
$ 198,081 | $ 259,471 |
During the period ended September 30, 2023, the Company has recorded value added taxes of $132,822 included in exploration and evaluation assets, as the value added tax relates to certain projects and is expected to be recovered when the assets are sold (Note 7).
5. Right-of-use assets and lease liabilities
The Company has lease agreements for its headquarter office space in Vancouver, B.C.
One lease containing an extension option exercisable only by the Company was exercised on November 22, 2021. The lease was therefore extended from March 31, 2022 to March 31, 2027. The Company reassessed this significant event as a lease modification and has estimated that the potential future lease payments under the extended lease term would result in an increase in lease liability by $508,799.
The continuity of lease liabilities is as follows: | |||
September 30, | December 31, | ||
2023 | 2022 | ||
Opening balance | $ 465,930 | $ 548,607 | |
Modification by extending the lease term | - | - | |
Less: lease payments | (95,642) | (130,056) | |
Interest expense | 30,422 | 47,379 | |
400,710 | 465,930 | ||
Less: current portion of lease liabilities | (97,362) | (88,295) | |
Long-term portion of lease liabilities | $ 303,348 | $ 377,635 |
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Almaden Minerals Ltd.
Notes to the condensed consolidated interim financial statements
For the three and nine months ended September 30, 2023
Unaudited - Expressed in Canadian dollars
5. Right-of-use assets and lease liabilities (Continued)
The continuity of ROU assets is as follows:
September 30, | December 31, | |
2023 | 2022 | |
Opening balance | $ 432,319 | $ 539,110 |
Modification by extending the lease term | - | - |
Less: amortization of ROU assets | (76,291) | (106,791) |
$ 356,028 | $ 432,319 |
During the nine months ended September 30, 2023, the Company recognized occupancy expenses of $29,964 (2022 - $32,761) related to short term leases.
As at September 30, 2023, the remaining payments for the operating lease are due as follows:
2023 | 2024 | 2025 | 2026 | 2027 | Total | |
Office lease | $41,843 | $170,672 | $173,970 | $177,268 | $44,523 | $608,276 |
6. Property, plant and equipment
Furniture | |||||||
and fixtures | Computer | Computer | Geological | Field | Mill | ||
and other | hardware | software | library | equipment | equipment | Total | |
$ | $ | $ | $ | $ | $ | $ | |
Cost | |||||||
December 31, 2022 | 159,171 | 271,540 | 198,981 | 51,760 | 245,647 | 6,568,841 | 7,495,940 |
Additions | - | 267 | - | - | - | - | 267 |
September 30, 2023 | 159,171 | 271,807 | 198,981 | 51,760 | 245,647 | 6,568,841 | 7,496,207 |
Accumulated depreciation | |||||||
December 31, 2022 | 153,203 | 251,441 | 192,138 | 50,975 | 237,312 | - | 885,069 |
Depreciation | 895 | 4,549 | 1,539 | 118 | 1,251 | - | 8,352 |
September 30, 2023 | 154,098 | 255,990 | 193,677 | 51,093 | 238,563 | - | 893,421 |
Carrying amounts | |||||||
December 31, 2022 | 5,968 | 20,099 | 6,843 | 785 | 8,335 | 6,568,841 | 6,610,871 |
September 30, 2023 | 5,073 | 15,817 | 5,304 | 667 | 7,084 | 6,568,841 | 6,602,786 |
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Almaden Minerals Ltd.
Notes to the condensed consolidated interim financial statements
For the three and nine months ended September 30, 2023
Unaudited - Expressed in Canadian dollars
7. | Exploration and evaluation assets | ||
Tuligtic | |||
Exploration and evaluation assets | $ | ||
Acquisition costs: | |||
Opening balance - (December 31, 2022) | 11,308,721 | ||
Closing balance - (September 30, 2023) | 11,308,721 | ||
Deferred exploration costs: | |||
Opening balance - (December 31, 2022) | 51,806,355 | ||
Costs incurred during the period | |||
Professional fees | 138,730 | ||
Geochemical, metallurgy | 1,022 | ||
Travel and accommodation | 62,512 | ||
Geology, geophysics and exploration | 111,518 | ||
Supplies and miscellaneous | 289,877 | ||
Environmental and permit | 360,926 | ||
Value-added tax (Note 4) | 132,822 | ||
Refund - Value-added tax | (428,646) | ||
Total deferred exploration costs during the period | 668,761 | ||
Closing balance - (September 30, 2023) | 52,475,116 | ||
Total exploration and evaluation assets | 63,783,837 |
The following is a description of the Company's most significant property interests:
(a) Tuligtic
In 2001, the Company acquired by staking a 100% interest in the Tuligtic property in Puebla, Mexico. The property contains the Ixtaca Zone.
(b) Other
Expenditures incurred by the Company in Mexico are subject to Mexican Value added tax ("VAT"). The VAT is included in exploration and evaluation assets as incurred. Under Mexican law, VAT paid can be used in the future to offset amounts resulting from VAT charged on sales. Under certain circumstances and subject to approval from tax authorities, A Company can also apply for an early refund of VAT prior to generating sales. During the nine months ended September 30, 2023, the Company received a VAT recovery of $428,646 (2022 - $182,306) and other income of $124,209 (2022 - $48,447) related to a VAT refund from prior years which is recorded in interest and other income.
8. Gold loan payable and gold in trust
The Company has entered into a secured gold loan agreement ("Gold Loan") with Almadex Minerals Ltd. ("Almadex") or the "Lender" pursuant to which Almadex has agreed to loan up to 1,597 ounces of gold bullion to the Company. The approximate value of this gold as at May 14, 2019 was USD$2,072,060 or $2,790,858.
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Almaden Minerals Ltd. published this content on 10 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 December 2023 09:20:22 UTC.
