ARGENTINA LITHIUM & ENERGY CORP. Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
(Unaudited - Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed consolidated interim financial statements they must be accompanied by a notice indicating that these condensed consolidated interim financial statements have not been reviewed by an auditor.
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 external auditors have not performed a review of these condensed consolidated interim financial statements.
Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Consolidated Interim Statements of Financial Position
(Unaudited - Expressed in Canadian Dollars)
September 30, | December 31, | ||
2023 | 2022 | ||
Note | $ | $ | |
ASSETS | |||
Current assets | |||
Cash | 987,169 | 8,130,147 | |
Accounts receivables | 6 | 117,345 | 112,324 |
Prepaid expenses | 62,035 | 174,848 | |
Total current assets | 1,166,549 | 8,417,319 | |
Non-current assets | |||
Exploration and evaluation assets | 3 | 9,256,734 | 7,172,264 |
Total non-current assets | 9,256,734 | 7,172,264 | |
Total Assets | 10,423,283 | 15,589,583 | |
LIABILITIES | |||
Current liabilities | |||
Accounts payable and accrued liabilities | 3,6 | 1,164,597 | 1,931,385 |
Loan payable | 6 | 100,000 | - |
Total liabilities | 1,264,597 | 1,931,385 | |
SHAREHOLDERS' EQUITY | |||
Share capital | 4 | 37,880,207 | 37,611,102 |
Reserves | 4 | 14,933,867 | 14,875,161 |
Obligation to issue shares | 3 | - | 151,000 |
Deficit | (43,655,388) | (38,979,065) | |
Total shareholders' equity | 9,158,686 | 13,658,198 | |
Total Shareholders' Equity and Liabilities | 10,423,283 | 15,589,583 |
NATURE OF OPERATIONS AND GOING CONCERN (Note 1)
EXPLORATION AND EVALUATION ASSETS (Note 3)
COMMITMENT (Note 8)
SUBSEQUENT EVENTS (Note 11)
These condensed consolidated interim financial statements are authorized for issue by the Board of Directors on November 20, 2023. They are signed on the Company's behalf by:
"Nikolaos Cacos" | , Director |
"Martin Burian" | , Director |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Consolidated Interim Statements of Loss and Comprehensive Loss
(Expressed in Canadian Dollars)
Three months ended | Nine months ended | ||||
September 30, | September 30, | ||||
2023 | 2022 | 2023 | 2022 | ||
Note | $ | $ | $ | $ | |
Expenses | |||||
Consulting fees | 6 | 217,137 | 171,946 | 560,359 | 502,832 |
Corporate development and investor relations | 171,524 | 345,449 | 860,791 | 733,328 | |
Exploration | 3 | 1,200,927 | 971,636 | 4,271,264 | 1,507,521 |
Legal and professional fees | 765,772 | 63,484 | 857,107 | 136,911 | |
Management fees | 6 | 30,000 | 29,400 | 89,400 | 88,200 |
Office and sundry | 6 | 15,439 | 12,703 | 51,774 | 35,354 |
Rent, parking and storage | 5,379 | 4,310 | 14,016 | 12,930 | |
Share-based compensation | - | - | 79,311 | - | |
Transfer agent and regulatory fees | 70,582 | 48,432 | 92,855 | 72,375 | |
Travel | 1,549 | - | 25,781 | - | |
Loss from operating activities | 2,478,309 | 1,647,360 | 6,902,658 | 3,089,451 | |
Other (income) loss | |||||
Foreign exchange (gain) loss | 7 | (1,253,018) | 36,122 | (2,079,605) | 188,640 |
Interest income | (53,309) | (314,349) | (146,730) | (414,815) | |
(Income) from other items | (1,306,327) | (278,227) | (2,226,335) | (226,175) | |
Total loss and comprehensive loss | 1,171,982 | 1,369,133 | 4,676,323 | 2,863,276 | |
Basic and diluted loss per common share | 5 | 0.01 | 0.02 | 0.04 | 0.04 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Consolidated Interim Statements of Cash Flows
(Unaudited - Expressed in Canadian Dollars)
Nine months ended September 30, | ||
2023 | 2022 | |
$ | $ | |
Cash flows from operating activities | ||
Loss for the period | (4,676,323) | (1,494,143) |
Adjustments for: | ||
Share based compensation | 79,311 | - |
Changes in non-cash working capital items: | ||
(Increase) decrease in accounts receivables | (5,021) | 3,245 |
Decrease (increase) in prepaid expenses | 112,813 | (44,639) |
Decrease in accounts payable and accrued liabilities | (766,788) | (329,757) |
Net cash used in operating activities | (5,256,008) | (1,865,294) |
Cash flows from investing activities | ||
Expenditures on exploration and evaluation assets | (2,084,470) | (386,089) |
Net cash used in investing activities | (2,084,470) | (386,089) |
Cash flows from financing activities | ||
Issuance of common shares and warrants | - | 3,326,000 |
Share issue costs | - | (36,260) |
Warrants exercised | 97,500 | - |
Stock options exercised | - | 40,000 |
Loan proceeds received | 100,000 | - |
Net cash from financing activities | 197,500 | 3,329,740 |
Net decrease in cash and cash equivalents during the period | (7,142,978) | (4,176,008) |
Cash and cash equivalents at beginning of period | 8,130,147 | 6,430,771 |
Cash and cash equivalents at end of period | 987,169 | 2,254,763 |
SUPPLEMENTARY CASH FLOW INFORMATION (Note 9)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Consolidated Statements of Changes in Equity (Deficiency)
(Expressed in Canadian Dollars)
Share capital | Reserves | ||||||||
Equity settled | |||||||||
Contributed | share-based | Obligation to | |||||||
Number | Amount | surplus | payments | Warrants | issue shares | Deficit | Total | ||
of shares | $ | $ | $ | $ | $ | $ | $ | ||
Balance at December 31, 2021 | 73,460,505 | 28,324,377 | 5,281,438 | 1,511,338 | 2,463,904 | 500,000 | (30,495,871) | 7,585,186 | |
Private placement | 16,630,000 | 2,562,798 | - | - | 763,202 | - | - | 3,326,000 | |
Share issue costs | - | (36,260) | - | - | - | - | - | (36,260) | |
Agent warrants granted | - | (20,610) | - | - | 20,610 | - | - | - | |
Shares issued for property option (Note 3(c)) | 499,624 | 238,780 | - | - | - | - | - | 238,780 | |
Obligation to issue shares (Note 3(c)) | - | - | - | - | - | 1,000 | - | 1,000 | |
Stock options exercised | 200,000 | 67,719 | - | (27,719) | - | - | - | 40,000 | |
Total comprehensive loss for the period | - | - | - | - | - | - | (2,863,276) | (2,863,276) | |
Balance at September 30, 2022 | 90,790,129 | 31,136,804 | 5,281,438 | 1,483,619 | 3,247,716 | 501,000 | (33,359,147) | 8,291,430 | |
Private placement | 36,340,948 | 6,021,660 | - | - | 3,063,577 | - | - | 9,085,237 | |
Share issue costs | - | (22,260) | - | - | - | - | - | (22,260) | |
Agent warrants granted | - | (14,075) | - | - | 14,075 | - | - | - | |
Shares issued for property option (Note 3(c)) | 1,430,908 | 350,000 | - | - | - | (350,000) | - | - | |
Warrants exercised | 750,000 | 138,973 | - | - | (26,473) | - | - | 112,500 | |
Share-based compensation | - | - | - | 1,811,209 | - | - | - | 1,811,209 | |
Stock options exercised | - | - | - | - | - | - | - | - | |
Stock options cancelled | - | - | 27,169 | (27,169) | - | - | - | - | |
Total comprehensive loss for the period | - | - | - | - | - | - | (5,619,918) | (5,619,918) | |
Balance at December 31, 2022 | 129,311,985 | 37,611,102 | 5,308,607 | 3,267,659 | 6,298,895 | 151,000 | (38,979,065) | 13,658,198 | |
Shares issued for property option (Note 3(c)) | 503,334 | 151,000 | - | - | - | (151,000) | - | - | |
Warrants exercised | 400,000 | 118,105 | - | - | (20,605) | - | 97,500 | ||
Share based compensation | - | - | - | 79,311 | - | - | 79,311 | ||
Stock options expired | - | - | 1,058,216 | (1,058,216) | - | - | - | - | |
Total comprehensive loss for the period | - | - | - | - | - | - | (4,676,323) | (4,676,323) | |
Balance at September 30, 2023 | 130,215,319 | 37,880,207 | 6,366,823 | 2,288,754 | 6,278,290 | - | (43,655,388) | 9,158,686 |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
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Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended September 30, 2023 and 2022
(Unaudited - Expressed in Canadian Dollars Unless Otherwise Noted)
1. NATURE OF OPERATIONS AND GOING CONCERN
Argentina Lithium & Energy Corp. (the "Company") was incorporated on April 11, 2000 in the Province of British Columbia and was transitioned under the Business Corporations Act (BC) on June 17, 2004. In September 2016, the Company changed its name to Argentina Lithium & Energy Corp. (formerly Iron South Mining Corp.) trading on the TSX-V under the symbol "LIT". The address of the Company's registered office is Suite 312 - 837 West Hastings Street, Vancouver, BC, Canada V6C 3N6.
The Company is a natural resource company engaged in the acquisition and exploration of resource properties in the Americas and Argentina. The Company presently has no proven or probable reserves and, on the basis of information to date, it has not yet determined whether these properties contain economically recoverable ore reserves. Consequently, the Company considers itself to be an exploration stage company.
The amounts shown as exploration and evaluation assets represent costs incurred to date, less option payment proceeds and amounts amortized and/or written off, and do not necessarily represent present or future values. The underlying value of the exploration and evaluation assets is entirely dependent on the existence of economically recoverable reserves, securing and maintaining title and beneficial interest in the properties, the ability of the Company to obtain the necessary financing to advance the properties beyond the exploration stage, and future profitability of the properties.
These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to consolidated financial statements and to a going concern, which assume that the Company will realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.
The Company has experienced recurring operating losses and has an accumulated operating deficit of $43,655,388, a working capital deficiency of $98,048 and shareholders' equity of $9,158,686 at September 30, 2023. In addition, the Company has negative cash flow from operating activities of $5,256,008 for the nine months ended September 30, 2023. Working capital is defined as current assets less current liabilities and provides a measure of the Company's ability to settle liabilities that are due within one year with assets that are also expected to be converted into cash within one year. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company's continued operations, as intended, are dependent upon its ability to raise additional funding to meet its obligations and to attain profitable operations. Management's plan in this regard is to raise equity financing as required. There are no assurances that the Company will be successful in achieving these goals.
The Company's business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, changes in laws, and national and international circumstances. Recent geopolitical events, including, the outbreaks of the coronavirus (COVID-19) pandemic, relations between NATO and Russian Federation regarding the situation in Ukraine, and potential economic global challenges such as the risk of the higher inflation and energy crises, may create further uncertainty and risk with respect to the prospects of the Company's business.
These condensed consolidated interim financial statements do not include adjustments to the amounts and classifications of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.
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Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended September 30, 2023 and 2022
(Unaudited - Expressed in Canadian Dollars Unless Otherwise Noted)
2. SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34,
Interim Financial Reporting ("IAS 34"), as issued by the International Accounting Standards Board ("IASB"), and its interpretations, using accounting policies consistent with International Financial Reporting Standards ("IFRS") and accordingly, certain information and note disclosure included in the annual consolidated financial statements prepared in accordance with IFRS have been omitted or condensed. These condensed consolidated interim financial statements should be read in conjunction with the Company's December 31, 2022 audited annual consolidated financial statements.
Basis of preparation
These condensed consolidated interim financial statements have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting, except for cash flow information.
Basis of consolidation
These condensed consolidated interim financial statements include the accounts of the Company and its wholly-owned subsidiaries (see also Note 12) as follows:
Place of Incorporation | Principal Activity | |
Amera-Chile Sociedad Contractual Minera | Chile | Holding company |
Argentina Litio Y Energia S.A. | Argentina | Exploration company |
Hierros Del Sur S.A.C. | Peru | Holding company |
Inter-company balances and transactions, including unrealized income and expenses arising from inter- company transactions, are eliminated in preparing the condensed consolidated interim financial statements.
Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases.
Significant Accounting Estimates and Judgments
The preparation of these consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates.
These consolidated financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
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Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended September 30, 2023 and 2022
(Unaudited - Expressed in Canadian Dollars Unless Otherwise Noted)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Significant assumptions about the future and other sources of estimation uncertainty that management has made at the financial position reporting date, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:
Critical accounting judgments
- Presentation of the consolidated financial statements which assumes that the Company will continue in operation for the foreseeable future, obtain additional financing as required, and will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due.
- The analysis of the functional currency for each entity of the Company. In concluding that the Canadian dollar is the functional currency of the parent and its subsidiary companies, management considered the currency that mainly influences the cost of providing goods and services in each jurisdiction in which the Company operates. As no single currency was clearly dominant the Company also considered secondary indicators including the currency in which funds from financing activities are denominated and the currency in which funds are retained.
-
The net carrying value of each mineral property is reviewed regularly for conditions that suggest impairment. This review requires significant judgment. Factors considered in the assessment of asset impairment include, but are not limited to, whether there has been a significant adverse change in the legal, regulatory, accessibility, title, environmental or political factors that could affect the property's value; whether there has been an accumulation of costs significantly in excess of the amounts originally expected for the property's acquisition, development or cost of holding; and whether exploration activities produced results that are not promising such that no more work is being planned in the foreseeable future. If impairment is determined to exist, a formal estimate of the recoverable amount is performed, and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount.
During the nine months ended September 30, 2023, management has determined there were no impairment indicators present with respect to the Company's exploration and evaluation assets.
Changes in Accounting Standards
Amendments to IAS 1, Presentation of financial statements (effective January 1, 2023) provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date. This amendment is not expected to have any impact on the Company's consolidated financial statements.
3. EXPLORATION AND EVALUATION ASSETS
The schedules below summarize the acquisition costs and all exploration expenditures incurred to date for each exploration and evaluation asset that the Company holds title to as at September 30, 2023 and 2022:
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Argentina Lithium & Energy Corp.
(An Exploration Stage Company)
Notes to the Condensed Consolidated Interim Financial Statements
For the nine months ended September 30, 2023 and 2022
(Unaudited - Expressed in Canadian Dollars Unless Otherwise Noted)
3. EXPLORATION AND EVALUATION ASSETS (continued)
Acquisition Costs
Argentina | ||||||||||
Incahuasi | Antofalla | Rincon | Pocitos | Total | ||||||
West | ||||||||||
$ | $ | $ | $ | $ | ||||||
Balance - December 31, 2021 | 53,449 | 129,439 | 938,028 | 940,906 | 2,061,822 | |||||
Additions | ||||||||||
Option payments, staking costs, land payments | ||||||||||
and acquisition costs | 14,320 | 698,550 | 3,427,061 | 825,641 | 4,965,572 | |||||
Balance - September 30, 2022 | 67,769 | 827,989 | 3,427,061 | 2,704,575 | 7,027,394 | |||||
Additions | ||||||||||
Option payments, staking costs, land payments | ||||||||||
and acquisition costs | (797) | 1,961 | 1,210,772 | (1,067,066) | 144,870 | |||||
Balance - December 31, 2022 | 66,972 | 829,950 | 4,637,833 | 1,637,509 | 7,172,264 | |||||
Additions | ||||||||||
Option payments, staking costs, land payments | ||||||||||
and acquisition costs | - | 736,435 | 1,209,015 | 139,020 | 2,084,470 | |||||
Balance - September 30, 2023 | 66,972 | 1,566,385 | 5,846,848 | 1,776,529 | 9,256,734 | |||||
Exploration Expenditures | ||||||||||
Argentina | ||||||||||
Incahuasi Antofalla Rincon West | Pocitos | Other | Total | |||||||
$ | $ | $ | $ | $ | $ | |||||
Cumulative exploration expenses | ||||||||||
December 31, 2022 | 2,554,371 | 369,057 | 3,822,625 | 2,228 | 58,228 | 6,806,509 | ||||
Expenditures during the period: | ||||||||||
Assays | 2,988 | - | 39,136 | - | - | 42,124 | ||||
Drilling | - | - | 959,859 | - | - | 959,859 | ||||
Geophysics | 5,511 | - | 497,500 | - | - | 503,011 | ||||
Office | 2,821 | 16,928 | 265,198 | - | - | 284,947 | ||||
Professional fees | 1,916 | 11,629 | 197,751 | - | 2,224 | 213,520 | ||||
Property maintenance payments | 81,807 | 36,240 | 31,835 | - | 10,125 | 160,007 | ||||
Salaries and contractors | 1,420 | 8,523 | 656,218 | - | - | 666,161 | ||||
Social and community | 302 | 1,824 | 45,706 | - | - | 47,832 | ||||
Supplies and equipment | 30,757 | 73,775 | 393,006 | - | - | 497,538 | ||||
Transportation | 13,506 | 11,296 | 203,869 | - | - | 228,671 | ||||
Statutory taxes | 19,989 | 22,738 | 485,635 | - | 1,750 | 530,112 | ||||
Travel costs | 43 | 257 | 137,182 | - | - | 137,482 | ||||
161,060 | 183,210 | 3,912,895 | - | 14,099 | 4,271,264 | |||||
Cumulative exploration expenses | ||||||||||
September 30, 2023 | 2,715,431 | 552,267 | 7,735,520 | 2,228 | 72,327 | 11,077,773 |
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Argentina Lithium & Energy Corp. published this content on 20 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 01:27:05 UTC.
