NEW AGE METALS INC. NEW AGE METALS INC.
Consolidated Interim Financial Statements
Nine months ended 31 January 2024 and 2023
(Unaudited)
(An Exploration Stage Company)
(Expressed in Canadian dollars)
NOTICE OF NO AUDITOR REVIEW OF CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed consolidated interim financial statements of New Age Metals Inc. (the "Company") have been prepared by and are the responsibility of the Company's management. The unaudited consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards and reflect management's best estimates and judgment based on information currently available.
The Company's independent auditor has not performed a review of these consolidated interim financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed consolidated interim financial statements by an entity's auditor.
New Age Metals Inc.
Consolidated Interim Statements of Financial Position (Unaudited)
(Expressed in Canadian dollars)
Notes | As at 31 | As at 30 | ||||||
January 2024 | April 2023 | |||||||
(Audited) | ||||||||
$ | $ | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 5 | 2,836,877 | 4,265,515 | |||||
Amounts receivable | 6 | 114,334 | 796,788 | |||||
Short-term investments | 7 | 222,549 | 222,549 | |||||
Prepaid expenses | 586,717 | 133,603 | ||||||
3,760,477 | 5,418,455 | |||||||
Exploration and evaluation properties | 8 | 10,460,291 | 9,017,348 | |||||
Equipment | 9 | 41,752 | 55,034 | |||||
Right-of-use asset | 10 | 111,433 | 137,155 | |||||
Total assets | 14,373,953 | 14,627,992 | ||||||
EQUITY AND LIABILITIES | ||||||||
Current liabilities | ||||||||
Trade payables and accrued liabilities | 11 | 642,142 | 241,914 | |||||
Due to related parties | 17 | 26,145 | 17,737 | |||||
Lease liability - current portion | 10 | 29,380 | 29,380 | |||||
697,667 | 289,031 | |||||||
Lease liability - non current portion | 10 | 91,901 | 114,943 | |||||
Total liabilities | 789,568 | 403,974 | ||||||
Equity | ||||||||
Share capital | 12 | 46,124,362 | 46,124,362 | |||||
Reserves | 12 | 18,201,968 | 18,201,968 | |||||
Deficit | (50,741,945) | (50,102,312) | ||||||
Total equity | 13,584,385 | 14,224,018 | ||||||
Total equity and liabilities | 14,373,953 | 14,627,992 | ||||||
Corporate Information and Going Concern (Note 1), Commitments and Contingencies (Note 20) | ||||||||
and Subsequent Events (Note 21) | ||||||||
APPROVED BY THE BOARD: | ||||||||
"Harry Barr" | "John Londry" | |||||||
Director | Director |
The accompanying notes are an integral part of these consolidated financial statements.
Page | 1
New Age Metals Inc.
Consolidated Interim Statements of Loss and Comprehensive Loss For the nine months ended 31 January 2024 and 2023 (Unaudited)
(Expressed in Canadian dollars)
Three months | Three months | Nine months | Nine months | ||
ended | ended | ended | ended | ||
31 January | 31 January | 31 January | 31 January | ||
Notes | 2024 | 2023 | 2024 | 2023 | |
$ | $ | $ | $ | ||
Expenses | |||||
Accounting and audit | - | 1,800 | 2,402 | 2,117 | |
Bank charges and interest | 748 | 741 | 2,239 | 2,151 | |
Consulting fees | 16 | 67,665 | 50,498 | 180,499 | 137,623 |
Depreciation | 9 | 4,428 | 5,897 | 13,283 | 17,690 |
Depreciation of right-of-use asset | 9 | 8,574 | 8,574 | 25,722 | 25,722 |
Insurance, license & fees | 10,316 | 9,567 | 30,921 | 28,725 | |
Management fees | 16 | 165,407 | 32,689 | 231,089 | 105,015 |
Marketing and communications | 12,555 | 19,221 | 75,516 | 133,395 | |
Office and miscellaneous | 22,483 | 10,914 | 62,816 | 55,688 | |
Rent | 1,039 | 6,436 | 4,924 | 10,317 | |
Share-based payments | 12, 16 | - | 8,516 | - | 17,032 |
Telephone and utilities | 3,864 | 6,097 | 10,705 | 15,124 | |
Transfer agent and regulatory fees | 17,889 | 19,814 | 50,138 | 48,266 | |
Travel, lodging and food | 24,428 | 18,357 | 38,705 | 46,067 | |
Loss before other items | (339,396) | (199,121) | (728,959) | (644,932) | |
Other items | |||||
Foreign exchange gain (loss) | 958 | (445) | 1,056 | 602 | |
Interest income | - | - | - | 10,894 | |
Finance costs | (2,463) | (3,052) | (7,858) | (9,558) | |
Unrealized gain (loss) on short term | |||||
investments | 7 | - | 36,586 | - | 21,913 |
Other income | 8 | 39,930 | - | 96,128 | 42,592 |
Net loss and comprehensive loss | (300,971) | (166,032) | (639,633) | (578,489) | |
Loss per share | |||||
Basic | 13 | (0.001) | (0.001) | (0.003) | (0.003) |
Diluted | 14 | (0.001) | (0.001) | (0.003) | (0.003) |
The accompanying notes are an integral part of these consolidated financial statements.
Page | 2
New Age Metals Inc.
Consolidated Interim Statements of Cash Flows
For the nine months ended 31 January 2024 and 2023 (Unaudited)
(Expressed in Canadian dollars)
Nine months ended | |||||
31 January | 31 January | ||||
Notes | 2024 | 2023 | |||
$ | $ | ||||
OPERATING ACTIVITIES | |||||
Loss before tax | (639,633) | (578,489) | |||
Adjustments for: | |||||
Depreciation | 9 | 39,005 | 43,412 | ||
Share-based payments | 12 | - | 17,032 | ||
Share issued for services | - | - | |||
Unrealized gain on short term investments | 7 | - | (21,913) | ||
Non cash interest | 7,858 | 9,558 | |||
Operating cash flows before movements in working capital | |||||
(Increase) decrease in amounts receivable | 682,454 | 699,894 | |||
(Increase) decrease in prepaid expenses | (453,114) | 54,831 | |||
Increase (decrease) in current liabilities | 408,636 | (81,037) | |||
Cash from (used) in operating activities | 31,923 | (48,087) | |||
INVESTING ACTIVITIES | |||||
Cash spent on exploration and evaluation properties | 8 | (1,429,661) | (2,883,651) | ||
Purchase of equipment | - | - | |||
Cash used in investing activities | (1,429,661) | (2,764,227) | |||
FINANCING ACTIVITIES | |||||
Exercise of options | 12 | - | 5,000 | ||
Payment of lease liability | 12 | (30,900) | (9,900) | ||
Share issue costs | - | - | |||
Cash from financing activities | (30,900) | (4,900) | |||
Decrease in cash and cash equivalents | (1,428,638) | (2,625,839) | |||
Cash and cash equivalents - beginning of period | 4,265,515 | 7,166,474 | |||
Cash and cash equivalents - end of period | 2,836,877 | 4,540,635 | |||
Supplemental cash flow information (Note 18)
The accompanying notes are an integral part of these consolidated financial statements.
Page | 3
New Age Metals Inc.
Consolidated Interim Statements of Changes in Equity For the nine months ended 31 January 2024 and 2023 (Unaudited)
(Expressed in Canadian dollars)
Share- | ||||||||
based | ||||||||
Number of | Share | payments | Warrant | |||||
shares | capital | reserve | reserve | Deficit | Total | |||
$ | $ | $ | $ | $ | ||||
Balances, 30 April 2022 | 222,037,002 | 46,119,362 | 4,831,996 | 13,337,625 | (49,451,902) | 14,837,081 | ||
Shares issued for | ||||||||
Cash | - | - | - | - | - | - | ||
Exercise of options | 100,000 | 5,000 | - | - | - | 5,000 | ||
Share-based payments | - | - | 17,032 | - | - | 17,032 | ||
Net loss for the period | - | - | - | - | (578,489) | (578,489) | ||
Balances, 31 January 2023 | 222,137,002 | 46,124,362 | 4,849,028 | 13,337,625 | (50,030,391) | 14,280,624 | ||
Balances, 30 April 2023 | 222,137,002 | 46,124,362 | 4,864,343 | 13,337,625 | (50,102,312) | 14,224,018 | ||
Shares issued for | ||||||||
Services | - | - | - | - | - | - | ||
Exercise of options | - | - | - | - | - | - | ||
Net loss for the period | - | - | - | - | (639,633) | (639,633) | ||
Balances, 31 January 2024 | 222,137,002 | 46,124,362 | 4,864,343 | 13,337,625 | (50,741,945) | 13,584,385 |
The accompanying notes are an integral part of these consolidated financial statements.
Page | 4
New Age Metals Inc.
Notes to the Consolidated Interim Financial Statements For the nine months ended 31 January 2024 (Unaudited)
(Expressed in Canadian dollars)
1. CORPORATE INFORMATION AND GOING CONCERN
New Age Metals Inc. (the "Company") was incorporated under the Business Corporations Act (Alberta) on 29 May 1996 and on 13 July 2004, the Company continued out of the Province of Alberta and into the Province of British Columbia. The Company's stock is trading on the TSX Venture Exchange ("TSXV") under the symbol of "NAM". The Company is in the process of acquiring, exploring and developing platinum group metals ("PGMs"), precious and base metals mineral properties and green metals lithium. The Company will attempt to bring the properties to production, structure joint ventures with others, option or lease properties to third parties, or sell the properties outright. The Company has not yet determined whether these properties contain ore reserves which are economically recoverable and the Company is considered to be in the exploration stage.
The Company's head office, principal address and records office are located at Suite 101 - 2148 West 38th Avenue, Vancouver, British Columbia, V6M 1R9.
1.1 Going concern
These consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") applicable to a going concern which assumes that the
Company will be able to continue its operations and will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.
Several conditions cast significant doubt on the validity of this assumption and ultimately the appropriateness of the use of accounting principles related to a going concern. From inception to date, the Company has incurred losses from operations, earned no revenues and has experienced negative cash flows from operating activities.
The Company had a comprehensive loss of $639,633 for the nine months ended 31 January 2024 (2023: $578,489). The Company has not yet achieved profitable operations, the Company has, since inception, accumulated a deficit to 31 January 2024 of $50,741,945 (30 April 2023: $50,102,312) and management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital.
As at 31 January 2024, the Company had $2,836,877 (30 April 2023: $4,265,515) in cash and cash equivalents.
The Company does not currently have revenue-generating properties.
The Company will require additional funding to be able to meet ongoing requirements for general operations and to advance and retain mineral exploration and evaluation property interests. The
Company's continuing operations and the underlying value and recoverability of the amounts shown for mineral properties are entirely dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of its mineral property interests, and on future profitable production from or proceeds from the disposition of its mineral property interests. These material uncertainties cast significant doubt upon the Company's ability to continue as a going concern.
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New Age Metals Inc.
Notes to the Consolidated Interim Financial Statements For the nine months ended 31 January 2024 (Unaudited)
(Expressed in Canadian dollars)
Management has been successful in obtaining sufficient funding for operating, exploration and capital requirements from the inception of the Company to date. There is, however, no assurance that additional future funding will be available to the Company, or that it will be available on terms which are acceptable to the management of the Company.
If the Company is unable to raise additional capital in the immediate future, management expects that the Company will need to further curtail operations, liquidate assets, seek additional capital on less favourable terms and/or pursue other remedial measures including ceasing operations.
These consolidated financial statements do not reflect any adjustments to the carrying values of assets and liabilities and the reported amounts of expenses and balance sheet classifications that would be necessary if the going concern assumption was not appropriate and such adjustments could be material.
2. BASIS OF PREPARATION
2.1 Basis of consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are those entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control is obtained to the date control ceases. All inter-company transactions, balances, income and expenses are eliminated in full upon consolidation.
The subsidiaries of the Company as at 31 January 2024 and 2022 are listed below:
- equity interest as at
Country of | 31 January | 30 April | |
Name | incorporation | 2024 | 2023 |
Subsidiaries | |||
Pacific North West Capital Corp. USA(1) | United States | 100% | 100% |
Lithium Canada Development Inc. ("LCD") (1) | Canada | 100% | 100% |
- Inactive entities.
2.2 Basis of presentation
These consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments which are measured at fair value, as explained in Note 16, and are presented in Canadian dollars, except where otherwise indicated.
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New Age Metals Inc.
Notes to the Consolidated Interim Financial Statements For the nine months ended 31 January 2024 (Unaudited)
(Expressed in Canadian dollars)
-
Statement of compliance
The consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with International Accounting Standards ("IAS") 34, 'Interim Financial Reporting' using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). - Adoption of new and revised standards and interpretations
Other accounting standards or amendments to existing accounting standards that have been issued but have future effective dates are either not applicable or are not expected to have a significant impact on the Company's consolidated financial statements.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Significant accounting judgments, estimates and assumptions
The preparation of the Company's consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial statements and reported amounts of income and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.
Areas requiring a significant degree of estimation and judgment relate to the fair value measurements for financial instruments and share-based payments, the recognition and valuation of provisions for decommissioning liabilities, the carrying value of exploration and evaluation properties, the valuation of all liability and equity instruments including warrants and stock options, the recoverability and measurement of deferred tax assets and liabilities and ability to continue as a going concern. Actual results may differ from those estimates and judgments.
Information about critical judgments in applying accounting policies that have the most significant risk of causing material adjustment to the carrying amounts of assets and liabilities recognized in the consolidated financial statements within the next financial year are discussed below:
Exploration and evaluation expenditures
The application of the Company's accounting policy for exploration and evaluation expenditure requires judgment in determining the point at which a property has economically recoverable resources, in which case subsequent exploration costs and the costs incurred to develop the property are capitalized into development assets. The determination may be based on assumptions about future events or circumstances. Estimates and assumptions may change if new information becomes available. If, after expenditure is capitalized, information becomes available suggesting that the recovery of expenditure is unlikely, the amount capitalized is written off in the consolidated statement of loss and comprehensive loss in the year when new information becomes available.
Page | 7
New Age Metals Inc.
Notes to the Consolidated Interim Financial Statements For the nine months ended 31 January 2024 (Unaudited)
(Expressed in Canadian dollars)
Determining whether to test for impairment of mineral exploration properties and deferred exploration assets requires management's judgment regarding the following factors, among others: the period for which the entity has the right to explore in the specific area has expired or will expire in the near future, and is not expected to be renewed; substantive expenditure on further exploration and evaluation of mineral resources in a specific area is neither budgeted nor planned; exploration for and evaluation of mineral resources in a specific area have not led to the discovery of commercially viable quantities of mineral resources and the entity has decided to discontinue such activities in the specific area; or sufficient data exists to indicate that, although a development in a specific area is likely to proceed, the carrying amounts of the exploration assets are unlikely to be recovered in full from successful development or by sale.
When an indication of impairment loss or a reversal of an impairment loss exists, the recoverable amount of the individual asset must be estimated. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs must be determined. Identifying the cash-generating units requires management judgment. In testing an individual asset or cash-generating unit for impairment and identifying a reversal of impairment losses, management estimates the recoverable amount of the asset or the cash-generating unit. This requires management to make several assumptions as to future events or circumstances. These assumptions and estimates are subject to change if new information becomes available. Actual results with respect to impairment losses or reversals of impairment losses could differ in such a situation and significant adjustments to the Company's assets and earnings may occur during the next period.
Decommissioning and restoration costs
Management is not aware of any material restoration, rehabilitation and environmental provisions as at 31 January 2024. Decommissioning, restoration and similar liabilities are estimated based on the Company's interpretation of current regulatory requirements, constructive obligations and are measure at fair value and these estimates are updated annually. Fair value is determined based on the net present value of estimated future cash expenditures for the settlement of decommissioning, restoration or similar liabilities that may occur upon decommissioning of the exploration and evaluation property. Such estimates are subject to change based on changes in laws, regulations and negotiations with regulatory authorities.
Impairment of financial assets
At each reporting date the Company assesses financial assets not carried at fair value through profit or loss to determine whether there is objective evidence of impairment. A financial asset is impaired if objective evidence indicates that one or more events occurred during the period that negatively affected the estimated future cash flows of the financial asset.
Objective evidence that financial assets are impaired can include significant financial difficulty of the issuer or debtor, default or the disappearance of an active market for a security. If the Company determines that a financial asset is impaired, judgment is required in assessing the available information in regards to the amount of impairment; however the final outcome may be materially different than the amount recorded as a financial asset.
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New Age Metals Inc. published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 16:34:06 UTC.
