DISCOVERY SILVER CORP. UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2022 and 2021
(expressed in Canadian dollars)
Discovery Silver Corp.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited - (Expressed in Canadian dollars, except where otherwise noted)
September 30, | December 31, | ||||
As at | Notes | 2022 | 2021 | ||
ASSETS | |||||
Current | |||||
Cash and cash equivalents | 6 | $ | 55,552,791 | $ | 54,748,652 |
Short-term investments | 6 | - | 15,000,000 | ||
Sales tax and other receivables | 7 | 7,760,442 | 206,144 | ||
Prepaids and deposits | 8 | 306,296 | 220,203 | ||
Investments | 9 | 525,645 | 1,141,192 | ||
64,145,174 | 71,316,191 | ||||
Non-current | |||||
Property and Equipment | 10 | 1,610,828 | 960,850 | ||
Value-added taxes receivable | 7 | 2,029,881 | 2,879,866 | ||
Mineral properties | 11 | 33,422,248 | 32,633,848 | ||
TOTAL ASSETS | $ | 101,208,131 | $ | 107,790,755 | |
LIABILITIES | |||||
Current | |||||
Accounts payable and accrued liabilities | 12 | $ | 3,277,580 | $ | 1,663,441 |
Current portion of lease liabilities | 13 | 102,804 | 41,089 | ||
$ | 3,380,384 | $ | 1,704,530 | ||
Non-current | |||||
Lease liabilities | 13 | 408,537 | - | ||
TOTAL LIABILITIES | $ | 3,788,921 | $ | 1,704,530 | |
SHAREHOLDERS' EQUITY | |||||
Share capital | 14(b) | $ | 165,905,409 | $ | 150,492,379 |
Contributed surplus | 36,337,599 | 24,095,443 | |||
Warrants | 14(e) | 17,525,093 | 23,395,976 | ||
Accumulated other comprehensive loss | (156,888) | (389,494) | |||
Accumulated deficit | (122,192,003) | (91,508,079) | |||
TOTAL EQUITY | $ | 97,419,210 | $ | 106,086,225 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 101,208,131 | $ | 107,790,755 |
Approved on Behalf of the Board on November 23, 2022:
"Jeff Parr" | "Murray John" | |
Jeff Parr - Director | Murray John - Director |
See accompanying notes to the unaudited condensed interim consolidated financial statements
2
Discovery Silver Corp.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND TOTAL COMPREHENSIVE LOSS
Unaudited - (Expressed in Canadian dollars, except per share and share information)
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | September 30, | September 30, | ||||||
Notes | 2022 | 2021 | 2022 | 2021 | |||||
Expenses (income) | |||||||||
General office and other expenses | 16 | $ | 1,076,536 | $ | 740,507 | $ | 3,917,873 | $ | 2,373,460 |
Interest income | (199,453) | (182,191) | (518,792) | (640,975) | |||||
Interest expense | 193 | 956 | 1,125 | 2,625 | |||||
Professional fees | 17 | 380,501 | 202,912 | 906,969 | 411,082 | ||||
Exploration and project evaluation | |||||||||
expenses | 15 | 9,078,504 | 7,203,426 | 24,209,221 | 19,286,934 | ||||
Share-based compensation | 14(c) | 1,672,190 | 1,122,332 | 7,763,023 | 5,665,442 | ||||
Other income | - | - | - | (99,595) | |||||
Loss on fair value remeasurement | |||||||||
of investments | 9 | 469,378 | 90,000 | 615,547 | 75,000 | ||||
Provision for value-added taxes | 7(a) | (4,981,936) | (634,669) | (3,277,190) | 1,175,072 | ||||
receivable | |||||||||
Foreign exchange (gain) loss | (1,945,749) | 209,493 | (2,933,852) | 118,540 | |||||
Net loss | $ | 5,550,164 | $ | 8,752,766 | $ | 30,683,924 | $ | 28,367,587 | |
Other comprehensive (gain) loss | $ | (556,187) | $ | (13,459) | $ | (232,606) | $ | 106,980 | |
Net loss and total comprehensive | |||||||||
loss | $ | 4,993,977 | $ | 8,739,307 | $ | 30,451,318 | $ | 28,474,567 | |
Weighted average shares | |||||||||
outstanding | |||||||||
Basic and diluted | 14(b) | 349,402,721 | 325,155,725 | 340,101,973 | 322,629,505 | ||||
Net loss per share | |||||||||
Basic and diluted | $ | (0.02) | $ | (0.03) | $ | (0.10) | $ | (0.09) |
See accompanying notes to the unaudited condensed interim consolidated financial statements
3
Discovery Silver Corp.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited - (Expressed in Canadian dollars, except where otherwise noted)
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | September 30, | September 30, | ||||||
Notes | 2022 | 2021 | 2022 | 2021 | |||||
Operating Activities | |||||||||
Net loss | $ | (5,550,164) | $ | (8,752,766) | $ | (30,683,924) | $ | (28,367,587) | |
Items not affecting cash: | |||||||||
Depreciation | 42,041 | 96,356 | 195,650 | 184,824 | |||||
Share-based compensation | 14(c) | 1,672,190 | 1,122,332 | 7,763,023 | 5,665,442 | ||||
Adjustments to Provision for value- | 7 | ||||||||
added taxes receivable | (4,981,936) | (634,669) | (3,277,190) | 1,175,072 | |||||
Loss on fair value remeasurement | 9 | 469,378 | 90,000 | 615,547 | 75,000 | ||||
Write-off of mineral property | - | - | 267,711 | - | |||||
Unrealized foreign exchange loss | |||||||||
(gain) | (2,199,316) | 76,865 | (2,623,062) | 83,249 | |||||
Changes in non-cash operating | |||||||||
working capital: | |||||||||
Sales tax and other receivables | 7 | (1,847,674) | (2,064,726) | (3,427,124) | (3,566,936) | ||||
Prepaids and deposits | 8 | 61,469 | 30,254 | (86,093) | (158,169) | ||||
Accounts payable and accrued | |||||||||
liabilities | 12 | 758,273 | (72,496) | 1,614,140 | 769,615 | ||||
Net cash used in operating activities | $ | (11,575,739) | $ | (10,108,850) | $ | (29,641,322) | $ | (24,139,490) | |
Investing Activities | |||||||||
Proceeds from sale of investment | - | - | 15,000,000 | - | |||||
Acquisition of mineral properties | 11 | - | (5,298,138) | - | (5,298,138) | ||||
Acquisition of property and equipment | 10 | (139,093) | (137,104) | (338,758) | (432,085) | ||||
Net cash from (used in) investing | |||||||||
activities | $ | (139,093) | $ | (5,435,242) | $ | 14,661,242 | $ | (5,730,223) | |
Financing Activities | |||||||||
Issuance of shares on exercise of | |||||||||
options | 14(c) | 1,495,000 | 4,794 | 1,832,753 | 551,527 | ||||
Issuance of shares on exercise of | |||||||||
warrants | 14(e) | - | - | 12,188,527 | 19,185,246 | ||||
Principal payment on lease liability | (9,912) | (11,752) | (34,003) | (34,911) | |||||
Net cash provided (used) by financing | |||||||||
activities | $ | 1,485,088 | $ | (6,958) | $ | 13,987,277 | $ | 19,701,862 | |
Effect of exchange rates on cash and cash | |||||||||
equivalents | 2,172,499 | 233,240 | 1,796,942 | 257,439 | |||||
(Decrease) increase in cash and cash | |||||||||
equivalents | (8,057,245) | (15,317,810) | 804,139 | (9,910,412) | |||||
Cash and cash equivalents, beginning of | |||||||||
period | 6 | 63,610,036 | 72,955,295 | 54,748,652 | 67,547,897 | ||||
Cash and cash equivalents, | |||||||||
end of period | 6 | $ | 55,552,791 | $ | 57,637,485 | $ | 55,552,791 | $ | 57,637,485 |
Supplemental Cash Flow Information: | |||||||||
Income tax expense paid | $ | - | $ | - | $ | - | $ | - | |
Interest paid | $ | 193 | $ | 956 | $ | 1,125 | $ | 2,625 |
See accompanying notes to the unaudited condensed interim consolidated financial statements
4
Discovery Silver Corp.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Unaudited - (Expressed in Canadian dollars, except where otherwise noted)
Accumulated | |||||||||||||||
Number of | Other | ||||||||||||||
Common | Contributed | Comprehensive | Accumulated | ||||||||||||
Notes | Shares | Share Capital | Warrants | Surplus | Loss | Deficit | Total Equity | ||||||||
At January 1, 2022 | 331,348,433 | $ | 150,492,379 | $ | 23,395,976 | $ | 24,095,443 | $ | (389,494) | $ | (91,508,079) | $ | 106,086,225 | ||
Share-based | |||||||||||||||
compensation | 14c | - | - | - | 7,763,023 | - | - | 7,763,023 | |||||||
Shares issued on | |||||||||||||||
exercise of options | 14c | 3,598,333 | 3,046,704 | - | (1,213,951) | - | - | 1,832,753 | |||||||
Shares issued on | |||||||||||||||
exercise of warrants | 14e | 15,869,814 | 12,188,527 | (5,870,883) | 5,870,883 | - | - | 12,188,527 | |||||||
Shares issued on | |||||||||||||||
exercise of RSU's | 14e | 125,000 | 177,799 | - | (177,799) | - | - | - | |||||||
Net loss and total | |||||||||||||||
comprehensive loss | |||||||||||||||
for the period | - | - | - | - | 232,606 | (30,683,924) | (30,451,318) | ||||||||
At September 30, 2022 | 350,941,580 | $ | 165,905,409 | $ | 17,525,093 | $ | 36,337,599 | $ | (156,888) | $ | (122,192,003 | $ | 97,419,210 | ||
Accumulated | |||||||||||||||
Number of | Other | ||||||||||||||
Common | Contributed | Comprehensive | Accumulated | ||||||||||||
Notes | Shares | Share Capital | Warrants | Surplus | Loss | Deficit | Total Equity | ||||||||
At January 1, 2021 | 305,012,554 | $ | 125,570,547 | $ | 26,652,950 | $ | 14,710,821 | $ | (351,222) | $ | (56,041,564) | $ | 110,541,532 | ||
Share-based | |||||||||||||||
compensation | 14c | - | - | - | 5,665,442 | - | - | 5,665,442 | |||||||
Shares issued on exercise | |||||||||||||||
of options | 14c | 1,021,458 | 849,554 | - | (298,027) | - | - | 551,527 | |||||||
Shares issued on exercise | |||||||||||||||
of warrants | 14e | 19,121,713 | 19,185,246 | (1,323,029) | 1,323,029 | - | - | 19,185,246 | |||||||
Net loss and total | |||||||||||||||
comprehensive loss for | |||||||||||||||
the year | - | - | - | - | (106,980) | (28,367,587) | (28,474,567) | ||||||||
At September 30, 2021 | 325,155,725 | $ | 145,605,347 | $ | 25,329,921 | $ | 21,401,265 | $ | (458,203) | $ | (84,409,151) | $ | 107,469,179 |
See accompanying notes to the unaudited condensed interim consolidated financial statements
5
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Discovery Silver Corp. published this content on 25 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 November 2022 15:56:01 UTC.
