Ascot Resources Announces Financial Results for the Nine Months Ended September 30, 2020 - Seite 2
FINANCIAL RESULTS – THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020
The Company reported a net income of $682 for Q3 2020 compared to a net loss of $2,215 for Q3 2019. The net income in Q3 2020 is mainly driven by an unrealized gain on marketable securities and deferred income tax recovery. The Company reported a net loss of $3,991 for the first nine months of 2020 compared to $4,825 for the first nine months of 2019. The lower loss in the first nine months of 2020 is attributable to a combination of factors including:
- A $680 decrease in finance expense mainly due to more interest being capitalized in 2020 compared to 2019 as well as lower accretion of the Company’s asset retirement obligation in 2020 compared to 2019;
- A $310 increase in flow-through share premium recognition, as the premium on flow-through shares issued in 2020 was higher than the premium on flow-through shares issued in 2019; and
- A $287 deferred tax recovery.
Partially offset by:
- A $263 foreign exchange loss (a $118 gain in the comparable period of 2019) mainly driven by fluctuations of the foreign exchange rate used in translation of the Company’s convertible note as well as in revaluation of the Company’s U.S. dollar term investments held in 2019;
- A $259 increase in stock-based compensation charge due to more stock options granted in the first nine months of 2020 compared to the first nine months of 2019;
- A $166 increase in property maintenance cost mainly due to Red Mountain camp demobilization costs as well as higher repairs and maintenance costs, and
- A $137 increase in depreciation mainly due to depreciation of IDM assets acquired at the end of Q1 2019.
LIQUIDITY AND CAPITAL RESOURCES
During the nine months ended September 30, 2020, the Company issued 43,361,453 common shares (nine months ended September 30, 2019: 58,100,859), 4,700,000 stock options (nine months ended September 30, 2019: 3,200,000), 340,000 Deferred Share Units (nine months ended September 30, 2019: nil) and 180,000 Restricted Share Units (nine months ended September 30, 2019: nil). Also, 913,500 stock options expired, 200,000 stock options were forfeited and 17,134,427 warrants expired during this period.
In February 2020, the Company raised $10,253 through a private placement to fund its 2020 exploration program and other corporate expenditures. During the nine months ended September 30, 2020, the Company spent $3,534 on qualifying flow-through exploration expenditures. As at September 30, 2020, the Company had a balance of $1,490 required to be spent on flow-through expenditures prior to December 31, 2022. On June 17, 2020, the Company raised $25,000 through a bought deal by issuing 29,412,000 common shares at $0.85 per share. The net proceeds of the bought deal will be used for the continued development of the Premier Gold Project, including the purchase of long lead time equipment and for general working capital purposes. As at September 30, 2020, the Company had working capital of $10,100 (December 31, 2019: $3,003) and cash & cash equivalents balance of $25,411 (December 31, 2019: 4,418). The increase in cash & cash equivalents was due to the net proceeds of $9,518 from the private placement as well as the net proceeds of $23,328 from the bought deal. The Company has sufficient funding to meet its obligations for the next twelve months.