Ascot Reports 2023 Annual Results - Seite 2

FINANCIAL RESULTS FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2023

The Company reported a net income of $1,705 for Q4 2023 compared to a net loss of $5,988 for Q4 2022. The net income in Q4 2023 is mainly driven by the accounting gain on increase in fair value of the stream buyback embedded derivatives as a result of increase in gold prices and a decrease in market credit spreads.

The Company reported a net loss of $10,430 for 2023 compared to $10,808 for 2022. The lower net loss is attributable to a combination of key factors including a $2,405 decrease in stock-based compensation, and a $1,539 increase in gain on change in fair value of the Stream buyback embedded derivatives, partially offset by a $1,392 increase in environmental compliance costs, and a $1,202 increase in deferred income tax expense.

LIQUIDITY AND CAPITAL RESOURCES

As at December 31, 2023, the Company had cash & cash equivalents of $26,974 and working capital deficiency of $18,337. On February 20, 2024, the Company closed a bought deal private placement for gross proceeds of $28,751 and a US$50 million financing package consisting of a royalty restructuring and a cost overrun facility. Management considered the negative net working capital and the commitments that had existed at December 31, 2023 as well as the funding received subsequent to year end and concluded that the Company now has sufficient funding for the next twelve months of operations, including to progress from construction to first gold pour, ramp-up, commercial production and eventually steady-state operations.

During 2023, the Company issued 120,186,206 common shares, granted 9,789,358 stock options, issued 1,449,973 Deferred Share Units and 2,606,908 Restricted Share Units. Also, 564,152 stock options expired or were forfeited, and 55,530 stock options, 452,006 Deferred Share Units and 721,597 Restricted Share Units were exercised in 2023.

MANAGEMENT’S OUTLOOK FOR 2024

With the financing package closed on February 20, 2024, the Company believes that it has sufficient funding to complete construction and ramp-up of PGP in 2024. The key activities for remainder of 2024 include:

• Advancing the mining development at Big Missouri and at Premier, with stoping activity at Premier starting in Q3 2024
• Completing recruitment of operating team personnel by the end of March 2024
• First ore to the mill by the end of March 2024 and first gold pour in April 2024, and commercial production in Q3 2024