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Almaden Minerals(AAU) - 2023 Q4 - Annual Report
AAUAlmaden Minerals(AAU)2024-03-20 20:52

Financial Performance - Almaden Minerals Ltd. reported total assets of CAD 12,714,764 as of December 31, 2023, a significant decrease of 83.7% from CAD 78,050,210 in 2022[8]. - The company experienced a net loss of CAD 63,620,232 for the year ended December 31, 2023, compared to a net loss of CAD 11,846,560 in 2022, representing an increase in losses of 436.5%[10]. - Total equity decreased to CAD 7,005,595 in 2023 from CAD 69,815,677 in 2022, a decline of 90%[8]. - The basic and diluted net loss per share was CAD (0.46) for 2023, compared to CAD (0.09) for 2022[10]. - The accumulated deficit increased to 157,391,582asofDecember31,2023,comparedto157,391,582 as of December 31, 2023, compared to 93,771,350 at the end of 2022, representing a rise of approximately 68%[18]. - The net loss attributable to common shareholders for the year ended December 31, 2023, was 63,620,232,comparedto63,620,232, compared to 11,846,560 in 2022 and 2,668,254in2021[146].CashandLiquidity−CashandcashequivalentsdecreasedtoCAD4,245,983in2023fromCAD6,658,076in2022,adeclineof36.22,668,254 in 2021[146]. Cash and Liquidity - Cash and cash equivalents decreased to CAD 4,245,983 in 2023 from CAD 6,658,076 in 2022, a decline of 36.2%[8]. - The company incurred negative cash flows from operations of 1,483,006 in 2023, slightly improved from negative cash flows of 1,653,398in2022[18].−Thecompanyhadaworkingcapitalsurplusof1,653,398 in 2022[18]. - The company had a working capital surplus of 4,830,735 as of December 31, 2023, down from 7,463,140in2022[18].−LiquidityriskisconsideredlowastheCompanyhassufficientcashandcashequivalentstomeetitscurrentliabilities[166].AssetsandLiabilities−TotalliabilitiesdecreasedtoCAD5,709,169in2023fromCAD8,234,533in2022,areductionof30.67,463,140 in 2022[18]. - Liquidity risk is considered low as the Company has sufficient cash and cash equivalents to meet its current liabilities[166]. Assets and Liabilities - Total liabilities decreased to CAD 5,709,169 in 2023 from CAD 8,234,533 in 2022, a reduction of 30.6%[8]. - The company reported exploration and evaluation assets of CAD 1 as of December 31, 2023, down from CAD 63,115,076 in 2022, indicating a complete impairment of these assets[8]. - The total lease liability decreased to CAD 377,635 in 2023 from CAD 465,930 in 2022, a reduction of approximately 19%[73]. - The carrying amount of property, plant, and equipment as of December 31, 2023, was CAD 6,601,742, slightly down from CAD 6,610,871 in 2022[79]. Expenses and Costs - Professional fees increased to CAD 1,113,336 in 2023 from CAD 864,051 in 2022, an increase of 28.9%[10]. - Share-based payments decreased significantly to CAD 810,150 in 2023 from CAD 1,478,100 in 2022, a decline of 45.1%[10]. - The company recorded an impairment of acquisition costs amounting to 11,308,720 for the year ended December 31, 2023, compared to Nilin2022[83].−ThetotalcashusedininvestingactivitieswasNil in 2022[83]. - The total cash used in investing activities was 801,290 in 2023, a decrease from 1,728,846in2022[18].ExplorationandDevelopment−ThecompanycontinuestoexploreanddevelopitsIxtacapreciousmetalsprojectinMexico,althoughithasnotyetestablishedeconomicallyrecoverablemineralreserves[17].−Thecompanyisintheadvancedexplorationstage,capitalizingallcostsrelatedtotheacquisitionanddevelopmentofmineralclaims[40].−Thecompanyrecognizedanimpairmentchargeforexplorationandevaluationassetswhenitisdeterminedthatthecarryingamountisunlikelytoberecovered[44].FinancingandDebt−Thecompanyplanstoseekexternalfinancingtosupportitsoperationsandexplorationeffortsmovingforward[18].−ThematuritydateforthegoldloanisMarch31,2024,withanoptiontoextendbytwoyears[98].−AsofDecember31,2023,Almadenhasagoldloanpayableof1,728,846 in 2022[18]. Exploration and Development - The company continues to explore and develop its Ixtaca precious metals project in Mexico, although it has not yet established economically recoverable mineral reserves[17]. - The company is in the advanced exploration stage, capitalizing all costs related to the acquisition and development of mineral claims[40]. - The company recognized an impairment charge for exploration and evaluation assets when it is determined that the carrying amount is unlikely to be recovered[44]. Financing and Debt - The company plans to seek external financing to support its operations and exploration efforts moving forward[18]. - The maturity date for the gold loan is March 31, 2024, with an option to extend by two years[98]. - As of December 31, 2023, Almaden has a gold loan payable of 4,371,546, an increase of 11.3% from 3,929,015onDecember31,2022[105].StockOptionsandShareCapital−Thestockoptionplanallowsfortheissuanceofoptionsuptoamaximumof103,929,015 on December 31, 2022[105]. Stock Options and Share Capital - The stock option plan allows for the issuance of options up to a maximum of 10% of the issued share capital, with 1,217,141 stock options reserved as of December 31, 2023[121]. - The total options outstanding and exercisable as of December 31, 2023, was 12,530,000, a slight decrease from 12,990,000 in 2022[126]. - The company plans to continue its strategy of managing stock options to optimize employee compensation and retention[126]. Tax and Regulatory Matters - The expected income tax for the year ended December 31, 2023, was (18,011,811), compared to (2,836,451)in2022[152].−ThecompanyiscurrentlydisputingthedenialofmineraltitleapplicationsthroughtheMexicanFederalAdministrativeCourt[92].RiskManagement−TheCompanyisexposedtoa10(2,836,451) in 2022[152]. - The company is currently disputing the denial of mineral title applications through the Mexican Federal Administrative Court[92]. Risk Management - The Company is exposed to a 10% change in the US dollar exchange rate, which would affect its net loss by 110,000, and a similar change in the Mexican peso would impact the net loss by 44,000[161][164].−A144,000[161][164]. - A 1% change in interest rates would change the Company's net loss by 42,000[167]. - A 1% change in commodity prices would change the Company's net loss by $11,000[170].