Financial Performance - The net loss for the year ended December 31, 2024, was $42,420,283, an increase of $10,044,214 compared to the prior year, primarily due to increased exploration activities and higher general and administrative expenses [175]. - The Company incurred a net loss of $42,420,283 for the year ended December 31, 2024, compared to a loss of $32,376,069 for the previous year [203]. - Key management compensation for the year ended December 31, 2024, totaled $5,940,139, an increase from $4,917,472 in 2023 [217]. - The Company paid interest of $2,082,830 for the year ended December 31, 2024, compared to $793,392 in 2023, indicating a significant increase in financing costs [220]. Exploration and Development Activities - General exploration expenses rose by $6,787,620 for the year ended December 31, 2024, reflecting a ramp-up in drilling and related activities [180]. - The total general exploration expenses for the year ended December 31, 2024, amounted to $29,651,360, with drilling expenses alone accounting for $6,703,402 [222]. - The Company has not generated revenue and is reliant on external financing to fund its exploration and evaluation activities [188]. - The exploration and evaluation assets in Botswana increased from $8,594,798 in 2023 to $8,846,821 in 2024, suggesting ongoing investment in this geographic segment [221]. - Management conducts periodic reviews of exploration and evaluation assets to assess potential impairment, which may affect future financial statements [234]. Cash and Financing - Cash and cash equivalents at the end of the period were $6,105,933, down from $19,245,628 at the end of 2023 [189]. - Net cash used in operating activities increased by $8,136,574 in 2024 compared to 2023, driven by increased exploration and development activities [183]. - The company closed private placements for gross proceeds of approximately $27.5 million in 2024, a decrease of $24,791,702 compared to the previous year [185]. - Working capital as of December 31, 2024, was $2,963,061, a significant decrease from $14,787,484 at the end of 2023 [189]. - The Company has a Term Loan outstanding of $20,882,353, bearing interest at 10% per annum, maturing on June 28, 2026 [213]. - The carrying value of the Term Loan as of December 31, 2024, is $18,983,212, with a fair value of $20,862,478, reflecting a significant difference due to market conditions [225]. - The Company has contractual obligations totaling US$56,750,000 for the purchase of the Selebi Mines, payable in three instalments [204]. Shareholder and Equity Information - As of December 31, 2024, EdgePoint beneficially owns approximately 12.8% of the issued and outstanding Common Shares, which increases to 18.8% on a partially-diluted basis [218]. - The Company issued 153,333,334 units at $0.30 per unit for gross proceeds of approximately $46 million in March 2025 [191]. - The Company closed the first tranche of the June 2024 Financing, issuing 19,234,614 Units at $0.78 per Unit for gross proceeds of $15,002,999 [196]. - The second tranche of the June 2024 Financing raised an additional $12,497,000, bringing the total financing to approximately $27.5 million [197]. - The December 2023 Financing raised $15,760,040 from the issuance of 13,133,367 Common Shares at $1.20 per share [198]. Compensation and Stock Options - The company granted 5,750,000 stock options and 3,175,000 restricted share units (RSUs) as part of its compensation strategy [194]. - The fair value of the DSU liability is $941,664 as of December 31, 2024, compared to $884,481 in 2023, showing an increase in share-based compensation obligations [225]. - The Company has no material commitments for capital expenditures over the next 12 months as of December 31, 2024 [204]. Market and Valuation - The Company utilizes the Black-Scholes option pricing model for calculating the fair value of stock-based awards, which is influenced by stock price volatility and exercise behaviors [237]. - Total assets decreased by $13,020,736 from December 31, 2023, primarily due to lower cash balances [176]. - Total current assets decreased from $20,678,773 in 2023 to $7,618,243 in 2024, with notable declines in Canada and Botswana segments [221].
NexMetals Mining Corp(NEXM) - 2024 Q4 - Annual Report