New Pacific Metals (US:NEWP)2024-02-14 21:47Financial Performance - The net loss for the three months ended December 31, 2023, was $1,527,071, a decrease from a loss of $1,873,003 in the same period of 2022, reflecting an improvement of about 18.4%[3] - For the six months ended December 31, 2023, the net loss was $3,273,685, compared to $3,958,666 for the same period in 2022, indicating a reduction of approximately 17.3%[4] - The company reported a total comprehensive loss of $668,820 for the three months ended December 31, 2023, compared to a loss of $1,450,836 in the same period of 2022, showing an improvement of approximately 54%[4] - Total operating expenses for the six months ended December 31, 2023, were $(3,687,392), a decrease from $(3,986,590) for the same period in 2022, showing a reduction of about 7.5%[61] - The total operating expense for the three months ended December 31, 2023, was $(1,818,757), which is lower than $(1,927,708) for the same period in 2022, reflecting a decrease of about 5.7%[60] Assets and Liabilities - Total assets increased to $140,159,187 as of December 31, 2023, compared to $118,307,541 on June 30, 2023, representing a growth of approximately 18.5%[2] - Total liabilities decreased to $(1,156,871) as of December 31, 2023, compared to $(2,336,655) as of June 30, 2023, indicating a reduction of about 50.5%[59] - Cash and cash equivalents rose significantly to $25,837,156 from $6,296,312, marking an increase of approximately 311.5%[2] - The cash on hand and at bank increased to $18,201,303 as of December 31, 2023, compared to $6,296,312 as of June 30, 2023, representing a growth of approximately 189.5%[62] Share Capital and Equity - Share capital increased to $181,229,877 as of December 31, 2023, up from $155,840,052, representing a growth of about 16.3%[2] - As of December 31, 2023, total equity attributable to equity holders of the Company is $139,153,862, with a net loss of $3,270,124 for the six months ended[6] - The total number of common shares issued increased to 171,043,382 as of December 31, 2023, up from 157,491,172 as of June 30, 2023[6] - The Company’s accumulated deficit as of December 31, 2023, stands at $(71,893,430), reflecting ongoing operational losses[6] Investments and Income - The company reported net income from investments of $275,020 for the three months ended December 31, 2023, compared to $83,455 in the same period of 2022, reflecting an increase of approximately 229.5%[3] - Net income from investments for the six months ended December 31, 2023, was $295,294, compared to $41,781 for the same period in 2022, indicating a significant increase of approximately 608.5%[61] - The company reported a foreign exchange gain of $16,666 for the three months ended December 31, 2023, compared to a foreign exchange loss of $(28,750) for the same period in 2022, indicating a turnaround[60] Expenditures and Capitalization - The company incurred capital expenditures of $736,260 for the three months ended December 31, 2023, down from $5,413,239 in the same period of 2022, indicating a decrease of approximately 86.4%[5] - Total capitalized exploration expenditures for the three and six months ended December 31, 2023, were $413,362 and $1,379,261, respectively, compared to $1,700,593 and $4,197,529 for the same periods in 2022, indicating a decrease of approximately 76.7% and 67.2%[24] - The total expenditures for the Carangas Project for the three and six months ended December 31, 2023, were $321,877 and $936,734, respectively, down from $2,871,725 and $5,848,633 in 2022, reflecting a reduction of 88.8% and 84.0%[26] - The total capitalized expenditures for the Silverstrike Project for the three and six months ended December 31, 2023, were $10,125 and $77,441, respectively, compared to $702,839 and $1,145,490 in 2022, indicating a decrease of 98.6% and 93.2%[28] Management and Compensation - Key management's cash compensation for the six months ended December 31, 2023, was $585,871, an increase of 67.2% compared to $350,268 for the same period in 2022[30] - Share-based compensation expense for the three and six months ended December 31, 2023, totaled $412,077 and $1,075,099, respectively, compared to $739,971 and $1,570,829 for the same periods in 2022, indicating a decrease of 44.2% and 31.5%[33] Foreign Exchange and Risk - The company has exposure to foreign exchange risk, with financial assets denominated in foreign currencies totaling $1,385,136 as of December 31, 2023[50] - A 1% strengthening of the USD against the CAD would have increased net income by approximately $2,700 as of December 31, 2023[50] - The company’s equity price risk indicates that a 10% increase in the market price of its securities would result in an increase to net income of approximately $28,000[55] Other Information - The Company has not yet determined if its mineral properties contain economically recoverable mineral reserves, which impacts the underlying value of its mineral property interests[7] - The Company is engaged in exploring and developing mineral properties in Bolivia, with a focus on advancing its projects despite the lack of confirmed recoverable reserves[7] - The Company’s financial statements have been prepared in accordance with International Accounting Standard 34, ensuring compliance with reporting standards[9] - The balance of mineral property interests increased to $106,036,909 as of December 31, 2023, up from $103,606,250 on June 30, 2023, reflecting a growth of 2.8%[22] - The carrying amount of plant and equipment as of December 31, 2023, was $2,039,115, a decrease from $2,055,439 on June 30, 2023, representing a decline of 0.8%[5] - The balance of accumulated depreciation as of December 31, 2023, was $(686,754), an increase from $(715,600) on June 30, 2023, indicating a decrease in depreciation expense[5] - The total number of stock options as of December 31, 2023, was 3,366,167, down from 3,957,167 on June 30, 2023, reflecting a reduction of 14.9%[36] - The total number of stock options outstanding as of December 31, 2023, was 3,366,167, with an average exercise price of CAD$3.07[37] - The balance of Restricted Stock Units (RSUs) as of December 31, 2023, was 1,434,326, with a weighted average grant date closing price of CAD$3.77[38] - The company reported a related party transaction with Silvercorp Metals Inc., with amounts due increasing from $56,102 on June 30, 2023, to $125,234 as of December 31, 2023[29] - The company closed a bought deal financing on September 29, 2023, issuing 13,208,000 common shares at a price of $1.96 (CAD $2.65) per share, resulting in gross proceeds of $25,888,462[40] - The company granted a total of 1,024,000 RSUs at a grant date closing price of CAD$2.10 per share, subject to a three-year vesting schedule[39] - The company reported a non-controlling interest in its subsidiary Qinghai Found of $151,546 as of December 31, 2023, reflecting a share of net loss and other comprehensive loss[41]