CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED SEPTEMBER 30, 2024 AND 2023
(EXPRESSED IN THOUSANDS OF CANADIAN DOLLARS)
MEGA URANIUM LTD.
Consolidated Statements of Financial Position
(In thousands of Canadian dollars, except for securities and per share amounts)
As at | As at | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Current assets | $ | 367 | ||||||
Cash and cash equivalents (note 4) | $ | 347 | ||||||
Receivables and prepaid expenses (note 5) | 163 | 310 | ||||||
Marketable securities (note 6) | 27,564 | 25,281 | ||||||
Total current assets | 28,094 | 25,938 | ||||||
Non-current assets | - | |||||||
Restricted cash (note 7) | 305 | |||||||
Long-term investment (note 9) | 170,612 | 158,147 | ||||||
Property, plant and equipment, net | 51 | 64 | ||||||
Right-of-use asset, net (note 10) | 314 | 408 | ||||||
Total non-current assets | 170,977 | 158,924 | ||||||
Total assets | $ | 199,071 | $ | 184,862 | ||||
EQUITY AND LIABILITIES | ||||||||
Current liabilities | $ | 1,646 | ||||||
Amounts payable and other liabilities (notes 11 and 14) | $ | 1,381 | ||||||
Due to broker (note 12) | 15,094 | 8,624 | ||||||
Lease liabilities (note 13) | 90 | 82 | ||||||
Total current liabilities | 16,830 | 10,087 | ||||||
Non-current liabilities | 249 | |||||||
Lease liabilities (note 13) | 339 | |||||||
Deferred tax liabilities (note 24) | 1,071 | 259 | ||||||
Total non-current liabilities | 1,320 | 598 | ||||||
Total liabilities | 18,150 | 10,685 | ||||||
Equity | 285,022 | |||||||
Share capital (note 15) | 283,623 | |||||||
Share option reserve (note 16) | 68,491 | 67,795 | ||||||
Accumulated other comprehensive income | 139,704 | 128,938 | ||||||
Deficit | (312,296) | (306,179) | ||||||
Total equity | 180,921 | 174,177 | ||||||
Total equity and liabilities | $ | 199,071 | $ | 184,862 | ||||
Commitments and obligations (note 20) | ||||||||
Subsequent events (note 25) | ||||||||
On behalf of the Board: | ||||||||
"Albert Contardi" | Director | "Larry Goldberg" | Director |
The notes to the consolidated financial statements are an integral part of these statements.
- 1 -
MEGA URANIUM LTD.
Consolidated Statements of Income (Loss) and Comprehensive Income
(In thousands of Canadian dollars, except for securities and per share amounts)
Year Ended | ||||
September 30, | ||||
2024 | 2023 | |||
Operating expenses | $ | 3,561 | ||
General and administrative expenses (note 18) | $ | 3,109 | ||
Exploration and evaluation expenditures (notes 16 and 19) | 522 | 496 | ||
Operating loss | (4,083) | (3,605) | ||
Loss from equity investment (note 8) | - | (727) | ||
Loss on deemed disposition of equity investment (note 8) | - | (50) | ||
Unrealized gain (loss) on marketable securities | (5,279) | 1,165 | ||
Realized gain on marketable securities | 1,136 | 108 | ||
Finance expenses | (1,264) | (311) | ||
Other income (note 19) | 2,516 | 55 | ||
Foreign exchange gain (loss) | 17 | (7) | ||
Net loss before taxes | (6,957) | (3,372) | ||
Deferred tax recovery (note 24) | 840 | 7,793 | ||
Net income (loss) for the year | (6,117) | 4,421 | ||
Other comprehensive income (loss) | ||||
Item that will be reclassified subsequently to profit and loss: | (48) | |||
Exchange differences on translation of foreign operations | 9 | |||
Item that will not be reclassified subsequently to profit and loss: | ||||
Change in fair value of long-term investment, net of tax expense | 10,814 | |||
of $1,651 (2023 - $8,051) (note 9) | 52,715 | |||
Other comprehensive income | 10,766 | 52,724 | ||
Total comprehensive income for the year | $ | 4,649 | $ | 57,145 |
Income (loss) per common share - basic (note 17) | $ | (0.02) | $ | 0.01 |
Income (loss) per common share - diluted (note 17) | $ | (0.02) | $ | 0.01 |
Weighted average number of common shares outstanding - basic (note 17) | 367,132,193 | 360,258,170 | ||
Weighted average number of common shares outstanding - diluted (note 17) | 367,132,193 | 367,605,859 |
The notes to the consolidated financial statements are an integral part of these statements.
- 2 -
MEGA URANIUM LTD.
Consolidated Statements of Cash Flows
(In thousands of Canadian dollars, except for securities and per share amounts)
Year Ended | ||||
September 30, | ||||
2024 | 2023 | |||
Operating activities | $ | (6,117) | ||
Net income (loss) for the year | $ | 4,421 | ||
Adjustment for: | - | |||
Loss on equity investment (note 8) | 727 | |||
Loss on deemed disposition of equity investment (note 8) | - | 50 | ||
Unrealized loss (gain) on marketable securities | 5,279 | (1,165) | ||
Realized gain on marketable securities | (1,136) | (108) | ||
Proceeds from sale of marketable securities | 4,652 | 254 | ||
Purchase of marketable securities | (9,742) | (6,159) | ||
Amortization | 107 | 95 | ||
Lease modification | - | (6) | ||
Stock-based compensation | 1,256 | 999 | ||
Finance expenses | 38 | 32 | ||
Deferred tax recovery | (840) | (7,793) | ||
Other income | (1,325) | - | ||
Non-cash working capital items: | 147 | |||
Receivables and prepaid expenses | 393 | |||
Amounts payable and other liabilities | 265 | 131 | ||
Due to broker | 6,470 | 7,485 | ||
Net cash used in operating activities | (946) | (644) | ||
Financing activities | 839 | |||
Proceeds from exercise of options and warrants | 595 | |||
Lease payments (note 13) | (120) | (103) | ||
Net cash provided by financing activities | 719 | 492 | ||
Investing activities | - | |||
Additional investment in equity investment (note 8) | (17) | |||
Purchase of property, plant and equipment | - | (12) | ||
Release of restricted cash | 305 | - | ||
Net cash provided by (used in) investing activities | 305 | (29) | ||
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies | (58) | 18 | ||
Net change in cash and cash equivalents | 20 | (163) | ||
Cash and cash equivalents, beginning of year | 347 | 510 | ||
Cash and cash equivalents, end of year | $ | 367 | $ | 347 |
The notes to the consolidated financial statements are an integral part of these statements.
- 3 -
MEGA URANIUM LTD.
Consolidated Statements of Equity
(In thousands of Canadian dollars, except for securities and per share amounts)
Accumulated | |||||||||||
Number of | Share | other | |||||||||
common | Share | option | comprehensive | Total | |||||||
shares | capital | reserve | income | Deficit | equity | ||||||
Balance, September 30, 2022 | 358,935,636 | $ | 282,620 | $ | 67,204 | $ | 76,214 | $ | (310,600) | $ | 115,438 |
Exercise of stock options | 4,050,000 | 1,003 | (408) | - | - | 595 | |||||
Stock-based compensation | - | - | 999 | - | - | 999 | |||||
Net income for the year | - | - | - | - | 4,421 | 4,421 | |||||
Other comprehensive income | - | - | - | 52,724 | - | 52,724 | |||||
Balance, September 30, 2023 | 362,985,636 | 283,623 | 67,795 | 128,938 | (306,179) | 174,177 | |||||
Exercise of stock options | 7,970,000 | 1,399 | (560) | - | - | 839 | |||||
Stock-based compensation | - | - | 1,256 | - | - | 1,256 | |||||
Net loss for the year | - | - | - | - | (6,117) | (6,117) | |||||
Other comprehensive income | - | - | - | 10,766 | - | 10,766 | |||||
Balance, September 30, 2024 | 370,955,636 | $ | 285,022 | $ | 68,491 | $ | 139,704 | $ | (312,296) | $ | 180,921 |
The notes to the consolidated financial statements are an integral part of these statements. - 4 -
MEGA URANIUM LTD.
Notes to Consolidated Financial Statements Years Ended September 30, 2024 and 2023
(In thousands of Canadian dollars, except for securities and per share amounts)
1. Nature of business
Mega Uranium Ltd. ("Mega" or the "Company") was incorporated in 1990 under the laws of the Province of Ontario and its shares are publicly traded on the Toronto Stock Exchange (the "TSX") under the symbol "MGA". The Company is domiciled in the Province of Ontario, Canada and its registered office is located at 217 Queen Street West, Suite 401, Toronto, Ontario, Canada, M5V 0R2.
Mega has a uranium resource project and interests in exploration properties in Australia and equity investments in uranium-focused companies.
Mega has not yet determined whether its resource property contains reserves that are economically recoverable. The recoverability of the amounts shown for mineral properties and related expenditures is dependent upon various factors, including the future selling price of uranium, the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete exploration and development, government permitting policies and regulations, and future profitable production or proceeds from property disposition.
In addition to the Company's own exploration and development activities, Mega participates indirectly in the uranium sector through its securities holdings in other companies, including its significant long-term investment in NexGen Energy Ltd. ("NexGen") (NXE:TSX), its equity accounted investment in Toro Energy Limited ("Toro") (TOE:ASX), and marketable securities of other uranium-focused issuers. NexGen is an exploration and development stage entity engaged in the acquisition, exploration and evaluation of uranium properties in Canada. Toro's principal activities include the development of the Wiluna Uranium Project and exploration and evaluation of its tenement holdings.
These consolidated financial statements ("consolidated statements") were approved by the Company's Board of Directors on December 17, 2024.
2. Basis of preparation
- Statement of compliance:
These consolidated statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board and interpretations of the International Financial Reporting Committee. The material accounting policies are presented in note 3 and have been consistently applied in each of the years presented. Significant accounting estimates, judgments and assumptions used or exercised by management in the preparation of these consolidated statements are presented below.
- Basis of presentation:
These consolidated statements have been prepared using the historical cost convention, except for some financial instruments, which have been measured at fair value. All monetary references expressed in these notes are references to Canadian dollar amounts ("$") except as otherwise noted.
- Basis of consolidation:
These consolidated statements include the accounts of Mega and its wholly owned subsidiaries: Maple Resources Inc. ("Maple"), Uranium Mineral Ventures Inc. ("UMVI"), Mega Georgetown Pty Ltd. ("Georgetown"), Mega Hindmarsh Holdings Pty Ltd. ("Hindmarsh"), Mega Redport Holdings Pty Ltd. ("Redport"), Monster Copper Corporation ("Monster"), Nu Energy Uranium Corporation ("Nu Energy"), and Northern Lorena Resources Ltd. ("Lorena"). The Company has additional indirect subsidiaries that are wholly owned by its subsidiaries.
- 5 -