TSX: NCP | OTCQB: NCPCF
NICKEL CREEK PLATINUM CORP.
CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2024
(Unaudited)
(Expressed in Canadian Dollars)
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the unaudited interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed consolidated interim financial statements of Nickel Creek Platinum Corp. (the "Company") have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Professional Accountants for a review of interim financial statements by an entity's auditor.
Nickel Creek Platinum Corp.
Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian dollars) (Unaudited)
September 30, | December 31, | ||||
Note | 2024 | 2023 | |||
ASSETS | |||||
Current Assets | |||||
Cash and cash equivalents | 4 | $ | 694,629 | $ | 468,085 |
Amounts receivable | 5 | 15,208 | 25,236 | ||
Prepaid expenses | 25,621 | 75,116 | |||
735,458 | 568,437 | ||||
Non-Current Assets | |||||
Equipment, net | 6 | 78,638 | 92,516 | ||
Right-of-use assets, net | 7 | 47,731 | 66,573 | ||
Exploration and evaluation assets | 8 | 33,436,868 | 33,363,078 | ||
33,563,237 | 33,522,167 | ||||
TOTAL ASSETS | $ | 34,298,695 | $ | 34,090,604 | |
LIABILITIES | |||||
Current Liabilities | |||||
Accounts payable and other liabilities | 9 | $ | 289,046 | $ | 298,938 |
Lease obligations | 10 | 26,468 | 25,942 | ||
315,514 | 324,880 | ||||
Non-Current Liabilities | |||||
Lease obligations | 10 | 20,903 | 38,839 | ||
Reclamation provision | 545,000 | 540,000 | |||
TOTAL LIABILITIES | 881,417 | 903,719 | |||
SHAREHOLDERS' EQUITY | |||||
Share capital | 11 | 146,775,542 | 145,725,790 | ||
Equity reserves | 17,919,336 | 17,694,744 | |||
Deficit | (131,277,600) | (130,233,649) | |||
33,417,278 | 33,186,885 | ||||
TOTAL LIABILITIES AND EQUITY | $ | 34,298,695 | $ | 34,090,604 |
Going Concern (Note 1)
Commitments and Contingencies (Note 16)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Nickel Creek Platinum Corp.
Condensed Consolidated Interim Statements of Loss and Comprehensive Loss
(Expressed in Canadian dollars, except share amounts) (Unaudited)
Three Months Ended | Nine Months Ended | ||||||||
September 30, | September 30, | ||||||||
Note | 2024 | 2023 | 2024 | 2023 | |||||
OPERATING EXPENSES | |||||||||
Consulting and professional fees | $ | 33,846 | $ | 61,466 | $ | 116,943 | $ | 208,589 | |
Depreciation | 6, 7 | 5,770 | 23,056 | 17,311 | 69,168 | ||||
Foreign exchange loss | 109 | 529 | 417 | 1,791 | |||||
Insurance | 15,916 | 17,119 | 47,509 | 51,356 | |||||
Investor relations and business | 4,827 | 60,010 | 44,368 | 200,336 | |||||
development | |||||||||
Office, regulatory and other | 42,684 | 52,791 | 176,393 | 185,055 | |||||
Salaries and wages | 12 | 71,231 | 159,031 | 361,030 | 486,826 | ||||
Share-based compensation | 11 | 67,644 | 164,753 | 220,996 | 479,674 | ||||
General and administrative expenses | 242,027 | 538,755 | 984,967 | 1,682,795 | |||||
Exploration and evaluation expenses | 13 | 10,339 | 37,261 | 71,570 | 154,885 | ||||
Loss before non-operating items | (252,366) | (576,016) | (1,056,537) | (1,837,680) | |||||
OTHER INCOME (EXPENSE) | |||||||||
Interest expense on right-of-use assets | (647) | (1,371) | (3,630) | (4,057) | |||||
Interest income | 4,123 | 15,620 | 16,216 | 47,162 | |||||
NET LOSS AND COMPREHENSIVE LOSS | $ | (248,890) | $ | (561,767) | $ | (1,043,951) | $ | (1,794,575) | |
NET LOSS PER COMMON SHARE, | |||||||||
BASIC AND DILUTED | $ | (0.05) | $ | (0.12) | $ | (0.21) | $ | (0.40) | |
WEIGHTED AVERAGE NUMBER OF | |||||||||
COMMON SHARES OUTSTANDING * | 5,114,452 | 4,661,286 | 4,992,749 | 4,511,269 |
- Weighted average number of common shares outstanding and the net loss per common share have been retroactively adjusted for the 100:1 share consolidation effected on August 19, 2024 (see Notes 1 and 11).
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Nickel Creek Platinum Corp.
Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian dollars) (Unaudited)
Nine Months Ended September 30,
Note | 2024 | 2023 | |||
OPERATING ACTIVITIES | |||||
Net loss for the period | $ | (1,043,951) | $ | (1,794,575) | |
Add (deduct) items not affecting cash | |||||
Depreciation | 6,7 | 32,720 | 87,759 | ||
Share-based compensation | 239,038 | 521,404 | |||
Unrealized foreign exchange loss | 166 | 17 | |||
Changes in non-cash working capital balances | 15 | 77,571 | 157,555 | ||
Cash used in operating activities | (694,456) | (1,027,840) | |||
INVESTING ACTIVITIES | |||||
Exploration and evaluation expenditures | (115,123) | (1,097,799) | |||
Cash used in investing activities | (115,123) | (1,097,799) | |||
FINANCING ACTIVITIES | |||||
Proceeds from share issuance, net of issue costs | 1,057,002 | 1,358,447 | |||
Principal elements of lease payments | (21,040) | (78,864) | |||
Cash provided by financing activities | 1,035,962 | 1,279,583 | |||
Effect of foreign exchange rate changes on cash and cash equivalents | 161 | (17) | |||
Increase (decrease) in cash and cash equivalents, net | 226,544 | (846,073) | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 468,085 | 1,816,994 | |||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | $ | 694,629 | $ | 970,921 | |
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Nickel Creek Platinum Corp.
Condensed Consolidated Interim Statements of Changes in Shareholders' Equity
For the nine months ended September 30, 2024 and 2023
(Expressed in Canadian dollars, except share amounts) (Unaudited) | |||||||||
Number of | Total | ||||||||
Common | Share | Equity | Shareholders' | ||||||
Shares * | Capital | Reserves | Deficit | Equity | |||||
At January 1, 2023 | 4,346,248 | $ | 144,357,343 | $ | 16,995,424 | $ | (127,847,928) | $ | 33,504,839 |
Private Placement | |||||||||
May 11, 2023 | 315,035 | 1,417,665 | - | - | 1,417,665 | ||||
Share issuance costs | - | (59,218) | - | - | (59,218) | ||||
Share-based compensation (Note 11(c)) | - | - | 521,404 | - | 521,404 | ||||
Net loss for the period | - | - | - | (1,794,575) | (1,794,575) | ||||
At September 30, 2023 | 4,661,283 | $ | 145,715,790 | $ | 17,516,828 | $ | (129,642,503) | $ | 33,590,115 |
At January 1, 2024 | 4,667,950 | $ | 145,725,790 | $ | 17,694,744 | $ | (130,233,649) | $ | 33,186,885 |
Private Placement | |||||||||
March 7, 2024 (Note 11(b)) | 416,667 | 625,000 | - | - | 625,000 | ||||
Share issuance costs | - | (22,498) | - | - | (22,498) | ||||
September 26, 2024 (Note 11(b)) | 505,000 | 454,500 | - | - | 454,500 | ||||
Share issuance costs | - | (21,696) | - | - | (21,696) | ||||
Exercise of deferred share units (Note 11(c)) | 15,702 | 14,446 | (14,446) | - | - | ||||
Share-based compensation (Note 11(c)) | - | - | 239,038 | - | 239,038 | ||||
Net loss for the period | - | - | - | (1,043,951) | (1,043,951) | ||||
At September 30, 2024 | 5,605,319 | $ | 146,775,542 | $ | 17,919,336 | $ | (131,277,600) | $ | 33,417,278 |
- Pursuant to the 100:1 share consolidation effected on August 19, 2024, the Company's common shares outstanding have been retroactively adjusted to reflect the share consolidation (see Notes 1 and 11).
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Nickel Creek Platinum Corp.
Notes to the Condensed Consolidated Interim Financial Statements
For the three and nine months ended September 30, 2024 and 2023
(Expressed in Canadian dollars, unless otherwise indicated) (Unaudited)
1. NATURE OF OPERATIONS AND GOING CONCERN
Nickel Creek Platinum Corp., ("Nickel Creek Platinum" or the "Company") is a public company incorporated in British Columbia, and is listed on the Toronto Stock Exchange trading under the symbol NCP, and on the OTCQB under the symbol NCPCF. The Company's registered office is at 1700 - 666 Burrard Street, Vancouver, British Columbia, Canada, V6C 2X8 and the head office is located at 2896 South Sheridan Way, Suite 202, Oakville, Ontario L6J 7T4.
On August 19, 2024 (the "Effective Date"), the Company completed a share consolidation on the basis of one
- new common share (a "Post-ConsolidationCommon Share") for every 100 pre-consolidation common shares outstanding (the "Share Consolidation"). Except where otherwise indicated, all historical common share numbers and per common share amounts have been adjusted on a retroactive basis to reflect the Share Consolidation. Further, the exercise price and number of Post-Consolidation Shares of the Company issuable upon the exercise of outstanding securities convertible into Post-Consolidation Shares such as deferred share units, stock options and warrants, have been proportionally adjusted upon the Effective Date of the Consolidation in accordance with the terms thereof.
The Company's principal business activity is the exploration and evaluation of nickel and platinum group metals ("PGM") mineral properties in North America. The Company's principal asset is its 100%-owned nickel-copper- PGM project, located in the Yukon Territory, Canada ("Nickel Shäw Project"). The Company also maintains environmental baseline activities, considers optimization alternatives and seeks other opportunities. The Company completed a drill exploration program in 2022 and published a pre-feasibility technical report in 2023.
These unaudited condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") applicable to a going concern entity, which contemplates the realization of assets and settlement of liabilities in the normal course of business as they become due.
The Company's continuing operations are entirely dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the necessary financing to continue the exploration and development of its mineral property interests and to obtain and maintain the permits necessary to mine and process, and future profitable production from, or proceeds from the disposition of, its mineral property interests.
The Company has a history of losses with no operating revenue, an accumulated deficit at September 30, 2024 of $131.3 million (December 31, 2023 - $130.2 million), and working capital at September 30, 2024 of $0.4 million (December 31, 2023 - $0.2 million).
For the foreseeable future, the Company will continue to require additional sources of financing to fund ongoing operating costs and exploration and development of its Nickel Shäw Project and management is currently considering alternative sources of funding. The Company had previously applied to a government for a grant for a feasibility study and received notification on March 22, 2024 that while the Nickel Shäw Project has the potential to meet the criteria under the relevant program, due to current government funding constraints, government funding is not available at this time. Although the Company raised total gross proceeds of approximately $1.1 million from non-brokered private placements in March 2024 and September 2024 by the Company's largest shareholder, Electrum Strategic Opportunities Fund L.P. ("Electrum") (see Note 11(b)), the Company will require additional funding during the first six months of 2025 and there can be no assurance that the Company will be able to obtain additional financing in the future or that such financing will be on terms
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Nickel Creek Platinum Corp.
Notes to the Condensed Consolidated Interim Financial Statements
For the three and nine months ended September 30, 2024 and 2023
(Expressed in Canadian dollars, unless otherwise indicated) (Unaudited)
advantageous to the Company. If the Company is unable to obtain adequate additional financing, the Company will need to further curtail its activities until additional funds can be raised. It is reasonably possible that certain events could adversely affect management's estimates of recoverable amounts and require an impairment provision to the carrying value of exploration properties and related assets. Management regularly reviews the carrying value of the Company's property and, where necessary, exploration and evaluation mineral properties are written-down to their estimated recoverable amount or written off.
Due to operating losses, the Company's continuance as a going concern is dependent upon its ability to obtain adequate financing to fund ongoing planned operating costs and planned activities at its Nickel Shäw Project. These factors raise material uncertainties that may cast significant doubt as to the Company's ability to continue as a going concern and the ultimate use of accounting principles applicable to a going concern.
Management believes that the Company will be able to continue as a going concern for the foreseeable future and realize its assets and discharge its liabilities and commitments in the normal course of business. These consolidated financial statements do not reflect the adjustments to the carrying value of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material.
2. BASIS OF PREPARATION
- Statement of Compliance
These Interim Financial Statements have been prepared in accordance with IFRS Accounting Standards, issued and effective for the three and nine months ended September 30, 2024, by the IFRS Interpretations Committee ("IFRS IC"), applicable to the preparation of unaudited interim consolidated financial statements, including International Accounting Standard ("IAS") 34, Interim Financial Reporting ("IAS 34"). These Interim Financial Statements should be read in conjunction with the audited annual consolidated financial statements of the Company for the years ended December 31, 2023 and 2022, which were prepared in accordance with IFRS and are publicly available at www.sedarplus.ca("SEDAR+").
These Interim Financial Statements were reviewed and approved by the Audit Committee on November 6, 2024.
- Measurement Basis
These Interim Financial Statements are prepared under the historical cost convention.
All amounts are presented in the Company's functional currency, which is the Canadian dollar.
3. MATERIAL ACCOUNTING POLICY INFORMATION
The accounting policies and the significant judgements, estimates and assumptions used in the preparation of these Interim Financial Statements are those applied in Note 3 of the Company's audited annual consolidated financial statements for the years ended December 31, 2023 and 2022, and have been consistently applied throughout all periods presented as if these policies had always been in effect.
The preparation of the Interim Financial Statements in conformity with IAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from such estimates.
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Nickel Creek Platinum Corp.
Notes to the Condensed Consolidated Interim Financial Statements
For the three and nine months ended September 30, 2024 and 2023
(Expressed in Canadian dollars, unless otherwise indicated) (Unaudited)
- New accounting standards adopted effective January 1, 2024
There have been no new IFRS accounting standards, interpretations and amendments effective during the three and nine months ended September 30, 2024, which are of potential significance to the Company.
- Future changes in accounting standards, which are not yet effective at September 30, 2024
There have been no IFRS accounting pronouncements with respect to new standards, interpretations and amendments to be effective subsequent to the three and nine months ended September 30, 2024, which are of potential significance to the Company.
4. CASH AND CASH EQUIVALENTS
The cash and cash equivalents balance of $694,629 at September 30, 2024 (December 31, 2023 - $468,085) includes $7,984 of cash and cash equivalents denominated in US dollars (December 31, 2023 - $11,842).
5. AMOUNTS RECEIVABLE
Amounts receivable consists of goods and services tax receivable of $15,208 at September 30, 2024 (December 31, 2023 - $25,236).
6. | EQUIPMENT | ||||||||||
Computer | |||||||||||
Equipment & | Exploration | ||||||||||
Software | Equipment | Shelter | Total | ||||||||
Cost | |||||||||||
At December 31, 2023 and | $ | 182,369 | $ | 129,762 | $ | 590,790 | $ | 902,921 | |||
September 30, 2024 | |||||||||||
Accumulated depreciation | |||||||||||
At December 31, 2023 | (182,369) | (105,950) | (522,086) | (810,405) | |||||||
Depreciation for the period | - | (3,572) | (10,306) | (13,878) | |||||||
At September 30, 2024 | $ | (182,369) | $ | (109,522) | $ | (532,392) | $ | (824,283) | |||
Net carrying value | |||||||||||
At December 31, 2023 | $ | - $ | 23,812 | $ | 68,704 | $ | 92,516 | ||||
At September 30, 2024 | $ | - $ | 20,240 | $ | 58,398 | $ | 78,638 | ||||
Depreciation relating to equipment for the nine-month period ended September 30, 2023 was $17,347.
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Nickel Creek Platinum Corp.
Notes to the Condensed Consolidated Interim Financial Statements
For the three and nine months ended September 30, 2024 and 2023
(Expressed in Canadian dollars, unless otherwise indicated) (Unaudited)
7. RIGHT-OF-USE ASSETS
Cost | Office Leases | Surface Leases | Total | |||||||
At December 31, 2023 and | $ | 46,163 | $ | 24,150 | $ | 70,313 | ||||
September 30, 2024 | ||||||||||
Accumulated depreciation | Office Leases | Surface Leases | Total | |||||||
At December 31, 2023 | - | (3,740) | (3,740) | |||||||
Depreciation for the period | (17,311) | (1,531) | (18,842) | |||||||
At September 30, 2024 | $ | (17,311) | $ | (5,271) | $ | (22,582) | ||||
Net carrying value | Office Leases | Surface Leases | Total | |||||||
At December 31, 2023 | $ | 46,163 | $ | 20,410 | $ | 66,573 | ||||
At September 30, 2024 | $ | 28,852 | $ | 18,879 | $ | 47,731 |
The Company's corporate office lease expires in December 2025 with no renewal options, and the remaining surface lease is at Nickel Shäw Project with an expiry date in 2034.
Depreciation relating to right-of-use assets for the nine-month period ended September 30, 2023 was $70,412.
8. EXPLORATION AND EVALUATION ASSETS
Nickel Shäw | ||
Project | ||
At December 31, 2022 | $ | 32,254,080 |
Drill program related costs and other | 138,454 | |
Environmental, permitting and other | 374,036 | |
Pre-feasibility study | 596,508 | |
Expenditures for the year 2023 | 1,108,998 | |
At December 31, 2023 | $ | 33,363,078 |
Claims renewals, permitting and other | 73,790 | |
Expenditures for the period 2024 | 73,790 | |
At September 30, 2024 | $ | 33,436,868 |
In accordance with the Company's accounting policy, long lived assets are reviewed for impairment at the end of each reporting period or whenever events or changes in circumstances may indicate that their carrying amount may exceed their recoverable amount.
As required, an impairment indicators review was conducted at September 30, 2024 and the Company applied significant judgement in concluding that there were no impairment indicators as the Company continues to seek financing opportunities to further develop the Nickel Shäw Project, including completing a feasibility study
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