22 Janaury 2024

Bradda Head Lithium Ltd

("Bradda Head", "Bradda", or the "Company")

Unaudited Interim Results for the nine and three-months ended 30 November 2023

 

Bradda Head Lithium Ltd (AIM:BHL, TSX-V:BHLI), the North America-focused lithium development group, is pleased to announce that it has today published its unaudited financial results for the nine and three-months ended 30 November 2023, and the Management's Discussion and Analysis for the same period. 

Both of the above have been posted on the Company's website www.braddaheadltd.com and are also available on SEDARplus (www.sedarplus.ca/landingpage).

Financial and operational highlights

·      The Company released an updated Mineral Resource Estimate ("MRE") on 28 September 2023, which includes a total Inferred LCE content of 1.0 Mt.

·      The total new MRE now comprises 17.0 million tonnes in the Indicated category at 940 ppm carrying 85kt LCE, and 210 million tonnes in the Inferred category at 900 ppm, carrying 1,000 kt LCE.

·      The average in situ grade of the Inferred Basin East Mineral Resource has increased from 694 to 900 ppm Li, a 30% increase.

·      Following the release of an updated MRE and as per the Royalty Agreement with the Lithium Royalty Corporation ("LRC"), Bradda Head formally requested payment of US$ 2.5 million from LRC, with funds being received during October 2023.

·      Drilling continued at our San Dominog pegmatite asset, with first assay results being received where grades of up to 0.83% Li2O over 6.35m and 1.03% Li2O over 3.05m were identified.

 

Ian Stalker, Chairman of Bradda Head, commented:

 

"This quarter has been one that reflects the efforts we are putting into all our USA Lithium Projects, with positives steps made at our San Domingo lithium in pegmatite asset, our Basin Sedimentary Lithium Clay Project and a re-evaluation of our Lithium in Oli Brines in Texas and Pennsylvania. This project effort is allied to our own house keeping efforts to ensure Bradda Head treasury is solid going forward. Staff numbers have been reduced without impact on our operational performance and unnecessary corporate expenditure reduced or removed.  The Board recognizes that the quality of the Projects we own in the USA demand that we prepare ourselves in such a way as to be ready to move quickly and efficiently for the undoubted next wave of Lithium demand and uptick in pricing. We are well set to achieve this strategy.

 

Drilling continued through the quarter at San Domingo  with the first set of assay results highlighting the potential of the area. These results increased our knowledge of the intriguing spodumene-rich pegmatite district, and the drill hole geochemistry provides an improved understanding of the pegmatite characteristics and mineralogical zoning at San Domingo, particularly at the Midnight Owl and Bolt targets. Assay results received post period end support our view of the near surface potential spodumene lithium resource in the Central section of our San Domingo property.

 

Over at our lithium in clay Basin Project, we are moving closer to finalising the next drill programme, expected to commence during H1 2024.

 

The pace of development will continue, and we look forward to updating our shareholders as we receive exploration results."

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No.596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPONTHE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOWCONSIDERED TO BE IN THE PUBLIC DOMAIN AND SUCH PERSONS SHALL THEREFORE CEASE TO BE IN POSSESSION OF INSIDEINFORMATION.

 

For further information please visit the Company's website: www.braddaheadltd.com

 

For further information, please contact:

 

Bradda Head Lithium Limited	+44 (0) 1624 639 396
Ian Stalker, Executive Chairman Denham Eke, Finance Director
Beaumont Cornish (Nomad) James Biddle/Roland Cornish	+44 20 7628 3396
Panmure Gordon (Joint Broker)	+44 20 7886 2500
John Prior Hugh Rich
Shard Capital (Joint Broker)	+44 207 186 9927
Damon Heath Isabella Pierre
Red Cloud (North American Broker)	+1 416 803 3562
Joe Fars
Tavistock (PR)	+ 44 20 7920 3150
Nick Elwes Adam Baynes	braddahead@tavistock.co.uk

 

About Bradda Head Lithium Ltd.

Bradda Head Lithium Ltd. is a North America-focused lithium development group. The Company currently has interests in a variety of projects, the most advanced of which are in Central and Western Arizona: The Basin Project (Basin East Project, and the Basin West Project) and the Wikieup Project.

 

The Basin East Project has an Indicated Mineral Resource of 17 Mt at an average grade of 940 ppm Li and 3.4% K for a total of 85 kt LCE and an Inferred Mineral Resource of 210 Mt at an average grade of 900 ppm Li and 2.8% K (potassium) for a total of 1.0 Mt LCE. In the rest of the Basin Project SRK has determined an Exploration Target of 250 to 830 Mt of material grading between 750 to 900 ppm Li, which is equivalent to a range of between 1 to 4 Mt contained LCE. The Group intends to continue to develop its three phase one projects in Arizona, whilst endeavouring to unlock value at its other prospective pegmatite and brine assets in Arizona, Nevada, and Pennsylvania. All Bradda Head's licences are held on a 100% equity basis and are in close proximity to the required infrastructure. Bradda Head is quoted on the AIM of the London Stock Exchange with the ticker of BHL, and on the TSX Venture Exchange with a ticker of BHLI.

 

Forward-Looking Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends to", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, following: The Company's objectives, goals, or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: failure to identify mineral resources; failure to convert estimated mineral resources to reserves; delays in obtaining or failures to obtain required regulatory, governmental, environmental or other project approvals; political risks; future operating and capital costs, timelines, permit timelines, the market and future price of and demand for lithium, and the ongoing ability to work cooperatively with stakeholders, including the local levels of government; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices; delays in the development of projects, capital and operating costs varying significantly from estimates; an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains; and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDARplus. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.

 

 

Bradda Head Lithium Limited

 

Management discussion and analysis for the nine and three-month period ended November 30, 2023

 

This management's discussion and analysis ("MD&A") reports on the operating results and financial condition of the Company for the nine and three-month period ended November 30, 2023, and is prepared as of January 22, 2024. The MD&A should be read in conjunction with Bradda Head Lithium Limited's (the "Company" or "Bradda Head") audited consolidated financial statements for the year ended February 28, 2023, and the notes thereto which were prepared in accordance with International Financial Reporting Standards ("IFRS").

 

All dollar amounts referred to in this MD&A are expressed in United States dollars except where indicated otherwise.

 

(a)     Overview

Bradda Head Lithium Limited (the "Company") is a company domiciled in the British Virgin Islands. The address of the Company's registered office is Craigmuir Chambers, Road Town, Tortola, British Virgin Islands. The Company and its subsidiaries together are referred to as the "Group". The Company has one business segment, being mineral exploration. The Company is focused on appraising and developing lithium mining projects within North America and currently has interests in a variety of projects in the United States.

 

Corporate and Exploration Highlights

 

Exploration Highlights

 

Set forth in this section is a description of the Company's material mineral projects. All scientific and technical data contained in this MD&A has been reviewed and approved by Joey Wilkins, B.Sc., P.Geo., who is Chief Operating Officer at Bradda Head and a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

 

Arizona Sedimentary Hosted Lithium Projects

 

Basin Project

 

Following completion of the drill programme, as announced on August 23, 2023, the drill results were fed into an updated Mineral Resource Estimate, released on 28 September 2023.

 

Based on 2,355.20m of sonic drilling completed as part of the 2023 Basin drill programme, Bradda Head added 729 kt of Lithium Carbonate Equivalent ("LCE") to the Inferred Mineral Resource, for an updated total Inferred LCE content of 1.0 Mt. The total new Mineral Resource now comprises 17.0 million tonnes in the Indicated category at 940 ppm carrying 85kt LCE, and 210 million tonnes in the Inferred category at 900 ppm, carrying 1,000 kt LCE.

 

Mineral Resource Statement for Basin East, Basin East Extension and Basin North effective 1 September 2023

 

Classification	Domain	Tonnes	Mean Grade		Contained Metal
		Mt	Li (ppm)	K (%)	LCE (kt)	K (kt)
Indicated	Upper Clay	11	720	3.5	42	380
	Upper Clay HG	6	1350	3.2	43	190
	Lower Clay	-	-	-	-	-
	SubTotal	17	940	3.4	85	570
Inferred	Upper Clay	143	790	2.7	600	3,800
	Upper Clay HG	48	1290	3.1	330	1,500
	Lower Clay	19	690	2.8	70	530
	SubTotal	210	900	2.8	1,000	5,800

 

·      Mineral Resource statement has an effective date of 1 September 2023.

·      The Mineral Resource is reported using a cut-off grade of 550 ppm Li and is constrained to an optimised open pit shell, which was generated using the following assumptions: lithium carbonate metal prices of 22,000 USD/tLCE; State of Arizona royalty (selling cost) of 6%; operating costs of 40 USD/ tore; Li recovery of 72%; mining dilution and recovery of 0% and 100%; and pit slope angle of 45°.

·      Tonnages are reported in metric units.

·      Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal content which are not considered material.

·      Conversion factor of Li metal to LCE = 5.323

·      The figures above are reported on a gross basis given Bradda's 100% interest in the property

 

The average in situ grade of the Inferred Basin East Mineral Resource has increased from 694 to 900 ppm Li, a 30% increase.

 

SRK were selected to complete the Mineral Resource Update analysis and applied a stringent approach to both the in-situ density measurement and the cut-off grade utilised. A lower in situ density and higher cut-off grade than previously reported resulted in a more robust estimate. A significant and pragmatic building block to develop the on-going test-work plan.

 

The recent drill results on BEE and BN solidify Bradda Head's belief in a widespread and continuous lithium-rich stratigraphic sequence, with potential further into BN and across to BW that the Company believes will lead to significant resource growth and opportunity to become a Tier 1 lithium deposit. More drilling is being planned at BN where a low impact Notice of Intent level exploration permit is in place and BW upon receipt of the Environmental Assessment ("EA") from the Bureau of Land Management, expected during in H2 2024. The area being permitted is over 11km², which is considerably larger than BE, BEE, and BN combined (c.6km²).

 

Wikieup Project

 

No significant work has been undertaken on this project during the 3-month period.

 

Arizona Pegmatite District

San Domingo Project

 

On November 13, 2023, the first set of assay results was released from core drilling at San Domingo. Assays were received from only 14 holes totalling 993m, with grades of up to 0.83% Li₂O over 6.35m and 1.03% Li₂O over 3.05m identified.

 

Table 1: San Domingo North Drill Hole Highlights

 

Hole	From	To	Int (m)	Li2O %	Ta2O5	Sn (ppm)	Target
SD-DH23-048	19.42	36.24	16.82		73		Midnight Owl
	26.3	26.3	9.12		105
SD-DH23-049	87.33	93.67	6.35	0.83			Midnight Owl
	89.18	94.34	5.16			80
	97.9	102.17	4.27			82
	98.6	101.65	3.05	1.03		71
SD-DH23-050	98.02	101.89	3.87		70		Midnight Owl
SD-DH23-057	18.07	42.73	24.65	0.24	47		Bolt
	34.35	39.62	5.27	0.51	58
SD-DH23-059	2.80	40.23	39.37		37
	27.13	28.35	1.22	0.17
	47.43	52.97	5.54		92		Bolt
	68.03	79.86	11.8	0.32	42
	68.03	73.91	5.87	0.48	43
SD-DH23-061	134.57	136.25	1.52	0.52			Bolt
	134.57	138.56	4.00		72
SD-DH23-065	1.52	9.45	7.93	0.10	45
	3.35	4.88	1.52	0.31			Bolt
SD-DH23-066	28.9	32.13	3.23		127		Bolt

 

These results increased our knowledge of the intriguing spodumene-rich pegmatite district. This initial batch of drill hole geochemistry provides an improved understanding of the pegmatite characteristics and mineralogical zoning at San Domingo, particularly at the Midnight Owl and Bolt targets.

 

As announced on January 16, 2024, the drill programme completed on December 2, 2023, with final assays results being received, supporting our view of a near surface potential spodumene lithium resource in the Central section of our San Domingo property.

 

Nevada Lithium Brine Projects

 

Wilson Project

 

No significant work has been undertaken on this project during the 3-month period.

 

Eureka Project

 

No significant work has been undertaken on this project during the 3-month period.

 

Corporate Highlights

 

On 8 September 2023, the Company's principal Canadian regulator, the British Columbia Securities Commission, withdrew the Management Cease Trade Order it had previously granted to the Company on 29 June 2023, under National Policy 12-203 - Management Cease Trade Orders, as the Company successfully completed all requisite filings for its audited financial statements for the year ended 28 February 2023 and interim financial statements for the quarter ended 31 May 2023.

 

On 28 September 2023, the Company announced an updated Mineral Resource Estimate ("MRE") at the Company's Basin Project, Arizona. As per the Gross Overriding Royalty Agreement with the Lithium Royalty Company ("LRC"), this new contained LCE Tonnage, which was well over the contracted threshold of 1 million tonnes LCE, enabled the Company to trigger the payment of US$2.5 million from LRC, which was received by the Company on 5 October 2023.

 

Post period-end on 1 January 2024, the Company delisted from the US OTCQB Market, due to share trading liquidity expectations not having been met and cost saving in this current market environment. The Company's shares continue to trade on the London AIM Market and on the Canadian TSX Venture Exchange.

 

(b)     Selected Financial Information

The following table sets forth selected financial information with respect to the Company for the nine and three-month period ended November 30, 2023 and the year ended February 28, 2023. The selected financial information has been derived from the audited financial statements for the period indicated.  The following should be read in conjunction with the said financial statements and related notes that are available on the Company's website - www.braddaheadltd.com.

 

The annual financial statements and interim financial statements are presented in US dollars and are prepared in accordance with IFRS, See "Summary Financial Data" and "Currency Information".

 

	Nine-month period ended November 30, 2023	Three-month period ended November 30, 2023	Year ended February 28, 2023
	(Unaudited) (US$)	(Unaudited) (US$)	(Audited) (US$)
Statement of Operations:
Total Operating Expenses	(3,304,233)	(983,509)	(3,899,858)
Other income	2,370,127	2,370,127	-
Net Finance income	114,529	23,657	12,270
Net (Loss)/Profit	(819,577)	1,410,275	(3,887,588)
(Loss)/profit per Share (cents)	(0.21)	0.36	(1.018)
Balance Sheet Data:
Cash & cash equivalents, including cash deposits	2,906,004	2,906,004	7,746,519
Total Assets	16,629,616	16,629,616	18,198,559
Total Liabilities	(283,631)	(283,631)	(1,213,619)
Accumulated Deficit	(14,270,388)	(14,270,388)	(13,631,433)
Total Shareholder's Equity	16,345,985	16,345,985	16,984,940

 

MANAGEMENT DISCUSSION AND ANALYSIS: QUARTER ENDED NOVEMBER 30, 2023

(c)     Introduction

(d)     This interim Management Discussion and Analysis (the "interim MD&A") should be read in conjunction with the audited financial statements of the Company for the year ended February 28, 2023, and related notes. This MD&A is made as of January 22, 2024.

(e)     Results of Operations for the nine and three-months ended November 30, 2023

The Company's net loss after tax for the nine-month period to November 30, 2023 was US$ 819,577, compared to a loss of US$ 3,074,862 for the comparative period ended November 30, 2022. The major expenses for the nine-month period ended November 30, 2023 were operational expenses incurred on the Company's exploration projects, and are broken down in the respective projects as follows:

 

Project	Expensed Exploration Expenditure
	Nine-Month Period Ended November 30, 2023 (Unaudited) US$	Three-Month Period Ended November 30, 2023 (Unaudited) US$
Basin Project	598,598	24,723
San Domingo Project	792,740	183,315
Wikieup Project	17,144	4,720
Other projects	9,459	4,720
TOTAL	1,417,941	217,478

 

During this nine-month time period, the Company incurred and capitalised exploration expenditures of US$ 3,673,417, compared to US$ 2,434,450 for the comparative nine-month period to November 30, 2022.

 

The capitalied exploration costs for the nine-month period ended November 30, 2023 have been allocated amongst the Company's exploration projects in approximately the following amounts:

 

Project	Capitalised exploration costs	Capitalised expenditures for licences and permits	Capitalised exploration costs	Capitalised expenditires for licences and permits
	Nine-month period ended November 30, 2023 (Unaudited) US$	Nine-month period ended November 30, 2023 (Unaudited) US$	Three-Month Period Ended November 30, 2023 (Unaudited) US$	Three-Month Period Ended November 30, 2023 (Unaudited) US$
Basin Project	933,358	229,750	22,975	(17,433)
San Domingo Project	2,079,708	178,760	1,289,063	59,783
Wikieup Project	-	101,640	-	-
Other Project	-	150,200	-	12,161
TOTAL	3,013,066	660,350	1,312,038	54,511

 

The exploration expenditures have been primarily costs associated with drilling, assaying, resource and mining consultants, metallurgical testing, environmental studies, project team fees, acquisition of new leases, and annual renewal of existing leases.

General and administrative expenses for the nine-month period to November 30, 2023 totalled US$ 3,479,824, compared to US$ 4,242,520 for the comparative nine-month period to November 30, 2022. General and administrative expenses are broken down as follows:

 

Project	General and administrative expenditures
	Nine-month period ended November 30, 2023 (Unaudited) US$	Three-Month Period Ended November 30, 2023 (Unaudited) US$
Auditors' fees	36,040	19,600
Directors and management fees and salaries	437,083	145,926
Legal and accounting	261,987	60,403
Contractor costs	1,460,641	246,663
Professional and marketing costs	565,428	160,876
Other administrative costs	718,645	252,428
TOTAL	3,479,824	885,896

 

During the nine-month period to November 30, 2023, there have been no changes in financial performance or other elements that relate to non-core business activities and operations.

 

(f)      Cash flows

During the nine-month period ended November 30, 2023, the Company had net cash outflows of US$ 6,346,605, compared to inflows of US$ 4,531,077 during the comparative nine-month period to November 30, 2022. Net cash outflows for the current three-month period ended November 30, 2023, include placing cash amounts on short term deposits and receipt of cash from matured deposits, totalled US$ 104,227. The cashflows for the two periods are shown below:

 

 

	Nine-month period ended November 30, 2023 (Unaudited) US$	Three-Month Period Ended November 30, 2023 (Unaudited) US$
Statement of cashflows
Cash flows from operating activities	(1,531,261)	1,256,488
Cash flows from investing activities	(3,423,783)	(1,304,870)
Cash flows from financing activities *	(1,391,561)	(55,845)
Net cash flows during the period	(6,346,605)	(104,227)
Cash balances at beginning of the period	7,746,519	1,504,141
Cash balances at the end of the period	1,399,914	1,399,914

 

* includes net US$ 1,506,090 placed on short term deposit during the nine-month period ended November 30, 2023, and net US$ 79,502 placed on short term deposit during the three-month period ended November 30, 2023.

 

(g)     Liquidity and Capital Resources

As at November 30, 2023, the Company had cash and cash equivalents (including short term cash deposits) of US$ 2,906,004, and a working capital surplus of US$ 2,740,574. As of February 28, 2023, the Company had cash and cash equivalents of US$ 7,746,519, and a working capital surplus of US$ 7,135,119.

 

(h)     Outstanding Share Data

As of November 30, 2023, the following securities were outstanding:

 

Shares	390,609,439
Warrants	81,698,305
Stock options	35,021,052
Fully diluted shares outstanding	507,328,796

 

The Company's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

 

The capital structure of the Company includes cash and cash equivalents, equity attributable to equity holders comprised of contributed equity, reserves and accumulated losses.  In order to maintain or adjust the capital structure, the Company may issue new shares, sell assets or adjust the level of activities undertaken by the Company.

 

The Company monitors capital based on cash flow requirements for operational, exploration and evaluation expenditures.  The Company has no debt or other borrowings as at the date of this Application. The Company will continue to use capital market issuances to satisfy anticipated funding requirements.

 

The availability of equity capital, and the price at which additional equity could be issued, is dependent upon the success of the Company's exploration activities, and upon the state of the capital markets generally.  Additional financing may not be available on terms favourable to the Company or at all.  If the Company does not receive future financing, it may not be possible for the Company to advance the exploration and development of its mineral exploration properties.  If the Company is not able to fund these minimum expenditures, it may not be able to maintain part or all of its mineral exploration property interests.  See "Risk Factors".

 

(i)      Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

 

(j)      Transactions with Related Parties

The Company has conducted transactions with officers, directors and persons or companies related to directors or officers and paid or accrued amounts as follows:

 

Edgewater Associates Limited ("Edgewater")

 

During the nine-month period ended 30 November 2023, Directors and Officers insurance was obtained through Edgewater, which is a 100% subsidiary of Manx Financial Group ("MFG"). James Mellon and Denham Eke are Directors of MFG and Denham Eke is a Director of Edgewater.

 

During the period, the premium payable on the policy was US$ 88,824 (year ended 28 February 2023: US$ 49,318), of which US$ 22,325 was prepaid as at the period end (28 February 2023: US$ 14,497).

 

(k)     Critical Accounting Estimates

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  Such estimates and assumptions affect the carrying value of assets, and impact decisions as to when exploration and development costs should be capitalized or expensed. 

As at November 30, 2023, the Company had incurred total capitalised exploration expenditures, including capitalised licence and permit costs, of US$ 13,247,683. Changes in management's judgment as to the prospective nature, assessment of the existence or otherwise of economically recoverable reserves, technical feasibility and/or commercial viability of the relevant tenements and the Company's intentions with respect to the relevant tenements, could affect the assessment of the recoverable amount.

 

The Company regularly reviews its estimates and assumptions: however, actual results could differ from these estimates and these differences could be material.

 

Bradda Head Lithium Limited

Unaudited Condensed Consolidated Interim Financial Statements

For the nine and three-month period ended November 30, 2023

 

Condensed Interim Consolidated Statement of Comprehensive Income

for the period ended 30 November 2023

 

		Nine-month period ended 30 November 2023 (unaudited)	Nine-month period ended 30 November 2022 (unaudited)	Three-month period ended 30 November 2023 (unaudited)	Three-month period ended 30 November 2022 (unaudited)
	Notes	US$	US$	US$	US$
Operating expenses
General and administrative	2	(3,479,824)	(4,242,520)	(885,896)	(1,690,543)
Share based payment and warrant expense	11	(180,622)	(1,285,743)	-	(91,539)
Foreign exchange gain/(loss)		161,649	(1,255,343)	(34,142)	(944,005)
		££•	££•	££•	££•
Operating loss		(3,498,797)	(6,783,606)	(920,038)	(2,726,087)
Other income
Other income	3	2,370,127	-	2,370,127	-
Warrant fair value re-measurement	12	210,061	3,711,264	-	880,920
Unrealised gain/(loss) on investment		(15,497)	(2,520)	(63,471)	-
Finance income		114,529	-	23,657	-
		££•	££•	££•	££•
(Loss)/profit before income tax		(819,577)	(3,074,862)	1,410,275	(1,845,167)
Income tax expense		-	-	-	-
		££•	££•	££•	££•
(Loss)/profit for the period		(819,577)	(3,074,862)	1,410,275	(1,845,167)
		££•	££•	££•	££•
Other comprehensive income - foreign currency translation reserve		-	-	-	-
		££•	££•	££•	££•
Total comprehensive (loss)/profit for the period		(819,577)	(3,074,862)	1,410,275	(1,845,167)
		££•	££•	££•	££•
Basic and diluted (loss)/profit per share (US cents)	13	(0.21)	(0.81)	0.36	(0.49)

 

 

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

Condensed Interim Consolidated Statement of Financial Position

as at 30 November 2023

 

	Notes			30 November 2023 (unaudited)	28 February 2023 (audited)
				US$	US$
Non-Current assets
Deferred mining and exploration costs	4			10,474,918	7,461,851
Exploration permits and licences	5			2,772,765	2,112,415
Plant and equipment	9			91,282	79,602
Advances and deposits	8			190,183	104,192
Investment				76,264	91,761
				££•	££•
Total non-current assets				13,605,412	9,849,821
				££•	££•
Current assets
Cash and cash equivalents				1,399,914	7,746,519
Cash deposits				1,506,090	-
Advances and deposits	8			-	385,624
Trade and other receivables	8			118,200	216,595
				££•	££•
Total current assets				3,024,205	8,348,738
				££•	££•
Total assets				16,629,616	18,198,559
				££•	££•
Equity
Share premium	10			30,616,373	30,616,373
Retained deficit				(14,270,388)	(13,631,433)
				££•	££•
Total equity				16,345,985	16,984,940
				££•	££•
Current liabilities
Trade and other payables	7			263,491	983,418
Warrant liability	12			20,140	230,201
				££•	££•
Total current liabilities				283,631	1,213,619
				££•	££•
Total equity and liabilities				16,629,616	18,198,559
				££•	££•

 

The notes on pages 12 to 19 form an integral part of these condensed consolidated interim financial statements.

 

These financial statements were approved by the Board of Directors on 22 January 2024 and were signed on their behalf by:

 

Denham Eke                                                                                                                   

Director