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Bradda Head Lithium Ltd Announces Unaudited Results for 3 months ended 31 May 2024 - 2

Wednesday, 24 July 2024 02:00 AM

Bradda Head Lithium Limited

Unaudited Condensed Consolidated Quarterly Financial Statements
For the three-month period ended May 31, 2024

BRITISH VIRGIN ISLANDS / ACCESSWIRE / July 24, 2024 / Notice of No Auditor Reviews

These unaudited condensed consolidated quarterly financial statements of Bradda Head Lithium Limited (the "Company") have not been reviewed by the auditors of the Company.


Condensed Consolidated Statement of Comprehensive Incomes
for the three-month period ended May 31, 2024



Three-month period ended May 31, 2024

(unaudited)

Three-month period ended May 31, 2023

(unaudited)



Notes

US$

US$

Expenses





General and administrative

2

(595,622)

(1,258,841)

Share based payment and warrant expense

10

-

(180,622)

Foreign exchange gain/(loss)

(1,005)

136,475



────────

────────

Operating loss

(596,627)

(1,302,988)







Other income





Warrant fair value re-measurement

11

-

146,585

Unrealised gain on Investment at fair value through profit or loss

20,034

13,109



────────

────────

(Loss)/profit before finance income

(576,593)

(1,143,294)







Finance income

7,185

59,102



────────

────────

(Loss)/profit before income tax

(569,408)

(1,084,192)







Income tax expense

-

-



────────

────────

Total comprehensive (loss)/profit for the period

(569,408)

(1,084,192)



══════

══════







Basic and diluted (loss)/profit per share (US cents)

12

(0.146)

(0.278)

The accompanying notes are an integral part of these consolidated quarterly financial statements.

Condensed Consolidated Statement of Financial Position
as at May 31, 2024



Notes





May 31, 2024

(unaudited)

February 28, 2024

(audited)







US$

US$

Non-Current assets









Deferred mining and exploration costs

3





12,207,531

11,025,423

Exploration permits and licences

4





2,791,558

2,781,735

Plant and equipment

8





65,273

78,972

Advances and deposits

6





106,811

106,812

Investment at fair value through profit or loss





87,225

67,191







───────

───────

Total non-current assets





15,258,398

14,060,133







───────

───────

Current assets









Cash and cash equivalents





534,437

1,664,662

Trade and other receivables

6





110,706

123,268







───────

───────

Total current assets





645,143

1,787,930







───────

───────

Total assets





15,903,541

15,848,063







═══════

═══════

Equity









Share premium

9





30,616,373

30,616,373

Retained deficit





(15,524,077)

(14,954,669)







───────

───────

Total equity





15,092,296

15,661,704







───────

═══════

Current liabilities









Trade and other payables

7





811,245

186,359







───────

───────

Total current liabilities





811,245

186,359







───────

───────

Total equity and liabilities





15,903,541

15,848,063







═══════

═══════

The accompanying notes are an integral part of these consolidated quarterly financial statements.

These condensed quarterly consolidated financial statements were approved by the Board of Directors on July 23, 2024 and were signed on their behalf by:

Denham Eke
Director

Condensed Consolidated Statement of Changes in Equity
for the three-month period ended May 31, 2024















Share premium

Retained deficit

Total



US$

US$

US$









Balance at March 1, 2024 (audited)

30,616,373

(14,954,669)

15,661,704









Total comprehensive loss for the period







Loss for the period

-

(569,408)

(569,408)



──────

───────

───────

Total comprehensive loss for the period

-

(569,408)

(569,408)





──────

───────

──────

Quarter ended May 31, 2024 (unaudited)

30,616,373

(15,524,077)

15,092,296



═══════

═══════

═══════

The accompanying notes are an integral part of these consolidated quarterly financial statements.

Condensed Consolidated Statement of Changes in Equity
for the three month-period ended May 31, 2024 (continued)





Share premium

Retained deficit

Total



US$

US$

US$

Balance at March 1, 2023 (audited)

30,616,373

(13,631,433)

16,984,940

Total comprehensive loss for the period







Loss for the period

-

(1,084,192)

(1,084,192)



──────

───────

───────

Total comprehensive loss for the period

-

(1,084,192)

(1,084,192)

Transactions with owners of the Company







Equity settled share-based payments (note 10)



-

180,622

180,622



──────

───────

──────

Total transactions with owners of the Company



-

180,622

180,622





──────

───────

──────

Quarter ended May 31, 2023 (unaudited)

30,616,373

(14,535,003)

16,081,370



═══════

═══════

═══════

The accompanying notes are an integral part of these consolidated quarterly financial statements.

Condensed Consolidated Statement of Cash Flows
for the three-month period ended May 31, 2024

Notes

Three-month period ended May 31, 2024

(unaudited)

Three-month period ended May 31, 2023

(unaudited)





US$

US$

Cash flows from operating activities





Loss before income tax

(569,408)

(1,084,192)

Adjusted for non-cash and non-operating items:





Depreciation

8

13,699

10,921

Unrealised (gain)/loss on investment

(20,034)

(13,109)

Interest income

(7,185)

(59,102)

Equity settled share based payments expense

10, 11

-

180,622

Warrant fair value re-measurement

11

-

(146,585)



───────

───────



(582,928)

(1,111,445)







Change in trade and other receivables

38,212

47,727

Change in trade and other payables

599,237

(517,974)



───────

───────

Net cash flows used by operating activities

54,521

(1,581,692)







Cash flows from investing activities





Amounts paid for deferred mining and exploration costs

3

(1,182,108)

(948,445)

Amounts paid for licences and permits

4

(9,823)

(280,294)

Equipment purchased

8

-

(50,000)

Advances and deposits - cash returned

-

53,250



───────

───────

Net cash flows used by investing activities

(1,191,931)

(1,225,489)







Cash flows from financing activities





Interest income received

7,185

59,102

Bank deposits not considered cash and cash equivalents (net)

-

(3,905,582)



───────

───────

Net cash flows from financing activities

7,185

(3,846,480)



───────

───────

Decrease in cash and cash equivalents

(1,130,225)

(6,653,661)







Cash and cash equivalents at beginning of period

1,664,662

7,746,519







Effect of foreign exchange on cash balances

-

-



───────

───────

Cash and cash equivalents at end of period

534,437

1,092,858



═══════

═══════

The accompanying notes are an integral part of these consolidated quarterly financial statements.

1 Reporting Entity and basis of preparation

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 is a lithium exploration Group focused on developing its projects in the USA.

These quarterly financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the last annual consolidated financial statements as at and for the year ended February 28, 2023 ("last annual financial statements"). They do not include all of the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.

The financial information in this report has been prepared in accordance with the Company's accounting policies and in consistency with the last annual financial statements. Full details of the accounting policies adopted by the Company are contained in the financial statements included in the Company's annual report for the year ended February 28, 2024, which is available on the Group's website: www.braddheadltd.com, and on SEDARplus (www.sedarplus.ca/landingpage). These unaudited condensed consolidated quarterly financial statements should be read in conjunction with the audited Consolidated Financial Statements for the year ended February 28, 2024.

2 General and administrative

The Group's general and administrative expenses include the following:



Three-month period ended May 31, 2024

(unaudited)

US$

Three-month period ended May 31, 2023

(unaudited)

US$

Auditors' fees

19,600

19,600

Directors and management fees and salaries

114,675

137,541

Legal and accounting

12,414

83,613

Contractor costs

164,278

551,868

Professional and marketing costs

66,456

204,203

Other administrative costs

218,199

262,016



───────

───────

Total

595,622

1,258,841



═══════

═══════

3 Deferred mine exploration costs

The schedule below details the exploration costs capitalised to date:

Total



US$

Cost and net book value



At February 28, 2023 (audited)

7,461,851



───────

Capitalised during the year

3,668,845

Disposal under royalty agreement

(105,273)



──────────

At February 28, 2024 (audited)

11,025,423



──────────

Capitalised during the period

1,182,108



───────

At May 31, 2024 (unaudited)

12,207,531



═══════

Cost and net book value



At May 31, 2024 (unaudited)

12,207,531

At February 28, 2024 (audited)

11,025,423



═══════

The recoverability of the carrying amounts of exploration and evaluation assets is dependent on the successful development and commercial exploitation or sale of the respective area of interest, as well as maintaining the assets in good standing. The Group assessed the DMEC relating to areas for which licenses and permits are held, for impairment as at May 31, 2023. The Board concluded that no facts and circumstances have been identified which suggest the recoverable amount of these assets would not exceed the carrying amount and, as such, no impairment was recognised during the period.

During the year ended February 28, 2024, an impairment charge of US$ Nil was recognised.

4 Exploration permits and licences

The schedule below details the exploration permit and licence costs capitalised to date:

Total



US$

Cost and net book value



At February 28, 2023 (audited)

2,112,415





Capitalised during the year

693,920

Disposal under royalty agreement

(24,600)



──────────

At February 28, 2024 (audited)

2,781,735





Capitalised during the period

9,823



───────

At May 31, 2024 (unaudited)

2,791,558



═══════

Cost and net book value



At May 31, 2024 (unaudited)

2,791,558

At February 28, 2024 (audited)

2,781,735



═══════

The Group assessed the carrying amount of the licences and permits held for impairment as at May 31, 2024. The Board concluded that no facts and circumstances have been identified which suggest the recoverable amount of these assets would not exceed the carrying amount and, as such, no impairment was recognised during the period.

During the year ended February 28, 2024, an impairment charge of US$ Nil was recognised.

5 Investment in subsidiary undertakings

As at May 31, 2024, the Group had the following subsidiaries:

Name of company

Place of incorporation

Ownership interest

Principal activity

Bradda Head Limited*

BVI

100%

Holding company of entities below

Zenolith (USA) LLC

USA

100%

Holds USA lithium licences and permits

Verde Grande LLC

USA

100%

Holds USA lithium licences and permits

Gray Wash LLC

USA

100%

Holds USA lithium licences and permits

San Domingo LLC

USA

100%

Holds USA lithium licences and permits









* Held directly by the Company. All other holdings are indirectly held through Bradda Head Limited

The condensed consolidated quarterly financial statements include the results of the subsidiaries for the full quarterly period from March 1, 2024 to May 31, 2024, and up to the date that control ceases.

6 Trade and other receivables and advances and deposits

Non-current

May 31, 2024

(unaudited)

February 28, 2024

(audited)

US$

US$

Advances and deposits

106,811

106,812



══════

══════

7 Trade and other payables

May 31, 2024

(unaudited)

February 28, 2024

(audited)

US$

US$

Trade payables

805,215

161,648

Accrued expenses and other payables

6,030

24,711



──────

──────



811,245

186,359



══════

══════

8 Plant and equipment







Motor vehicle

Other equipment

Total

Cost

US$

US$

US$

As at March 1, 2023 (audited)

114,390

-

114,390

Additions during the year

-

50,000

50,000



──────

──────

──────

As at February 28, 2024 (audited)

114,390

50,000

164,390









Additions during the period

-

-

-



──────

──────

──────

As at May 31, 2024 (unaudited)

114,390

50,000

164,390



══════

══════

══════

8 Plant and equipment (continued)

Motor vehicle

Other equipment

Total

Accumulated depreciation

US$

US$

US$

As at March 1, 2024 (audited)

(34,788)

-

(34,788)

Depreciation charge for the year

(38,130)

(12,500)

(50,630)



──────

──────

──────

As at February 28, 2024 (audited)

(72,918)

(12,500)

(85,418)









Depreciation charge for the period

(9,532)

(4,167)

(13,699)



──────

──────

──────

As at May 31, 2024 (unaudited)

(82,450)

(16,667)

(99,117)



══════

══════

══════

Carrying amount







As at May 31, 2024 (unaudited)

31,940

33,333

65,273

As at February 28, 2024 (audited)

41,472

37,500

78,972



══════

══════

══════

9 Share premium

Authorised

The Company is authorised to issue an unlimited number of nil par value shares of a single class.











Shares

Share capital

Share premium

Issued ordinary shares of US$0.00 each



US$

US$









At February 28, 2023 and February 28, 2024 (audited)

390,609,439

-

30,616,373



═══════

═══════

═══════









At May 31, 2024 (unaudited)

390,609,439

-

30,616,373



═══════

═══════

═══════









10 Equity settled share based payments

The cost of equity settled transactions with certain Directors of the Company and other participants ("Participants") is measured by reference to the fair value at the date on which they are granted. The fair value is determined based on the Black-Scholes option pricing model.

Options and warrants
The total number of share options and warrants in issue as at the period end is set out below.

Recipient

Grant

Date

Term

in years

Exercise

Price

Number at March 1, 2024 (audited)

Number Issued

Number Lapsed/ cancelled/expired

Number Exercised

31 May 2024 (unaudited)

Fair value

Options

















US$

Directors and Participants

April 2018

5

US$ 0.15668

146,052

-

-

-

146,052

24,028

Directors and Participants

June 2021

5

US$ 0.048

18,000,000

-

-

-

18,000,000

1,110,556

Directors and Participants

September 2021

5

£0.09

3,000,000

-

-

-

3,000,000

314,962

Directors and Participants

April 2022

5

£0.18

8,375,000

-

-

-

8,375,000

1,089,312

Directors and Participants

December 2022

5

£0.105

1,000,000

-

-

-

1,000,000

273,727

Directors and Participants

April 2023

5

£0.03025

4,500,000

-

-

-

4,500,000

180,622

Directors and Participants

February 2024

5

£0.00867

2,850,000

-

-

-

2,850,000

262,833





















Warrants



















Supplier warrants

July 2021

5

£0.0550

1,818,182

-

-

-

1,818,182

124,482

Supplier warrants

July 2021

3

£0.0825

2,254,545

-

(2,254,545)

-

-

-

Shareholder warrants

December 2021

2

£0.0885

1,185,687

-

(1,185,687)

-

-

-

Supplier warrants

April 2022

2

£0.1350

3,244,331

-

(3,244,331)

-

-

-





























───────

───────

───────

───────

───────

───────









46,373,797

-

(6,684,563)

-

39,689,234

3,380,522









═══════

═══════

═══════

═══════

═══════

═══════

10 Equity settled share based payments (continued)

The amount expensed in the income statement has been calculated by reference to the fair value at the grant date of the equity instrument and the estimated number of equity instruments to vest after the vesting period.



Three-month period ended May 31, 2024

(unaudited)

US$

Three-month period ended May 31, 2023

(unaudited)

US$

Share based payments charge

-

180,622



═══════

═══════

During the period ended May 31, 2024, no options were granted.

During the period ended May 31, 2024, total unexercised supplier warrants of 6,684,563 expired.

11 Warrants

As part of the fundraise completed during April 2022, all participating shareholders received a warrant on 1:1 basis for shares acquired. As a result, 73,195,560 warrants have been issued. All un-exercised warrants expire after a period of 2 years from grant date. During April 2024, all unexercised warrants issued in April 2022 expired.

12 Basic and diluted loss per share

The calculation of the basic loss per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year

The calculation of diluted earnings per share is based on the basic earnings per share, adjusted to allow for the issue of shares, on the assumed conversion of all dilutive share options.

An adjustment for the dilutive effect of share options in the current year has not been reflected in the calculation of the diluted loss per share, as the effect would have been anti-dilutive, due the Company recognising a loss for the year.



May 31, 2024

(unaudited)

US$

May 31, 2023

(unaudited)

US$

Loss for the period

(569,408)

(1,084,192)

No.

No.

Weighted average number of ordinary shares in issue

390,609,439

342,690,043

Dilutive element of share options if exercised (note 10)

37,871,052

37,831,304

Diluted number of ordinary shares

428,480,491

428,440,743

Basic loss per share (cents)

(0.146)

(0.278)

Diluted loss per share (cents)

(0.146)

(0.278)

For the period ended May 31, 2024, the earnings applied are the same for both basic and diluted earnings calculations per share as there are no dilutive effects to be applied.

13 Related party transactions and balances

Edgewater Associates Limited ("Edgewater")

During the three-month period ended May 31, 2024, Directors' and Officers' insurance was obtained on an arms-length basis through Edgewater, which is a 100% subsidiary of Manx Financial Group ("MFG"). James Mellon and Denham Eke are Directors of both the Company and MFG.

During the period, the premium payable on the policy was US$ Nil (year ended February 28, 2024: US$ 43,061). A total of US$ 794 was prepaid as at the period end (February 28, 2024: US$ 11,560).

14 Commitments and contingent liabilities

The Group has certain obligations to expend minimum amounts on exploration works on mining tenements in order to retain an interest in them, equating to approximately US$ 434,704 during the next 12 months. This includes annual fees in respect of licence renewals. These obligations may be varied from time to time, subject to approval and are expected to be filled in the normal course of exploration and development activities of the Company.

15 Events after the reporting date

On 1 July 2024, the Company announced a new Mineral Resource Estimate ("MRE") at the Company's 100% owned Basin Project in Arizona, USA. The new MRE consists of 99kt of of lithium carbonate equivalent ("LCE") at an average grade of 929 ppm lithium in Measured classification, 560kt of LCE at 860ppm Li in the Indicated classification; and 2,175kt of LCE at 808ppm Li in the Inferred classification following the completion of drilling, reception and analysis of geochemical results, and new modeling of the Basin project. As per the Gross Overriding Royalty Agreement ("Royalty Agreement") with the Lithium Royalty Company ("LRC"), the new contained LCE Tonnage surpassed the contracted threshold of 2.5Mt and has enabled the Company to trigger the payment of US$3.0 million from LRC to Bradda Head, with funds being received on 8 July 2024.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

SOURCE: Bradda Head Lithium Limited

Topic:
Regulatory
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