Cover
Cover | 6 Months Ended |
Feb. 28, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Feb. 28, 2023 |
Current Fiscal Year End Date | --08-31 |
Entity File Number | 001-32500 |
Entity Registrant Name | TRX GOLD Corporation |
Entity Central Index Key | 0001173643 |
Entity Address, Address Line One | 277 Lakeshore Road East |
Entity Address, Address Line Two | Suite 403 |
Entity Address, City or Town | Oakville |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | L6J 6J3 |
Interim Condensed Consolidated
Interim Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Feb. 28, 2023 | Aug. 31, 2022 |
Current assets | ||
Cash | $ 9,492 | $ 8,476 |
Amounts receivable | 2,269 | 2,540 |
Prepayments and other assets | 1,328 | 1,206 |
Inventories | 4,345 | 3,630 |
Total current assets | 17,434 | 15,852 |
Other long-term assets | 3,738 | 4,359 |
Mineral property, plant and equipment | 58,212 | 51,634 |
Total assets | 79,384 | 71,845 |
Current liabilities | ||
Amounts payable and accrued liabilities | 8,844 | 7,920 |
Withholding tax payable | 181 | |
Income tax payable | 968 | 436 |
Current portion of deferred revenue | 2,019 | 1,864 |
Current portion of lease liabilities | 66 | |
Derivative warrant liabilities | 4,449 | 6,849 |
Total current liabilities | 16,346 | 17,250 |
Lease liabilities | 68 | |
Deferred revenue | 621 | |
Deferred income tax liability | 2,129 | |
Provision for reclamation | 2,885 | 2,815 |
Total liabilities | 21,428 | 20,686 |
Equity | ||
Share capital | 164,427 | 163,946 |
Share-based payments reserve | 8,031 | 6,825 |
Warrants reserve | 1,700 | 1,700 |
Accumulated deficit | (121,560) | (123,673) |
Equity attributable to shareholders | 52,598 | 48,798 |
Non-controlling interest | 5,358 | 2,361 |
Total equity | 57,956 | 51,159 |
Total equity and liabilities | $ 79,384 | $ 71,845 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Profit or loss [abstract] | ||||
Revenue | $ 10,098 | $ 3,334 | $ 19,816 | $ 3,334 |
Cost of sales | ||||
Production costs | (4,128) | (1,050) | (7,646) | (1,050) |
Royalty | (757) | (268) | (1,454) | (268) |
Depreciation | (294) | (125) | (487) | (125) |
Total cost of sales | (5,179) | (1,443) | (9,587) | (1,443) |
Gross profit | 4,919 | 1,891 | 10,229 | 1,891 |
General and administrative expenses | (2,035) | (2,152) | (3,872) | (4,497) |
(Loss) gain on derivative warrant liabilities | (965) | (145) | 2,400 | 63 |
Foreign exchange gains (losses) | 65 | (104) | 58 | (86) |
Interest and other expenses | (856) | (341) | (1,041) | (380) |
Income (loss) before tax | 1,128 | (851) | 7,774 | (3,009) |
Income tax expense | (1,178) | (151) | (2,664) | (151) |
Net (loss) income and comprehensive (loss) income | (50) | (1,002) | 5,110 | (3,160) |
Net (loss) income and comprehensive (loss) income attributable to: | ||||
Shareholders | (1,399) | (1,958) | 2,113 | (3,980) |
Non-controlling interest | $ 1,349 | $ 956 | $ 2,997 | $ 820 |
(Loss) earnings per share attributable to shareholders | ||||
Basic and diluted (loss) earnings per share | $ 0 | $ (0.01) | $ 0.01 | $ (0.02) |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Issued capital [member] | Reserve of share-based payments [member] | Reserve For Warrants [Member] | Retained earnings [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | Total |
Beginning balance, value at Aug. 31, 2021 | $ 158,129 | $ 5,680 | $ 1,606 | $ (117,457) | $ 47,958 | $ (1,533) | $ 46,425 |
Balance, number (in shares) at Aug. 31, 2021 | 254,870,556 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Shares issued for settlement of debts | $ 98 | 98 | 98 | ||||
Shares issued for settlement of debts, (In Shares) | 165,889 | ||||||
Shares issued for financing | $ 373 | 373 | 373 | ||||
Shares issued for financing, (In Shares) | 909,901 | ||||||
Shares issued for cash, net of share issuance costs | $ 3,882 | 3,882 | 3,882 | ||||
Shares issued for cash, net of share issuance costs, (In Shares) | 17,948,718 | ||||||
Stock options exercised | $ 147 | 147 | 147 | ||||
Stock options exercised, (In Shares) | 450,000 | ||||||
Warrants issued | 94 | 94 | 94 | ||||
Share-based compensation expense (Note 12) | 1,513 | 1,513 | 1,513 | ||||
Net income for the period | (3,980) | (3,980) | 820 | (3,160) | |||
Ending balance, value at Feb. 28, 2022 | $ 162,629 | 7,193 | 1,700 | (121,437) | 50,085 | (713) | 49,372 |
Balance, number (in shares) at Feb. 28, 2022 | 274,345,064 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Shares issued for cash, net of share issuance costs | $ (15) | (15) | (15) | ||||
Stock options exercised | 111 | (111) | |||||
Shares issued for share-based payments | $ 1,221 | (1,221) | |||||
Shares issued for share-based payments, (In Shares) | 1,801,120 | ||||||
Witholding tax impact on restricted share units ("RSUs") | (636) | (636) | (636) | ||||
Share-based compensation expense (Note 12) | 1,600 | 1,600 | 1,600 | ||||
Net income for the period | (2,236) | (2,236) | 3,074 | 838 | |||
Ending balance, value at Aug. 31, 2022 | $ 163,946 | 6,825 | 1,700 | (123,673) | 48,798 | 2,361 | 51,159 |
Balance, number (in shares) at Aug. 31, 2022 | 276,146,184 | ||||||
IfrsStatementLineItems [Line Items] | |||||||
Shares issued for share-based payments | $ 481 | (481) | |||||
Shares issued for share-based payments, (In Shares) | 743,786 | ||||||
Witholding tax impact on restricted share units ("RSUs") | 87 | 87 | 87 | ||||
Share-based compensation expense (Note 12) | 1,600 | 1,600 | 1,600 | ||||
Net income for the period | 2,113 | 2,113 | 2,997 | 5,110 | |||
Ending balance, value at Feb. 28, 2023 | $ 164,427 | $ 8,031 | $ 1,700 | $ (121,560) | $ 52,598 | $ 5,358 | $ 57,956 |
Balance, number (in shares) at Feb. 28, 2023 | 276,889,970 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Operating | ||
Net income (loss) | $ 5,110 | $ (3,160) |
Adjustments for items not involving cash: | ||
Non-cash items | 1,630 | 1,673 |
Cost of shares and warrants issuance | 684 | |
Changes in non-cash working capital: | ||
Decrease (increase) in amounts receivable | 2,400 | (80) |
Increase in inventories | (618) | (646) |
Increase in prepaid and other assets | (1,193) | (370) |
Increase in amounts payable and accrued liabilities | 3,561 | 337 |
Increase in income tax payable | 536 | 151 |
Cash provided by (used in) operating activities | 11,426 | (1,411) |
Investing | ||
Exploration and evaluation assets and expenditures | (2,192) | |
Proceeds from gold sales | 535 | |
Purchase of mineral property, plant and equipment | (9,635) | (4,015) |
Increase in other long-term assets | (607) | |
Cash used in investing activities | (10,242) | (5,672) |
Financing | ||
Proceeds from issuance of shares and warrants | 7,147 | |
Issue costs | (572) | |
Withholding taxes on settlement of restricted share units | (94) | |
Lease payments | (74) | |
Cash (used in) provided by financing activities | (168) | 6,575 |
Net increase (decrease) in cash | 1,016 | (508) |
Cash at beginning of the period | 8,476 | 13,447 |
Cash at end of the period | $ 9,492 | $ 12,939 |
Nature of operations
Nature of operations | 6 Months Ended |
Feb. 28, 2023 | |
Nature Of Operations | |
Nature of operations | 1. Nature of operations TRX Gold Corporation (“TRX Gold” or the “Company”) was incorporated in the Province of Alberta on July 5, 1990 under the Business Corporations Act (Alberta). The Company’s principal business activity is the exploration, development and production of mineral property interests in the United Republic of Tanzania (“Tanzania”). On November 1, 2022, the Company declared commercial production on the 1,000+ tonne per day (“tpd”) process plant at its Buckreef Gold Project (“Buckreef”) in Tanzania. The Company’s registered office is 400 3 rd The Company’s common shares are listed on the Toronto Stock Exchange in Canada (TSX: TNX) and NYSE American in the United States of America (NYSE American: TRX). The Company is primarily focused on development and mining operations, exploring, and evaluating its mineral properties. The business of exploring and mining for minerals involves a high degree of risk. The underlying value of the mineral properties is dependent upon the existence and economic recovery of mineral resources and reserves, the ability to raise long-term financing to complete the development of the properties, government policies and regulations, and upon future profitable production or, alternatively, upon the Company’s ability to dispose of its interest on an advantageous basis; all of which are uncertain. |
Basis of preparation
Basis of preparation | 6 Months Ended |
Feb. 28, 2023 | |
Basis Of Preparation | |
Basis of preparation | 2. Basis of preparation a) Statement of compliance The Company’s interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting These interim condensed consolidated financial statements were approved by the Board of Directors of the Company on April 13, 2023 b) Comparative figures Certain comparative amounts have been restated to conform to current period’s presentation. The reclassification in presentation resulted in the following impact on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three and six months ended February 28, 2022: Three months ended February 28, 2022 Schedule of statement of income Reported at February 28, 2022 Reclassification Restated at February 28, 2022 General and administrative expenses $ (2,152 ) $ - $ (2,152 ) Financial instrument related cost and other (427 ) 427 - Accretion on asset retirement obligation (54 ) 54 - Loss on derivative warrant liabilities - (145 ) (145 ) Foreign exchange losses (104 ) - (104 ) Interest and other expenses (5 ) (336 ) (341 ) Income tax expense (151 ) - (151 ) Net loss and comprehensive loss $ (1,002 ) $ - $ (1,002 ) Six months ended February 28, 2022 Reported at February 28, 2022 Reclassification Restated at February 28, 2022 General and administrative expenses $ (4,497 ) $ - $ (4,497 ) Financial instrument related costs and other (219 ) 219 - Accretion on asset retirement obligation (88 ) 88 - Gain on derivative warrant liabilities - 63 63 Foreign exchange losses (86 ) - (86 ) Interest and other expenses (10 ) (370 ) (380 ) Income tax expense (151 ) - (151 ) Net loss and comprehensive loss $ (3,160 ) $ - $ (3,160 ) The reclassification in presentation resulted in the following impact on the Consolidated Statements Financial Position as at August 31, 2022: Schedule of financial position Reported at August 31, 2022 Reclassification Restated at August 31, 2022 Amounts receivable $ 40 $ 2,500 $ 2,540 Other receivables 2,500 (2,500 ) - c) Basis of presentation and measurement These interim condensed consolidated financial statements have been prepared on a going concern basis under the historical cost basis, except for certain financial assets and liabilities which are measured at fair value, as disclosed in Note 18. All amounts in these interim condensed consolidated financial statements are presented in U.S. dollars with all amounts rounded to the nearest thousand, except for share and per share data, or as otherwise noted. Reference herein of $ or USD is to US dollars and C$ or CAD is to Canadian dollars. |
Significant accounting policies
Significant accounting policies | 6 Months Ended |
Feb. 28, 2023 | |
Significant Accounting Policies | |
Significant accounting policies | 3. Significant accounting policies The accounting policies applied in these interim condensed consolidated financial statements are consistent with those applied in the preparation of the Company’s annual consolidated financial statements for the year ended August 31, 2022. |
Amounts receivable
Amounts receivable | 6 Months Ended |
Feb. 28, 2023 | |
Amounts Receivable | |
Amounts receivable | 4. Significant accounting judgments, estimates and assumptions The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the carrying amount of assets and liabilities and the reported amount of revenues and expenses. The following discusses the most significant accounting policy judgments and accounting estimates that the Company has made in the preparation of these interim condensed consolidated financial statements. a) Production Start Date Management assesses the stage of each mine development project to determine when a mine moves into the production stage. The criteria used to assess the start date of a mine are determined based on the unique nature of each mine development project. The Company considers various relevant criteria to assess when the mine is substantially complete, ready for its intended use and moves into the production phase. Some of the criteria include, but are not limited to, the following: · A significant level of capital expenditures compared to construction cost estimates are complete, · Ability to produce gold in saleable form within specifications has been achieved, · Reasonable period for testing has been completed, and · Reasonable level of ongoing production based on mill throughput, recovery rates and mill availability. On November 1, 2022, the Company declared commercial production for the 1,000+ tpd processing plant at Buckreef after successful construction, commissioning and ramp-up of processing to a steady state throughput of 1,000+ tpd. The processing plant was running consistently at or above nameplate capacity since October 2022 with gold recoveries exceeding 90%. All major construction activities were completed and Buckreef demonstrated its ability to sustain ongoing production levels. b) Units-of-Production Management estimates recoverable proven and probable mineral reserves in determining the depreciation and amortization of certain mineral property, plant and equipment that is expected to be used for the duration of the mine life. This results in a depreciation charge proportional to the recovery of the anticipated ounces of gold. The life of the asset is assessed annually and considers its physical life limitations and present assessment of economically recoverable reserves of the mine property at which the asset is located. The calculations require the use of estimates and assumptions, including the amount of recoverable proven and probable mineral reserves. The Company’s units of production calculations are based on recovered ounces of gold poured. c) Stripping costs in the Production Phase of a Surface Mine Significant judgement is required to distinguish between development stripping and production stripping and to distinguish between the production stripping that relates to the extraction of inventory and that which relates to the creation of a stripping activity asset. The Company identifies the separate components of the ore bodies for its mining operations. An identifiable component is a specific volume of the ore body that is made more accessible by the stripping activity. Significant judgement is required to identify and define these components, and also to determine the expected volumes of waste to be stripped and ore to be mined in each of these components. The assessment is based on the information available in the mine plan. The mine plans and, therefore, the identification of components, may change for a number of reasons as new information becomes available. These include, but are not limited to, the geographic location and geological characteristics of the ore body, and/or financial considerations. Judgement is also required to identify a suitable production measure to be used to allocate production stripping costs between inventory and any stripping activity asset. Management estimates the cost of deferred stripping activities as the excess waste material moved above the average strip ratio to provide access to further quantities of ore that is expected to be mined in future periods. Furthermore, judgements and estimates are also used to apply the units-of-production method in determining the depreciable lives of stripping activity assets. 5. Amounts receivable Schedule of Summary of Receivables February 28, 2023 August 31, 2022 Sales tax receivable (1) $ 5,952 $ 4,359 Prepaid gold purchase receivable (Note 9) - 2,500 Other 55 40 6,007 6,899 Less: Long-term portion (3,738 ) (4,359 ) Total amounts receivable $ 2,269 $ 2,540 (1) Sales tax receivables consist of harmonized services tax and value added tax (“VAT”) due from Canadian and Tanzanian tax authorities, respectively. Tanzanian tax regulations allow for VAT receivable to be refunded or set-off against taxes due to the Tanzania Revenue Authority (“TRA”). VAT which the Company does not expect to recover within the next 12 months has been classified as long-term assets. As at February 28, 2023, $0.2 million (August 31, 2022 - $nil) of VAT has been written-off. The Company held no collateral for any receivables. |
Prepayments and other assets
Prepayments and other assets | 6 Months Ended |
Feb. 28, 2023 | |
Prepayments And Other Assets | |
Prepayments and other assets | 6. Prepayments and other assets Schedule of Prepaid and Other Assets February 28, 2023 August 31, 2022 Prepaid expenses $ 821 $ 699 Commitment fees (1) 507 507 Total prepayments and other assets $ 1,328 $ 1,206 (1) Consists of commitment fees paid with respect to a share purchase agreement whereby the Company, at its sole discretion, has the right to sell up to $10 million of its common shares over a 36-month period. |
Inventories
Inventories | 6 Months Ended |
Feb. 28, 2023 | |
Inventories Abstract | |
Inventories | 7. Inventories Schedule of Inventory February 28, 2023 August 31, 2022 Ore stockpile $ 1,922 $ 2,643 Gold in circuit 1,032 210 Gold doré 92 253 Total precious metals inventories 3,046 3,106 Supplies 1,299 524 Total inventories $ 4,345 $ 3,630 |
Mineral property, plant and equ
Mineral property, plant and equipment | 6 Months Ended |
Feb. 28, 2023 | |
Mineral Property Plant And Equipment | |
Mineral property, plant and equipment | 8. Mineral property, plant and equipment Schedule of continuity of expenditures on mineral properties Construction in progress Mineral properties Processing plant and related infrastructure Machinery and equipment Other Total Cost As at August 31, 2022 $ 45,239 $ - $ 7,076 $ 1,396 $ 143 $ 53,854 Additions - 1,994 4,991 22 213 7,220 Transfers (1) (45,239 ) 45,239 - - - - As at February 28, 2023 $ - $ 47,233 $ 12,067 $ 1,418 $ 356 $ 61,074 Accumulated depreciation As at August 31, 2022 $ - $ - $ 1,566 $ 619 $ 35 $ 2,220 Depreciation - 358 101 95 88 642 As at February 28, 2023 $ - $ 358 $ 1,667 $ 714 $ 123 $ 2,862 Net book value As at August 31, 2022 $ 45,239 $ - $ 5,510 $ 777 $ 108 $ 51,634 As at February 28, 2023 $ - $ 46,875 $ 10,400 $ 704 $ 233 $ 58,212 (1) On November 1, 2022, Buckreef achieved commercial production at which point development expenditures were subject to depreciation. |
Deferred revenue
Deferred revenue | 6 Months Ended |
Feb. 28, 2023 | |
Deferred Revenue | |
Deferred revenue | 9. Deferred revenue On August 11, 2022, the Company entered into a $ 5 The Company drew down the first tranche of $2.5 million in exchange for delivering 434 ounces of gold per quarter, commencing February 2023, for a total of 1,735 ounces of gold over four quarters. 2.5 The Agreement has been accounted for as a contract in accordance with IFRS 15, Revenue from Contracts with Customers Schedule of deferred revenue Amount As at August 31, 2022 $ 2,485 Accretion of deferred revenue 261 Transaction costs expensed 15 Revenue recognized (742 ) As at February 28, 2023 $ 2,019 |
Derivative warrant liabilities
Derivative warrant liabilities | 6 Months Ended |
Feb. 28, 2023 | |
Derivative Warrant Liabilities | |
Derivative warrant liabilities | 10. Derivative warrant liabilities Schedule of derivative warrant liabilities Amount As at August 31, 2022 $ 6,849 Change in fair value (2,400 ) As at February 28, 2023 $ 4,449 Derivative warrant liabilities of $ 4.4 Fair values of derivative warrant liabilities were calculated using the Black-Scholes option pricing model with the following assumptions: Schedule of assumptions fair value of derivative warrant liabilities February 28, 2023 August 31, 2022 Share price $ 0.40 $ 0.48 Risk-free interest rate 4.31 5.00 3.32 3.44 Dividend yield 0 0 Expected volatility 53 57 55 60 Remaining term (in years) 0.4 3.9 0.9 4.4 The fair value is classified as level 3 as expected volatilities is determined using adjusted historical volatilities and were therefore not an observable input. Sensitivity analysis If expected volatility, the significant unobservable input, had been higher or lower by 10% and all other variables were held constant, net income and net assets for the three and six months ended February 28, 2023 would increase or decrease by: Schedule of net income and net assets February 28, 2023 10% change in expected volatilities Increase Decrease (Loss) income $ (914 ) $ 931 |
(Loss) earnings per share
(Loss) earnings per share | 6 Months Ended |
Feb. 28, 2023 | |
Loss Earnings Per Share | |
(Loss) earnings per share | 11. (Loss) earnings per share Schedule of earning per share Three months ended February 28, Six months ended February 28, 2023 2022 2023 2022 Net (loss) income attributable to shareholders $ (1,399 ) $ (1,958 ) $ 2,113 $ (3,980 ) Weighted average number of common shares for purposes of basic EPS 281,835,349 262,712,781 280,038,329 258,805,238 Effect of dilutive stock options, warrants, RSUs and share awards - - 6,109,446 - Weighted average number of common shares for purposes of diluted EPS 281,835,349 262,712,781 286,147,775 258,805,238 The determination of weighted average number of common shares for the six months ended purpose of diluted EPS excluded 7.4 42.0 7.4 42.0 |
Share-based payments reserve
Share-based payments reserve | 6 Months Ended |
Feb. 28, 2023 | |
Share-based Payments Reserve | |
Share-based payments reserve | 12. Share-based payments reserve Share-based compensation expense for the three and six months ended February 28, 2023 totalled $ 0.8 1.6 1.0 1.5 As at February 28, 2023, the Company had 2,781,054 2,106,675 a) Stock options Canadian Dollars denominated stock options Schedule of continuity of outstanding stock options Number of stock options Weighted average exercise price per share Balance – February 28, 2023 and August 31, 2022 5,336,000 CAD $ 0.41 Options to purchase common shares carry exercise prices and terms to maturity as follows: Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Number of options Expiry contractual Exercise price Outstanding Exercisable Date life (years) C$ 0.40 2,454,000 2,454,000 October 11, 2026 3.6 C$ 0.43 2,782,000 2,782,000 September 29, 2026 3.6 C$ 0.35 100,000 100,000 January 2, 2027 3.8 C$ 0.41 (1) 5,336,000 5,336,000 3.6 (1) (1) Total represents weighted average. US Dollars denominated stock options Schedule of continuity of outstanding stock options Number of stock options Weighted average exercise price per share Balance – February 28, 2023 and August 31, 2022 7,375,000 $ 0.50 Options to purchase common shares carry exercise prices and terms to maturity as follows: Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Exercise price Number of options Expiry contractual Outstanding $ Outstanding Exercisable Date life (years) USD $ 0.50 7,375,000 1,475,000 August 17, 2027 4.5 For the three and six months ended February 28, 2023, share-based payment expenses related to stock options totalled $ 0.1 0.2 0 0 b) Restricted Share Units: The following table sets out activity with respect to outstanding RSUs: Schedule of restricted stock outstanding Number of RSUs Balance – August 31, 2022 1,855,276 Granted 160,000 Vested (600,000 ) Forfeited (160,000 ) Balance – February 28, 2023 1,255,276 For the three and six months ended February 28, 2023, share-based payment expenses related to RSUs totalled $ 0.1 0.3 0 0 |
Warrants reserve
Warrants reserve | 6 Months Ended |
Feb. 28, 2023 | |
Warrants Reserve | |
Warrants reserve | 13. Warrants reserve Schedule of Reserve for warrants Number of warrants Weighted average exercise price per share Balance – February 28, 2023 and August 31, 2022 41,970,074 0.72 As at February 28, 2023, the following warrants were outstanding: Schedule of warrants and compensation warrants Number of Warrants Exercise price Expiry date Convertible debenture warrants - July 27, 2020 3,002,037 $ 1.21 July 27, 2023 Private placement financing warrants - December 23, 2020 2,777,268 $ 1.50 December 23, 2023 Private placement financing warrants - February 11, 2021 16,461,539 $ 0.80 February 11, 2026 Private placement financing broker warrants - February 11, 2021 1,152,307 $ 0.80 February 11, 2026 Private placement financing warrants – January 26, 2022 17,948,718 $ 0.44 January 26, 2027 Private placement financing placement agent warrants – January 26, 2022 628,205 $ 0.44 January 26, 2027 Balance – February 28, 2023 41,970,074 The outstanding warrants have a weighted average exercise price of $ 0.72 |
Non-controlling interest
Non-controlling interest | 6 Months Ended |
Feb. 28, 2023 | |
Non-controlling Interest | |
Non-controlling interest | 14. Non-controlling interest Summarized financial information for Buckreef is disclosed below: Schedule of summarized financial information Three months ended February 28, Six months ended February 28, Income Statement 2023 2022 2023 2022 Revenue $ 10,098 $ 3,334 $ 19,816 $ 3,334 Comprehensive income for the period 2,998 2,124 6,660 1,735 Statement of Financial Position February 28, 2023 August 31, 2022 Current assets $ 10,622 $ 7,253 Non-current assets 59,662 53,789 Current liabilities (9,562 ) (8,602 ) Non-current liabilities (5,029 ) (2,815 ) Advances from parent, net (37,150 ) (37,725 ) |
Related party transactions
Related party transactions | 6 Months Ended |
Feb. 28, 2023 | |
Related party transactions [abstract] | |
Related party transactions | 15. Related party transactions Related parties include the Board of Directors and officers, extended relatives and enterprises that are controlled by these individuals as well as certain consultants performing similar functions. Remuneration of Directors and key management personnel of the Company was as follows: Schedule of Related Parties Compensation Three months ended February 28, Six months ended February 28, Directors and key management personnel 2023 2022 2023 2022 Remuneration (1) $ 510 $ 429 $ 976 $ 828 Share-based compensation expense 559 533 1,274 1,513 Total directors and key management personnel $ 1,069 $ 962 $ 2,250 $ 2,341 (1) Remuneration includes salaries and benefits for certain key management personnel and director fees. Certain members of the board of directors have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their employment services. As at February 28, 2023, included in amounts payable is $ 0.2 0.2 During the three and six months ended February 28, 2023, $ 0.1 0.2 0 0 0 0.2 0 0 During the year ended August 31, 2021, the Company granted common shares upon hiring key management personnel in the aggregate of: a) 1.56 million common shares having a fair market value of $1.1 million on the respective start dates of the key Management (December 1, 2020 to May 18, 2021). b) Common shares on the first, second and third anniversary dates of the greater of up to 2.02 million, 3.55 million and 2.82 million common shares; or common shares having a fair market value of to $1.4 million, $2.5 million and $2.0 million provided that 80% of such issuance shall be guaranteed and 20% shall be subject to certain financial milestones to be determined by the Board of Directors respectively. The common shares had a value of $ 7.0 During the three and six months ended February 28, 2023, $ 0.6 1.3 0.5 1.5 |
General and administrative expe
General and administrative expenses | 6 Months Ended |
Feb. 28, 2023 | |
General And Administrative Expenses | |
General and administrative expenses | 16. General and administrative expenses Schedule of General and Administrative expense Three months ended February 28, Six months ended February 28, 2023 2022 2023 2022 Directors’ fees (Note 15) $ 107 $ 114 $ 214 $ 187 Insurance 100 111 199 233 Office and general 41 163 60 271 Shareholder information 186 184 314 297 Professional fees 136 163 237 315 Salaries and benefits (1) 614 411 1,098 1,039 Consulting 126 237 177 282 Severance - 241 - 241 Share-based compensation expense (1) 645 533 1,398 1,513 Travel and accommodation 56 61 103 104 Depreciation (1) 18 (71 ) 58 10 Other 6 5 14 5 Total general and administrative expenses $ 2,035 $ 2,152 $ 3,872 $ 4,497 (1) As a result of adoption to amendments to IAS 16, Property, Plant and Equipment, |
Income tax
Income tax | 6 Months Ended |
Feb. 28, 2023 | |
Income Tax | |
Income tax | 17. Income tax Income tax expense is recognized based on management’s estimate of the weighted average annual income tax rate expected for the full financial year. The maximum amount of tax losses that a business can utilize in Tanzania is 70% of its taxable profit for the current year. The remaining 30% of taxable profit is subject to a statutory tax rate of 30%. As a result, Buckreef’s current income tax is calculated at an effective tax rate of 9% until Buckreef’s tax loss carryforwards are fully utilized. Tax losses in Tanzania can only be utilized by the entity to which the tax losses relate to. The carrying value of Buckreef’s Mineral Property, Plant and Equipment is higher than their tax written down values due to historical mining incentives in Tanzania and accelerated depreciation for tax purposes. The taxable temporary difference between the carrying value of Mineral Property, Plant and Equipment and its tax basis in excess of available tax loss carryforwards resulted in a deferred tax liability. For the three months ended February 28, 2023, the Company recorded income tax expense of $ 1.2 0.2 1.0 0.2 0.2 0 2.7 0.5 2.2 0.2 0.2 0 |
Financial instruments
Financial instruments | 6 Months Ended |
Feb. 28, 2023 | |
Financial Instruments | |
Financial instruments | 18. Financial instruments Fair value of financial instruments Cash and derivative warrant liabilities are classified as measured at fair value through profit and loss. Amounts receivable and amounts payable are classified as measured at amortized cost. The carrying value of the Company’s cash, amounts receivable, amounts payable approximate their fair value due to the relatively short-term nature of these instruments. Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. These estimates are subject to and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The Company classifies its financial instruments carried at fair value according to a three-level hierarchy that reflects the significance of the inputs used in making the fair value measurements. The three levels of fair value hierarchy, giving the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs, are as follows: · Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; · Level 2 – Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly; and · Level 3 – Inputs for assets or liabilities that are not based on observable market data. As at February 28, 2023 and August 31, 2022, cash was classified as Level 1 and derivative warrant liabilities (Note 10) were classified as Level 3 under the fair value hierarchy. |
Segmented information
Segmented information | 6 Months Ended |
Feb. 28, 2023 | |
Segmented Information | |
Segmented information | 19. Segmented information Operating segments The Company’s Chief Operating Decision Maker, its Chief Executive Officer, reviews the operating results, assesses the performance and makes capital allocation decisions of the Company viewed as a single operating segment engaged in mineral exploration and development in Tanzania. All amounts disclosed in the interim condensed consolidated financial statements represent this single reporting segment. The Company’s corporate division only earns interest revenue that is considered incidental to the activities of the Company and does not meet the definition of an operating segment as defined in IFRS 8, Operating Segments Geographic segments The Company is in the business of mineral exploration and production in Tanzania. Information regarding the Company’s geographic locations are as follows: Schedule of operating segments Three months ended February 28, Six months ended February 28, Revenue 2023 2022 2023 2022 Tanzania $ 10,098 $ 3,334 $ 19,816 $ 3,334 Total revenue $ 10,098 $ 3,334 $ 19,816 $ 3,334 Non-current assets February 28, 2023 August 31, 2022 Canada $ 64 $ - Tanzania 61,886 55,993 Total non-current assets $ 61,950 $ 55,993 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Feb. 28, 2023 | |
Commitments And Contingencies | |
Commitments and contingencies | 20. Commitments and contingencies Commitments: In order to maintain its existing mining and exploration licenses, the Company is required to pay annual license fees totalling $ 104 Contingencies: The Company is involved in litigation and disputes arising in the normal course of operations. Management is of the opinion that the outcome of any potential litigation will not have a material adverse impact on the Company’s financial position or results of operations. Accordingly, no provisions for the settlement of outstanding litigation and potential claims have been accrued as at February 28, 2023 and August 31, 2022. |
Non-cash items
Non-cash items | 6 Months Ended |
Feb. 28, 2023 | |
Non-cash Items | |
Non-cash items | 21. Non-cash items Schedule of Non-cash items Six months ended February 28, 2023 2022 Depreciation $ 545 $ 135 Gains on derivative warrant liabilities (Note 10) (2,400 ) (63 ) Share-based compensation expense (Note 12) 1,538 1,513 Accretion of provision for reclamation 70 88 Deferred income tax expense (Note 17) 2,129 - Accretion of lease liabilities 7 - Settlement of deferred revenue (Note 9) (742 ) - Accretion of deferred revenue (Note 9) 261 - Foreign exchange gains (26 ) - VAT written-off (Note 5) 233 - Other expenses 15 - Total non-cash items $ 1,630 $ 1,673 |
Subsequent events
Subsequent events | 6 Months Ended |
Feb. 28, 2023 | |
Subsequent Events | |
Subsequent events | 22. Subsequent events In March 2023, the Company entered into a series of gold zero-cost collar contracts for 900 gold ounces per month for a total of 4,500 gold ounces to be settled from April 2023 to August 2023, at a maximum and minimum gold price of $2,030 and $1,825 per gold ounce, respectively. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Basis Of Preparation | |
Schedule of statement of income | Schedule of statement of income Reported at February 28, 2022 Reclassification Restated at February 28, 2022 General and administrative expenses $ (2,152 ) $ - $ (2,152 ) Financial instrument related cost and other (427 ) 427 - Accretion on asset retirement obligation (54 ) 54 - Loss on derivative warrant liabilities - (145 ) (145 ) Foreign exchange losses (104 ) - (104 ) Interest and other expenses (5 ) (336 ) (341 ) Income tax expense (151 ) - (151 ) Net loss and comprehensive loss $ (1,002 ) $ - $ (1,002 ) Six months ended February 28, 2022 Reported at February 28, 2022 Reclassification Restated at February 28, 2022 General and administrative expenses $ (4,497 ) $ - $ (4,497 ) Financial instrument related costs and other (219 ) 219 - Accretion on asset retirement obligation (88 ) 88 - Gain on derivative warrant liabilities - 63 63 Foreign exchange losses (86 ) - (86 ) Interest and other expenses (10 ) (370 ) (380 ) Income tax expense (151 ) - (151 ) Net loss and comprehensive loss $ (3,160 ) $ - $ (3,160 ) |
Schedule of financial position | Schedule of financial position Reported at August 31, 2022 Reclassification Restated at August 31, 2022 Amounts receivable $ 40 $ 2,500 $ 2,540 Other receivables 2,500 (2,500 ) - |
Amounts receivable (Tables)
Amounts receivable (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Amounts Receivable | |
Schedule of Summary of Receivables | Schedule of Summary of Receivables February 28, 2023 August 31, 2022 Sales tax receivable (1) $ 5,952 $ 4,359 Prepaid gold purchase receivable (Note 9) - 2,500 Other 55 40 6,007 6,899 Less: Long-term portion (3,738 ) (4,359 ) Total amounts receivable $ 2,269 $ 2,540 (1) Sales tax receivables consist of harmonized services tax and value added tax (“VAT”) due from Canadian and Tanzanian tax authorities, respectively. Tanzanian tax regulations allow for VAT receivable to be refunded or set-off against taxes due to the Tanzania Revenue Authority (“TRA”). VAT which the Company does not expect to recover within the next 12 months has been classified as long-term assets. |
Prepayments and other assets (T
Prepayments and other assets (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Prepayments And Other Assets | |
Schedule of Prepaid and Other Assets | Schedule of Prepaid and Other Assets February 28, 2023 August 31, 2022 Prepaid expenses $ 821 $ 699 Commitment fees (1) 507 507 Total prepayments and other assets $ 1,328 $ 1,206 (1) Consists of commitment fees paid with respect to a share purchase agreement whereby the Company, at its sole discretion, has the right to sell up to $10 million of its common shares over a 36-month period. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Inventories Abstract | |
Schedule of Inventory | Schedule of Inventory February 28, 2023 August 31, 2022 Ore stockpile $ 1,922 $ 2,643 Gold in circuit 1,032 210 Gold doré 92 253 Total precious metals inventories 3,046 3,106 Supplies 1,299 524 Total inventories $ 4,345 $ 3,630 |
Mineral property, plant and e_2
Mineral property, plant and equipment (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Mineral Property Plant And Equipment | |
Schedule of continuity of expenditures on mineral properties | Schedule of continuity of expenditures on mineral properties Construction in progress Mineral properties Processing plant and related infrastructure Machinery and equipment Other Total Cost As at August 31, 2022 $ 45,239 $ - $ 7,076 $ 1,396 $ 143 $ 53,854 Additions - 1,994 4,991 22 213 7,220 Transfers (1) (45,239 ) 45,239 - - - - As at February 28, 2023 $ - $ 47,233 $ 12,067 $ 1,418 $ 356 $ 61,074 Accumulated depreciation As at August 31, 2022 $ - $ - $ 1,566 $ 619 $ 35 $ 2,220 Depreciation - 358 101 95 88 642 As at February 28, 2023 $ - $ 358 $ 1,667 $ 714 $ 123 $ 2,862 Net book value As at August 31, 2022 $ 45,239 $ - $ 5,510 $ 777 $ 108 $ 51,634 As at February 28, 2023 $ - $ 46,875 $ 10,400 $ 704 $ 233 $ 58,212 (1) On November 1, 2022, Buckreef achieved commercial production at which point development expenditures were subject to depreciation. |
Deferred revenue (Tables)
Deferred revenue (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Deferred Revenue | |
Schedule of deferred revenue | Schedule of deferred revenue Amount As at August 31, 2022 $ 2,485 Accretion of deferred revenue 261 Transaction costs expensed 15 Revenue recognized (742 ) As at February 28, 2023 $ 2,019 |
Derivative warrant liabilities
Derivative warrant liabilities (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Derivative Warrant Liabilities | |
Schedule of derivative warrant liabilities | Schedule of derivative warrant liabilities Amount As at August 31, 2022 $ 6,849 Change in fair value (2,400 ) As at February 28, 2023 $ 4,449 |
Schedule of assumptions fair value of derivative warrant liabilities | Schedule of assumptions fair value of derivative warrant liabilities February 28, 2023 August 31, 2022 Share price $ 0.40 $ 0.48 Risk-free interest rate 4.31 5.00 3.32 3.44 Dividend yield 0 0 Expected volatility 53 57 55 60 Remaining term (in years) 0.4 3.9 0.9 4.4 |
Schedule of net income and net assets | Schedule of net income and net assets February 28, 2023 10% change in expected volatilities Increase Decrease (Loss) income $ (914 ) $ 931 |
(Loss) earnings per share (Tabl
(Loss) earnings per share (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Loss Earnings Per Share | |
Schedule of earning per share | Schedule of earning per share Three months ended February 28, Six months ended February 28, 2023 2022 2023 2022 Net (loss) income attributable to shareholders $ (1,399 ) $ (1,958 ) $ 2,113 $ (3,980 ) Weighted average number of common shares for purposes of basic EPS 281,835,349 262,712,781 280,038,329 258,805,238 Effect of dilutive stock options, warrants, RSUs and share awards - - 6,109,446 - Weighted average number of common shares for purposes of diluted EPS 281,835,349 262,712,781 286,147,775 258,805,238 |
Share-based payments reserve (T
Share-based payments reserve (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
IfrsStatementLineItems [Line Items] | |
Schedule of continuity of outstanding stock options | Schedule of continuity of outstanding stock options Number of stock options Weighted average exercise price per share Balance – February 28, 2023 and August 31, 2022 5,336,000 CAD $ 0.41 |
Schedule of Options to purchase common shares carry exercise prices and terms to maturity | Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Number of options Expiry contractual Exercise price Outstanding Exercisable Date life (years) C$ 0.40 2,454,000 2,454,000 October 11, 2026 3.6 C$ 0.43 2,782,000 2,782,000 September 29, 2026 3.6 C$ 0.35 100,000 100,000 January 2, 2027 3.8 C$ 0.41 (1) 5,336,000 5,336,000 3.6 (1) (1) Total represents weighted average. |
Schedule of restricted stock outstanding | Schedule of restricted stock outstanding Number of RSUs Balance – August 31, 2022 1,855,276 Granted 160,000 Vested (600,000 ) Forfeited (160,000 ) Balance – February 28, 2023 1,255,276 |
Stock Options [Member] | |
IfrsStatementLineItems [Line Items] | |
Schedule of continuity of outstanding stock options | Schedule of continuity of outstanding stock options Number of stock options Weighted average exercise price per share Balance – February 28, 2023 and August 31, 2022 7,375,000 $ 0.50 |
Schedule of Options to purchase common shares carry exercise prices and terms to maturity | Schedule of Options to purchase common shares carry exercise prices and terms to maturity Remaining Exercise price Number of options Expiry contractual Outstanding $ Outstanding Exercisable Date life (years) USD $ 0.50 7,375,000 1,475,000 August 17, 2027 4.5 |
Warrants reserve (Tables)
Warrants reserve (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Warrants Reserve | |
Schedule of Reserve for warrants | Schedule of Reserve for warrants Number of warrants Weighted average exercise price per share Balance – February 28, 2023 and August 31, 2022 41,970,074 0.72 |
Schedule of warrants and compensation warrants | Schedule of warrants and compensation warrants Number of Warrants Exercise price Expiry date Convertible debenture warrants - July 27, 2020 3,002,037 $ 1.21 July 27, 2023 Private placement financing warrants - December 23, 2020 2,777,268 $ 1.50 December 23, 2023 Private placement financing warrants - February 11, 2021 16,461,539 $ 0.80 February 11, 2026 Private placement financing broker warrants - February 11, 2021 1,152,307 $ 0.80 February 11, 2026 Private placement financing warrants – January 26, 2022 17,948,718 $ 0.44 January 26, 2027 Private placement financing placement agent warrants – January 26, 2022 628,205 $ 0.44 January 26, 2027 Balance – February 28, 2023 41,970,074 |
Non-controlling interest (Table
Non-controlling interest (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Non-controlling Interest | |
Schedule of summarized financial information | Schedule of summarized financial information Three months ended February 28, Six months ended February 28, Income Statement 2023 2022 2023 2022 Revenue $ 10,098 $ 3,334 $ 19,816 $ 3,334 Comprehensive income for the period 2,998 2,124 6,660 1,735 Statement of Financial Position February 28, 2023 August 31, 2022 Current assets $ 10,622 $ 7,253 Non-current assets 59,662 53,789 Current liabilities (9,562 ) (8,602 ) Non-current liabilities (5,029 ) (2,815 ) Advances from parent, net (37,150 ) (37,725 ) |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Related party transactions [abstract] | |
Schedule of Related Parties Compensation | Schedule of Related Parties Compensation Three months ended February 28, Six months ended February 28, Directors and key management personnel 2023 2022 2023 2022 Remuneration (1) $ 510 $ 429 $ 976 $ 828 Share-based compensation expense 559 533 1,274 1,513 Total directors and key management personnel $ 1,069 $ 962 $ 2,250 $ 2,341 (1) Remuneration includes salaries and benefits for certain key management personnel and director fees. Certain members of the board of directors have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their employment services. |
General and administrative ex_2
General and administrative expenses (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
General And Administrative Expenses | |
Schedule of General and Administrative expense | Schedule of General and Administrative expense Three months ended February 28, Six months ended February 28, 2023 2022 2023 2022 Directors’ fees (Note 15) $ 107 $ 114 $ 214 $ 187 Insurance 100 111 199 233 Office and general 41 163 60 271 Shareholder information 186 184 314 297 Professional fees 136 163 237 315 Salaries and benefits (1) 614 411 1,098 1,039 Consulting 126 237 177 282 Severance - 241 - 241 Share-based compensation expense (1) 645 533 1,398 1,513 Travel and accommodation 56 61 103 104 Depreciation (1) 18 (71 ) 58 10 Other 6 5 14 5 Total general and administrative expenses $ 2,035 $ 2,152 $ 3,872 $ 4,497 (1) As a result of adoption to amendments to IAS 16, Property, Plant and Equipment, |
Segmented information (Tables)
Segmented information (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Segmented Information | |
Schedule of operating segments | Schedule of operating segments Three months ended February 28, Six months ended February 28, Revenue 2023 2022 2023 2022 Tanzania $ 10,098 $ 3,334 $ 19,816 $ 3,334 Total revenue $ 10,098 $ 3,334 $ 19,816 $ 3,334 Non-current assets February 28, 2023 August 31, 2022 Canada $ 64 $ - Tanzania 61,886 55,993 Total non-current assets $ 61,950 $ 55,993 |
Non-cash items (Tables)
Non-cash items (Tables) | 6 Months Ended |
Feb. 28, 2023 | |
Non-cash Items | |
Schedule of Non-cash items | Schedule of Non-cash items Six months ended February 28, 2023 2022 Depreciation $ 545 $ 135 Gains on derivative warrant liabilities (Note 10) (2,400 ) (63 ) Share-based compensation expense (Note 12) 1,538 1,513 Accretion of provision for reclamation 70 88 Deferred income tax expense (Note 17) 2,129 - Accretion of lease liabilities 7 - Settlement of deferred revenue (Note 9) (742 ) - Accretion of deferred revenue (Note 9) 261 - Foreign exchange gains (26 ) - VAT written-off (Note 5) 233 - Other expenses 15 - Total non-cash items $ 1,630 $ 1,673 |
Basis of preparation (Details)
Basis of preparation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
IfrsStatementLineItems [Line Items] | ||||
General and administrative expenses | $ 2,035 | $ 2,152 | $ 3,872 | $ 4,497 |
Interest and other expenses | (856) | (341) | (1,041) | (380) |
Income tax expense | 200 | 200 | 500 | 200 |
Net loss and comprehensive loss | $ (50) | (1,002) | $ 5,110 | (3,160) |
Reported [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
General and administrative expenses | (2,152) | (4,497) | ||
Financial instrument related costs and other | (427) | (219) | ||
Accretion on asset retirement obligation | (54) | (88) | ||
Loss on derivative warrant liabilities | ||||
Foreign exchange losses | (104) | (86) | ||
Interest and other expenses | (5) | (10) | ||
Income tax expense | (151) | (151) | ||
Net loss and comprehensive loss | (1,002) | (3,160) | ||
Gain on derivative warrant liabilities | ||||
Revision of Prior Period, Reclassification, Adjustment [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
General and administrative expenses | ||||
Financial instrument related costs and other | 427 | 219 | ||
Accretion on asset retirement obligation | 54 | 88 | ||
Loss on derivative warrant liabilities | (145) | |||
Foreign exchange losses | ||||
Interest and other expenses | (336) | (370) | ||
Income tax expense | ||||
Net loss and comprehensive loss | ||||
Gain on derivative warrant liabilities | 63 | |||
Currently stated [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
General and administrative expenses | (2,152) | (4,497) | ||
Financial instrument related costs and other | ||||
Accretion on asset retirement obligation | ||||
Loss on derivative warrant liabilities | (145) | |||
Foreign exchange losses | (104) | (86) | ||
Interest and other expenses | (341) | (380) | ||
Income tax expense | (151) | (151) | ||
Net loss and comprehensive loss | $ (1,002) | (3,160) | ||
Gain on derivative warrant liabilities | $ 63 |
Basis of preparation (Details 1
Basis of preparation (Details 1) - USD ($) $ in Thousands | Feb. 28, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | $ 2,269 | $ 2,540 |
Reported [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | 40 | |
Other receivables | 2,500 | |
Revision of Prior Period, Reclassification, Adjustment [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | 2,500 | |
Other receivables | (2,500) | |
Currently stated [member] | ||
IfrsStatementLineItems [Line Items] | ||
Amounts receivable | 2,540 | |
Other receivables |
Amounts receivable (Details)
Amounts receivable (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Aug. 31, 2022 | |
Amounts Receivable | |||
Sales tax receivable | [1] | $ 5,952 | $ 4,359 |
Prepaid gold purchase receivable | 2,500 | ||
Other | 55 | 40 | |
Other receivable | 6,007 | 6,899 | |
Less: other long-term asset | (3,738) | (4,359) | |
Total amounts receivable | $ 2,269 | $ 2,540 | |
[1]Sales tax receivables consist of harmonized services tax and value added tax (“VAT”) due from Canadian and Tanzanian tax authorities, respectively. Tanzanian tax regulations allow for VAT receivable to be refunded or set-off against taxes due to the Tanzania Revenue Authority (“TRA”). VAT which the Company does not expect to recover within the next 12 months has been classified as long-term assets. |
Prepayments and other assets (D
Prepayments and other assets (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Aug. 31, 2022 | |
Prepayments And Other Assets | |||
Prepaid expenses | $ 821 | $ 699 | |
Commitment fees | [1] | 507 | 507 |
Total prepayments and other assets | $ 1,328 | $ 1,206 | |
[1]Consists of commitment fees paid with respect to a share purchase agreement whereby the Company, at its sole discretion, has the right to sell up to $10 million of its common shares over a 36-month period. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Aug. 31, 2022 |
Inventories Abstract | ||
Ore stockpile | $ 1,922 | $ 2,643 |
Gold in circuit | 1,032 | 210 |
Gold doré | 92 | 253 |
Total precious metals inventories | 3,046 | 3,106 |
Supplies | 1,299 | 524 |
Total inventories | $ 4,345 | $ 3,630 |
Mineral property, plant and e_3
Mineral property, plant and equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Feb. 28, 2023 | Aug. 31, 2022 | ||
IfrsStatementLineItems [Line Items] | |||
Net book value | $ 58,212 | $ 51,634 | |
Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 45,239 | ||
Mineral Properties [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 46,875 | ||
Processing Plant [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 10,400 | 5,510 | |
Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 704 | 777 | |
Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 233 | $ 108 | |
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 53,854 | ||
Additions | 7,220 | ||
Transfers | [1] | ||
Ending balance | 61,074 | ||
Gross carrying amount [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 45,239 | ||
Additions | |||
Transfers | [1] | (45,239) | |
Ending balance | |||
Gross carrying amount [member] | Mineral Properties [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Additions | 1,994 | ||
Transfers | [1] | 45,239 | |
Ending balance | 47,233 | ||
Gross carrying amount [member] | Processing Plant [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 7,076 | ||
Additions | 4,991 | ||
Transfers | [1] | ||
Ending balance | 12,067 | ||
Gross carrying amount [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 1,396 | ||
Additions | 22 | ||
Transfers | [1] | ||
Ending balance | 1,418 | ||
Gross carrying amount [member] | Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 143 | ||
Additions | 213 | ||
Transfers | [1] | ||
Ending balance | 356 | ||
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 2,220 | ||
Depreciation | 642 | ||
Ending balance | 2,862 | ||
Accumulated depreciation and amortisation [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Depreciation | |||
Ending balance | |||
Accumulated depreciation and amortisation [member] | Mineral Properties [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | |||
Depreciation | 358 | ||
Ending balance | 358 | ||
Accumulated depreciation and amortisation [member] | Processing Plant [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 1,566 | ||
Depreciation | 101 | ||
Ending balance | 1,667 | ||
Accumulated depreciation and amortisation [member] | Machinery [member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 619 | ||
Depreciation | 95 | ||
Ending balance | 714 | ||
Accumulated depreciation and amortisation [member] | Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Beginning balance | 35 | ||
Depreciation | 88 | ||
Ending balance | $ 123 | ||
[1]On November 1, 2022, Buckreef achieved commercial production at which point development expenditures were subject to depreciation. |
Deferred revenue (Details)
Deferred revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Deferred Revenue | ||
Deferred revenue, beginning | $ 2,485 | |
Accretion of deferred revenue | 261 | |
Transaction costs expensed | 15 | |
Revenue recognized | (742) | |
Deferred revenue, ending | $ 2,019 |
Deferred revenue (Details Narra
Deferred revenue (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2023 | Aug. 11, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Deferred revenue description | The Company drew down the first tranche of $2.5 million in exchange for delivering 434 ounces of gold per quarter, commencing February 2023, for a total of 1,735 ounces of gold over four quarters. | |
Deferred revenue undrawn | $ 2,500 | |
Purchase Agreement [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Prepaid gold dore | $ 5,000 |
Derivative warrant liabilitie_2
Derivative warrant liabilities (Details) $ in Thousands | 6 Months Ended |
Feb. 28, 2023 USD ($) | |
IfrsStatementLineItems [Line Items] | |
Ending balance at derivative warrant liabilities | $ 4,400 |
Derivative Warrant Liabilities [Member] | |
IfrsStatementLineItems [Line Items] | |
Beginning balance at derivative warrant liabilities | 6,849 |
Change in fair value | (2,400) |
Ending balance at derivative warrant liabilities | $ 4,449 |
Derivative warrant liabilitie_3
Derivative warrant liabilities (Details 1) - Derivative Warrant Liabilities [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Feb. 28, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Share price | $ 0.40 | $ 0.48 |
Dividend yield | 0% | 0% |
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 4.31% | 3.32% |
Expected volatility | 53% | 55% |
Remaining term (in years) | 4 months 24 days | 10 months 24 days |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Risk-free interest rate | 5% | 3.44% |
Expected volatility | 57% | 60% |
Remaining term (in years) | 3 years 10 months 24 days | 4 years 4 months 24 days |
Derivative warrant liabilitie_4
Derivative warrant liabilities (Details 2) $ in Thousands | 6 Months Ended |
Feb. 28, 2023 USD ($) | |
Derivative Warrant Liabilities | |
Increase loss income | $ (914) |
Decrease loss income | $ 931 |
Derivative warrant liabilitie_5
Derivative warrant liabilities (Details Narrative) $ in Thousands | Feb. 28, 2023 USD ($) |
Derivative Warrant Liabilities | |
Warrant liability | $ 4,400 |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Loss Earnings Per Share | ||||
Net (loss) income attributable to shareholders | $ (1,399) | $ (1,958) | $ 2,113 | $ (3,980) |
Weighted average number of common shares for purposes of basic EPS | 281,835,349 | 262,712,781 | 280,038,329 | 258,805,238 |
Effect of dilutive stock options, warrants, RSUs and share awards | 6,109,446 | |||
Weighted average number of common shares for purposes of diluted EPS | 281,835,349 | 262,712,781 | 286,147,775 | 258,805,238 |
(Loss) earnings per share (Deta
(Loss) earnings per share (Details Narrative) - shares shares in Millions | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Stock Options [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average number of common shares | 7.4 | 7.4 |
Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average number of common shares | 42 | 42 |
Share based payment reserve (De
Share based payment reserve (Details) - $ / shares | Feb. 28, 2023 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||
Number of shares outstanding | 5,336,000 | ||
Weighted average exercise price | [1] | $ 0.41 | |
Stock Options [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares outstanding | 5,336,000 | 5,336,000 | |
Weighted average exercise price | $ 0.41 | $ 0.41 | |
[1]Total represents weighted average. |
Share based payment reserve (_2
Share based payment reserve (Details 1) | 6 Months Ended | |
Feb. 28, 2023 $ / shares | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ 0.41 | [1] |
Number of options outstanding | 5,336,000 | |
Number of options exercisable | 5,336,000 | |
Remaining contractual life | 3 years 7 months 6 days | [1] |
Range 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ 0.40 | |
Number of options outstanding | 2,454,000 | |
Number of options exercisable | 2,454,000 | |
Expiry date | Oct. 11, 2026 | |
Remaining contractual life | 3 years 7 months 6 days | |
Range 2 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ 0.43 | |
Number of options outstanding | 2,782,000 | |
Number of options exercisable | 2,782,000 | |
Expiry date | Sep. 29, 2026 | |
Remaining contractual life | 3 years 7 months 6 days | |
Range 3 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Exercise price | $ 0.35 | |
Number of options outstanding | 100,000 | |
Number of options exercisable | 100,000 | |
Expiry date | Jan. 02, 2027 | |
Remaining contractual life | 3 years 9 months 18 days | |
[1]Total represents weighted average. |
Share based payment reserve (_3
Share based payment reserve (Details 2) - $ / shares | Feb. 28, 2023 | Aug. 31, 2022 |
Share-based Payments Reserve | ||
Number of stock options | 7,375,000 | 7,375,000 |
Weighted average exercise price per share | $ 0.50 | $ 0.50 |
Share based payment reserve (_4
Share based payment reserve (Details 3) | 6 Months Ended |
Feb. 28, 2023 $ / shares | |
Share-based Payments Reserve | |
Number of exercise price outstanding | $ 0.50 |
Number of options outstanding | 7,375,000 |
Number of options exercisable | 1,475,000 |
Expiry date | Aug. 17, 2027 |
Remaining contractual life | 4 years 6 months |
Share based payment reserve (_5
Share based payment reserve (Details 4) | 6 Months Ended |
Feb. 28, 2023 shares | |
Share-based Payments Reserve | |
Beginning balance | 1,855,276 |
Restricted share units, granted | 160,000 |
Restricted share units, vested | (600,000) |
Restricted share units, forfeited | (160,000) |
Ending balance | 1,255,276 |
Share-based payments reserve (D
Share-based payments reserve (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||||
Share based compensation expense | $ 800 | $ 1,000 | $ 1,600 | $ 1,500 | |
Stock Options [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Share based compensation expense | 100 | 0 | 200 | 0 | |
Restricted Stock Unit [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Share based compensation expense | $ 100 | $ 0 | $ 300 | $ 0 | |
Omnibus Plan [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Number of shares issued for options | 2,781,054 | 2,781,054 | 2,106,675 |
Warrants reserve (Details)
Warrants reserve (Details) - $ / shares | Feb. 28, 2023 | Aug. 31, 2022 |
Warrants Reserve | ||
Number of stock options | 41,970,074 | 41,970,074 |
Weighted average exercise price per share | $ 0.72 | $ 0.72 |
Warrants reserve (Details 1)
Warrants reserve (Details 1) | 6 Months Ended |
Feb. 28, 2023 $ / shares shares | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 41,970,074 |
Convertible Debenture Warrants [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 3,002,037 |
Exercise price | $ / shares | $ 1.21 |
Warrants outstanding expiry date | Jul. 27, 2023 |
Private Placement Financing Warrants December 232020 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 2,777,268 |
Exercise price | $ / shares | $ 1.50 |
Warrants outstanding expiry date | Dec. 23, 2023 |
Private Placement Financing Warrants February 112021 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 16,461,539 |
Exercise price | $ / shares | $ 0.80 |
Warrants outstanding expiry date | Feb. 11, 2026 |
Private Placement Financing Broker Warrants February 112021 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 1,152,307 |
Exercise price | $ / shares | $ 0.80 |
Warrants outstanding expiry date | Feb. 11, 2026 |
Private Placement Financing Warrants January 262022 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 17,948,718 |
Exercise price | $ / shares | $ 0.44 |
Warrants outstanding expiry date | Jan. 26, 2027 |
Private Placement Financing Placement Agent Warrants January 262022 [Member] | |
IfrsStatementLineItems [Line Items] | |
Number of warrants | 628,205 |
Exercise price | $ / shares | $ 0.44 |
Warrants outstanding expiry date | Jan. 26, 2027 |
Warrants reserve (Details Narra
Warrants reserve (Details Narrative) - $ / shares | Feb. 28, 2023 | Aug. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Weighted average exercise price | $ 0.72 | $ 0.72 |
Warrants [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average exercise price | $ 0.72 |
Non-controlling interest (Detai
Non-controlling interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||||
Revenue | $ 10,098 | $ 3,334 | $ 19,816 | $ 3,334 | |
Comprehensive loss for the period/year | (50) | (1,002) | 5,110 | (3,160) | |
Current assets | 17,434 | 17,434 | $ 15,852 | ||
Non-current assets | 61,950 | 61,950 | 55,993 | ||
Current liabilities | 16,346 | 16,346 | 17,250 | ||
Non-controlling interests [member] | Buckreef [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Revenue | 10,098 | 3,334 | 19,816 | 3,334 | |
Comprehensive loss for the period/year | 2,998 | $ 2,124 | 6,660 | $ 1,735 | |
Current assets | 10,622 | 10,622 | 7,253 | ||
Non-current assets | 59,662 | 59,662 | 53,789 | ||
Current liabilities | (9,562) | (9,562) | (8,602) | ||
Non-current liabilities | 5,029 | 5,029 | 2,815 | ||
Advances from parent, net | $ (37,150) | $ (37,150) | $ (37,725) |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | ||
IfrsStatementLineItems [Line Items] | |||||
Key Management | $ 1,069 | $ 962 | $ 2,250 | $ 2,341 | |
Share based payments | 800 | 1,000 | 1,600 | 1,500 | |
Key management personnel of entity or parent [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Key Management | [1] | 510 | 429 | 976 | 828 |
Share based payments | $ 559 | $ 533 | $ 1,274 | $ 1,513 | |
[1]Remuneration includes salaries and benefits for certain key management personnel and director fees. Certain members of the board of directors have employment or service contracts with the Company. Directors are entitled to director fees and share based payments for their services and officers are entitled to cash remuneration and share based payments for their employment services. |
Related party transactions (D_2
Related party transactions (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||||
Payables to related parties | $ 200 | $ 200 | $ 200 | ||
Stock value | 7,000 | 7,000 | |||
Shares granted | 600 | $ 500 | 1,300 | $ 1,500 | |
Stock Options [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Compensation expense | 100 | 0 | 200 | 0 | |
R S Us [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Compensation expense | $ 0 | $ 0 | $ 200 | $ 0 |
General and Administrative ex_3
General and Administrative expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | ||
General And Administrative Expenses | |||||
Directors’ fees (Note 15) | $ 107 | $ 114 | $ 214 | $ 187 | |
Insurance | (100) | (111) | (199) | (233) | |
Office and general | 41 | 163 | 60 | 271 | |
Shareholder information | 186 | 184 | 314 | 297 | |
Professional fees | 136 | 163 | 237 | 315 | |
Salaries and benefits(Note 15) | [1] | (614) | (411) | (1,098) | (1,039) |
Consulting | 126 | 237 | 177 | 282 | |
Severance | 241 | 241 | |||
Share-based compensation expense(1) (Note 15) | 645 | 533 | 1,398 | 1,513 | |
Travel and accommodation | (56) | (61) | (103) | (104) | |
Depreciation | [1] | 18 | (71) | 58 | 10 |
Other | 6 | 5 | 14 | 5 | |
Total general and administrative expenses | $ 2,035 | $ 2,152 | $ 3,872 | $ 4,497 | |
[1]As a result of adoption to amendments to IAS 16, Property, Plant and Equipment, |
Income tax (Details Narrative)
Income tax (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Income Tax | ||||
Income tax expenses | $ 1,200 | $ 200 | $ 2,700 | $ 200 |
Current income tax expense | 200 | 200 | 500 | 200 |
Deferred income tax expense | $ 1,000 | $ 0 | $ 2,200 | $ 0 |
Segmented Information (Details)
Segmented Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | Aug. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |||||
Revenue | $ 10,098 | $ 3,334 | $ 19,816 | $ 3,334 | |
Non-current assets | 61,950 | 61,950 | $ 55,993 | ||
Tanzania [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Revenue | 10,098 | $ 3,334 | 19,816 | $ 3,334 | |
Non-current assets | 64 | 64 | 55,993 | ||
Canada [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Non-current assets | $ 61,886 | $ 61,886 |
Commitments and contingencies (
Commitments and contingencies (Details Narrative) $ in Thousands | 6 Months Ended |
Feb. 28, 2023 USD ($) | |
Commitments And Contingencies | |
Annual license fees | $ 104 |
Non-cash items (Details)
Non-cash items (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Non-cash Items | ||
Depreciation | $ 545 | $ 135 |
Gains on derivative warrant liabilities (Note 10) | 2,400 | 63 |
Share-based compensation expense (Note 12) | 1,538 | 1,513 |
Accretion of provision for reclamation | 70 | 88 |
Deferred income tax expense (Note 17) | 2,129 | |
Accretion of lease liabilities | 7 | |
Settlement of deferred revenue (Note 9) | (742) | |
Accretion of deferred revenue (Note 9) | 261 | |
Foreign exchange gains | (26) | |
VAT written-off (Note 5) | 233 | |
Other expenses | 15 | |
Total non-cash items | $ 1,630 | $ 1,673 |