Q2 Financial Statements

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Q2 Financial Statements

Source: https://golcondagold.com/_resources/financials/Q2-2025-Golconda-FS.pdf?v=050509
Published: 2025-08-27T00:00:00+00:00
Fetched: 2026-05-05T09:33:55.478+00:00
Source artifact: b3e82f1a-67ef-4250-bee5-53d1275080f8
Normalizer input: text

## Content

# Q2 Financial Statements
Condensed Consolidated Interim Financial Statements
(In U.S. dollars) (Unaudited)
GOLCONDA GOLD LTD.
For the three and six-month periods ended June 30, 2025 and June 30, 2024
The accompanying unaudited condensed interim consolidated financial statements of Golconda Gold
Ltd. (the “Company”) have been prepared by and are the responsibility of the Company’s management
and approved by the board of directors of the Company (the “Board of Directors”).
The Company’s independent auditor has not performed a review of these unaudited condensed interim
consolidated financial statements in accordance with standards established by the Canadian Institute
of Chartered Professional Accountants for a review of interim financial statements by an entity’s
auditor.
GOLCONDA GOLD LTD.
Condensed Consolidated Interim Statement of Financial Position
(In U.S. dollars) (Unaudited)
Note June 30, 2025 December 31, 2024
Assets
Current assets:
Cash and cash equivalents 1,087,253 335,462
Trade receivables and other assets 5 2,540,960 1,732,889
Inventories 6 703,134 438,798
4,331,347 2,507,149
Non-current assets:
Mining properties and plant and equipment 7 44,957,650 43,192,778
44,957,650 43,192,778
49,288,997 45,699,927
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities 8 4,973,181 4,500,253
Interest-bearing loans and borrowings 9 2,455,008 2,305,965
Deferred revenue 10 599,831 517,936
8,028,020 7,324,154
Non-current liabilities:
Interest-bearing loans and borrowings 9 - 1,586,121
Restoration and rehabilitation provision 11 2,045,896 1,906,176
Deferred revenue 10 4,876,843 4,794,626
6,922,739 8,286,923
Equity
Share capital 13 58,397,792 58,397,792
Reserves 3,001,667 2,639,212
Deficit (27,061,221) (30,948,154)
34,338,238 30,088,850
49,288,997 45,699,927
Approved and authorized by the Board of Directors for issue on August 27, 2025:
“Ravi Sood ” Director “Dino Titaro ” Director
See accompanying notes to the consolidated financial statements.
1
GOLCONDA GOLD LTD.
Condensed Consolidated Interim Statement of Earnings (Loss) and Comprehensive Earnings (Loss)
(In U.S. dollars) (Unaudited)
Note Three months ended Six months ended
June 30, June 30,
2025 2024 2025 2024
Revenue 7,667,016 2,982,725 14,303,431 5,186,052
Mine operating costs 14a (4,167,918) (2,719,760) (7,993,734) (4,733,186)
Earnings from mine operations 3,499,098 262,965 6,309,697 452,866
Corporate general and administration 14b (615,806) (560,133) (1,334,070) (1,050,184)
Foreign exchange gain / (loss) (32,792) (22,372) (170,085) 97,123
Other expenses 14c (91,401) (24,333) (110,972) (381,076)
Net financing expense 14d (397,732) (462,154) (807,637) (757,021)
(1,137,731) (1,068,992) (2,422,764) (2,091,158)
Net earnings / (loss) before taxation 2,361,367 (806,027) 3,886,933 (1,638,292)
Taxation 12 - - - -
Net earnings / (loss) and comprehensive loss 2,361,367 (806,027) 3,886,933 (1,638,292)
Basic and diluted earnings / (loss) per common share 13 0.03 (0.01) 0.05 (0.02)
Weighted average number of common shares – basic 13 71,840,033 71,273,309 71,840,033 71,273,309
Weighted average number of common shares – diluted 13 77,631,112 72,707,318 77,267,476 72,707,318
See accompanying notes to the consolidated financial statements.
2
GOLCONDA GOLD LTD.
Condensed Consolidated Interim Statement of Changes in Equity
(In U.S. Dollars) (Unaudited)
Six months ended June 30, 2025 and 2024
Capital stock Reserves
Share-based
Number Amount payments Deficit Total
Balance as at December 31, 2023 71,273,309 58,149,241 2,887,763 (29,781,455) 31,255,549
Net loss and comprehensive for the period - - - (1,638,292) (1,638,292)
Balance as at June 30, 2024 71,273,309 58,149,241 2,887,763 (31,419,747) 29,617,257
Balance as at December 31, 2024 71,840,033 58,397,792 2,639,212 (30,948,154) 30,088,850
Net income and comprehensive income for the period - - - 3,886,933 3,886,933
Transactions with owners:
Share-based compensation - - 362,455 - 362,455
Balance as at June 30, 2025 71,840,033 58,397,792 3,001,667 (27,061,221) 34,338,238
See accompanying notes to the consolidated financial statements.
3
GOLCONDA GOLD LTD.
Condensed Consolidated Interim Statement of Cash Flows
(In U.S. Dollars) (Unaudited)
Six months ended June 30, 2025 and 2024
Six months ended June 30,
Notes 2025 2024
Cash flows from operating activities:
Net earnings / (loss) for the period 3,886,933 (1,638,292)
Items not involving cash:
Depreciation and depletion 7 740,808 375,487
Share-based compensation 14 362,455 -
Accretion 11 70,571 80,854
Financing cost on borrowings 14 737,066 676,167
Foreign exchange loss / (gain) 115,873 (14,458)
Deferred revenue 10 (113,987) (39,139)
Streaming Agreement transaction costs - 161,085
Working capital adjustments:
Change in trade and other receivables (664,574) (975,148)
Change in inventories (233,752) (100,301)
Change in trade and other payables 289,234 (231,805)
Cash inflow from Streaming Agreement - 4,838,915
5,190,627 3,133,365
Cash flows from investing activities:
Mining assets acquired (2,505,680) (2,087,057)
(2,505,680) (2,087,057)
Cash flow from financing activities:
Borrowings - drawdown 9 - 200,000
Borrowing - repayment 10 (1,800,000) (200,000)
Interest paid (147,145) (203,452)
Cash flows from financing activities (1,947,145) (203,452)
Increase in cash 737,802 842,856
Effect of unrealized foreign exchange gain on cash 13,989 220
Cash, at December 31 335,462 113,212
Cash, at June 30 1,087,253 956,288
See accompanying notes to the consolidated financial statements.
4
GOLCONDA GOLD LTD.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(in U.S. Dollars)
For the three and six months ended June 30, 2025 and 2024
1. Corporate Information
Golconda Gold Ltd. (the “Company” or “Golconda”) which was incorporated under the Business Corporations Act
(Ontario) on October 24, 2007 and its principal business activities are the exploration for, development of, and
operation of gold mining properties. The Company’s registered and head office is located at Suite 1800, 181 Bay St.,
Toronto, Ontario, Canada and its shares are listed on the TSX Venture Exchange (symbol GG.V) and quoted in the
United States on the OTCQB (symbol GGGOF).
The Company owns two mining assets: (1) a producing mine which also has the rights to certain mineral exploration
tenements (the mine and mineral exploration tenements collectively, “Galaxy”) located in the Republic of South Africa
(“South Africa”); and (2) a mine and processing infrastructure located in the United States of America (“Summit”).
2. Going Concern
As at June 30, 2025, the Company had a working capital deficiency (current assets less current liabilities) of $3.7
million (December 2024: $4.8 million). Earnings from mining operations were $6.3 million and cash flows from
operating activities were $5.2 million for the six months ended June 30, 2025.
The Board of Directors of the Company has performed an assessment of the ability of the Company to continue as a
going concern which covers a period of at least 12 months from the date of approval of the unaudited condensed
consolidated interim financial statements. Risks to the Company’s ability to continue as a going concern include the
ability of operations to meet production targets to generate sufficient cash flow to manage working capital and to repay
borrowings upon maturity. Because of these uncertainties, there can be no assurance that the measures that
management is taking to mitigate risks to the Company’s liquidity position will be successful. The current commodity
price and exchange rate environment can be volatile, which may have an impact on the Company’s cash flows and the
Company continues to review its near-term operating plans and to take steps to reduce costs and maximize cash flow
generated from operations.
The Company is subject to various commitments under the Streaming Agreement (see Note 10). If the Company is
in breach of such commitments, the counterparty to the Streaming Agreement has various potential recourses under
the agreement including calling for the repayment of the $5,000,000 initial deposit. The Company has obtained a
waiver for certain commitments and has entered discussions with respect to potential amendments to certain terms of
the Streaming Agreement. However, in a downside scenario in which the Company is unsuccessful in obtaining such
amendments to the Streaming Agreement or extensions to the waiver, it would be necessary for the Company to raise
additional funding if the deposit under the Streaming Agreement was called for repayment. The Board of Directors
believes that additional funding would be available to the Company in such scenario on reasonable terms and in the
required time frame.
As a result of above, a material uncertainty exists that may cast significant doubt on the ability of the Company to
continue as a going concern. Therefore, the Company may be unable to realise its asset and discharge its liabilities in
the normal course of business.
The Board of Directors believes that the Company is a going concern due to the strong operating cash flow generated
by mining operations, the significant flexibility the Company has on both operating and capital expenditure and the
likelihood that additional finance would be readily available should the Company require it.
These unaudited condensed interim consolidated financial statements do not reflect adjustments to the carrying values
of the assets and liabilities, the reported revenues and expenses, and the balance sheet classifications used, that would
be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal
course of operations. Such adjustments could be material.
5
GOLCONDA GOLD LTD.
Notes to the Unaudited Condensed Consolidated Interim Financial Statements
(In U.S. Dollars)
For the three and six months ended June 30, 2025 and 2024
3. Basis of preparation
(a) Statement of compliance
The unaudited condensed interim consolidated financial statements (the “Financial Statements”) of the Company as
at and for the three and six months ended June 30, 2025 have been prepared in accordance with IAS 34, Interim
Financial Reporting, and do not include all of the information required for full annual consolidated financial
statements. Accordingly, certain information and disclosures normally included in annual financial statements
prepared in accordance with IFRS have been omitted or condensed.
(b) Significant accounting judgments, estimates and assumptions
The preparation of the Financial Statements in conformity with IFRS requires management to make judgments,
estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of
the Financial Statements and reported amounts of revenues and expenses during the reporting period. Estimates and
assumptions are regularly evaluated and are based on management’s experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ
from these estimates. The particular areas of estimation uncertainty and critical judgments are outlined in detail in
Note 3(e) in the annual audited consolidated financial statements for the year ended December 31, 2024 (the “Annual
Financial Statements”).
(c) Functional and presentation currency
These Financial Statements are presented in U.S. dollars, which is the functional currency of the Company and each
of its subsidiaries. All amounts are in U.S. dollars, except where otherwise indicated.
4. Material Accounting Policies
These Financial Statements have been prepar

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]