Q4 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.

# Q4 Financial Statements

Source: https://golcondagold.com/_resources/financials/Q4-2025-Golconda-FS.pdf?v=050509
Published: 2026-04-23T00:00:00+00:00
Fetched: 2026-05-05T09:33:45.25+00:00
Source artifact: 60f10930-ed14-4011-a63c-1e151cb0cadb
Normalizer input: text

## Content

# Q4 Financial Statements
Consolidated Financial Statements
(In U.S. dollars)
GOLCONDA GOLD LTD.
For the years ended December 31, 2025 and December 31, 2024
Independent Auditor’s Report
To the Shareholders of Golconda Gold Ltd.
Opinion
We have audited the consolidated financial statements of Golconda Gold Ltd. and its subsidiaries
(the Group), which comprise the consolidated statement of financial position as at December 31,
2025 and 2024, and the consolidated statements of earnings (loss) and comprehensive income
(loss), the consolidated statements of changes in equity and cash flows for the years then ended,
and notes to the consolidated financial statements, including material accounting policy
information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at December 31, 2025 and 2024,
and its consolidated financial performance and its consolidated cash flows for the years then
ended in accordance with IFRS Accounting Standards as issued by the International Accounting
Standards Board (IASB).
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Consolidated Financial Statements section of our report. We are independent
of the Group in accordance with the ethical requirements that are relevant to our audit of the
consolidated financial statements in Canada, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period. These
matters were addressed in the context of our audit of the consolidated financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Key audit matter How the scope of our audit addressed the
key audit matter
Carrying value of At 31 December 2025 the We reviewed and challenged
Mining Assets Group held Mining Properties Management’s impairment indicator
Equipment (Summit) relating to the Summit project assessment of the Summit project by
of $12.3m (2024: $12m) checking whether it was performed in
(see notes 3(f), 4(g) accordance with relevant accounting
and note 8) As detailed in note 3(f) there standards, and whether there were any
are judgements and estimates indicators of impairment. Our specific
that underpin the carrying audit procedures performed in this regard
value of these assets. included the following:
Management and the Board • We performed an independent
are required to assess whether assessment focusing on the
there are any potential uncertainties arising from the asset
impairment indicators, which being held under prolonged care and
could indicate that the maintenance. In particular, our
carrying value of these assets procedures included:
as at 31 December 2025 may o Assessing the internal and
not be recoverable. Based on external factors in line with IAS
the impairment indicator 36 which could give rise to an
assessment performed, no indicator of impairment,
indicators were present and including the current
thus, no impairment was non-operational status of the
recognised during the year mine and prevailing market
2
The Summit mine is currently conditions.
not producing any gold o Critically evaluating
concentrate and therefore is management’s restart plans,
not generating any cash flows. including the timing,
Accordingly, these estimates operational feasibility and
and judgements are based on funding considerations
the Group’s future restart associated with bringing the
plans and the feasibility of mine back into production.
those plans being executed. o Performing a focused challenge
of key assumptions within the
Given the level of estimation Life of Mine (LOM) model,
and judgement involved in comparing production profiles
determining whether any to resource estimates,
indicators of impairment independent third-party data
exist, we consider this to be a sources to operating cost
key audit matter. estimates and inspection report
findings to forecast restart
capital requirements, to assess
whether they supported
management’s conclusion that
no impairment indicators exist.
o Considering whether the
condition of the asset and
length of time under care and
maintenance gave rise to
indicators of physical or
economic obsolescence.
Key observations:
Based on the evidence obtained,
management’s key assumptions were
reasonable, and their conclusion that no
impairment was required for the Summit
project was appropriate.
Other Information
Management is responsible for the other information. The other information comprises:
• The information included in the Management’s Discussion and Analysis.
Our opinion on the consolidated financial statements does not cover the other information and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to
read the other information identified above and, in doing so, consider whether the other
information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
We obtained the Management’s Discussion and Analysis prior to the date of this auditor’s report.
If, based on the work we have performed on this other information, we conclude that there is a
material misstatement of this other information, we are required to report that fact in this
auditor’s report. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS Accounting Standards as issued by the IASB, and for such
internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to
fraud or error.
3
In preparing the consolidated financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally
accepted auditing standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we
exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business units within the Group as a basis for
forming an opinion on the group financial statements. We are responsible for the direction,
supervision and review of the audit work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
4
matters that were of most significance in the audit of the consolidated financial statements of
the current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Jill
MacRae.
BDO LLP
London,
UK
23 April 2026
Chartered Professional Accountants
BDO LLP is a limited liability partnership registered in England and Wales (with registered
number OC305127).
5
GOLCONDA GOLD LT

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