Actionable news
0
All posts from Actionable news
Actionable news in MGH: MINCO GOLD CORPORATION,

Minco Gold Corporation'S Consolidated Interim Financial Statements For The Nine Months Ended September 30, 2015

The following excerpt is from the company's SEC filing.

CA Filed by Filing Services Canada Inc. 403-717-3898

Minco Gold Corporation

(An exploration stage enterprise)

Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2015 and 2014

(Unaudited, expressed in Canadian dollars, unless otherwise stated)

Page

Condensed Consolidated Interim Financial Statements

Condensed Consolidated Interim Statements of Financial Position

Condensed Consolidated Interim Statements of Income (Loss)

Condensed Consolidated Interim Statements of Comprehensive Income (Loss)

Condensed Consolidated Interim Statements of Changes in Equity

Condensed Consolidated Interim Statements of Cash Flow

Notes to Condensed Consolidated Interim Financial Statements

8 - 20

General information and liquidity risk

Basis of preparation

Critical accounting estimates and judgments

Cash and cash equivalents

Short-term investment

Mineral interests

Equity investment in Minco Silver Corporation

Gain on legal settlement

Non-controlling interest

Share capital

Related party transactions

Geographical information

Fair value measurements

Condensed Consolidated Interim Statements of Financial Position

(Unaudited, expressed in Canadian dollars, unless otherwise stated)

December 31,

Assets

Current assets

Cash and cash equivalents (note 4)

5,578,472

2,117,038

Short-term investment (note 5)

3,905,923

Receivables

147,861

103,174

Due from related parties (note 11)

18,444

47,696

Prepaid expenses and deposits

65,386

140,956

9,716,086

2,408,864

Long-term deposit

51,277

Property, plant and equipment

10,141

125,298

(note 7)

4,180,000

6,820,000

13,957,504

9,405,439

Liabilities

Current liabilities

Accounts payable and accrued liabilities

126,306

444,914

Advance from non-controlling interest (note 6(a))

453,463

Due to related party (note 11)

25,835

3,603,848

152,141

4,502,225

Equity attributable to owners of the parent

Share capital (note 10(a))

41,911,823

41,882,757

Contributed surplus

9,205,328

9,179,213

Accumulated other comprehensive income

2,492,308

1,183,086

Deficits

(39,804,096)

(52,330,354)

13,805,363

(85,298)

Non-controlling interests

(note 9)

4,988,512

Total equity

4,903,214

Approved by the Board of Directors

(signed) Malcolm Clay Director

(signed) Robert Callander Director

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

Condensed Consolidated Interim Statements of Income (Loss)

For the three and nine months ended September 30, 2015, and 2014

(Unaudited, expressd in Canadian dollars, unless otherwise stated)

Three months ended

Nine months ended

Exploration costs

(note 6)

124,814

348,045

598,653

854,913

Administrative expenses

Accounting and audit

49,341

29,193

116,758

79,599

Amortization

15,227

33,768

51,354

Consulting

17,487

44,087

Directors’ fees

18,000

10,188

47,124

41,188

Foreign exchange (gain) loss

(47,068)

(29,924)

Investor relations

13,116

36,598

23,712

Legal and regulatory

29,436

26,004

158,601

86,888

Office and miscellaneous

71,820

80,887

322,930

288,746

Property investigation

22,081

18,354

50,567

56,836

Salaries and benefits

53,544

116,802

322,426

464,306

Share-based compensation (note 10(b))

13,349

43,528

37,891

265,553

Travel and transportation

18,754

15,653

73,935

46,947

263,730

372,313

1,214,761

1,421,317

Operating loss

(388,544)

(720,358)

(1,813,414)

(2,276,230)

Finance income

19,790

38,042

Gain on legal settlement (note 8)

51,745

Gain on sale of Minco Resources (note 2)

18,536,407

Loss on partial disposal of investment in Minco Silver (note 7) -

(399,536)

Impairment of equity investment in Minco Silver (note 7)

(2,441,228)

(5,612,875)

Share of income (loss) from equity investment in Minco Silver (note 7)

326,989

(3,194)

1,285,567

(274,846))

Impairment of property, plant and equipment

(8,736)

Dilution loss (note 7)

(78,177)

Income (loss) for the periods

16,053,414

(720,681)

12,485,472

(3,028,314)

Net income(loss) from continuing operations

Shareholders of the Company

16,057,986

(658,961)

12,526,258

(2,898,732)

(4,572)

(61,720)

(40,786)

(129,582)

Loss per share –

basic and diluted

(0.01)

(0.06)

Weighted average number of common shares outstanding

Basic and diluted

50,017,670

50,501,657

50,371,850

50,479,045

(An exploration stage enterprise)

Condensed Consolidated Interim Statements of Comprehensive Income (Loss)

2015

2014

Net income (loss) for the period

Other comprehensive income (loss)

Items that may be reclassified subsequently to profit or

Realized gain upon disposition of Minco Resource

(479,324)

Share of other comprehensive income of investments

accounted for using the equity method (note 7)

464,239

256,080

1,687,308

134,428

Cumulated translation adjustment from NCI

11,060

37,223

Exchange differences on translation from functional to

presentation currency

19,465

70,412

101,238

55,897

Total comprehensive income (loss) for the period

16,068,854

(394,189)

13,831,917

(2,837,989)

Comprehensive income (loss) attributable to:

Shareholders of the Company

16,062,365

(351,014)

13,835,480

(2,720,091)

(43,175)

(3,563)

(117,898)

Condensed Consolidated Interim Statements of Changes in Equity

For the nine months ended September 30, 2015, and 2014

Attributable to equity owner of the Company

Number of shares

Subtotal

Balance - January 1, 2014

50,348,215

41,758,037

8,933,012

1,102,818

(44,976,192)

6,817,675

5,124,196

11,941,871

Net loss for the period

Other comprehensive loss

178,640

11,684

190,324

Proceeds on issuance of shares from exercise of options

166,666

124,720

(51,387)

73,333

50,514,881

9,147,178

1,281,458

(47,874,924)

4,436,469

5,006,298

9,442,767

Balance - January 1, 2015

Net income for the period

1,309,222

1,346,445

Sale of Minco Resource

(4,984,949)

46,500

29,066

(11,776)

17,290

Balance – September 30, 2015

50,561,381

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

For the nine months ended September 30, 2015, and 2014

Nine months ended September 30,

Cash flow provided by (used in)

Operating activities

Net income (loss) for the period

12,485,472

Adjustments for:

Amortization

Equity (income) loss on investment in Minco Silver

(1,285,567)

Impairment of equity investment in Minco Silver

Dilution loss

Foreign exchange gain (loss)

(38,803)

(18,536,407)

(51,745)

Impairment on property, plant and equipment

Share-based compensation (note 10 (b))

Changes in items of working capital:

Receivables

(22,814)

(8,565)

Due to/from related parties

365,997

65,848

Prepaid expenses and deposits

(44,604)

(27,831)

Deposit from sale of subsidiary

373,292

Accounts payable and accrued liabilities

(192,346)

(53,628)

Net cash used in operating activities

(1,636,283)

(1,593,074)

Investing activities

Net cash outflow from sale of Minco Resources and its subsidiaries

(1,452,910)

Proceeds from legal settlement (note 8)

98,940

720,095

Proceeds from partial disposal of investment in Minco Silver

1,500,000

15,231

(13,762)

Redemption of short-term investment

6,210,982

Net cash generated from investing activities

4,872,243

2,206,333

Financing activities

Proceeds from stock option exercises

Advanced from minority shareholders

255,971

Net cash generated from financing activities

329,304

Effect of exchange rate changes on cash

208,184

50,355

Increase in cash and cash equivalents

3,461,434

992,918

- Beginning of period

1,797,809

- End of period

2,790,727

Less: cash and cash equivalents classified as held for sale

(1,277)

– End of period

2,789,450

Cash paid for income tax

Notes to the Condensed Consolidated Interim Financial Statements

Minco Gold Corporation (“Minco Gold” or the “Company”) was incorporated in 1982 under the laws of British Columbia, Canada as Cap Rock Energy Ltd. The Company changed its name to Minco Gold in 2007. The Company is an exploration stage enterprise engaged in exploration and evaluation of gold-dominant mineral properties and projects in China. The registered office of the Company is 2772 – 1055 West Georgia Street, British Columbia, Canada. The Company has listed its common shares on the Toronto Stock Exchange (“TSX”) under the symbol “MMM”, and the NYSE MKT under the symbol “MGH”.

As at September 30, 2015, Minco Gold owned an 18.45% (December 31, 2014 – 18.45%) equity interest in Minco Silver Corporation (“Minco Silver”). Minco Silver was incorporated in British Columbia, Canada.

On May 22, 2015, the Company entered into the share purchase agreement (“SPA”) with Minco Silver and Minco Silver’s wholly-owned subsidiary, Minco Investment Holding HK Ltd. (“Minco Investment”). Pursuant to the SPA, the Company sold all of the issued and outstanding shares of Minco Resources Limited (“Minco Resources”), which holds Minco Mining (China) Corporation (“Minco China”). Minco China owns certain subsidiaries including Yuanling Minco Mining Ltd. (“Yuanling Minco”), Tibet Minco Mining Co. Ltd. (“Tibet Minco”), Huaihua Tiancheng Mining Ltd. (“Huanihua Tiancheng”), a legal ownership of Foshan Minco Mining Co. Ltd. (“Foshan Minco”) and a 51% interest in Guangdong Mingzhong Mining Co. Ltd. (“Mingzhong”), which owns the Changkeng Gold Project. By selling Minco China, the trust agreement related to the funding of the Fuwan Project was eliminated. Three assets are retained by the Company including the contingent receivable from a legal settlement with 208 Team, the Gold Bull Mountain, and the Longnan exploration permits. The purchase price was $13,716,397, net of other adjustment of $15,863. In accordance with the agreement, $3,700,000 was...


More