Consolidated Financial Statements
Expressed in United States dollars
Years ended December 31, 2021 and 2020
INDEPENDENT AUDITOR'S REPORT
To the Shareholders of Inter-Rock Minerals Inc.
Opinion
We have audited the consolidated financial statements of Inter-Rock Minerals Inc. (the "Group"), which comprise the consolidated balance sheets as at December 31, 2021 and 2020 and the consolidated statements of net and comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
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, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards.
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.
Other Information
Management is responsible for the other information. The other information comprises Management's Discussion and Analysis but does not include the financial statements and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will 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 when it becomes available 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 Discussion and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to report that fact. 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 International Financial Reporting Standards, 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.
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.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance 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.
The engagement partner on the audit resulting in this independent auditor's report is Mark Jakovcic.
Chartered Professional Accountants
Licensed Public Accountants
April 21, 2022
Toronto, Ontario
Inter-Rock Minerals Inc. | |
Consolidated Balance Sheets | |
As at December 31st | |
(Expressed in thousands of United States Dollars) | |
ASSETS | |
Current assets | |
Cash | |
Accounts receivable | |
Inventories | 6 |
Prepaid expenses and other assets | |
Assets held for sale | 7 |
Total Current Assets | |
Non-current assets | |
Deferred tax asset | 16 |
Properties, plant and equipment | 8 |
Intangible assets | 9 |
Goodwill | 9 |
Total Assets | |
LIABILITIES AND EQUITY | |
Current liabilities | |
Accounts payable and accrued liabilities | |
Current portion of long term debt | 10 |
Current portion of lease obligations | 11 |
Liabilities held for sale | 7 |
Total Current Liabilities | |
Non-current liabilities | |
Long term debt | 10 |
Lease obligations | 11 |
Deferred tax liability | 16 |
Asset retirement obligation | 12 |
Series A preferred shares | 13 |
Total Liabilities | |
Equity | |
Share capital | 14 |
Contributed surplus | |
Retained earnings | |
Total Equity | |
Total Liabilities and Equity | |
Financial Commitments (Note 21) | |
Subsequent Events (Notes 10 and 22) | |
Approved on behalf of the Board of Directors: | |
"Michael B. Crombie" | |
Director |
Note | 2021 | 2020 |
$ | $ | |
2,266 | 2,072 | |
5,161 | 6,353 | |
1,624 | 2,535 | |
1,110 | 584 | |
6,595 | - | |
16,756 | 11,544 | |
262 | - | |
2,354 | 6,397 | |
1,368 | 1,691 | |
1,808 | 1,809 | |
22,548 | 21,441 | |
4,345 | 4,786 | |
1,316 | 2,598 | |
330 | 561 | |
3,837 | - | |
9,828 | 7,945 | |
280 | 1,434 | |
422 | 999 | |
- | 294 | |
26 | 75 | |
3,417 | 3,417 | |
13,973 | 14,164 | |
5,791 | 5,794 | |
315 | 315 | |
2,469 | 1,168 | |
8,575 | 7,277 | |
22,548 | 21,441 | |
"David R. Crombie" | ||
Director |
The accompanying notes are an integral part of these consolidated financial statements.
2
Inter-Rock Minerals Inc.
Consolidated Statements of Net and Comprehensive Income
(Expressed in thousands of United States Dollars except for outstanding shares and per share amounts)
Note | 2021 | 2020 | |
restated Note 7 | |||
$ | $ | ||
REVENUE | 5,18 | 64,177 | 51,621 |
COST OF SALES | |||
Operating costs | 5 | 55,888 | 43,408 |
GROSS PROFIT | 8,289 | 8,213 | |
OPERATING EXPENSES | |||
Selling, general and administrative | 5 | 5,392 | 4,837 |
Amortization and depletion | 8 | 537 | 549 |
Amortization of intangible assets | 9 | 323 | 328 |
INCOME BEFORE FINANCING COSTS | 2,037 | 2,499 | |
FINANCING COSTS | |||
Gain on debt forgiveness | 10(v) | (318) | (216) |
Interest on Series A preferred shares | 13 | 111 | 84 |
Interest on debt and lease obligations | 10,11 | 166 | 216 |
INCOME FROM CONTINUING OPERATIONS | |||
BEFORE INCOME TAXES | 2,078 | 2,415 | |
INCOME TAXES | |||
Current | 473 | 406 | |
Deferred (recovery) | 32 | (9) | |
505 | 397 | ||
NET INCOME AND COMPREHENSIVE INCOME | |||
FROM CONTINUING OPERATIONS | 1,573 | 2,018 | |
NET LOSS AND COMPREHENSIVE LOSS | |||
FROM DISCONTINUED OPERATIONS | 7 | (272) | (240) |
NET INCOME AND COMPREHENSIVE INCOME | 1,301 | 1,778 | |
Earnings per share from continuing operations | |||
Basic | 15 | 0.07 | 0.09 |
Diluted | 15 | 0.04 | 0.05 |
Loss per share from discontinued operations | |||
Basic and diluted | 15 | (0.01) | (0.01) |
Weighted average number of shares outstanding | |||
Basic | 22,305,560 | 22,384,186 | |
Diluted | 39,442,540 | 39,521,166 |
The accompanying notes are an integral part of these consolidated financial statements 3
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Inter-Rock Minerals Inc. published this content on 22 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2022 15:59:39 UTC.