JAYDEN RESOURCES INC. JAYDEN RESOURCES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2020
The following Management's Discussion and Analysis ("MD&A") is intended to assist the reader to assess material changes in financial condition and results of operations of Jayden Resources Inc. ("Jayden" or the "Company") as at December 31, 2020 and 2019 and for the years then ended.
This MD&A should be read in conjunction with the audited financial statements for the year ended December 31, 2020 and supporting notes. These financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
All monetary amounts are in Canadian dollars unless otherwise specified. The effective date of this MD&A is April 27, 2021. Additional information relating to the Company is available on SEDAR at www.sedar.com.
Contents of the MD&A
- Overview
- Overall performance for the year ended December 31, 2020
- Selected Annual Information
- Results of operations for the year ended December 31, 2020
- Summary of quarterly results
- Exploration and evaluation assets
- Liquidity and Capital Resources
- Disclosure of outstanding share data
- Related party transactions
- Commitments
- Additional Disclosure for Junior Issuers
- Adoption of accounting standards and pronouncements under IFRS
- Financial instruments
- Capital risk management
- Proposed transactions
- Off balance sheet transactions
- Internal control over financial reporting
- Critical accounting estimates and judgements
- Cautionary statement on forward-looking information
- Subsequent event
1
JAYDEN RESOURCES INC.
Management's Discussion and Analysis
For the year ended December 31, 2020
-
Overview
Up until the fourth quarter of 2018, Jayden was in the advanced stage of exploration on its 80% owned Silver Coin
Property, the Company's only asset. The Silver Coin Property is located approximately 25 kilometres by road north of Stewart, British Columbia in the Skeena Mining Division of British Columbia and consists of 44 claims totalling
1,496 net Ha. All of the Silver Coin assets were held in the Company's wholly owned British Columbia incorporated subsidiary, Jayden Resources (Canada) Inc. ("Jayden Canada").
At the Special General Meeting held on October 17, 2018, Jayden shareholders overwhelmingly voted in favor to sell the Silver Coin Property to Ascot Resources Ltd. ("Ascot"). On October 31, 2018, Jayden announced that it had closed the sale of all of the issued and outstanding shares of Jayden Canada to Ascot pursuant to the share purchase agreement between Jayden and Ascot signed on August 12, 2018. Ascot acquired all the issued and outstanding shares of Jayden Canada in exchange for 15,179,497 Ascot common shares at a deemed value of $0.94 per Ascot Share.
Jayden management had been looking for certain options for the Company during the year of 2019.
On September 4, 2020, Jayden announced that it had entered into a property option agreement with Teuton Resources Corp. (TSXV:TUO) to acquire up to a 75% interest in the Harry and Outland Silver Bar properties (the
"Property") which are located in the Skeena Mining Division approximately 30km northwest of Stewart, BC.
The Property consists of 3 contiguous claims that cover a gross area of approximately 1,333 hectares. As per an April 2019 National Instrument 43-101 Technical Report on the property, the majority of the Property including the Outlander claim lies along the NW portion of a geological corridor prospective for gold-silver mineralization that is up to 3 kilometers wide. It is at least 15 kilometers long extending from south of the Premier Mine, possibly in the US, north to the Scottie Gold Mine and beyond. Within this mineralized corridor, there are a number of gold/silver deposits as well as numerous prospects. Deposits within this corridor include the Premier, Big Missouri, Silver Coin, Martha Ellen and Mt Dilworth.
On December 9, 2020, Teuton announced that it had discovered a new zone of mineralization on the Harry Property containing 7.86 ozs/ton over 2 metres
Jayden management continues to explore options for the future of the Company and will keep shareholders apprised to any developments as they progress. - Overall performance for the year ended December 31, 2020
The Company's performance for the year ended December 31, 2020 was a net loss of $218,964 compared to a net income of $817,605 in 2019. The change is primarily caused by the gain of $1,879,737 on disposal of the Company's marketable securities, shares of Ascot Resources Ltd, in 2019. - Selected annual information
For the years ended December 31, 2020, 2019, and 2018, the financial statements have been prepared in accordance with IFRS.
2
JAYDEN RESOURCES INC.
Management's Discussion and Analysis
For the year ended December 31, 2020
Year Ended | Year Ended | Year Ended | |
Statement of Operations Data | December 31, | December 31, | December 31, |
2020 | 2019 | 2018 | |
Total revenue | $Nil | $Nil | $Nil |
Net income (loss) from continuing | ($218,964) | $817,605 | $704,061 |
operations | |||
Net income (loss) from continuing | |||
operations per common share | ($0.00) | $0.01 | $0.01 |
outstanding - basic | |||
Net income (loss) from continuing | |||
operations per common share | ($0.00) | $0.01 | $0.01 |
outstanding - diluted | |||
Net income (loss) | ($218,964) | $817,605 | $13,851,476 |
Net income (loss) per common share | ($0.00) | $0.01 | $0.16 |
outstanding - basic and diluted | |||
Net income (loss) per common share | ($0.00) | $0.01 | $0.15 |
outstanding - diluted | |||
Dividend per common share outstanding | $Nil | $0.17 | $Nil |
Year Ended | Year Ended | Year Ended | |
December 31, | December 31, | December 31, | |
2020 | 2019 | 2018 | |
Balance Sheet Data | |||
Total assets | $350,069 | $57,407 | $20,457,164 |
Non-current financial liabilities | $Nil | $Nil | $Nil |
Shareholders' equity (deficit) | $272,852 | $(52,384) | $20,283,971 |
Net Income (Loss)
The Company incurred a net loss of $218,964 in the fiscal year ended December 31, 2020, a net income of $817,605 in the fiscal year ended December 31, 2019, and $13,851,476 in the fiscal year ended December 31, 2018. The variance was mainly attributable to realized gain on disposal of marketable securities (2020 - $nil; 2019
- $1,879,737; 2018 - $nil), realized gain on disposal of discontinued operations (2020 - $nil; 2019 - $nil; 2018 - $13,348,900), and net loss from discontinued operations (2020 - $nil; 2019 - $nil; 2018 - $201,485).
Gain on disposal of marketable securities
For fiscal 2020, a realized gain of $nil was recorded compared to $1,879,737 in fiscal 2019 and $nil in fiscal 2018.
During the year ended December 31, 2020, the Company had no marketable securities activities.
During the year ended December 31, 2019, the Company distributed 14,797,234 shares of Ascot Resources Ltd. as non-cash dividend and $398,098 cash dividend to its shareholders. The fair value of the non-cash dividends was $15,241,151 at the date of distribution. A realized gain of $1,923,640 was recorded. The distribution was based on 90,995,746 issued and common shares of the Company and each shareholder is entitled to $0.17 non-cash dividend or cash dividend.
During the year ended December 31, 2019, the Company's disposal of 382,263 shares of Ascot Resources Ltd. for gross proceeds of $300,056, these shares had a carrying value of $343,959. A realized loss of $43,903 was recorded.
3
JAYDEN RESOURCES INC.
Management's Discussion and Analysis
For the year ended December 31, 2020
Gain on Disposal of Discontinued Operations
During fiscal 2020, $nil was recorded compared to $nil in fiscal 2019 and $13,348,900 in fiscal 2018. The gain in fiscal 2018 was related to the Company completing the sale of its subsidiary, Jayden Resources (Canada) Inc., to Ascot Resources Ltd., whereby the Company received 15,179,497 shares of Ascot Resources Ltd. with a carrying amount of $13,661,547 less transaction cost of $79,903 and net assets disposed of $232,744 resulted in gain on disposal of $13,348,900.
Total Assets
Total assets increased to $350,069 as at December 31, 2020 compared to $57,407 as at December 31, 2019, and $20,457,164 as at December 31, 2018. Total assets consist mainly of cash and cash equivalents in fiscal year 2020 and 2019 compared to the prior year 2018 where the majority of total assets was comprised of marketable securities of $20,036,936, which were disposed of during fiscal year 2019.
Shareholders' Equity
Total shareholder's equity increased to $272,852 compared to a deficit of $52,384 as at December 31, 2019, and an equity of $20,283,971 as at December 31, 2018. Total shareholders' equity consisted mainly of share capital and deficit. Equity increased mainly due to capital raised from private placements during the year ended December 2020 compared to equity decreased significantly mainly due to the dividend paid out during the year ended December 31, 2019.
4. Results of operations for the year ended December 31, 2020
The following table sets forth selected information for the years ended December 31, 2020, and 2019.
Year Ended December 31, | ||
2020 | 2019 | |
$ | ||
Other income | (13,683) | 1,879,949 |
Administrative expenses | (205,281) | (201,666) |
Net income (loss) from continuing operations | (218,964) | 1,678,283 |
Income tax (expense) recovery | - | (860,678) |
Net income (loss) for the period/year | (218,964) | 817,605 |
Earnings (loss) per share continuing operations | ||
Basic and diluted | (0.00) | 0.01 |
Because the Company is an exploration company, it has no revenue from mining operations.
During the year ended December 31, 2020, the Company incurred a net loss of $218,964 compared to a net income of $817,605 for the year ended December 31, 2019. The net income in the year ended December 31, 2019, relates primarily to a gain on disposal of marketable securities of $1,879,737. The administrative expenses for the year ended December 31, 2020 totalled $205,281 (2019: $201,666). This increase was mainly due to consulting fees of $126,000 (2019 - $73,200); corporate administration of $16,510 (2019- $53,161) related to administration, corporate communication, investor relations, computer services and office expenses of the Company; professional
4
JAYDEN RESOURCES INC.
Management's Discussion and Analysis
For the year ended December 31, 2020
fees of $31,514 (2019 - $40,865) related to legal and accounting fees; and regulatory and shareholder services of $30,622 (2019 - $29,396) mainly related to the regulatory filings and shareholder services.
During the year ended December 31, 2020, the Company had no marketable securities activities. During the year ended December 31, 2019, the Company sold 382,263 shares of Ascot Resources Ltd. for gross proceeds of $300,056, these shares had a carrying value of $343,959. A realized loss of $43,903 was recorded.
During the year ended December 31, 2019, the Company distributed 14,797,234 shares of Ascot Resources Ltd. as non-cash dividend and $398,098 cash dividend to its shareholders. The fair value of the non-cash dividends was $15,241,151 at the date of distribution. A realized gain of $1,923,640 was recorded. The distribution was based on 90,995,746 issued and common shares of the Company and each shareholder is entitled to $0.17 non-cash dividend or cash dividend.
During the year ended December 31, 2020, the Company incurred administrative expense of $205,281 compared to $201,666 for the year ended December 31, 2019. The change is mainly due to increase on consulting fee expenses for the year.
5. Summary of quarterly results
The following table sets out selected unaudited quarterly financial information of the Company for the eight most recent quarters of operation. This information is derived from unaudited quarterly financial statements prepared by management. The financial data for the eight quarters ended December 31, 2020, are prepared in accordance with IFRS.
4th | 3rd | 2nd | 1st | 4th | 3rd | 2nd | 1st | |
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |
31-Dec-2030-Sep-20 | 30-Jun-20 | 30-Mar-20 | 31-Dec-19 | 30-Sep-19 | 30-Jun-19 | 30-Mar-19 | ||
Total revenue | $Nil | $Nil | $Nil | $Nil | $Nil | $Nil | $Nil | $Nil |
Net income (loss) | ||||||||
from continuing | ($67,311) | ($50,770) | ($74,892) | ($25,991) | $5,424,181 | ($39,023) | ($98,422) | ($4,469,131) |
operations | ||||||||
Net income (loss) | ||||||||
from continuing | ||||||||
operations per | ($0.00) | ($0.00) | ($0.00) | ($0.00) | $0.06 | ($0.00) | ($0.00) | ($0.05) |
common share | ||||||||
outstanding - basic | ||||||||
Net income (loss) | ||||||||
from continuing | ||||||||
operations per | ($0.00) | ($0.00) | ($0.00) | ($0.00) | $0.06 | ($0.00) | ($0.00) | ($0.05) |
common share | ||||||||
outstanding - diluted | ||||||||
Net income (loss) | ($67,311) | ($50,770) | ($74,892) | ($25,991) | $5,424,181 | ($39,023) | ($98,422) | ($4,469,131) |
Net income (loss) | ||||||||
per common share | ($0.00) | ($0.00) | ($0.00) | ($0.00) | $0.06 | ($0.00) | ($0.00) | ($0.05) |
outstanding - basic | ||||||||
Net income (loss) | ||||||||
per common share | ($0.00) | ($0.00) | ($0.00) | ($0.00) | $0.06 | ($0.00) | ($0.00) | ($0.05) |
outstanding - diluted | ||||||||
Overall, consulting fees, corporate administration, professional fees, regulatory and shareholder services and foreign exchanges gains/losses were the major components that caused variances in net income (losses) from quarter to quarter while realized gains associated with the Company's disposal of marketable securities were the major components that caused variances in the net gains from quarter to quarter.
5
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Jayden Resources Inc. published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 20:41:02 UTC.
