SX:CC - Audited Financial Statements: March 31 2023
(TheNewswire)
Montréal, QC - TheNewswire - July31, 2023 - St-GeorgesEco-Mining Corp. (CSE:SX)(OTC:SXOOF) (FSE:85G1) would like to inform its shareholders that it has posted its AuditedFinancial Statements for the 12-month period ended March 31, 2023, andthe prior 15 months period ended March 31, 2022, and the correspondingManagement Discussion & Analysis on SEDAR.
The consolidated financial statements comprise the accounts of theCompany and its controlled subsidiaries. All intercompanytransactions, balances, and unrealized gains and losses fromintercompany transactions are eliminated on consolidation. ZeUTechnologies, Inc. (“ZeU”) is consolidated since common directorsof St-Georges control the operations of ZeU.
Summary of the Results of Operation
For the year ended March 31, 2023, the Company recorded a net incomeof $1,669,392 (2022 - $23,277,671 loss), had a cumulative deficit of$41,445,897 (2022 – $39,486,653), and deficit non-controllinginterest of $12,000,034 (2022 - $13,180,900). The Company had nosource of operating revenues or any related operating expenditures.
The following table provides a summary of the Company’s financialoperations for the prior two fiscal years.
For the year ended March 31, 2023,the Company had no revenues.
The Company incurred a net income and comprehensiveincome for the year of $1,669,392 for the year ended March 31, 2023,compared to a net loss of $23,277,671 for the fifteen months endedMarch 31, 2022. The increase in the income is due to decreases instock-based compensation payments to (2022 - $3,755,245), inaccretion and interest expenses of $1,574,129 (2022 - $2,370,806), inresearch and development fees of $601,083 (2022 - $1,657,450), and inoperating expenses to $5,630,991 (2022 - $12,751,818).
The primary reason for the difference is that theCompany had a gain on debt settlements of $7,966,523 (2022 –). The amount of the debt settled was just under$10,000,000 . $3,2000,000 ofthe debt being consolidated in the current financial statementsremains the sole responsibility of ZeU Technologies.
Summary of the Quarterly Results
The following table outlines selected unaudited financial informationof the Company for the last eight quarters.
The Company currently runs four operating segments: the acquisitionand exploration of mining properties, the development of novelmetallurgical processes, the development of hydrogen productiontechnologies and the recycling of different chemistry types of usedbatteries. All the Company’s activities are conducted in Canada andIceland.
The assets, liabilities, and operating expenses are presented asgeographic segment information. The primary indicators are as follows:
Key decision makers review assets, liabilities andoperating expenses as the primary indicators of segment information.The primary indicators are as follows:
Significant Risks
Exploration and mininginvolve a high degree of risk. Few exploration properties end up goinginto production. Other risks related to exploration and miningactivities include unusual or unforeseen formations, fire, powerfailures, labour disputes, flooding, explosions, cave-ins, landslidesand shortages of adequate or appropriate manpower, machinery orequipment.
The development of a resource property is subject tomany factors, including the cost of mining, variations in the qualityof the material mined, fluctuations in the commodity and currencymarkets, the cost of processing equipment and others, such as FirstNations claims and government regulations, including regulationsregarding royalties, authorized production, import and export ofnatural resources and environmental protection.
There can be no assurance that the expenses incurred bythe Company to explore its properties will result in the discovery ofa commercial quantity of ore.
Environmental and other regulations
Current and future environmental laws, regulations andmeasures could entail unforeseeable additional costs, capitalexpenditures, restrictions, or delays in the Company’s activities.Environmental regulations and standards are subject to constantrevision and could be substantially tightened, which could have aserious impact on the Company and its ability to develop itsproperties economically. Before it commences mining a property, theCompany must obtain environmental permits and the approval of theregulatory authorities. There is no assurance that these permits andapprovals will be obtained or that they will be obtained in a timelymanner.
The Company does not presently have sufficientfinancial resources to undertake its planned exploration anddevelopment programs. Development of the Company’s properties,therefore, depends on its ability to raise the additional fundsrequired. There can be no assurance that the Company will succeed inobtaining the funding required. The Company also has limitedexperience in developing resource properties, and its ability to do sodepends on the use of appropriately skilled personnel or signature ofagreements with other large resource companies that can provide therequired expertise.
The factors that influence the market value ofplatinum, palladium, rhodium, copper, cobalt, nickel, carbon graphite,and any other mineral discovered are outside the Company’s control.The impact of these factors cannot be accurately predicted. Resourceprices can fluctuate widely and have done so in recent years.
Risksnot covered by insurance.
The Company may become subject to claims arising fromcave-ins, pollution, or other risks against which it cannot insureitself due to the high cost of premiums or other reasons. Payment ofsuch claims would decrease and could eliminate the funds available forexploration and mining activities.
Key Audit Matters
The valuation of the mineral exploration rights and licenses is basedon qualitative data and comparable analysis related to the Company’smanagement judgement.
An important aspect of the current financial results comes from thecarryover of one significant and non-recurring extinguishment of debtfrom ZeU Technologies, a stand-alone entity in which St-Georges has acontrolling position. A large amount of debt being consolidated inthe current financial statements for $3,2000,000 remains, and is thesole responsibility of ZeU Technologies.
The Company also reviewed the recognition of certain expenditures thatwere previously expensed and capitalized an additional $396,845 forthe battery recycling plant.
The Company reviewed in depth the potential impacts of new emergingaccounting standards that will be in force in the new financial periodthat will end March 31, 2024. Management found no issues in thecurrent accounting methods employed. However, the expectation ofimminent reoccurring revenues from the wholly owned battery recyclingunit, EVSX Corp., will create new obligations and will requireadditional levels of oversight for which management has started toplan the implementation. Additional resources are expected to berequired to meet the accounting standards considering the new natureof the operations. The new segment of operations is expected to haveits own segregated layers of oversight for the Thorold plantoperations.
New market listings requirements are also expected and will bring inadditional challenges and force the Company to add significantaccounting and auditing resources as well as to improve its reportingprocesses.
ON BEHALF OF THE BOARD OF DIRECTORS
“RichardBarnett ”
Richard Barnett, CFO
About St-Georges Eco-Mining Corp.
St-Georges develops new technologies to solve some ofthe most common environmental problems in the mining sector, includingmaximizing metal recovery and full-circle battery recycling. TheCompany explores for nickel & PGEs on the Manicouagan and JulieProjects on Quebec’s North Shore and has multiple explorationprojects in Iceland, including the Thor Gold Project. Headquartered inMontreal, St-Georges’ stock is listed on the CSE under the symbol SXand trades on the Frankfurt Stock Exchange under the symbol 85G1 andas SXOOF on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies arecurrent in their reporting and undergo an annual verification andmanagement certification process. Investors can find Real-Time quotesand market information for the company on www.otcmarkets.com
Visit the Company website at www.stgeorgesecomining.com
For all other inquiries: public@stgeorgesecomining.com
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