Artemis Gold : Financials for December 31, 2024

Published: 2025-03-11 20:39:05 ET ARTG.V

CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2024 and December 31, 2023

Expressed in Canadian Dollars, unless otherwise noted

Independent auditor's report

To the Shareholders of Artemis Gold Inc.

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Artemis Gold Inc. and its subsidiaries (together, the Company) as at

December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).

What we have audited

The Company's consolidated financial statements comprise:

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2024. 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.

PricewaterhouseCoopers LLP

PwC Place, 250 Howe Street, Suite 1400, Vancouver, British Columbia, Canada V6C 3S7 T.: +1 604 806 7000, F.: +1 604 806 7806, Fax to mail: [email protected]

PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

Key audit matter

Assessment of liquidity risk

Refer to note 4 - Significant accounting judgments and estimates to the consolidated financial statements.

As at December 31, 2024, the Company had a working capital deficit of $253.8 million. Included in the working capital deficit are current liabilities of approximately $306.6 million. The Company poured its first gold from its Blackwater Gold Mine in January 2025 and is continuing its ramp-up of the mine.

Management believes that the Company has sufficient liquidity to meet its contractual obligations for a period of at least 12 months from December 31, 2024. In making such determination, management prepared a short-term cash flow forecast using significant judgment and assumptions. These significant assumptions included short-term gold prices, the timing and volume of near-term production and estimated operating costs.

Management's estimates of the timing and volume of near-term production are based off recoverable reserves and resources created from information compiled by qualified persons (management's experts).

We considered this a key audit matter due the significant judgment by management in developing the short-term cash flow forecast, which led to a high degree of auditor judgment, subjectivity and audit effort in performing procedures to evaluate the short-term cash flow forecast and the Company's liquidity risk.

How our audit addressed the key audit matter

Our approach to addressing the matter included the following procedures, among others:

Other information

Management is responsible for the other information. The other information comprises 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.

If, based on the work we have performed, we conclude that there is a 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 IFRS Accounting 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 Company'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 Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company'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:

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 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 Mark Patterson.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants

Vancouver, British Columbia

March 11, 2025

ARTEMIS GOLD INC.

Consolidated Statements of Financial Position

(Expressed in Canadian Dollars)

As at

Notes

December 31, 2024

December 31, 2023

Assets

Current assets

28,279,214

Cash and cash equivalents

156,590,674

Receivables and prepayments

3,795,057

10,234,647

Current portion of restricted cash

20,751,443

Non-current assets

52,825,714

166,825,321

7,115,451

Investment in associate

7,585,568

Restricted cash

15,126,227

Capitalized contract costs

1,955,775

Deferred financing costs

10,006,762

Prepayments on non-current assets

1,197,000

15,159,857

Mineral property, plant and equipment

1,643,313,710

904,114,838

TOTAL ASSETS

1,706,407,650

1,120,774,348

Liabilities

Current liabilities

120,834,551

Accounts payable, accrued liabilities and provisions

52,814,479

Current portion of lease liabilities

8,907,297

1,373,303

Current portion of long-term debt

151,568,649

Current portion of asset retirement obligation

1,256,572

Current portion of deferred revenue

10,870,023

2,856,891

Derivative liabilities

13,158,136

Non-current liabilities

306,595,228

57,044,673

123,739,759

Lease liabilities

19,967,754

Variable consideration payable

53,573,355

47,262,688

Long-term debt

325,878,830

143,497,758

Asset retirement obligation

45,042,611

24,204,282

Deferred revenue

258,627,072

247,441,738

Other non-current liabilities

2,098,412

TOTAL LIABILITIES

1,115,555,267

539,418,893

Shareholders' equity

630,996,803

Share capital

599,868,231

Contributed surplus

32,116,940

22,307,061

Accumulated other comprehensive income

3,622,371

Deficit

(75,883,731)

(44,442,208)

Total Shareholders' equity

590,852,383

581,355,455

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

1,706,407,650

1,120,774,348

Contingencies (Note 18)

Subsequent events (Note 19)

Approved for Issuance by the Board of Directors:

"Elise Rees"

Director

"Steven Dean"

Director

The accompanying notes are an integral part of the consolidated financial statements

ARTEMIS GOLD INC.

Consolidated Statements of Loss and Comprehensive Loss

(Expressed in Canadian Dollars, except per share amounts and number of shares)

For the year ended

Notes

December 31, 2024

December 31, 2023

Operating expenses

681,450

Depreciation

679,377

Management fees and wages

5,589,522

5,033,033

Investor relations and corporate development

456,908

524,746

Office, insurance and general

1,640,233

2,080,825

Professional fees

965,371

1,199,266

Share-based payments

13, 14

7,998,029

4,467,272

Loss from operations

(17,331,513)

(13,984,519)

Other (expense) income

(67,672)

Interest expense on lease liability

(110,176)

Accretion expense on asset retirement obligation

(414,085)

(307,994)

Equity loss from investment in associate

(470,117)

(590,749)

Change in fair value of derivatives

(13,158,136)

Interest income

3,548,307

Net loss and comprehensive loss

(31,441,523)

(11,445,131)

Net loss per common share

(0.15)

Basic and diluted

(0.06)

Weighted average number of common shares outstanding

211,486,393

Basic and diluted

196,582,307

The accompanying notes are an integral part of the consolidated financial statements

ARTEMIS GOLD INC.

Consolidated Statements of Changes in Equity

(Expressed in Canadian Dollars, except number of shares)

Share capital

Contributed

Accumulated other

Total shareholders'

comprehensive

Notes

Number of shares

Amount

surplus

income

Deficit

equity

Balance - January 1, 2024

198,706,255

599,868,231

22,307,061

3,622,371

(44,442,208)

581,355,455

Exercise of share purchase warrants

26,177,021

28,271,183

Exercise of stock options

369,702

2,857,389

(971,369)

1,886,020

Shared-based payments

10,781,248

Net loss

(31,441,523)

Balance - December 31, 2024

225,252,978

630,996,803

32,116,940

3,622,371

(75,883,731)

590,852,383

Share capital

Accumulated other

Contributed

comprehensive

Total shareholders'

Notes

Number of shares

Amount

surplus

income

Deficit

equity

Balance - January 1, 2023

193,211,701

589,253,146

17,549,291

3,622,371

(32,997,077)

577,427,731

Exercise of share purchase warrants

4,502,888

4,863,119

Exercise of stock options

991,666

5,751,966

(1,992,386)

3,759,580

Shared-based payments

6,750,156

Net loss

(11,445,131)

Balance - December 31, 2023

198,706,255

599,868,231

22,307,061

3,622,371

(44,442,208)

581,355,455

The accompanying notes are an integral part of the consolidated financial statements

ARTEMIS GOLD INC.

Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars)

For the year ended

Notes

December 31, 2024

December 31, 2023

Operating activities

(31,441,523)

Net loss and comprehensive loss

(11,445,131)

Items not involving cash:

681,450

Depreciation

679,377

Share-based payments

13, 14

7,998,029

4,467,272

Interest expense on lease liability

67,672

110,176

Accretion expense on asset retirement obligation

414,085

307,994

Equity loss from investment in associate

470,117

590,749

Change in fair value of derivatives

13,158,136

Interest income

(3,548,307)

Net changes in non-cash working capital:

(658,599)

Accounts payable, accrued liabilities and provisions

702,735

Receivables and prepayments

499,269

(384,778)

Net cash used in operating activities

(8,811,364)

(8,519,913)

Investing activities

4,687,886

Interest received

3,601,670

Purchases of mineral property, plant and equipment

(482,774,551)

(396,424,022)

Performance security proceeds

31,821,265

Long-term prepayments

(1,197,000)

(15,159,857)

Restricted cash

(5,625,216)

(10,392,127)

Net cash used in investing activities

(453,087,616)

(418,374,336)

Financing activities

(930,428)

Deferred financing costs

(11,143,819)

Exercise of stock options

1,886,020

3,759,580

Exercise of share purchase warrants

28,271,183

4,863,119

Lease payments

(5,620,516)

(1,277,934)

Proceeds from long-term debt

315,000,000

150,000,000

Interest payments on long-term debt

(5,018,739)

Capitalized contract costs

(338,025)

Proceeds from streaming arrangements

243,532,630

Net cash provided by financing activities

333,587,520

389,395,551

Change in cash and cash equivalents

(128,311,460)

(37,498,698)

Cash and cash equivalents, beginning

156,590,674

194,089,372

Cash and cash equivalents, ending

28,279,214

156,590,674

Supplemental cash flow disclosure

Non-cash changes in working capital in investing activities:

(65,061,636)

Mineral property, plant and equipment

(29,984,725)

The accompanying notes are an integral part of the consolidated financial statements

Disclaimer

Artemis Gold Inc. published this content on March 12, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 12, 2025 at 00:38:07.469.