Almonty Industries : Q3 September 30, 2021 MD&A
AII.TO
Management's Discussion and Analysis
Three and Nine Months Ended September 30, 2021
REPORT DATED: November 17, 2021
Management's Discussion and Analysis
Three and Nine Months Ended September 30, 2021
Dated November 17, 2021
1. Introduction
This management's discussion and analysis ("MD&A"), dated November 17, 2021, provides a review of, and discusses the financial position and results of operations of, Almonty Industries Inc. (TSX: AII) ("Almonty" or the "Company") for the three and nine months ended September 30, 2021. It should be read in conjunction with the unaudited interim condensed consolidated financial statements of the Company and notes thereto for the three and nine months ended September 30, 2021 (the "Q3-2021Financial Statements").
Dual Listing
On August 2, 2021, the Company, by way of an Initial Public Offering, received gross proceeds totaling AUD 15.25 million in conjunction with a dual listing on the Australia Stock Exchange ("ASX").
Financings and Re-financings
During the nine months ended September 30, 2021, the following transactions occurred:
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Management's Discussion and Analysis
Three and Nine Months Ended September 30, 2021
Dated November 17, 2021
Subsequent to September 30, 2021:
The Company's management is responsible for the preparation of the Company's consolidated financial statements as well as other information contained in this MD&A. The board of directors of Almonty (the "Board of Directors") is required to ensure that management assumes its responsibility in regard to the preparation of the Company's financial statements. To facilitate this process, the Board of Directors has created an audit committee (the "Audit Committee"). The Audit Committee meets with members of the management team to discuss the operating results and the financial results of the Company, before making their recommendations and submitting the Q3-2021 Financial Statements and MD&A to the Board of Directors for review and approval. Following the recommendation of the Audit Committee, the Board of Directors approved the Q3-2021 Financial Statements and this MD&A on November 17, 2021.
The Q3-2021 Financial Statements have been prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting".
All currency figures in this MD&A appear in thousands of Canadian dollars, except per share amounts, unless otherwise stated.
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Management's Discussion and Analysis
Three and Nine Months Ended September 30, 2021
Dated November 17, 2021
Additional information about the Company, including the Q3-2021 Financial Statements, is available on the Company's website at www.almonty.com and on SEDAR (www.sedar.com) under Almonty's profile.
Forward-Looking Information
This MD&A contains forward-looking statements that reflect management's expectations, estimates and projections concerning future events in relation to the Company's business and the economic environment in which it operates. Forward-looking statements may include, but are not limited to, statements with respect to possible acquisitions, demand for tungsten, tungsten prices, tungsten recovery and production, reductions in operating and unit production costs, improvements in efficiencies or reduction in dilution, future remediation and reclamation activities, future mineral exploration, the estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing of activities and the amount of estimated revenues and expenses, the success of exploration activities, permitting time lines, the success of mine development and construction activities, the success of future mine operations, the success of other future business operations, requirements for additional capital and sources and uses of funds. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "anticipates", "plans", "estimates", "intends", "strategy", "goals", "objectives" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be "forward-looking statements".
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events, results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the inability of the Company to maintain its interest in its mineral projects or to obtain or comply with all required permits and licenses, risks normally incidental to exploration and development of mineral properties, uncertainties in the interpretation of drill results, the possibility that future exploration, development or mining results will not be consistent with expectations, changes in governmental regulation adverse to the Company, lack of adequate infrastructure at the mineral properties, economic uncertainties, the inability of the Company to obtain additional financing when and as needed, competition from other mining businesses, the future price of tungsten and other metals and commodities, fluctuation in currency exchange rates, title defects and other related matters. See Section 7 in this MD&A and under the heading "Risk Factors" in the Company's Annual Information Form dated May 13, 2021 for a further discussion of factors that could cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements expressed or implied by forward-looking statements. The forward-looking statements in this MD&A represent the expectations of management as of the date hereof and accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. The Company does not undertake to update any forward-looking information, except as, and to the extent, required by applicable laws. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
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Management's Discussion and Analysis
Three and Nine Months Ended September 30, 2021
Dated November 17, 2021
A glossary of terms is affixed to the last page of this MD&A. Capitalized terms used but not otherwise defined herein have the respective meanings ascribed thereto in the glossary of terms.
Corona Virus ("COVID-19") Discussion
In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak and any related adverse public health developments may adversely affect workforces, economies, and financial markets globally, potentially leading to an economic downturn. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company's business or results of operations at this time.
The Company is committed to protecting the health and safety of its workforce and the communities in which it operates.
The Company has developed and implemented a COVID-19 Safety Plan at each of its mine sites to minimize the risk of COVID-19 exposure for its employees, their families and the residents of their respective communities.
To date there have been no significant interruptions to the Company's supply chain or service providers. However, shipping of concentrate has been slowed moderately by the results of COVID-19. The Company will continue to move forward its 2021 mine programs under these challenging conditions while monitoring the situation and ensuring backup plans are in place for potential disruptions.
Almonty's health and safety staff have procedures and protocols in place at each location in compliance with local requirements, including daily screening of all workers for symptoms of COVID-19, to ensure that in case a possible exposure to COVID-19 occurs, it will be quickly contained.
2. Overview
Almonty is a publicly traded company listed on the Toronto Stock Exchange (the "TSX") (formerly listed on the TSX Venture Exchange (the "TSXV")), under the symbol "AII" (see TSX Listing section below). The principal business of Almonty is the mining, processing and shipping of tungsten concentrate from the Los Santos tungsten mine located near Salamanca, Spain (the "Los Santos Mine"), the processing and shipping of tungsten concentrate from the Panasqueira tin and tungsten mine in Covilha, Castelo Branco, Portugal (the "Panasqueira Mine"), as well as the evaluation of the Sangdong tungsten mine project located in Gangwon Province, Republic of Korea (the "Sangdong Mine") and the evaluation of the Valtreixal tin and tungsten mine project located in Western Spain in the province of Zamora (the "Valtreixal Mine").
The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometers from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira Mine, which has been in production since 1896 and is located approximately 260 kilometers northeast of Lisbon, Portugal, was acquired in January 2016. The Sangdong Mine, which was historically one of the largest tungsten mines in the world and one of the few long-life,high-grade tungsten deposits outside of
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Disclaimer
Almonty Industries Inc. published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2021 08:33:01 UTC.