Report: Firm records $7.5m loss
LION One Metals Ltd; a Canadian resource company with their flagship asset the Tuvatu Alkaline Gold Project, located in Fiji, has seen a decline in investment revenue according to their financial report for the fiscal year ended June 30, 2022. The comprehensive loss for the year was Canadian $4,679,366 (approximately $F7.5 million).
This, however, is a significant decrease in loss as compared with the previous year, the comprehensive loss for 2021 being over Canadian $6.5m (over $F10m). According to the report cash, cash equivalents and short-term investments have decreased by Canadian $22,463,442 to Canadian $35,749,771 as at June 30, 2022 from a balance of Canadian $58,213,213 as at June 30, 2021, reportedly due primarily to expenditures on exploration and evaluation assets and property and equipment purchases including deposits for equipment during the current period.
The 2019 to 2022 period has been difficult for most companies in Fiji but many that have remained functional are now seeing a slow recovery and Lion One is no exception. “Although COVID-19 has restricted the movement of some of the management team and consultants into Fiji, in addition to significant delays to the arrival of equipment and consumables from out of the country, the company has continued operations with little interruption. Lion One has doubled its workforce since 2020 due to the additional drilling teams for the rigs, the laboratory staff to cater for the increased number of samples generated and the field crew to process the core and samples.”
On September 3, 2022, the company granted $4,540,000 stock options to various directors, officers, employees, and consultants of the company, subject to TSX-V approval. While the company’s ability to raise further funding is not certain, according to management and shareholder discussion reports management believes it will probably be able to raise equity capital as required in the long term. Project operations continue with significant findings in the company’s recent reports.