TIDMBHL
RNS Number : 4537K
Bradda Head Lithium Ltd
25 August 2023
Bradda Head Lithium Limited
Management discussion and analysis for the three and 12-month
periods ended February 28, 2023
This management's discussion and analysis ("MD&A") reports
on the operating results and financial condition of the Company for
the three and 12 months ended February 28, 2023, and is prepared as
of August 25, 2023. The MD&A should be read in conjunction with
Bradda Head Lithium Limited's (the "Company" or "Bradda Head")
audited consolidated financial statements for the year ended
February 28, 2023, and the notes thereto which were prepared in
accordance with International Financial Reporting Standards
("IFRS").
All dollar amounts referred to in this MD&A are expressed in
United States dollars except where indicated otherwise.
Overview
Bradda Head Lithium Limited was incorporated on October 28,
2009, in the British Virgin Islands under the British Virgin
Islands Companies Act with registered number 1553975 with the name
Copper Development Corporation. On October 5, 2015, the Company
changed its name from Copper Development Corporation to Life
Science Developments Limited, and on April 18, 2018, the Company
changed its name to Bradda Head Holdings Limited. On September 15,
2021, the Company changed its name to Bradda Head Lithium
Limited.
The Company has one business segment, being mineral exploration.
T he Company is focused on appraising and developing lithium mining
projects within North America and currently has interests in a
variety of projects in the United States.
Corporate and Exploration Highlights
Exploration Highlights
Set forth in this section is a description of the Company's
material mineral projects. All scientific and technical data
contained in this MD&A has been reviewed and approved by Joey
Wilkins, B.Sc., P.Geo., who is Chief Operating Officer at Bradda
Head and a Qualified Person as defined by National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101").
Arizona Sedimentary Hosted Lithium Projects
Basin Project
Following the successful completion of a follow-up sonic drill
programme in March 2022, which consisted of 14 holes covering
1,200m of drilling, the Company updated its Basin East MRE, on 16
January 2023, resulting in a 22% increase in LCE tonnes. The
Indicated category of the MRE, much of which is located in the
upper part of the deposit, has increased by 17%. Following
completion of the Basin East Step Out drill programme, a total of
1.4km(2) of Bradda's 46km(2) of sedimentary claims been
drill-tested.
The updated MRE comprises:
- an Indicated Mineral Resource of 21.2 Mt at an average grade
of 891 ppm Li and 3.5% K (potassium) for a total of 100 kt LC,
and
- an Inferred Mineral Resource of 73.3 Mt at an average grade of
694 ppm Li and 3.2% K (potassium) for a total of 271 kt LCE.
Basin East 2023 Mineral Resource Estimate
Classification Domain Tonnes Mean Grade Contained Metal
Mt Li (ppm) K (%) LCE (kt) K (Mt)
------- --------- ------ --------- -------
Indicated Upper Clay 16.0 738 3.6 63 0.6
--------------- ------- --------- ------ --------- -------
Upper Clay HG 5.2 1,354 3.0 38 0.2
-------------------------------- ------- --------- ------ --------- -------
Lower Clay - - - - -
--------------- ------- --------- ------ --------- -------
Sub Total 21.2 891 3.5 100 0.7
-------------------------------- ------- --------- ------ --------- -------
Inferred Upper Clay 31.7 767 3.6 129 1.2
--------------- ------- --------- ------ --------- -------
Upper Clay HG 2.3 1,448 3.5 18 0.1
-------------------------------- ------- --------- ------ --------- -------
Lower Clay 39.3 592 2.9 124 1.1
-------------------------------- ------- --------- ------ --------- -------
Sub Total 73.3 694 3.2 271 2.4
-------------------------------- ------- --------- ------ --------- -------
Total 94.5 738 3.3 371 3.1
------- --------- ------ --------- -------
- Mineral Resource statement has an effective date of 13 October 2022.
- A Mineral Resource is reported using a cut-off grade of 300
ppm Li and constraining the model to an optimised open pit shell,
which was generated using the following assumptions: lithium
carbonate metal prices of 18,000 USD/tLCE; State of Arizona royalty
(selling cost) of 6%; operating costs of 5,000 USD/ tLCE or 27 USD/
tore; Li recovery of 75%; mining dilution and recovery of 5% and
95%; and pit slope angle of 45deg.
- Tonnages are reported in metric units.
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade and contained
metal content.
- Conversion factor of Li metal to lithium carbonate equivalent (LCE) = 5.323
Wikieup Project
No significant work has been undertaken on this project during
the 3-month period.
Arizona Pegmatite District
San Domingo Project
During February 2023, the Company announced that significant
high grade lithium bearing minerals were intercepted at multiple
locations, following the initial set of results from its first
diamond core drilling programme at the Company's 23km (2) San
Domingo pegmatite district in Arizona. This is the first extensive
drilling campaign undertaken at San Domingo since the 1950's and is
the maiden program for the Company in this district.
Highlights include:
-- 31.85m @ 1.60% Li (2) O (including 3.90m @ 2.88% Li (2) O,
and 20.03m @ 1.97% Li (2) O (including 7.06m @ 1.92% Li (2) O,
3.21m @ 3.74% Li (2) O and 3.81m @ 3.25% Li (2) O)) in
SD-DH22-024
-- 9.75m @ 0.78% Li (2) O (including 5.36m @ 1.20% Li (2) O) in
SD-DH22-003
-- 4.27m @ 1.86% Li (2) O in SD-DH22-005
-- 2.44m @ 1.63% Li (2) O in SD-DH22-001
The progamme was completed during March 2023, and has only
tested just over 1% of the 23km (2) that Bradda Head holds in
Arizona.
Nevada Lithium Brine Projects
Wilson Project
No significant work has been undertaken on this project during
the 3-month period.
Eureka Project
No significant work has been undertaken on this project during
the 3-month period.
Corporate Highlights
On 20 February 2023, the Company appointed Joseph ("Joey")
Wilkins as Chief Operating Officer. Joey is a highly-regarded
geologist with significant experience of working in Arizona and
Nevada.
On 26 January 2023, senior management of the the Company opened
trading on the TSX Venture Exchange, following the listing on
November 10, 2022.
Issuance of Stock Options
On 21 December 2022, the Company announced that is awarded a
total of 1,000,000 options to acquire ordinary shares (the
"Options") at an exercise price of GBP0.105 to its Independent
Non-Executive Directors, Euan Jenkins and Alex Borrelli . The
options are subject to the following conditions:
- Options vest immediately;
- The options have no performance or non-performance conditions attached to them;
- Are exercisable for a period of five years from date of issue; and
- The options issued to each participant should lapse upon any
participant no longer being an employee or connected person
remunerated by the Company.
Directors included in the award are detailed in the table
below:
Director Total options Total shares Total diluted percentage
awarded and held at February holding at February
held at February 28, 2023 28, 2023
28, 2023
Euan Jenkins 500,000 2,198,934 0.53%
------------------ ------------------ -------------------------
Alex Borrelli 500,000 343,329 0.17%
------------------ ------------------ -------------------------
Total 1,000,000 2,542,263 0.70%
------------------ ------------------ -------------------------
Selected Financial Information
The following table sets forth selected financial information
with respect to the Company for the years ended February 28, 2023,
and February 28, 2022. The selected financial information has been
derived from the audited financial statements for the periods
indicated. The following should be read in conjunction with the
said financial statements and related notes that are available on
the Company's website - www.braddaheadltd.com.
The annual financial statements and interim financial statements
are presented in US dollars and are prepared in accordance with
IFRS, See "Summary Financial Data" and "Currency Information".
Year ended February 28, 2023 Year ended February 28, 2022
(Audited) (Audited)
(US$) (US$)
----------------------------- -----------------------------
Statement of Operations:
----------------------------- -----------------------------
Total revenue - 2,413,228
----------------------------- -----------------------------
Total operating expenses (3,899,858) (3,521,636)
----------------------------- -----------------------------
Net finance costs - (32,832)
----------------------------- -----------------------------
Net finance income 12,270 -
----------------------------- -----------------------------
Net loss (3,887,588) (3,554,468)
----------------------------- -----------------------------
Loss per share (cents) (1.018) (2.855)
----------------------------- -----------------------------
Balance Sheet Data:
----------------------------- -----------------------------
Cash & cash equivalents 7,746,519 7,327,303
----------------------------- -----------------------------
Total assets 18,198,559 13,354,840
----------------------------- -----------------------------
Total liabilities 1,213,619 1,097,675
----------------------------- -----------------------------
Accumulated deficit ( 13,631,433 ) (11,177,220)
----------------------------- -----------------------------
Total Shareholder's Equity 16,984,940 12,257,165
----------------------------- -----------------------------
MANAGEMENT DISCUSSION AND ANALYSIS: QUARTERED FEBRUARY 28,
2023
Introduction
This interim Management Discussion and Analysis (the " interim
MD&A ") should be read in conjunction with the audited
financial statements of the Company for the year ended February 28,
2023, and related notes. This MD&A is made as of August 25,
2023.
Results of Operations for the 12-months ended February 28,
2023
The Company's net loss after tax for the 12-month period to
February 28, 2023 was US$ 3,428,194, compared to US$ 3,554,468 for
the comparative period ended February 28, 2022. The major expenses
for the three and 12-month periods ended February 28, 2023 were
operational expenses incurred on the Company's exploration projects
which have not been capitalised, and are broken down in the
respective projects as follows:
Project Expensed Exploration Expenditure
12-Month Period Ended February 28, 2023 Three-Month Period Ended February 28, 2023
(Audited) (Unaudited)
US$ US$
---------------------------------------- -------------------------------------------
Basin Project 1,241,009 276,537
---------------------------------------- -------------------------------------------
San Domingo Project 1,276,954 501,743
---------------------------------------- -------------------------------------------
Wikieup Project 128,522 13,134
---------------------------------------- -------------------------------------------
Other projects 289,616 165,067
---------------------------------------- -------------------------------------------
TOTAL 2,936,101 956,481
---------------------------------------- -------------------------------------------
During the 12-month period to February 28, 2023, the Company
incurred and capitalised exploration expenditures of US$ 3,841,146
, compared to US$ 3,621,308 for the comparative 12-month period to
February 28, 2022.
The capitalied exploration costs for the three and 12-month
periods ended February 28, 2023 have been allocated amongst the
Company's exploration projects in approximately the following
amounts:
Project Capitalisied exploration costs Capitalised expenditires for licences and
permits
12-Month Period Ended Three-Month Period 12-Month Period Ended Three-Month Period
February 28, 2023 Ended February 28, February 28, 2023 Ended February 28,
(Audited) 2023 (Audited) 2023
US$ (Unaudited) US$ (Unaudited)
US$ US$
---------------------- ---------------------- ----------------------- ----------------------
Basin Project 276,202 45,543 79,805 9,440
---------------------- ---------------------- ----------------------- ----------------------
San Domingo Project 3,078,685 1,504,406 81,165 -
---------------------- ---------------------- ----------------------- ----------------------
Wikieup Project * (207,387) - 70,455 (19,470)
---------------------- ---------------------- ----------------------- ----------------------
Other Project 130,607 - 320,198 -
---------------------- ---------------------- ----------------------- ----------------------
TOTAL 3,278,107 1,549,949 551,623 (10,030)
---------------------- ---------------------- ----------------------- ----------------------
* US$ 300,000 was moved during the period from capitalised
exploration expenditures to drilling deposits.
During the 12-month period to February 28, 2023, it was
identified that certain projects showed signs of impairment as the
relevant project licences and permits were not renewed, and thus an
impairment charge of US$ 19,470 was recognised during the year
ended 28 February 2023 relating to the Wikiuep project.
The exploration expenditures have been primarily costs
associated with drilling, assaying, resource and mining
consultants, metallurgical testing, environmental studies, project
team fees, acquisition of new leases, and annual renewal of
existing leases.
General and administrative expenses for the 12-month period to
February 28, 2023 totalled US$ 5,880,205, compared to US$ 3,459,272
for the comparative 12-month period to February 28, 2022. General
and administrative expenses are broken down as follows:
Project General and administrative expenditures
12-Month Period Ended February 28, Three-Month Period Ended February 28,
2023 2023
(Audited) (Unaudited)
US$ US$
-------------------------------------- --------------------------------------
Auditors' fees 113,173 (64,452)
-------------------------------------- --------------------------------------
Directors and management fees and
salaries 599,824 136,892
-------------------------------------- --------------------------------------
Legal and accounting 492,041 132,930
-------------------------------------- --------------------------------------
Contractor costs 2,933,852 954,232
-------------------------------------- --------------------------------------
Professional and marketing costs 1,012,171 170,183
-------------------------------------- --------------------------------------
Other administrative costs 729,144 307,899
-------------------------------------- --------------------------------------
TOTAL 5,880,205 1,637,684
-------------------------------------- --------------------------------------
During the 12-month period to February 28, 2023, there have been
no changes in financial performance or other elements that relate
to non-core buisness activities and operations.
Cash flows
During the 12-month period ended February 28, 2023, the Company
had net cash inflows of US$ 1,367,824, compared to inflows of US$
7,443,893 during the comparative 12-month period to February 28,
2022. The cashflows for the two periods are shown below:
12-Month Period Ended February 28, Three-Month Period Ended February 28,
2023 2023
(Audited) (Unaudited)
US$ US$
Statement of cashflows
-------------------------------------- --------------------------------------
Cash flows from operating activities (7,889,043) (1,442,322)
-------------------------------------- --------------------------------------
Cash flows from investing activities (3,907,318) (1,414,196)
-------------------------------------- --------------------------------------
Cash flows from financing activities 12,215,577 -
-------------------------------------- --------------------------------------
Net cash flows during the period 419,216 (2,856,518)
-------------------------------------- --------------------------------------
Cash balances at beginning of the
period 7,327,303 10,603,037
-------------------------------------- --------------------------------------
Effect of foreign exchange on cash - -
balances
-------------------------------------- --------------------------------------
Cash balances at the end of the
period 7,746,519 7,746,519
-------------------------------------- --------------------------------------
Liquidity and Capital Resources
As at February 28, 2023, the Company had cash and cash
equivalents of US$ 7,746,519, and a working capital surplus of US$
7,135,119. As of February 28, 2022, the Company had cash and cash
equivalents of US$ 7,327,303, and a working capital surplus of US$
6,327,624.
Outstanding Share Data
As of February 28, 2023, the following securities were
outstanding:
Shares 390,609,439
Warrants 81,698,305
------------
Stock options 33,031,304
------------
Fully diluted shares outstanding 505,339,048
------------
The Company's objectives when managing capital are to safeguard
its ability to continue as a going concern, so that it can continue
to provide returns for shareholders, benefits for other
stakeholders and to maintain an optimal capital structure to reduce
the cost of capital.
The capital structure of the Company includes cash and cash
equivalents, equity attributable to equity holders comprised of
contributed equity, reserves and accumulated losses. In order to
maintain or adjust the capital structure, the Company may issue new
shares, sell assets to reduce debt or adjust the level of
activities undertaken by the Company.
The Company monitors capital based on cash flow requirements for
operational, exploration and evaluation expenditures. The Company
has no debt or other borrowings as at the date of this Application.
The Company will continue to use capital market issuances to
satisfy anticipated funding requirements.
The availability of equity capital, and the price at which
additional equity could be issued, is dependent upon the success of
the Company's exploration activities, and upon the state of the
capital markets generally. Additional financing may not be
available on terms favourable to the Company or at all. If the
Company does not receive future financing, it may not be possible
for the Company to advance the exploration and development of its
mineral exploration properties. If the Company is not able to fund
these minimum expenditures, it may not be able to maintain part or
all of its mineral exploration property interests. See "Risk
Factors".
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet
arrangements.
Transactions with Related Parties
The Company has conducted transactions with officers, directors
and persons or companies related to directors or officers and paid
or accrued amounts as follows:
Edgewater Associates Limited ("Edgewater")
During the 12-month period ended February 28, 2023, Directors
and Officers insurance was obtained on an arms-length basis from
Edgewater, which is a 100% subsidiary of Manx Financial Group
("MFG"). James Mellon and Denham Eke are Directors of both the
Company and MFG.
During the period, the premium payable on the policy was US$
49,318, of which US$ 14,497 was prepaid as at the period end.
Critical Accounting Estimates
The preparation of financial statements in conformity with IFRS
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the
reporting period. Such estimates and assumptions affect the
carrying value of assets, and impact decisions as to when
exploration and development costs should be capitalized or
expensed.
As at February 28, 2023, the Company had incurred capitalised
exploration expenditures, including capitalised licence and permit
costs, of US$ 9,574,266. Changes in management's judgment as to the
prospective nature, assessment of the existence or otherwise of
economically recoverable reserves, technical feasibility and/or
commercial viability of the relevant tenements and the Company's
intentions with respect to the relevant tenements, could affect the
assessment of the recoverable amount.
The Company regularly reviews its estimates and assumptions:
however, actual results could differ from these estimates and these
differences could be material.
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plan". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, following: The Company's
objectives, goals or future plans. Factors that could cause actual
results to differ materially from such forward-looking information
include, but are not limited to: failure to identify mineral
resources; failure to convert estimated mineral resources to
reserves; delays in obtaining or failures to obtain required
regulatory, governmental, environmental or other project approvals;
political risks; future operating and capital costs, timelines,
permit timelines, the market and future price of and demand for
lithium, and the ongoing ability to work cooperatively with
stakeholders, including the local levels of government;
uncertainties relating to the availability and costs of
financing
needed in the future; changes in equity markets, inflation,
changes in exchange rates, fluctuations in commodity prices; delays
in the development of projects, capital and operating costs varying
significantly from estimates; an inability to predict and
counteract the effects of COVID-19 on the business of the Company,
including but not limited to the effects of COVID-19 on the price
of commodities, capital market conditions, restriction on labour
and international travel and supply chains; and the other risks
involved in the mineral exploration and development industry, and
those risks set out in the Company's public documents filed on
SEDARplus. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information in this
news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEASPSALLDEEA
(END) Dow Jones Newswires
August 25, 2023 02:00 ET (06:00 GMT)
Bradda Head Lithium (LSE:BHL)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Bradda Head Lithium (LSE:BHL)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
