Toronto, Ontario–(Newsfile Corp. – November 12, 2020) – GoldSpot Discoveries Corp. (TSXV: SPOT) (the “Company” or “GoldSpot“) is pleased to announce the unaudited financial results of the Company as at and for the three and nine months ended September 30, 2020 (the “Financial Results“).
Highlights for the three-month period ended September 30, 2020:
- Completed the quarter with total cash and cash equivalents and investments of $16.2 million;
- Consulting revenue of $1.6 million and net income of $3.0 million (basic earnings per share of $0.03);
- In July 2020, GoldSpot announced that Firefox Gold Corp. has engaged the Company to apply machine learning and its proprietary expertise to delineate new drill-ready targets for orogenic gold mineralization, as well as identify prospective areas regionally in Finland;
- In August 2020, GoldSpot announced that it has been engaged by AEX Gold Inc. to apply its proprietary workflows and machine learning to identify new exploration targets on AEX’s licence portfolio in southern Greenland
- In August 2020, GoldSpot announced that it was engaged by Cassiar Gold Corp. (formerly Margaux Resources Ltd.) in May 2020, to combine its proprietary machine learning techniques with the strong geoscientific framework developed for the area to help identify and rank drill targets at the Taurus property of the historic Cassiar gold camp in northern British Columbia;
- In August 2020, GoldSpot announced that it has been engaged by Tembo Gold Corp. to apply machine learning and its proprietary expertise to identify new exploration targets on Tembo’s flagship project in the Sukumaland greenstone belt, located in Tanzania;
- In September 2020, GoldSpot announced that it has been engaged by Cerrado Gold Inc. (a private exploration company) to apply machine learning and its proprietary data science expertise to identify new exploration targets on Cerrado’s Minera Don Nicolas project, located in Santa Cruz, Argentina;
- In September 2020, GoldSpot’s client Quebec Precious Metals Corp. announced that it has successfully discovered a new polymetallic gold-rich vein system within one of GoldSpot’s high-priority targets at the Elmer East project located in James Bay, Quebec;
- In September 2020, GoldSpot’s client New Found Gold Corp. announced that it has commenced drilling on the Keats discovery zone at its Queensway project, central Newfoundland to follow up on the intercept of 19 m of 92.9 grams per tonne gold starting at 96 m drilled in hole NFGC-19-01 by New Found Gold Corp. in late 2019. GoldSpot owns shares in New Found Gold Corp. and a 0.5% royalty on the project.
Highlights for the nine-month period ended September 30, 2020:
- An increase of 108% in consulting revenue to $3.5 million and net income of $5.9 million for the nine months ended September 30, 2020;
For the quarter ended September 30, 2020, GoldSpot’s consulting revenue was $1,586,121, an increase of 111% from the same period in the previous year quarter, while total expenses were $1,549,831. With the normalization of operations, the company has achieved its goal of ensuring all G&A and R&D is covered by its consulting revenue.
The increase in expenses is due to the accelerated ramp-up in both personnel and R&D to meet current and projected market demand. Moving forward, GoldSpot aims to increase margins by becoming more efficient in its work processes and the continued rollout of high-impact products, including the Exploration Kickstarter Package and LithoLens, a Deep Learning enabled tool which extracts geological data from drill core images and down-hole Optical Televiewer data.
Revenue & Expenses – Quarter to Quarter
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For the quarter ended September 30, 2020, GoldSpot’s net income of $2,962,300 was primarily due to consulting income of $1,586,121 and net investment gains of $2,924,514 offset by operating expenses. The net investment gains was due to the continued exploration success within the Company’s portfolio as well as favorable macro conditions. As at September 30, 2020, GoldSpot’s cash and investment was $16,190,302 as compared to $9,634,317 as at December 31, 2019, an increase of 68%.
Cash & Investment Growth – Quarter to Quarter
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The following are selected unaudited financial results as at and for the three and nine months-ended September 30, 2020 with comparatives:
|Three months ended
|Nine months ended
|Net investment gains||2,924,514||(13,625)||6,486,988||332,625|
|Operating, general and administrative1||(1,542,105)||(1,186,885)||(4,077,134)||(5,343,678)|
|Net income (loss) and comprehensive income (loss) for the period||2,962,300||(1,362,253)||5,861,941||(4,145,711)|
|Earnings (loss) per common share for the period – basic and diluted||0.03||(0.01)||0.06||(0.05)|
1The nine months ended September 30, 2019 includes $1,931,983 in non-recurring listing fees.
|Statement of financial position highlights||September 30, 2020||December 31, 2019|
|Cash and cash equivalents||$||5,053,832||$ 4,762,213|
|Investments, at fair value||11,136,470||4,872,104|
About GoldSpot Discoveries Corp.
GoldSpot Discoveries Corp. (TSXV: SPOT) is a technology services company in mineral exploration. GoldSpot is a leading team of expert scientists who merge geoscience and data science to deliver bespoke solutions that transform the mineral discovery process. In the race to make discoveries, GoldSpot produces Smart Targets and advanced geological modelling that saves times, reduces costs and provides accurate results.
For further information please contact:
Denis Laviolette,Executive Chairman and President
GoldSpot Discoveries Corp.
Cautionary Statement on Forward -Looking Information
Neither the TSX Venture Exchange (“TSXV”) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that 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, uncertainty over the outcome of any litigious matters, the Company’s objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects 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 SEDAR. 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.