Robex Resources Inc. — Interim / Quarterly Report 2021

Aug 27, 2021

Condensed Interim Consolidated Financial Statements (unaudited) Second quarter ended June 30, 2021

TABLE OF CONTENTS

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Interim Consolidated Statements of Income
Interim Consolidated Statements of Comprehensive Income
Interim Consolidated Statements of Changes in Equity
Interim Consolidated Statements of Financial Position
Interim Consolidated Statements of Cash Flows
Notes to Condensed Interim Consolidated Financial Statements
1 ‐ Nature of Operations
2 ‐ Basis of Presentation
3 ‐ Significant Accounting Policies
4 ‐ Critical Accounting Estimates and Judgements
5 ‐ Segmented Information
6 ‐ Mining Operation Expenses
7 ‐ Administrative Expenses
8 ‐ Inventories
9 ‐ Accounts Receivable
10 ‐ Mining Properties
11 ‐ Property, Plant and Equipment
12 ‐ Accounts Payable
13 ‐ Long‐Term Debt and Lines of Credit
14 ‐ Share capital
15 ‐ Additional Information on the Interim Consolidated Statements of Cash Flows
16 ‐ Earnings per Share
17 ‐ Financial Instruments

INTERIM CONSOLIDATED STATEMENTS OF INCOME (all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)		Second quarters ended June 30,		First halves ended June 30,
	2021	2020	2021	2020
	\$	\$	\$	\$
REVENUE ‐ GOLD SALES	26,051,036	15,713,786	52,291,743	46,577,556
COSTS OF OPERATIONS				20 55
Mining operation expenses ‐ note 6	9,545,044	4,098,286	19,388,791	12,304,169
Administrative expenses ‐ note 7	3,478,840	4,023,951	7,193,246	7,042,544
Depreciation of property, plant and equipment and amortization of intangible assets	3,206,370	6,775,292	5,854,007	14,178,398
Stock‐based compensation expense		‐‐‐ 573,791		‐‐‐ 573,791
OPERATING INCOME	9,820,782	242,466	19,855,699	12,478,654
OTHER EXPENSES (INCOME)				# #
Financial expenses	221,220	279,270	410,250	605,590
Foreign exchange loss (gain)		(114,369) (313,757) (220,097) 59,025
Other income		(28,912) (19,381) (47,242) (29,735)
INCOME BEFORE INCOME TAX EXPENSE	9,742,843	296,334	19,712,788	11,843,774 #
Income tax expense (recovery)
Current	582,004	209,611	1,122,617	432,706
Deferred	(304,095) 231,373		(697,766)	1,841,384
	277,909	440,984	424,851	2,274,090
NET INCOME (LOSS) FOR THE PERIOD	9,464,934	(144,650)	19,287,937	9,569,684
ATTRIBUTABLE TO
Common shareholders	9,395,284	337,917	19,104,872	10,004,151 #
Non‐controlling interest	69,650	(482,567) 183,065		(434,467)
	9,464,934	(144,650)	19,287,937	9,569,684
EARNINGS PER SHARE ‐ note 16
Basic	0.016	0.001	0.032	0.017
Diluted	0.016	0.001	0.032	0.017

INTERIM CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME (LOSS)		Second quarters		First halves
(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)		ended June 30,		ended June 30,
	2021	2020	2021	2020
	\$	\$	\$	\$
NET INCOME (LOSS) FOR THE PERIOD	9,464,934	(144,650)	19,287,937	9,569,684
Other comprehensive income (loss)
Item that may be reclassified subsequently to net income
Exchange difference		(617,875) (1,753,132) (6,510,294)		4,466,099
COMPREHENSIVE INCOME (LOSS)	8,847,059	(1,897,782)	12,777,643	14,035,783
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
Common shareholders	8,781,712	(1,406,563)	12,631,918	14,439,871
Non‐controlling interest	65,347	(491,219) 145,725		(404,088)
	8,847,059	(1,897,782)	12,777,643	14,035,783

INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

			Co ha ho l de m mo n s re	rs
	ha l S ita re ca p	Re se rve ‐ k o ion sto t c p s	d e Re ine ing ta ar n s ( f ) de ic it	lat d o he Ac t cu m e r u he ive co m p re ns ( los ) inc om e s	l To ta	l l No ing nt n‐ co ro int t er es	l To ta ity eq u
lan be Ba De 3 1, 2 0 1 9 at ce as ce m r	6 6, 8 5 0, 7 0 4	4, 1 8 5, 2 1 4	( ) 8 5 9, 2 8 8	1, 7 7 8, 4 9 4	7 1, 9 5 5, 1 2 4	7 2 4, 3 4 4	7 2, 6 7 9, 4 6 8
( los ) fo he d Ne inc io t r t om e s p er	‐‐ ‐	‐‐ ‐	1 0, 0 0 4, 1 5 1	‐‐ ‐	1 0, 0 0 4, 1 5 1	( ) 4 3 4, 4 6 7	9, 5 6 9, 6 8 4
he he Ot ive inc r c om p re ns om e	‐‐ ‐	‐‐ ‐	‐‐ ‐	4, 4 3 5, 7 2 0	4, 4 3 5, 7 2 0	3 0, 3 7 9	4, 4 6 6, 0 9 9
( ) Co he ive inc los fo he io d r t m p re ns om e s p er	‐‐ ‐	‐‐ ‐	0, 0 0 1 4, 1 5 1	3 2 0 4, 4 5, 7	3 9, 8 1 4, 4 7 1	( ) 0 0 8 8 4 4,	0 3 8 3 1 4, 5, 7
de d D iv i n	‐‐ ‐	‐‐ ‐	( ) 1 1, 6 0 5, 1 9 1	‐‐ ‐	( ) 1 1, 6 0 5, 1 9 1	‐‐ ‐	( ) 1 1, 6 0 5, 1 9 1
k o d du he d St ion ise ing io t t oc p s e xe rc r p er	1, 8 6 5, 3 1 2	( ) 7 4 1, 8 1 2	‐‐ ‐	‐‐ ‐	1, 1 2 3, 5 0 0	‐‐ ‐	1, 1 2 3, 5 0 0
k o ha d t St ion t oc p s c rg e o e xp en se du he d ing io t r p er	‐‐ ‐	5 7 3, 7 9 1	‐‐ ‐	‐‐ ‐	5 7 3, 7 9 1	‐‐ ‐	5 7 3, 7 9 1
lan Ju 3 0, 2 0 2 0 Ba at ce as ne	6 8, 1 6, 0 1 6 7	4, 0 1 1 9 3 7,	( ) 2, 4 6 0, 3 2 8	6, 2 1 4, 2 1 4	6, 4 8 0 9 7 7, 5	3 2 0, 2 6 5	6, 8 0 3 1 7 7, 5
lan be Ba De 3 1, 2 0 2 0 at ce as ce m r	7 1, 2 6 9, 4 0 2	3, 0 8 1, 5 8 6	8, 2 1 1, 8 3 3	7, 5 7 6, 9 3 5	9 0, 1 3 9, 7 5 6	1, 0 9 9, 7 6 3	9 1, 2 3 9, 5 1 9
fo he inc io d Ne t r t om e p er	‐‐ ‐	‐‐ ‐	1 9, 1 0 4, 8 2 7	‐‐ ‐	1 9, 1 0 4, 8 2 7	1 8 3, 0 6 5	1 9, 2 8 9 3 7, 7
Ot he he ive los r c om p re ns s	‐‐ ‐	‐‐ ‐	‐‐ ‐	( ) 6, 2, 9 4 7 5 4	( ) 6, 2, 9 4 7 5 4	( ) 3 3 0 7, 4	( ) 6, 0, 2 9 5 1 4
he ( los ) fo he d Co ive inc io r t m p re ns om e s p er	‐‐ ‐	‐‐ ‐	1 9, 1 0 4, 8 7 2	( ) 6, 4 7 2, 9 5 4	1 2, 6 3 1, 9 1 8	1 4 5, 7 2 5	1 2, 7 7 7, 6 4 3
k o d du he d St ion ise ing io t t oc p s e xe rc r p er	1 3 7, 6 4 5	( ) 5 3, 9 7 5	‐‐ ‐	‐‐ ‐	8 3, 6 7 0	‐‐ ‐	8 3, 6 7 0
lan 3 0, 2 0 2 Ba Ju 1 at ce as ne	0 0 7 1, 4 7, 4 7	3, 0 2 6 7, 1 1	2 3 6, 0 7, 1 7 5	0 3, 9 8 1, 1 1	0 2, 8 3 1 5 5, 4 4	2 8 8 1, 4 5, 4	0 0 0, 8 3 2 1 4, 1

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

	\$	\$
ASSETS
CURRENT ASSETS
Cash	10,153,615	8,895,854 1
Inventories ‐ note 8	13,463,001	13,316,488
Accounts receivable ‐ note 9	4,875,110	3,754,189 3
Prepaid expenses	652,499	175,943
Deposits paid	1,336,226	2,012,030
	30,480,451	28,154,504
VAT RECEIVABLE	3,924,145	3,346,714
MINING PROPERTIES ‐ note 10	9,072,432	7,935,245
PROPERTY, PLANT AND EQUIPMENT ‐ note 11	85,293,434	77,259,852 41
INTANGIBLE ASSETS	68,717	77,882
	128,839,179	116,774,197
LIABILITIES
CURRENT LIABILITIES
Lines of credit ‐ note 13	963,785	1,086,599
Accounts payable ‐ note 12	13,819,266	13,765,622
Current portion of long‐term debt ‐ note 13	5,614,197	4,288,403 51
Current portion of lease obligations	117,389	202,056
	20,514,637	19,342,680
LONG‐TERM DEBT ‐ note 13	1,245,521	2,211,700
ENVIRONMENTAL LIABILITIES	365,893	423,702
LEASE OBLIGATIONS	38,028	99,495
DEFERRED INCOME TAX	2,574,268	3,457,101
	24,738,347	25,534,678
EQUITY
Share capital ‐ note 14	71,407,047	71,269,402
Reserve ‐ stock options	3,027,611	3,081,586
Retained earnings	27,316,705	8,211,833
Accumulated other comprehensive income	1,103,981	7,576,935
	102,855,344	90,139,756 61
Non‐controlling interest	1,245,488	1,099,763 62
	104,100,832	91,239,519
	128,839,179	116,774,197

INTERIM CONSOLIDATED STATEMENTS
OF CASH FLOWS		Second quarters		First halves
(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)		ended June 30,		ended June 30,
	2021	2020	2021	2020
	\$	\$	\$	\$
CASH FLOWS FROM THE FOLLOWING ACTIVITIES
Operating
Net income (loss) for the period	9,464,934	(144,650)	19,287,937	9,569,684
Adjustments for
Financial expenses	221,220	279,270	410,250	605,590
Depreciation of property, plant and equipment and amortization
of intangible assets	3,206,370	6,775,292	5,854,007	14,178,398
Deferred income tax expense (recovery)	(304,095) 231,373		(697,766)	1,841,384
Stock‐based compensation expense		‐‐‐ 573,791		‐‐‐ 573,791
Net changes in non‐cash working capital items ‐ note 15	(1,788,031) (6,037,602) (1,134,881) (6,780,283)
Variation in VAT receivable	(4,977)		‐‐‐ (577,431)	‐‐‐
Paid interest ‐ note 15	(196,002) (257,129) (363,257) (561,596)
	10,599,419	1,420,345	22,778,859	19,426,968
Investing
Variation in deposits paid	(138,950) (426,706) 568,787			(788,372)
Acquisition of mining properties	(809,532) (194,759) (1,621,691) (317,009)
Acquisition of property, plant and equipment	(9,402,172) (3,988,897) (20,000,961) (9,646,228)
Acquisition of intangible assets	(3,700)		‐‐‐ (3,700)	‐‐‐
	(10,354,354) (4,610,362) (21,057,565) (10,751,609)
Financing
Long‐term debt contracted	2,240,846	‐‐‐	2,982,895	‐‐‐
Repayment of long‐term debt	(1,248,065) (1,926,934) (2,271,533) (4,444,861)
Dividends paid		‐‐‐ (11,605,191)		‐‐‐ (11,605,191)
Variation in lines of credit	898,714	(41,378) (128,781)		‐‐‐
Payments of lease obligations	(38,389) (84,007) (77,779) (146,395)
Issue of common shares	33,670	1,123,500	83,670	1,123,500
	1,886,776	(12,534,010) 588,472		(15,072,947)
Effect of exchange rate changes on cash	(197,385) (507,819) (1,052,005)			1,828,542
Increase (decrease) in cash	1,934,456	(16,231,846)	1,257,761	(4,569,046)
Cash at the beginning of the period	8,219,159	25,261,800	8,895,854	13,599,000
Cash at the end of the period	10,153,615	9,029,954	10,153,615	9,029,954

Tax paid ‐‐‐ 805,877 691,194 960,918

Additional information (note 15)

1 - NATURE OF OPERATIONS

Robex Resources Inc. (the "Company") is a junior Canadian operations and exploration mining company. The Company has entered into commercial operation on its Nampala deposit, located on the Mininko permit, on January 1, 2017. In addition to its operational mining activities, the Company holds four exploration permits, all located in Mali, West Africa. These permits all demonstrate a favourable geology with a potential for the discovery of gold deposits. The head office's address is 437 Grande Allée Est, Québec (Quebec), G1R 2J5, Canada.

2 - BASIS OF PRESENTATION

These condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB").

The accounting policies followed in these condensed interim consolidated financial statements are consistent with those applied in the Company's annual audited financial statements for the year ended December 31, 2020. These condensed interim consolidated financial statements should be read in conjunction with the Company's annual audited financial statements for the year ended December 31, 2020, which have been prepared in accordance with IFRS as issued by the IASB.

These condensed interim consolidated financial statements were approved by the Board of Directors for issue on August 27, 2021.

3 - SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies are described in our annual audited consolidated financial statements for the year ended December 31, 2020.

4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

A global pandemic related to COVID‐19 was declared by the World Health Organization in March 2020, resulting in adjustments to the Company's operating procedures. To date, its operations have not been significantly impacted. The current and expected repercussions on global commerce have been and will continue to be far‐reaching. To date, there has been significant volatility in commodity prices and foreign exchange rates around the world. In addition, many restrictions have been implemented, including travel restrictions and supply chain disruptions. As of the date of publication of these condensed interim consolidated financial statements, there is significant ongoing global uncertainty surrounding COVID‐19 and the extent and duration of the impact it may have. Thereby, it is not possible to reliably estimate either the length or the severity of these developments and their impact on the Company's financial results, financial situation and cash flows.

5 - SEGMENTED INFORMATION

The Company conducts its operating and exploration activities in Mali. The operational sectors presented reflect the Company's management structure and how the Company's principal operational decision‐maker assesses business performance. The Company evaluates the performance of its operating sectors primarily based on operating income (loss), as shown in the following tables.

				Quarter ended June 30, 2021
	Operations (Nampala, Mali)	Explorations (Mali)	Corporate management	\$ Total
REVENUE ‐ GOLD SALES	26,051,036	‐‐‐	‐‐‐	26,051,036
Mining operation expenses ‐ note 6	8,892,791	‐‐‐	‐‐‐	8,892,791
Mining royalties ‐ note 6	652,253	‐‐‐	‐‐‐	652,253
Administrative expenses ‐ note 7	2,196,290	3,186	1,279,364	3,478,840
Depreciation of property, plant and equipment and amortization of intangible assets	3,190,578	‐‐‐	15,792	3,206,370
OPERATING INCOME (LOSS)	11,119,124	(3,186)	(1,295,156)	9,820,782

Quarter ended June 30, 2020

				\$
	Operations	Explorations	Corporate	Total
	(Nampala, Mali)	(Mali)	management
REVENUE ‐ GOLD SALES	15,713,786	‐‐‐	‐‐‐	15,713,786
Mining operation expenses ‐ note 6	3,727,894	‐‐‐	‐‐‐	3,727,894
Mining royalties ‐ note 6	370,392	‐‐‐	‐‐‐	370,392
Administrative expenses ‐ note 7	2,550,347	363	1,473,241	4,023,951
Depreciation of property, plant and equipment and amortization of intangible assets	6,759,307	‐‐‐	15,985	6,775,292
Stock‐based compensation expense	‐‐‐	‐‐‐	573,791	573,791
OPERATING INCOME (LOSS)	2,305,846	(363)	(2,063,017)	242,466

5 - SEGMENTED INFORMATION - (continued)

				Half ended June 30, 2021
				\$
	Operations	Explorations	Corporate	Total
	(Nampala, Mali)	(Mali)	management
REVENUE ‐ GOLD SALES	52,291,743	‐‐‐	‐‐‐	52,291,743
Mining operation expenses ‐ note 6	18,080,312	‐‐‐	‐‐‐	18,080,312
Mining royalties ‐ note 6	1,308,479	‐‐‐	‐‐‐	1,308,479
Administrative expenses ‐ note 7	4,440,028	7,550	2,745,668	7,193,246
Depreciation of property, plant and equipment and amortization of intangible assets	5,822,422	‐‐‐	31,585	5,854,007
OPERATING INCOME (LOSS)	22,640,502	(7,550)	(2,777,253)	19,855,699
TOTAL ASSETS AS AT JUNE 30, 2021	114,680,446	9,686,915	4,471,818	128,839,179

Half ended June 30, 2020

	Operations (Nampala, Mali)	Explorations (Mali)	Corporate management	\$ Total
REVENUE ‐ GOLD SALES	46,577,556	‐‐‐	‐‐‐	46,577,556
Mining operation expenses ‐ note 6	11,163,460	‐‐‐	‐‐‐	11,163,460
Mining royalties ‐ note 6	1,140,709	‐‐‐	‐‐‐	1,140,709
Administrative expenses ‐ note 7	4,200,241	2,936	2,839,367	7,042,544
Depreciation of property, plant and equipment and amortization of intangible assets	14,146,428	‐‐‐	31,970	14,178,398
Stock‐based compensation expense	‐‐‐	‐‐‐	573,791	573,791
OPERATING INCOME (LOSS)	15,926,718	(2,936)	(3,445,128)	12,478,654
TOTAL ASSETS AS AT DECEMBER 31, 2020	103,091,813	8,167,877	5,514,507	116,774,197

The Company's proceeds come from one client. The Company does not economically depend on a limited number of buyers for the sale of gold, as gold can be sold through many commodity traders around the world.

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

6 - MINING OPERATION EXPENSES		Second quarters ended June 30,		First halves ended June 30,
	2021	2020	2021	2020
	\$	\$	\$	\$
Operating and maintenance supplies and service	8,774,882	4,444,340	17,587,493	9,811,938
Fuel	3,512,806	2,398,515	7,465,352	5,473,234
Reagents	1,039,722	1,264,009	2,265,842	2,795,775
Employee benefit expenses	1,354,510	1,385,199	2,676,630	2,524,477
Inventory change	585,359	(3,635,034)	1,085,071	(4,266,600)
Less: Production expenses capitalized as stripping cost	(6,585,709)		(2,293,177) (13,427,641)	(5,547,641)
Delivery costs	211,221	164,042	427,565	372,277
Total production costs	8,892,791	3,727,894	18,080,312	11,163,460
Mining royalties	652,253	370,392	1,308,479	1,140,709
	9,545,044	4,098,286	19,388,791	12,304,169

7 - ADMINISTRATIVE EXPENSES		Second quarters ended June 30,		First halves ended June 30,
	2021	2020	2021	2020
	\$	\$	\$	\$
Operations and explorations	2,199,476	2,550,710	4,447,578	4,203,177
Corporation management	1,279,364	1,473,241	2,745,668	2,839,367
	3,478,840	4,023,951	7,193,246	7,042,544

Salary related amounts of \$399,074 and \$103,741, respectively, are included in the "Operations and explorations" item and in the "Corporate management" item for the quarter ended June 30, 2021 (\$613,194 and \$103,616, respectively, for the quarter ended June 30, 2020) and of \$795,332 and \$254,250 for the half ended June 30, 2021 (\$951,092 and \$204,930, respectively, for the half ended June 30, 2020).

8 - INVENTORIES		As at June 30, As at December 31,
	2021	2020
	\$	\$
Doré bars in production	3,176,961	4,648,288
Supplies and spare parts	9,930,816	8,437,106
Stacked ore	355,224	231,094
	13,463,001	13,316,488

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

9 - ACCOUNTS RECEIVABLE As at June 30, As at December 31,

	2021	2020
	\$	\$
VAT receivable	4,487,733	3,355,503
Other taxes receivable	378,270	381,448
Other receivables	9,107	17,238
	4,875,110	3,754,189

10 - MINING PROPERTIES

	Mininko	Sanoula	Kamasso	Diangounté
Undivided interest	100%	100%	100%	100%	Total
Mining rights and titles					\$
Balance as at December 31, 2020	147,080	240,645	23,944	51,288	462,957
Acquisition costs	‐‐‐	‐‐‐	18,085	28,262	46,347
Exchange rate changes	(8,565)	(14,015) (1,394) (3,510) (27,484)
Balance as at June 30, 2021	138,515	226,630	40,635	76,040	481,820
Exploration costs
Balance as at December 31, 2020	5,147,469	1,384,766	868,859	71,194	7,472,288
Expenses incurred	1,268,566	292,514	‐‐‐	19,887	1,580,967
Amortization	4,336	2 335	‐‐‐		‐‐‐ 6,671
Exchange rate changes	(330,561)	(83,865)	(50,603)	(4,285)	(469,314)
Balance as at June 30, 2021	6,089,810	1,595,750	818,256	86,796	8,590,612
Total:
As at December 31, 2020	5,294,549	1,625,411	892,803	122,482	7,935,245
As at June 30, 2021	6,228,325	1,822,380	858,891	162,836	9,072,432

11 - PROPERTY, PLANT AND EQUIPMENT

			Equipment
	Mining	Buildings	related to	Tools,
	development	and office	mining	equipment	Exploration
	costs	development	explorations	and vehicles	equipment	Total
Cost						\$
Balance as at December 31, 2020	25,681,948	12,985,292	115,857,012	4,254,745	762,357	159,541,354
Acquisition costs	1,996,217	1,242,634	15,033,817	572,484	‐‐‐	18,845,152
Changes in right‐of‐use asset	‐‐‐	‐‐‐	‐‐‐	(116,087)		‐‐‐ (116,087)
Exchange rate changes	(1,498,318)	(759,083)	(6,779,742) (249,267) (44,399) (9,330,809)
Balance as at June 30, 2021	26,179,847	13,468,843	124,111,087	4,461,875	717,958	168,939,610
Accumulated depreciation
Balance as at December 31, 2020	9,242,146	5,061,851	65,411,042	1,868,079	698,384	82,281,502
Depreciation	581,532	546,814	4,746,778	345,433	6,671	6,227,228
Changes in right‐of‐use asset	‐‐‐	‐‐‐	‐‐‐	(58,044)	‐‐‐	(58,044)
Exchange rate changes	(537,275)	(296,357)	(3,820,594) (109,477) (40,807) (4,804,510)
Balance as at June 30, 2021	9,286,403	5,312,308	66,337,226	2,045,991	664,248	83,646,176
Net amounts:
As at December 31, 2020	16,439,802	7,923,441	50,445,970	2,386,666	63,973	77,259,852
As at June 30, 2021	16,893,444	8,156,535	57,773,861	2,415,884	53,710	85,293,434
Not depreciated
as at June 30, 2021 (1)	7,086,226	1,785,605	3,367,215	‐‐‐	‐‐‐	12,239,046

(1) Property, plant and equipment with a book value of \$12,239,046 are not depreciated because they are either under development or construction, or not installed as at June 30, 2021 (\$11,167,775 as at December 31, 2020).

12 - ACCOUNTS PAYABLE		As at June 30, As at December 31,
	2021	2020
	\$	\$
Suppliers	12,241,213	9,770,197
Accrued interest	6,993	16,716
Due to the state	226,692	365,640
Other payables	1,344,368	1,295,282
Accounts payables to a shareholder‐owned company	‐‐‐	2,317,787
	13,819,266	13,765,622

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

13 - LONG-TERM DEBT AND LINES OF CREDIT		As at June 30, As at December 31,
	2021	2020
	\$	\$
Bank loan in the amount of \$11,549,531 (5,000,000,000 CFA francs), annual interest of 7%, secured by a first mortgage on land on the operating permit for gold and minerals in the region of Nampala. This loan is repayable in monthly instalments of \$268,418 (119,784,353 CFA francs) including capital and interest, until August 2022 inclusively. (1)	3,598,441	5,365,654
Bank loan in the amount of \$3,451,370 (1,500,000,000 CFA francs), annual interest of 7%, secured by a third mortgage on land on the operating permit for gold and minerals in the region of Nampala. This loan is repayable in quarterly instalments of \$280,106 (125,000,000 CFA francs) plus interest, until October 2021 inclusively. (1)	560,212	1,189,711
Bank loan in the amount of \$701,937 (300,000,000 CFA francs), annual interest of 7.5%, secured with a pledge on the mobile equipment financed. This loan is repayable in monthly instalments of \$20,615 (9,199,798 CFA francs) including capital and interest, until March 2024 inclusively.	605,461	‐‐‐
Bank loan in the amount of \$69,726 (29,800,000 CFA francs), annual interest of 7.5%, secured with a pledge on the mobile equipment financed. This loan is repayable in monthly instalments of \$2,048 (913,846 CFA francs) including capital and interest, until March 2024 inclusively.	60,142	‐‐‐
Bank loan in the amount of \$2,245,420 (1,000,000,000 CFA francs), annual interest of 8%, secured by a third mortgage on land on the operating permit for gold and minerals in the region of Nampala. This loan is repayable in monthly instalments of \$197,170 (87,988,866 CFA francs) including capital and interest, until May 2022 inclusively.	2,061,835	‐‐‐
	6,886,091	6,555,365
Less: Capitalized financing fees in the amount of \$291,011 (122,263,500 CFA francs)	(26,373)	(55,262)
	6,859,718	6,500,103
Less: Current portion of long‐term debt	(5,614,197)	(4,288,403)
	1,245,521	2,211,700

(1) Under these obligations, the Company is commited to complying annually with certain conditions and financial ratios.

Lines of credit		As at June 30, As at December 31,
	2021	2020
	\$	\$
Authorized line of credit from a Malian bank for a maximum amount of \$1,191,466 (500,000,000 CFA francs), bearing interest at an annual rate of 8%, expired on July 31, 2021 and being renewed.	791,085	1,086,599
Authorized line of credit from a Malian bank for a maximum amount of \$2,274,387 (1,000,000,000 CFA francs), bearing interest at an annual rate of 8%, due on April 6, 2022.	172,700	‐‐‐
	963,785	1,086,599

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

14 - SHARE CAPITAL As at June 30, As at December 31, 2021
	2020
\$	\$
Issued and fully paid
599,878,403 common shares
(December 31, 2020 ‐ 599,119,403 common shares) 71,407,047 71,269,402

During the six‐month period ended June 30, 2021, the Company issued 759,000 shares following the exercise of stock options for a cash consideration of \$83,670. The value of options exercised that was reclassified to the share capital is \$137,645.

- ADDITIONAL INFORMATION ON THE INTERIM 15 CONSOLIDATED STATEMENTS OF CASH FLOWS		Second quarters ended June 30,		First halves ended June 30,
	2021 \$	2020 \$	2021 \$	2020 \$
a) Net changes in non‐cash working capital items
Decrease (increase) in current assets
Accounts receivable	(697,876)	(1,107,913)	(1,574,048)	(1,477,517)
Inventories	(818,036)		(5,814,767) (922,485)	(5,696,948)
Prepaid expenses			(289,000) (210,903) (487,112) (350,677)
Deposits paid	218,718	240,768		(6,381) (554,061)
	(1,586,194)	(6,892,815)	(2,990,026)	(8,079,203)
Increase (decrease) in current liabilities
Accounts payable	(201,837)	855,213	1,855,145	1,298,920
	(1,788,031)	(6,037,602)	(1,134,881)	(6,780,283)
b) Paid interest
Lines of credit		(46,826) (162) (48,854)		(3,281)
Long‐term debt			(118,777) (211,394) (231,458) (459,492)
Lease obligations	(2,247)	(8,513)	(5,052)	(12,214)
Bank charges	(28,152)	(37,060)	(77,893)	(86,609)
			(196,002) (257,129) (363,257) (561,596)
c) Items not affecting cash related to investing activities
Change in accounts payable related to property, plant and
equipment	632,401	(104,454)	1,101,501	(78,549)

(all amounts are in Canadian dollars unless otherwise indicated ‐ unaudited)

	Second quarters ended June 30,		First halves ended June 30,
2021 \$	2020 \$	2021 \$	2020 \$
9,395,284	337,917	19,104,872	10,004,151
599,687,711	582,777,059	599,594,077	581,525,267
4,631,913	12,736,628	4,800,474	11,604,020
604,319,624	595,513,687	604,394,551	593,129,287
0.016	0.001	0.032	0.017 0.017
	0.016	0.001	0.032

(1) The calculation of the hypothetical conversions excludes options whose effect is anti‐dilutive. Some stock options are anti‐dilutive either because their price is higher than the average price of the Company's common shares for each of the periods presented or because the impact of the conversion of these elements on net income would result in diluted earnings per share exceeding the basic earnings per share for each of these periods. For the quarter ended June 30, 2021, no stock option is excluded in the diluted net earnings per share calculation (no stock options for the quarter ended June 30, 2020). For the half ended June 30, 2021, no stock options is excluded in the diluted net earning per share calculation (no stock options for the half ended June 30, 2020).

17 - FINANCIAL INSTRUMENTS

Measurement categories

Financial assets and financial liabilities have been classified into categories that determine their basis of measurement and, for items measured at fair value, whether changes in fair value are recognized in the consolidated statement of income or in the consolidated statement of comprehensive income (loss). These categories are: assets and liabilities at FVTPL and financial assets and liabilities at amortized cost. The following table shows the carrying amounts of assets and liabilities for each of these categories:

		As at June 30, As at December 31,
	2021	2020
	\$	\$
Financial assets at amortized cost
Cash	10,153,615	8,895,854
Accounts receivable	9,107	17,238
Deposits paid	1,336,226	2,012,030
	11,498,948	10,925,122
Financial liabilities at amortized cost
Accounts payable	13,592,574	13,399,981
Lines of credit	963,785	1,086,599
Long‐term debt	6,859,718	6,500,103
Lease obligations	155,417	301,551
	21,571,494	21,288,234

17 - FINANCIAL INSTRUMENTS - (continued)

Market risk

Fair value

The carrying amounts of financial assets at amortized cost approximate their fair value due to their short‐term maturity and the prevailing interest rates of these instruments, which are comparable to those of the market.

The Company considers that the carrying amount of all its financial liabilities at amortized cost in its consolidated financial statements approximates their fair value. Current financial assets and financial liabilities are valued at their carrying amounts, which are reasonable estimates of their fair value due to their near‐term maturities. The fair value of long‐term debt has not been determined due to the related specific conditions negotiated between the Company and the third parties concerned.