INTERIM UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2020 AND 2019
(Expressed in Canadian dollars)
NOTES TO THE INTERIM UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in Canadian dollars)
NOTE 1. NATURE OF OPERATIONS AND GOING CONCERN
Antioquia Gold Inc. (“Antioquia” or the “Company”) was formed by way of amalgamation on April 25, 1997 and continued under the laws of British Columbia on March 24, 2016. The registered address of Antioquia is 2800 Park Place, 666 Burrard St., Vancouver, BC, V6C 2Z7. The Company is listed on the TSX Venture Exchange (“TSX-V”) under the symbol “AGD”. The Company trades on the OTCQX pink sheets, under the symbol “AGDXF”.
The Company’s primary focus is the operation of its Cisneros underground gold mine located outside Medellin Colombia. Commercial production was declared at the Cisneros mine on March 1, 2019.
These interim unaudited condensed consolidated financial statements have been prepared using International Financial Reporting Standards (“IFRS”) applicable to a going concern, which assumes continuity of operations and realization of assets and settlement of liabilities in the normal course of business for the foreseeable future, which is at least, but not limited to, one year from March 31, 2020. At March 31, 2020, the Company had a cumulative deficit of $60,874,740 (December 31, 2019 – $56,101,202), and a working capital deficit of $126,639,328 (December 31, 2019 – working capital deficit of $111,488,075). The Company’s ability to continue as a going concern is dependent upon its ability to achieve profitable operations, generate sufficient funds and/or continue to obtain sufficient capital from investors to meet its current and future obligations. The recoverability of amounts shown for property and equipment is dependent on future profitable operations or proceeds from disposition of mineral interests. As a result of these risks, there is material uncertainty which may cast significant doubt as to the appropriateness of the going concern assumption. There is no assurance that the Company’s initiatives will continue to be successful. These interim unaudited condensed consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and consolidated statements of financial position classifications that would be necessary if the going concern assumption was inappropriate. These adjustments could be material.
NOTE 2. BASIS OF PRESENTATION
Basis of compliance
These interim unaudited condensed consolidated financial statements are presented in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Accounting policies are consistently applied to all periods presented, unless otherwise stated.
The interim unaudited condensed consolidated financial statements of the Company for the period ended March 31, 2020 were approved and authorized for issue by the Board of Directors on July 09, 2020.
Basis of presentation
The interim unaudited condensed consolidated annual financial statements have been prepared using the measurement bases specified by IFRS for each type of asset, liability, income and expense. Measurement bases are more fully described in the accounting policies below.
The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively. The critical judgments and estimates applied in the preparation of the Company’s interim unaudited condensed consolidated financial statements are consistent with those applied and disclosed in Note 2 and are discussed below.
Certain comparative information has been reclassified to conform to current year’s presentation.
Basis of consolidation
The interim unaudited condensed consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company. Control is achieved when the Company is exposed to variable returns and has the ability to affect those returns through power to direct the relevant activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Company controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. Subsidiaries will be de-consolidated from the date that control ceases.