Grounded Lithium Reports First Quarter 2024 Financial and Operating Results
Grounded Lithium Corp. (OTCQB: GRDAF) reported its financial and operating results for Q1 2024. Key highlights include a net comprehensive loss of CAD 507,607, a significant improvement from the CAD 1,682,288 loss reported in Q1 2023. The company also announced entering into agreements with Denison Mines Corp., which are expected to fund a field pilot for the KLP project. Operating cash flow used was CAD 411,756, down from CAD 1,730,836 in the same period last year. Capital expenditures saw a disposition of CAD 800,000. The company's working capital surplus was CAD 303,222, down from CAD 890,061 a year earlier. Shares outstanding increased to 78,279,227 from 69,656,423. Further details can be found in their financial statements and management's discussion on their website or sedarplus.ca.
- Net comprehensive loss reduced to CAD 507,607 from CAD 1,682,288 year-over-year.
- Operating cash flow used decreased to CAD 411,756 from CAD 1,730,836.
- Agreement with Denison Mines expected to provide sufficient funding for KLP project field pilot.
- Capital expenditures turned into a disposition of CAD 800,000.
- Shares outstanding increased to 78,279,227 from 69,656,423, indicating potential investor confidence.
- Working capital surplus declined to CAD 303,222 from CAD 890,061 year-over-year.
- Funds flow used in operations was CAD 467,640, down from CAD 1,473,056 but still negative.
- Increase in shares outstanding could lead to shareholder dilution.
Insights
The financial results indicate a significant reduction in net comprehensive loss from
The capital expenditures saw a significant shift, with a negative capital expenditure of
For investors, the reduced losses and operational cash outflows are positive signs pointing towards better financial management. However, the drop in working capital and the capital expenditures strategy need careful monitoring as they may impact the company's ability to fund future projects and growth.
The agreement with Denison Mines Corp is a strategic move, potentially providing substantial funding for the field pilot of the KLP project. This partnership can be seen as a validation of Grounded Lithium Corp's projects and technological potential, which might drive investor confidence. The commitment from Denison to advance the project on a priority basis and possibly provide additional capital during the earn-in period is significant. This could lead to accelerated project timelines and enhanced project viability.
From a market perspective, partnerships like these often lead to positive sentiment and can influence stock prices favorably. They also provide a strategic advantage, leveraging Denison's expertise and resources. Investors should be optimistic about this collaboration as it may mitigate some financial risks and provide a clearer path to project advancement.
Nonetheless, the long-term success hinges on the outcomes of the pilot and subsequent evaluations. Investors should look for updates on these milestones to gauge the real impact of this agreement on the company’s future.
The financial and operational update reflects broader industry trends where companies are striving for operational efficiency and securing strategic partnerships to remain competitive. The lithium sector is notably volatile but holds substantial growth potential owing to the increasing demand for batteries in electric vehicles and renewable energy storage solutions.
Grounded Lithium's strategy to secure funding through partnerships rather than traditional financing routes could provide a competitive edge by reducing financial pressures and aligning with experienced industry players. This approach could enable the company to focus resources on technology and project development, key for long-term success in the energy sector.
However, it’s important to monitor how these partnerships progress, as delays or underperformance in the pilot could dampen prospects. For retail investors, the company’s efforts to improve financial health and secure strategic partnerships are promising, yet they should remain aware of the inherent sector risks and the need for continuous technological and operational advancements.
First Quarter 2024 Financial and Operational Highlights
- On January 16, 2024, the Company announced the entering of a series of agreements with Denison Mines Corp (TSX: DML; NYSE American: DNN) ("Denison"), highlighted by the Earn-In Agreement (the "Agreement"). The Agreement is expected to provide more than sufficient funding for a field pilot (the "Pilot") for the KLP which both the Company and Denison (collectively, the "Parties") plan to advance on a priority basis. Beyond the Pilot, Denison may also provide further capital during the earn-in period to fund other activities as necessary to drive the overall KLP value such as further technical evaluations and studies, drilling, sampling and expenditures to maintain the KLP lands in good standing.
(CAD$, except per share amounts and common shares outstanding) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
FINANCIAL RESULTS | |||
Net comprehensive loss | 507,607 | 1,682,288 | |
Per share - basic and diluted | 0.01 | 0.02 | |
Cash flow used in operating activities | 411,756 | 1,730,836 | |
Per share - basic and diluted | 0.01 | 0.02 | |
Funds flow used in operations | 467,640 | 1,473,056 | |
Per share - basic and diluted | 0.01 | 0.02 | |
Capital expenditures | |||
Capital expenditures (dispositions) | (800,000) | 443,637 | |
Liquidity | |||
Working capital surplus | 303,222 | 890,061 | |
Common shares outstanding | |||
Weighted average - basic and diluted | 77,126,290 | 68,603,316 | |
Outstanding, end of period | 78,279,227 | 69,656,423 | |
About Grounded Lithium Corp.
GLC is a publicly traded lithium brine exploration and development company that controls approximately 1.0 million metric tonnes of Measured & Indicated lithium carbonate equivalent mineral resource and approximately 3.2 million metric tonnes of Inferred lithium carbonate equivalent resource over our focused land holdings in
Qualified Person
Scientific and technical information contained in this press release has been prepared under the supervision of Doug Ashton, P.Eng., Alexey Romanov, P. Geo., Meghan Klein, P. Eng., Dean Quirk, P.Eng., Jeffrey Weiss, P.Eng., Chad Hitchings., P.L. Eng., and Michael Munteanu, P.Eng., each of whom is a qualified person within the meaning of NI 43-101.
Forward-Looking Statements
This press release may contain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws. The opinions, forecasts, projections and statements about future events of results, are forward looking information, forward-looking statements or financial outlooks (collectively, "forward-looking statements") under the meaning of applicable Canadian securities laws. These statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by GLC that the Company believes these forward-looking statements continue to be true as of any subsequent date. Although GLC believes that the assumptions underlying, and expectations reflected in, these forward-looking statements are reasonable, it can give no assurance that these assumptions and expectations will prove to be correct. Such statements include, but are not limited to, statements regarding the internal rates of return and net present values of the KLP, activities funded by Denison to drive the KLP value and GLC's vision of becoming a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition.
Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: GLC's expectation that our operations will be in
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
View original content to download multimedia:https://www.prnewswire.com/news-releases/grounded-lithium-reports-first-quarter-2024-financial-and-operating-results-302152282.html
SOURCE Grounded Lithium Corp.
FAQ
What were Grounded Lithium's (GRDAF) financial results for Q1 2024?
How has Grounded Lithium's net loss changed compared to Q1 2023?
What significant agreements did Grounded Lithium enter into during Q1 2024?
How did Grounded Lithium's working capital change in Q1 2024?
What are the key highlights from Grounded Lithium's Q1 2024 report?
