Bullboard - Stock Discussion Forum Southstone Minerals Ltd FDGMF

Primary Symbol: V.SML

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Southstone Minerals Limited is a Canadian junior mining company. The Company is engaged in the acquisition, exploration, evaluation, development and mining of mineral properties. The Company holds a 43% interest in the Oena Diamond Mine (Oena), which is located in the Northern Cape Province, Republic of South Africa that consists of one New Order Mining Lease. Oena is a producing alluvial... see more

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Southstone Minerals Ltd > Q1 finacials

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Post by hempster on Jan 30, 2021 9:09am

Q1 finacials

SML released its Q1 2021 financials yesterday:
https://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00031079&issuerType=03&projectNo=03167571&docId=4878471

MD&A
https://www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00031079&issuerType=03&projectNo=03167582&docId=4878479

Highlights of the SML Q1 2021 financials:

- Gross profit of $360k compared to $556k in Q1 2020, goes in line with 25% decrease in carat per $ per their latest production report, loss of profit bc of Kwena sale (Kwena contributed $75k to profits in Q1 '20) and change in exchange rates
- Cash is $465k, compared to $498k in Q4 '20 (-$33k) and $77k in Q1 '20 (+$388k)

But most importantly:
- Q1 '21 was the first quarter with net positive assets for SML
- In Q4 '20 they had $1.7m in assets and almost $2.2 in liabilities, bringing net assets to -$450k
- In Q1 '21 assets were $2.15m and liabilities $1.9m, bringing net assets to $215k. That is a change of $615k, most of which can be attributed to the debt-for-shares deal with CCML (worth $475k).

IMO this shows that they truly managed to turn around the business, despite all the challenges they faced last year.