Now that the spinout of STNG is complete the balance sheet should be easier to understand.
Data doesn't paste so well.
2021
$
2020
$
Assets
Current assets
Cash 2,032,643 4,812,982
Prepaid expenses and deposits (note 4) 68,319 114,624
Receivable (note 5) 20,329 52,526
Marketable securities (note 8) 227,000 3,725,327
Short term loan (note 18) 1,810 -
2,350,101 8,705,459
Reclamation bonds (note 6) 80,000 80,000
Property and equipment (note 7) - 388,453
Exploration and evaluation assets (notes 9 and 17) 380,720 3,632,605
2,810,821 12,806,517
CASH 2020 was $4,8M - 2021 is $2,8M1 CASH change -$2,78M
All Current Assets including Reclamation Bond, Property and Equipment and Exploration
2020 was $12.8M 2021 was $2.8M Net Change -$10M
What affects this number the most was Marketable Securities with 2020 at $3,725,327 and 2021 at $227,000 a 3.5M difference
Notes from quarterly
8 Marketable securities
The NSR agreement outlined in Note 17 was bought out and fully extinguished by Tudor Gold Corp. on September 30, 2021. As part of the buyout and for facilitating the transaction, American Creek received 100,000 common shares of Tudor Gold Corp. at a deemed price of $2.27 per common share. The book value of the underlying option to re-purchase the NSR was $Nil, resulting in a gain on sale matching the value of the shares received on September 30, 2021. As at February 25, 2021 the Company held 1,400,499 common shares of Tudor Gold Corp (“Tudor Shares”). On this date, the Company completed the plan of arrangement with Stinger and pursuant to the purchase and sale agreement, all Tudor Shares were transferred to Stinger. The shares were valued at $3.18 per share on the date of the agreed disposition and prior to the completion of the plan of arrangement, a gain on disposal was recorded in the amount of $728,259. During the year ended December 31, 2020, the Company received an additional 1,400,000 Tudor Shares as proceeds from the sale of exploration and evaluation assets (note 9). The shares were valued at $1.49 per share on the date of the agreed disposition. At December 31, 2020, the shares had increased in value to $2.66 per share resulting in an unrealized gain on the total value of the marketable securities of $1,638,998.
Expenses
Advertising and Promotion
2020 = 47K
2021 = 62K
nice to see 3Mth go from $15K 2020 down to 8K 2021
Management Fees
Last Nine Months 2020 was $401K 2021 was 488K. So we're trending at 20% more expensive to run AMK this year than Last year.
3 Months
2020 is $100K and 2021 is 109K.
Again, last year they had STNG to deal with. Now that they have freed themselves from this additional work the cost of doing less is 10% more in management expenses to AMK.
Another year will help to see how AMK is trending. Is it cutting costs or increasing costs and what do we get?
Stock-based Compensation stood at $2M in 2020 71K
beginning to end cash $-2,7M if that stays the same X 4Q you get $11M
and if stock-based compensation was to continue at $2M per Q then add 8M
Thank god we were not drilling.
11 Share capital and reserves Share capital
i) Issued 1,585,000 common shares with a fair value of $94,775 from the exercise of incentive options. Option value at the time of grant was also transferred to share capital in the amount of $78,448
ii) Issued 40,939,889 common shares with a fair value of $2,916,439 from the exercise of warrants. Warrant value at the time of grant was also transferred to share capital in the amount of $1,434,119.
42.5M New Shares
i) Stock options and warrants The Company has an incentive stock option plan that conforms to the requirements of the TSX Venture Exchange. Options to purchase common shares have been granted to directors, officers, employees and consultants of the Company at exercise prices determined by the market value of the common shares on the date of the grant. The options vest immediately on the date of the grant. Stock options transactions and the number of stock options outstanding are summarized as follows
Stock options transactions and the number of stock options outstanding are summarized as follows:
Number of options Weighted average exercise price $ Balance – December 31, 2019 33,320,000 0.07 Options granted 3,300,000 0.26 Options exercised (3,000,000) 0.05 Options cancelled (20,000) 0.10 Balance – December 31, 2020 33,600,000 0.07 Options granted 6,300,000 0.32 Options exercised (1,585,000) 0.05 Balance – September 30, 2021 38,315,000 0.13 Number of options currently exercisable 38,315,000 0.13
Number of options currently exercisable 38,315,000 at 0.13 is about 5M.
During the period ended September 30, 2021, the Company:
i) Granted 6,300,000 options to directors and officers and consultants at $0.32 per share expiring on March 4, 2031. Each option to purchase common shares may be exercised for a period of 10 years from the grant date of the options at a price of $0.32. All options vested on the grant date. The fair value of the common share purchase options was determined to be $1,958,867 in total using the Black-Scholes Option Pricing Model, assuming a 0% dividend yield, 156% volatility, a risk free interest rate of 1.55%, and a term of 10 years.
Just to be clear, drop the price of the option by 50% and the expiry date is 2031? WTF, come on! I will be the first to pat you on the back but this isn't acceptable, how about we self it for 2030 AGM? This looks like there's more to gain with a lower price doesn't it?
13 Related party transactions
a) Incurred management fees in the amount of $287,500 (2020– $230,000) to a company controlled by the Company’s Chief Executive Officer
b) Incurred management fees in the amount of $201,000 (2020– $171,500) to a company controlled by the Company’s Chief Financial Officer
For the period ended September 30, 2021, the total remuneration of key management personnel was $488,500 (2020 - $401,500) of management fees and $1,371,207 (2020 - $479,568) of stock-based compensation
AMK also has about 1.4M TUD so at $2 that is about enough for 1 quarter at 2.8M cash burn
19 Subsequent event On November 9, 2021,
the Company announced the repricing of previously issued common share purchase options under the Company's option incentive plan. A total of 2,400,000 common share purchase options were repriced from the original issue price of $0.335 to the market price on the announcement date of $0.18 per common share and a total of 6,300,000 common share purchase options were repriced from the original issue price of $0.32 to the market price on the announcement date of $0.18 per common share. As part of the repricing and included in the previous totals, the repricing of 8,250,000 common share purchase options held by insiders is subject to the approval of disinterested shareholders of the Company at the Company’s next annual general meeting
disinterested shareholders, Yep that's me!
If AMK dilutes at 10% and management fees keep going up we have a problem. A big problem for AMK shareholders is we don't have to drill, yet get fully diluted for what? To fund management's work on Stinger? or work on Affinity? How can it be this expensive when all you have to do is wait? This isn't acceptable.
This isn't really a big deal but AMK website once updated Financials. I would Expect for 10% more in Management fees, perhaps something as important as quarterlies could be updated regularly? Come on, I'm trying here but AMK shareholders deserve much more than what was delivered this past year and it #$%$^'en kills me to say it.
What I would like to point out to management is that retail is MUCH BIGGER than Management and our vote will change things so that Management and Shareholders interest are better aligned. A little can go a long way here, maybe join the club and start BUYING! we ALL are!