Toronto, Ontario–(Newsfile Corp. – August 31, 2020) – GoldSpot Discoveries Corp. (TSXV: SPOT) (the “Company” or “GoldSpot“) is pleased to announce the three and six months ended June 30, 2020 unaudited financial results of the Company (the “Financial Results“).
Highlights for the three-month period ended June 30, 2020:
Highlights for the six-month period ended June 30, 2020:
Denis Laviolette, Executive Chairman and President of GoldSpot, commented, “This quarter is testament to our resilient business model and our ability to work with quality explorers and geological teams. Despite the ongoing COVID-19 pandemic, we have emerged from this quarter with our greatest total cash and cash equivalents and investments balance yet of $13 million and net income of $2.8 million. Our team of geoscientists and data scientists has the drive to change the mineral exploration sector, and the capacity to make it happen. Our work and R&D pipeline remain strong, and we are confident that we will continue to unlock the economic potential of geology, data science and resource development.”
For the quarter ended June 30, 2020, GoldSpot’s consulting revenue was $937,202, while total expenses were $1,292,597. The Company incurred an increase in professional fees due to multiple revisions of the management information circular for the annual and special shareholder’s meeting held in June 2020, and finalizing contracts for officers and employees, and other general corporate activities. The Company believes most of these additional legal fees and other expenses, totaling $393,735 are non-recurring. When expenses are normalized for the quarter, GoldSpot’s operating income is $38,340, compared to a normalized operating loss of -$750,088 for the quarter ended June 30, 2019.
Revenue & Expenses – Quarter to Quarter
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The continued growth in revenue is supported by total contracts procured to date. We believe this validates the mining sectors acceptance of the use of machine learning as a tool and GoldSpot’s leadership in the space.
Contract Growth – Quarter to Quarter
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For the quarter ended June 30, 2020, GoldSpot’s total business income of $2,840,204 was largely due to net investment gains of $3,193,711, which is an indication of GoldSpot’s ability to develop relationships with best-in-class explorers and generate value to their technical teams. GoldSpot’s cash and investment is $13 million, compared to $10 million as at December 31, 2019, or an increase of 35%.
Cash & Investment Growth – Quarter to Quarter
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The following are selected unaudited financial results as at and for the three and six months-ended June 30, 2020 with comparatives:
Three months ended | Six months ended | |||||||||
June 30, | June 30, | |||||||||
2020 | 2019 | 2020 | 2019 | |||||||
Consulting income | $ 937,202 | $ 399,673 | $1,875,822 | $ 914,473 | ||||||
Net investment gains | 3,193,711 | 658,000 | 3,562,474 | 346,250 | ||||||
Operating, general and administrative1 | (1,284,230) | (1,145,027) | (2,535,029) | (4,156,793) | ||||||
Net income (loss) and comprehensive income (loss) for the period | 2,840,204 | (74,013) | 2,899,641 | (2,783,458) | ||||||
Earnings (loss) per common share for the period – basic and diluted | 0.03 | (0.00) | 0.03 | (0.04) |
1The six months ended June 30, 2019 includes $1,931,983 in non-recurring listing fees.
Statement of financial position highlights | June 30, 2020 | December 31, 2019 | |||
Cash and cash equivalents | $ | 4,102,096 | $ | 4,762,213 | |
Accounts receivable | 267,341 | 128,350 | |||
Investments, at fair value | 8,863,062 | 4,872,104 | |||
Total assets | 13,586,721 | 10,262,392 | |||
Deferred revenue | 2,245,425 | 2,229,903 | |||
Total liabilities | 3,067,255 | 2,752,459 | |||
Equity | 10,519,466 | 7,509,933 |
About GoldSpot Discoveries Corp.
GoldSpot Discoveries Corp. (TSXV: SPOT) is a technology and investment company that leverages machine learning to reduce capital risk while working to increase efficiency and success rates in resource exploration and investment. GoldSpot Discoveries combines proprietary technology with traditional domain expertise, offering a front-to-back service solution to its partners, and in some cases, capital to kickstart exploration programs. GoldSpot’s solutions target big data problems, making full use of historically unutilized data to better comprehend resource property potential.
For further information please contact:
Denis Laviolette,
Executive Chairman and President
GoldSpot Discoveries Corp.
Tel: 647-992-9837
Email: denis@goldspot.ca