Author: GlobeNewswire

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VANCOUVER, British Columbia, Nov. 28, 2024 (GLOBE NEWSWIRE) — BIGG Digital Assets Inc. (“BIGG” or the “Company”) (TSXV: BIGG, OTCQX: BBKCF, WKN: A2PS9W) a leading innovator in the digital assets space and owner of Blockchain Intelligence Group, Netcoins, and TerraZero, reports its Q3 2024 financial results. All figures are in Canadian dollars (CAD) unless otherwise noted.

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Q3 2024 Highlights

• Gross operating revenue of $2.13M, comprising $1.74M for Netcoins, $0.41M for Blockchain Intelligence Group
  • Netcoins revenue was $1.74M (2023 – $1.05M), marking an increase of 66% year-over-year (YoY) and an increase of 115% for Fiscal 2024 Year-to-Date (YTD) as compared to Fiscal 2023 YTD. Transaction revenue was $1.74M, increasing 65% YoY. At September 30, 2024, customers’ staked Assets under Custody totalled $3.04M (2023 – $Nil), resulting in service revenue of $5.5K (2023 – $Nil);
  • $0.41M (2023 – $0.39M) for Blockchain Intelligence Group, up 6% YoY. Revenues were in-line with those of the prior year, increasing by 3% during Fiscal 2024 YTD as compared to Fiscal 2023 YTD. Q3 2024 marked the second straight quarter of 7% revenue growth;
  • TerraZero recorded a revenue adjustment of $(0.03)M, and remained focused on development of its Intraverse product, set to launch in March 2025.
• Netcoins customer Assets Under Custody (AUC) was $107.3M at the end of Q3 2024, up $45M or 72% from $62.3M under custody at the end of Q3 2023. Q3 2024 AUC was down 6% from Q2 2024 AUC due to typically lighter trading volumes and activity over the summer months
• Netcoins’ active users totalled 8,023, a 1% increase YoY. The total of active users was down 13% from Q2 2024 due to seasonal factors. However, the overall increase year-to-date was 25% as compared to Fiscal 2023 YTD
• Netcoins USA’s direct integration with Zero Hash, a global leading crypto infrastructure provider, was completed to unlock crypto trading in 48 U.S. states. Netcoins USA will offer up to 60 digital assets and have access to 29 fiat currencies for its clients. Netcoins USA operates as a compliance-first crypto trading platform, focused on regulatory adherence and customer safety while offering No Fee Trading
• BIG activities included the development of two new, innovative retail service offerings – that will leverage its proprietary data and robust infrastructure. These services are designed to capitalize on emerging market opportunities and are expected to significantly expand BIG’s total addressable market. These strategic initiatives will enhance our market presence and drive long-term value for the Company’s shareholders
• BIG announced the launch of new CCI modules: Module 9 – Hacks and Exploits; Module 10 – Compliance & Risk Management (standalone certification); Certified Cryptocurrency Investigator – Advanced Series (CCI-A)
• TerraZero continued to focus on the build out of its Intraverse product, an entirely new gamified social platform. Intraverse offers a fully customizable and personalized virtual environment for users to hang out with their friends, play games, stream their favorite music and video content, and more. It will offer monetizable opportunities for artists, game developers, brands and creators
• BIGG Digital Assets listed its common shares on the TSX Venture Exchange (TSXV) and commenced trading at market open on September 17, 2024. It is anticipated that the TSXV listing will further increase the Company’s visibility in the capital markets both domestically and globally – expanding investor reach and trading availability in the United States, Canada, and beyond – for both retail and institutional investors
• The Company’s shares continue to be listed on the OTCQX in the United States under the symbol “BBKCF” and on the Frankfurt Stock Exchange under the symbol “A2PS9W”. In connection with the listing of the shares on the TSXV, the Company voluntarily delisted its shares from the Canadian Securities Exchange (CSE) at the close of market on September 16, 2024
• As of September 30, 2024, BIGG’s cash and crypto holdings were ~$17.6M
• The Company has no debt

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Highlights after September 30, 2024:

• BIGG currently owns ~100.5 Bitcoin, valued at ~$13.5M
• Netcoins currently has customer Assets Under Custody of ~$174.9M (an increase of 63% over Q3 2024 and up 181% from Q3 2023)
• On November 5, 2024, BIG announced the launch of a new product – QLUE Express. QLUE Express is intended to significantly expand the addressable market by lowering barriers to access – offering a flexible low cost option that is available instantly via credit card purchase. QLUE Express offers a free version, as well as a flexible, pay-as-you-go model, starting at just $149/month

CRA Reassessment

The Company has been subject to an ongoing GST/HST audit by the Canada Revenue Agency (“CRA”) in relation to Netcoins’ fiscal 2018 operations. Subsequent to September 30, 2024, the CRA issued a notice of reassessment in the amount of $8,358,119, inclusive of interest and penalties. A provision for the reassessed amount has been made as at September 30, 2024. The Company disputes and intends to contest CRA’s reassessment. The Company will pursue its appeal rights under Canadian federal tax legislation. If we are unsuccessful and the outcome of our dispute with CRA results in significant taxes, interest charges and penalties, this could have a material adverse effect on our liquidity, financial position, results of operations and cash flows.

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Dan Reitzik, Interim CEO, comments: “Netcoins has seen excellent growth in revenues and new clients through Q3, a traditionally slower period for trading, and so far in Q4 both revenues and new client additions are continuing to grow exponentially. Blockchain Intelligence Group’s recently released new product, QLUE Express, with its low fees and simple to use interface, materially expands the audience for our QLUE technology to now include all Law Firms, Accounting Firms, Money Services Businesses, Financial Institutions, and any organization worldwide that touches crypto, and needs to have affordable compliance in place. The CRA reassessment is for a period prior to BIGG acquiring Netcoins. We continue to work with our external advisors and CRA to resolve this matter expeditiously. We are excited to see Netcoins’ recent growth in both crypto trading, as well as new client acquisition since the November 5th election in the US, and Netcoins’ availability in both Canada and US, coupled with new tools from Blockchain Intelligence that appeal to a mass commercial and consumer market, positions the Company very well as we move towards a more friendly and exciting phase in digital currencies and assets.”

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Selected financial and operating information should be read in conjunction with BIGG’s unaudited condensed consolidated interim financial statements and related Management’s Discussion and Analysis for the nine months ended September 30, 2024, available at www.sedarplus.ca.

All financial information in this press release is prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board.

On behalf of the Board

Dan Reitzik
Interim CEO
ir@biggdigitalassets.com
D: 778.819.3890

About BIGG Digital Assets Inc.

BIGG Digital Assets Inc. (BIGG) believes the future of crypto is a safe, compliant, and regulated environment. BIGG invests in products and companies to support this vision. BIGG has three portfolio companies: Netcoins (netcoins.com), Blockchain Intelligence Group (blockchaingroup.io), and TerraZero (terrazero.com).

Blockchain Intelligence Group is an industry-leading digital asset forensics, anti-money laundering detection, and cryptocurrency investigations company. At the heart of our operations is deep-rooted expertise in visualizing digital assets and market-related activities. This expertise is leveraged to monitor transactional data with a constant eye to assist our customers with risk management, due diligence, and forensic services for digital assets. For more information please visit our website www.BlockchainGroup.com.

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Netcoins offers safe and secure crypto trading in Canada and the USA, with a mission to make cryptocurrency easily accessible to the mass consumer and investor with a focus on fast, simple, and transparent trading. Netcoins has a robust product offering with Crypto Trading, Netcoins Pay Mastercard, and Netcoins Staking. Netcoins utilizes BitRank Verified® software at the heart of its platform and facilitates crypto trading via its cutting-edge Mobile and Web applications. For more information please visit our website www.Netcoins.com.

TerraZero Technologies Inc. is a vertically integrated Metaverse development group and leading Web3 technology company specializing in helping brands create immersive experiences. TerraZero’s Metaverse-agnostic vision is to develop and implement products and services with scalable commercial applications to flourish engagement across gamified experiences where enterprise-level businesses, metaverse platforms, and Web3 creators can seamlessly bridge and actionably grow their virtual world and the physical world endeavors together as one. TerraZero owns digital real estate for brands to establish a presence in existing virtual worlds and can also offer brands their own private worlds to provide offices and services to those interested in the metaverse. Furthermore, TerraZero acquires, designs, builds, and operates virtual assets and solutions to monetize the metaverse ecosystem. TerraZero’s businesses are segmented into five (5) divisions, which include: (1) immersive experience creation in existing or private virtual worlds; (2) advertising; (3) data analytics; (4) events and marketing; and (5) development of the Intraverse. TerraZero aims to support the community, foster innovation, and drive adoption. For more information, please visit https://www.TerraZero.com/ or contact hello@terrazero.com.

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For more information and to register for BIGG’s mailing list, please visit our website at https://www.BIGGdigitalassets.com. Or visit SEDAR+ at www.sedarplus.ca.

Future operating results could also be materially affected by the price of cryptocurrency and the demand (or lack thereof) for cryptocurrency. In addition, BIGG’s past financial performance may not be a reliable indicator of future performance.

Forward-Looking Statements:
Certain statements in this release are forward-looking statements, which include the expected opportunities, outcomes, potential, and benefits of the Company’s products and services, the expected adoption and growth of cryptocurrency and the Company’s products and services, the development and completion of products and services, the expected growth and outcomes from these new QLUE customers using the new product offerings, events, plans, courses of action, and the potential of the Company’s technology and operations and other matters. The discussion in regards to our tax dispute with Canada Revenue Agency (CRA), including the provision for a GST/HST tax liability in the amount of CRA’s reassessment, plus interest and penalties, in the Company’s interim condensed consolidated financial statements, is an example of forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, the ability to manage operating expenses, which may adversely affect the Company’s financial condition, the ability to remain competitive as other better financed competitors develop and release competitive products, volatility in the trading price of the common shares of the Company, the demand and pricing of cryptocurrency, the Company’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; and other factors, many of which are beyond the control of BIGG. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Undue reliance should not be placed on the forward-looking information because BIGG can give no assurance that they will prove to be correct. The securities of BIGG are considered highly speculative due to the nature of BIGG’s business. For further information concerning these and other risks and uncertainties, refer to the Company’s website and filings on www.sedarplus.ca. In addition, BIGG’s past performance may not be a reliable indicator of future performance.

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Important factors that could cause actual results to differ materially from BIGG’s expectations include consumer sentiment towards BIGG’s products and Cryptocurrency, Blockchain and Metaverse technology generally, technology failures, the lack of demand for the Company’s products and services, fluctuations in the price of cryptocurrency, the ability to successfully define, design, and release new products in a timely manner that meet customers’ needs; the ability to attract, retain, and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; increase in costs and expenses; the ability to manage working capital; and the dependence on key personnel; competition; the demand and pricing of cryptocurrencies and NFTs (including digital assets); litigation; security threats, including a loss/theft of NFTs, cryptocurrencies, and other assets; and failure of counterparties to perform their contractual obligations. Material risks include the lack of success in or dispute with CRA. Material assumptions include our expectations about the outcome of the dispute with CRA.

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The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, BIGG disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, BIGG undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

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 release.

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Unaudited interim results for the three-and nine-month periods ended 30 September 2024

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Serabi (AIM:SRB, TSX:SBI, OTCQX:SRBIF), the Brazilian focused gold mining and development company, is pleased to release its unaudited interim results for the three and nine-month periods ended 30 September 2024.

A copy of the full interim statements together with commentary can be accessed on the Company’s website using the following link:– https://bit.ly/3Z8CJiX

“This has been another excellent quarter for Serabi, in particular for cash generation, said Clive Line, Serabi’s CFO. “The cash balance at the end of September was $20.0 million with $8.0 million generated during the quarter. EBITDA of $11.7 million for the quarter brings EBITDA for the year to date to a total of $24.7 million, a 42 per cent improvement compared with the second quarter.

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“We benefited from inventory realisation to the sum of approximately $3.0M, boosting quarter sales, and whilst I do not expect similar additional inventory sales for Q4, I do anticipate cash growth to continue to the end of the year notwithstanding the cyclical effects of tax payments and 13^th salary accruals that are due. The ability of the business to produce healthy cash flow is being further supported by the Coringa classification plant which is now operational and in the final stages of commissioning. We are already passing run of mine ore through this plant and will also start to work our way through the lower grade stockpiles that have been accumulated at Coringa. As a result of processing this stockpiled material we hope that this final quarter will continue the pattern of increasing production quarter on quarter that we have so far experienced in 2024.

“During the quarter we announced the results of the Preliminary Economic Assessment for Coringa which indicate an average project AISC of $1,241 over the project life from 1 January 2025 onwards. The full NI 43-101 compliant Technical Report was published on 21 November 2024.”

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Financial Highlights (all currency amounts are expressed in US Dollars unless otherwise stated)

• Gold production for the first nine months of 2024 of 27,499 ounces (2023: 25,262 ounces).
• Cash held on 30 September 2024 of $20.0 million (31 December 2023: $11.6 million including US$0.6 million relating to the exploration alliance with Vale).
• EBITDA for the nine-month period of $24.7 million (2023: $8.8 million).
• Post-tax profit for the nine-month period of $17.8 million (2023: $4.6 million),
• Profit per share of 23.55 cents compared with a profit per share of 6.10 cents for the same nine month period of 2023.
• Net cash inflow from operations for the nine-month period (after mine development expenditure of US$4.9 million) of US$18.2 million (2023: US$10.7 million inflow, after mine development expenditure of US$2.6 million).
• Average gold price of US$2,338 per ounce received on gold sales during the nine month period (2023: US$1,940).
• Cash Cost for the nine month period to 30 September 2024 of US$1,405 per ounce (nine months 2023: US$1,253 per ounce).
• All-In Sustaining Cost for the nine-month period to 30 September 2024 of US$1,790 per ounce (nine months 2023: US$1,553 per ounce).

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Overview of the financial results

In the first nine months of 2024, the Group has reported revenue and operating costs related to the sale of 28,912 ounces in the period (27,499 ounces produced). This compares to sales reported of only 23,733 ounces in the first nine months of 2023. Reported revenues and costs reflect the ounces sold in each period and as a result total costs for the nine-month period are significantly higher than for the corresponding period of 2023.

During the month of January 2024, the Group also completed and drew down a new US$5 million loan with Itaú Bank in Brazil. This new arrangement has an interest coupon of 8.47 per cent and is repayable as a bullet payment on 6 January 2025. This replaced a similar loan arranged with Santander Bank in Brazil that was repaid during the month of February 2024.

Final commissioning of the ore sorter and crushing plant for Coringa is almost complete, with the crushing plant operational during October and the ore-sorter starting up during November. During the remainder of the fourth quarter in addition to passing run of mine ore extracted from Coringa, the Company will also be processing some of the lower grade material that has been stockpiled at Coringa providing an additional boost to gold production in the remainder of the fourth quarter.

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Key Financial Information

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Engage Investor Presentation – 3 December 2024

Shareholders and investors are advised that Mike Hodgson, Chief Executive Officer of the Company will provide a live interactive presentation via the Engage Investor platform, on the 3rd of December at 2:30pm GMT. 

Serabi Gold plc welcomes all current shareholders and interested investors to join and encourages investors to pre-submit questions. Investors can also submit questions at any time during the live presentation.

Investors can sign up to Engage Investor at no cost and follow Serabi Gold plc from their personalised investor hub.

Shareholders and investors can register interest in this event using the following link – https://engageinvestor.news/SRB_Ei

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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

Enquiries

SERABI GOLD plc
Michael Hodgson        t +44 (0)20 7246 6830
Chief Executive        m +44 (0)7799 473621

Clive Line        t +44 (0)20 7246 6830
Finance Director        m +44 (0)7710 151692

Andrew Khov         m +1 647 885 4874
Vice President, Investor Relations &
Business Development
        e contact@serabigold.com

        www.serabigold.com

BEAUMONT CORNISH Limited
Nominated Adviser & Financial Adviser
Roland Cornish / Michael Cornish        t +44 (0)20 7628 3396

PEEL HUNT LLP
Joint UK Broker
Ross Allister        t +44 (0)20 7418 9000

TAMESIS PARTNERS LLP
Joint UK Broker
Charlie Bendon/ Richard Greenfield        t +44 (0)20 3882 2868

CAMARCO
Financial PR – Europe
Gordon Poole / Emily Hall                t +44 (0)20 3757 4980

HARBOR ACCESS
Financial PR – North America
Jonathan Patterson / Lisa Micali                t +1 475 477 9404

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Copies of this announcement are available from the Company’s website at www.serabigold.com.

Forward-looking statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

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Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 35 years’ experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognizing him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Notice
Beaumont Cornish Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in relation to the matters referred herein. Beaumont Cornish Limited is acting exclusively for the Company and for no one else in relation to the matters described in this announcement and is not advising any other person and accordingly will not be responsible to anyone other than the Company for providing the protections afforded to clients of Beaumont Cornish Limited, or for providing advice in relation to the contents of this announcement or any matter referred to in it.

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Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this news release.

See www.serabigold.com for more information and follow us on twitter @Serabi_Gold

The following information, comprising, the Income Statement, the Group Balance Sheet, Group Statement of Changes in Shareholders’ Equity, and Group Cash Flow, is extracted from the unaudited interim financial statements for the three and nine months to 30 September 2024.

Statement of Comprehensive Income
For the three and nine-month periods ended 30 September 2024.

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(1)         The Group has no non-controlling interest and all profits are attributable to the equity holders of the Parent Company

Balance Sheet as at 30 September 2024

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Statements of Changes in Shareholders’ Equity
For the nine-month period ended 30 September 2024

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(1)    Other reserves comprise a merger reserve of US$361,461 and a taxation reserve of US$17,247,919 (31 December 2023: merger reserve of US$361,461 and a taxation reserve of US$15,598,545).

Condensed Consolidated Cash Flow Statement
For the three and nine-month periods ended 30 September 2024

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Notes

1. Basis of preparation

1. Basis of preparation
These interim condensed consolidated financial statements are for the three and nine month periods ended 30 September 2024. Comparative information has been provided for the unaudited three and nine month periods ended 30 September 2023 and, where applicable, the audited twelve month period from 1 January 2023 to 31 December 2023. These condensed consolidated financial statements do not include all the disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2023 annual report.
The condensed consolidated financial statements for the periods have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” and the accounting policies are consistent with those of the annual financial statements for the year ended 31 December 2023 and those envisaged for the financial statements for the year ending 31 December 2024.

The interim financial information has not been audited and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. Whilst the financial information included in this announcement has been compiled in accordance with International Financial Reporting Standards (“IFRS”) this announcement itself does not contain sufficient financial information to comply with IFRS. The Group statutory accounts for the year ended 31 December 2023 prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 have been filed with the Registrar of Companies. The auditor’s report on these accounts was unqualified. The auditor’s report did not contain a statement under Section 498 (2) or 498 (3) of the Companies Act 2006.

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Accounting standards, amendments and interpretations effective in 2024

The Group has not adopted any standards or interpretations in advance of the required implementation dates.

The following Accounting Standards have not yet been ratified in UK law but are expected to be ratified during 2024. The Group expects to make appropriate compliant disclosures in its Annual Report for the year needed 31 December 2024.

Amendments IAS 1 – Classification of Liabilities as Current or Non-Current and Non Current Liabilities with Covenants
The IASB issued amendments to IAS 1 Presentation of Financial Statements (“IAS 1”). The amendments clarify that the classification of liabilities as current or non-current is based on rights that are in existence at the end of the reporting period. Classification is unaffected by the entity’s expectation or events after the reporting date. Covenants of loan arrangements will affect the classification of a liability as current or non-current if the entity must comply with a covenant either before or at the reporting date, even if the covenant is only tested for compliance after the reporting date. There was no significant impact on the Company’s consolidated interim financial statements as a result of the adoption of these amendments.

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Management do not consider that the following other amendments to existing standards are applicable to the current operations of the Group or will have any material impact on the financial statements.

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material impact on the Company’s current or future reporting periods.

These financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

(i)      Going concern

On 30 September 2024 the Group held cash of US$20.03 million which represents an increase of US$8.45 million compared to 31 December 2023.

On 7 January 2024, the Group completed a US$5.0 million unsecured loan arrangement with Itaú Bank in Brazil. The loan is repayable as a bullet payment on 6 January 2025 and carries an interest coupon of 8.47 per cent. The proceeds raised from the loan are being used for working capital and secure adequate liquidity to repay a similar arrangement which was repaid on 22 February 2024.

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Management prepares, for Board review, regular updates of its operational plans and cash flow forecasts based on their best judgement of the expected operational performance of the Group and using economic assumptions that the Directors consider are reasonable in the current global economic climate. The current plans assume that during 2024 the Group will continue gold production from its Palito Complex operation as well as increase production from the Coringa mine and will be able to increase gold production to exceed the levels of 2023.

The Directors will limit the Group’s discretionary expenditures, when necessary, to manage the Group’s liquidity.

The Directors acknowledge that the Group remains subject to operational and economic risks and any unplanned interruption or reduction in gold production or unforeseen changes in economic assumptions may adversely affect the level of free cash flow that the Group can generate on a monthly basis. The Directors have a reasonable expectation that, after taking into account reasonably possible changes in trading performance, and the current macroeconomic situation, the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the Financial Statements.

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2.         Depreciation and amortisation

Whilst the Coringa Gold Project has been in production for some time, it is still in a development and ramp-up stage and has not yet attained the operational scale that the Board considers is required to be considered in Commercial Production. As a result no amortisation charge in respect of the underlying mine asset costs has been reflected in the financial statements to date.

3.         Other Income and Expenses

Under the copper exploration alliance with Vale announced on 10 May 2023, the related exploration activities undertaken by the Group under the management of a working committee (comprising representatives from Vale and Serabi), were funded in their entirety by Vale during Phase 1 of the programme. Following the completion of Phase 1, Vale advised the Group, in April 2024, that it did not wish to continue the exploration alliance.

Exploration and development of copper deposits is not the core activity of the Group and further funding beyond the Phase 1 commitment would be required before a judgment could be made as to a project being commercially viable. There is a significant cost involved in developing new copper deposits and it is unlikely that, without the financial support of a partner, the Group would independently seek to develop a copper project in preference to any of its existing gold projects and discoveries. As a result, both the funding received from Vale and the related exploration expenditures has been recognised through the income statement. As this is not a principal business activity of the Group these receipts and expenditures are classified as other income and other expenses.

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4.         Finance expense and income

5.         Taxation

The Group has recognised a deferred tax asset to the extent that the Group has reasonable certainty as to the level and timing of future profits that might be generated and against which the asset may be recovered. The deferred tax liability arising on unrealised exchange gains has been eliminated in the nine-month period to 30 September 2024 reflecting the movement in the Brazilian Real exchange rate at the end of the period and resulting in deferred tax income of US$946,220 (nine months to 30 September 2023 – income of US$23,113).

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The Group has also incurred a tax charge in Brazil for the six-month period of US$3,783,403 (nine months to 30 September 2023 tax charge – US$1,207,583).

6.        Earnings per Share

(1) On 30 September 2024 there were 2,814,541 conditional share awards in issue (30 September 2023 – 2,075,400). These are subject to performance conditions which may or not be fulfilled in full or in part. These CSAs have not been included in the calculation of the diluted earnings per share.

7.        Post balance sheet events

There has been no item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to affect significantly the continuing operation of the entity, the results of these operations, or the state of affairs of the entity in future financial periods.

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TORONTO, Nov. 27, 2024 (GLOBE NEWSWIRE) — Purpose Investments Inc. (“Purpose”) today announced the estimated annual distributions of income and capital gains for its open-end exchange-traded funds and closed-end funds (the “Funds”) for the 2024 tax year. The estimated distributions represent estimated income and capital gains realized by the Funds during the year.

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Please note that these are estimated amounts only, as of November 27, 2024. Circumstances may arise which would cause these estimates to change before the Funds’ tax year end on December 15, 2024 or December 31, 2024, as applicable.

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Estimated Annual Capital Gain Distributions

Purpose Fund Corp.

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Shareholders of record of ETF series of Purpose Fund Corp Funds on January 30, 2025 are expected receive the capital gains distributions on or about February 5, 2025.

Purpose Mutual Fund Trusts

Details of the per unit estimated capital gain distribution amounts are as follows:

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Estimated Annual Distributions of Income

Details of the per unit estimated income distribution amounts are as follows:

Purpose expects to announce the final year-end distribution amounts for Purpose Mutual Fund Trusts with December 15, 2024 tax year-end on or about December 20, 2024. The respective unitholders of record on December 31, 2024 will receive the 2024 annual distributions on January 7, 2025. The ex-dividend date for the 2024 annual distributions for these ETFs (Purpose Mutual Fund Trusts) will be December 31, 2024.

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Purpose expects to announce the final year-end distributions for Purpose High Interest Savings Fund – ETF Units, Purpose US Cash Fund – ETF Units, Purpose Cash Management Fund – ETF Units, Purpose USD Cash Management Fund – ETF Units on or about December 31, 2024, if necessary.

Purpose expects to announce the final annual capital gain distributions for Purpose Fund Corp. and Big Banc Split Corp. on or about January 24, 2025, if necessary.

Purpose confirms that as of November 27, 2024, the following Funds are not expected to have annual capital gains distributions for the 2024 tax year:

Open-End Funds
Purpose Fund Corp. Funds:

• Purpose Total Return Bond Fund
• Purpose Monthly Income Fund
• Purpose Real Estate Income Fund
• Purpose Premium Yield Fund
• Purpose Premium Yield Fund – Non-Currency Hedged
• Purpose Conservative Income Fund
• Purpose Premium Money Market Fund
• StoneCastle Income Growth Fund
• StoneCastle Equity Growth Fund
• Purpose Structured Equity Yield Plus Fund
• AMD (AMD) Yield Shares Purpose ETF
• META (META) Yield Shares Purpose ETF

Purpose Mutual Funds Limited Funds:

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• Purpose Global Innovators Fund
• Purpose Global Bond Class
• Purpose Enhanced Premium Yield Fund
• Purpose Global Resource Fund
• Purpose Special Opportunities Fund
• Purpose Structured Equity Yield Fund
• Purpose Structured Equity Growth Fund

Purpose Mutual Fund Trusts:

• Purpose Bitcoin ETF
• Purpose Ether ETF
• Purpose Global Bond Fund
• Purpose International Dividend Fund
• Purpose Gold Bullion Fund
• Purpose Silver Bullion Fund
• Purpose Silver Bullon Fund – Non-Currency Hedged
• Purpose Multi-Strategy Market Neutral Fund
• Tesla (TSLA) Yield Shares Purpose ETF
• Purpose Credit Opportunities Fund
• Purpose Canadian Preferred Share Fund
• Purpose Strategic Yield Fund
• Purpose Multi-Asset Income Fund
• Purpose Active Conservative Fund
• Longevity Pension Fund
• Purpose Marijuana Opportunities Fund
• Purpose Emerging Markets Dividend Fund
• Purpose US Preferred Share Fund
• Purpose US Preferred Share Fund- Non-Currency Hedged
• Purpose High Interest Savings Fund
• Purpose US Cash Fund
• Purpose Cash Management Fund

Please note that these are estimated amounts only, as of November 27, 2024. Circumstances may arise which would cause these estimates to change before the Funds’ tax year end on December 15, 2024 or December 31, 2024, as applicable.

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About Purpose Investments

Purpose Investments is an asset management company with more than $21 billion under management. Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.

For further information please contact:
Keera Hart
Keera.Hart@kaiserpartners.com
905-580-1257

Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus and other disclosure documents before investing. Investment funds are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer. There can be no assurance that the full amount of your investment in a fund will be returned to you. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

This press release is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. This press release is not for dissemination in the United States or for distribution to US news wire services.

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