Globex Mining Enterprises : Q1 2024 Audited Financial Statements

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS OF

GLOBEX MINING ENTERPRISES INC.

THREE MONTHS ENDED MARCH 31, 2024 (EXPRESSED IN CANADIAN DOLLARS)

(UNAUDITED)

NOTICE TO READER

The accompanying unaudited condensed interim consolidated financial statements of Globex Mining Enterprises Inc. (the "Corporation") have been prepared by, and are the responsibility of management. The unaudited condensed interim consolidated financial statements have not been reviewed by the Corporation's auditors.

GLOBEX MINING ENTERPRISES INC.

Condensed Interim Consolidated Statements of Income and Comprehensive Income (Expressed in Canadian Dollars)

(Unaudited)

		Three months ended
		March 31,
		2024		2023
Continuing operations	$	440,795
Revenues (note 12)	$	122,084
Expenses		455,437
Exploration and evaluation expenditures (note 14)			262,559
Professional fees and outside services (note 13)		203,473		169,709
Administration (note 13)		170,474		106,429
Salaries		153,632		110,846
Depreciation (notes 9 and 10)		21,416		20,828
Gain on foreign exchange		(17,014)		(339)
		987,418		670,032
Loss from operations		(546,623)		(547,948)
Other income (expenses)		459,272
Joint venture income (note 8)			7,500
Interest and dividends		178,196		91,906
Finance income (note 6)		111,448		140,014
Management services (note 17)		8,154		3,315
Other income		-		32,600
(Loss) gain on the sale of investments		(11,518)		15,527
(Decrease) increase in fair value of financial assets		(170,717)		800,886
		574,835		1,091,748
Income before taxes		28,212		543,800
Income tax expense		(1,200)		-
Income and comprehensive income for the period	$	27,012	$	543,800
Basic income per share (note 15)	$	0.00	$	0.01
Diluted income per share (note 15)	$	0.00	$	0.01
Weighted average number of common shares outstanding - basic		55,274,148		57,698,144
Weighted average number of common shares outstanding - diluted		56,328,093		58,930,424

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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GLOBEX MINING ENTERPRISES INC.

Condensed Interim Consolidated Statements of Cash Flows (Expressed in Canadian Dollars)

(Unaudited)

		Three months ended
		March 31,
		2024		2023
Operating activities:	$	27,012
Income for the period	$	543,800
Adjustments for:		170,717
Decrease (increase) in fair value of financial assets			(800,886)
Depreciation (notes 9 and 10)		21,416		20,828
Disposal of mineral properties for investments (note 18)		-		(34,584)
Foreign exchange rate variation on reclamation bond		(3,633)		124
Loss (gain) on sale of investments		11,518		(15,527)
Finance income (note 6)		(111,448)		(140,014)
Foreign exchange (gain) loss		(12,352)		455
Share of net income from investment in joint venture (note 8)		(459,272)		(7,500)
		(356,042)		(433,304)
Change in non-cash working capital items (note 18)		814,925		84,861
Net cash and cash equivalents provided by (used in) operating activities		458,883		(348,443)
Financing activities:		(58,568)
Shares repurchased (note 16)			(390,674)
Net cash and cash equivalents used in financing activities		(58,568)		(390,674)
Investing activities:		(1,095,798)
Acquisition of investments			(1,658,698)
Acquisition of property, plant and equipment (note 10)		(5,056)		-
Proceeds from sale of investments		1,028,926		1,505,260
Net cash and cash equivalents used in investing activities		(71,928)		(153,438)
Net change in cash and cash equivalents		328,387		(892,555)
Effect of exchange rate changes on cash held in foreign currencies		12,352		(455)
Cash and cash equivalents, beginning of period		6,611,783		1,528,706
Cash and cash equivalents, end of period	$	6,952,522	$	635,696

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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GLOBEX MINING ENTERPRISES INC.

Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)
(Unaudited)		As at		As at
		March 31,	December 31,
		2024		2023
ASSETS
Current assets	$	6,952,522
Cash and cash equivalents (note 4)	$	6,611,783
Investments (note 5)		17,898,906		18,014,269
Accounts receivable (note 6)		3,016,504		2,940,150
Prepaid expenses and deposits		163,659		82,444
Related party receivable (note 17)		-		134,152
Current income tax receivable		300,874		549,616
Total current assets		28,332,465		28,332,414
Non-current assets		159,913
Reclamation bonds (note 7)			156,280
Investment in joint venture (note 8)		534,600		75,328
Accounts receivable (note 6)		2,720,479		2,666,967
Investment property (note 9)		152,106		153,851
Property, plant and equipment (note 10)		1,024,243		1,038,858
Total assets	$	32,923,806	$	32,423,698
LIABILITIES AND EQUITY
Current liabilities	$	300,008
Payables and accruals (note 11)	$	171,401
Related party payable (note 17)		403,057		-
Total liabilities		703,065		171,401
Equity		56,105,050
Share capital (note 16)			56,177,173
Contributed surplus		5,135,145		5,135,145
Deficit		(29,019,454)		(29,060,021)
Total equity		32,220,741		32,252,297
Total liabilities and equity	$	32,923,806	$	32,423,698

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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GLOBEX MINING ENTERPRISES INC.

Condensed Interim Consolidated Statements of Changes in Shareholders' Equity (Expressed in Canadian Dollars)

(Unaudited)

Equity attributable to shareholders
	Number of		Share	Contributed
	shares		capital		surplus	Deficit		Total
Balance, December 31, 2022	55,671,336	$	56,711,846	$	4,963,079	$ (30,629,855)	$	31,045,070
Share repurchased	(519,500)		(529,210)		-	138,536		(390,674)
Income and comprehensive income	-		-		-	543,800		543,800
Balance, March 31, 2023	55,151,836	$	56,182,636	$	4,963,079	$ (29,947,519)	$	31,198,196
Balance, December 31, 2023	55,302,836	$	56,177,173	$	5,135,145	$ (29,060,021)	$	32,252,297
Share repurchased	(71,000)		(72,123)		-	13,555		(58,568)
Income and comprehensive income	-		-		-	27,012		27,012
Balance, March 31, 2024	55,231,836	$	56,105,050	$	5,135,145	$ (29,019,454)	$	32,220,741

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

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GLOBEX MINING ENTERPRISES INC.

Notes to the Condensed Interim Consolidated Financial Statements March 31, 2024

(Expressed in Canadian Dollars) (Unaudited)

1. General Business Description

Globex Mining Enterprises Inc. ("Globex" or the ''Corporation'') is a North American focused exploration and development property bank which operates under the project generator business model. It seeks to create shareholder value by acquiring mineral properties, undertaking limited exploration and therefore readying them for optioning, joint venturing, or outright sale. Globex's current mineral portfolio consists of approximately 250 early to mid-stage exploration, development and royalty properties which contain Base Metals (copper, nickel, zinc, lead), Precious Metals (gold, silver, platinum, palladium), Specialty Metals and Minerals (manganese, vanadium, titanium dioxide, iron, molybdenum, lithium, cobalt, scandium, antimony, rare earths and associated elements) and Industrial Minerals (mica, silica, potassic feldspar, pyrophyllite, kaolin, dolomite as well as talc and magnesite).

Globex was incorporated in the Province of Québec and following the approval of shareholders on June 12, 2014, it was continued under the Canada Corporations Act, effective October 28, 2014. Its head office is located at 89 Belsize Drive, Toronto, Ontario M4S 1L3 and its principal business office is located at 86, 14th Street, Rouyn-Noranda, Québec, J9X 2J1, Canada.

Globex's common shares are listed on the Toronto Stock Exchange ("TSX") under the symbol GMX, in Europe under the symbol G1MN on the Frankfurt, Stuttgart, Berlin, Munich, Tradegate, Lang & Schwarz Stock Exchanges and trades under the symbol GLBXF on the OTCQX International Exchange in the United States.

2. Basis of Presentation Basis of Presentation

These unaudited condensed interim consolidated financial statements were prepared on a going concern basis, under the historical cost basis, except for certain assets that are measured at fair value through profit and loss ("FVTPL") as indicated in note 3. All financial information is presented in Canadian dollars.

Statement of Compliance

These unaudited condensed interim consolidated financial statements have been prepared by management in accordance with IAS 34, Interim Financial Reporting ("IAS 34").

The preparation of unaudited condensed interim consolidated financial statements in accordance with IAS 34 requires the use of certain critical judgments, estimates and assumptions that effect the applications of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgments and estimates made by management in applying the accounting policies and the key sources of estimation uncertainty were the same as those that were applied (note 4) in the audited consolidated financial statements as at and for the year ended December 31, 2023. These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

Approval of Financial Statements

The Corporation's Board of Directors approved these unaudited condensed interim consolidated financial statements on May 13, 2024.

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GLOBEX MINING ENTERPRISES INC.

Notes to the Condensed Interim Consolidated Financial Statements March 31, 2024

(Expressed in Canadian Dollars) (Unaudited)

3. Material Accounting Policies

These unaudited condensed interim consolidated financial statements have been prepared using the same accounting policies and methods of computation as compared with the most recent annual consolidated financial statements (note 3) of the Corporation's audited financial statements for the year ended December 31, 2023.

The disclosure contained in these unaudited condensed interim consolidated financial statements does not include all the requirements in IAS 1, Presentation of Financial Statements. Accordingly, these unaudited condensed interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023.

4. Cash and Cash Equivalents

		As at		As at
		March 31,	December 31,
		2024		2023
Bank balances	$	3,739,831	$	3,430,336
Short-term deposit		3,212,691		3,181,447
	$	6,952,522	$	6,611,783

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GLOBEX MINING ENTERPRISES INC.

Notes to the Condensed Interim Consolidated Financial Statements March 31, 2024

(Expressed in Canadian Dollars) (Unaudited)

5.	Investments
				March 31,		December 31,
				2024			2023
		Number of		Fair	Number of		Fair
Corporation Name	shares/warrants		value	shares/warrants		value
Electric Royalties Ltd.	11,000,000	$	2,200,000	11,213,000	$	2,691,120
Pan American Silver Corp.	104,591		2,135,748	103,870		2,246,708
Agnico Eagle Mines Limited	24,599		1,990,092	24,400		1,775,566
O3 Mining Inc.	1,185,897		1,695,833	1,185,897		1,702,858
Orford Mining Corporation	4,399,071		483,898	4,399,071		197,959
Starr Peak Exploration Ltd.	863,200		353,912	863,200		384,124
Inifini Resources Limited	1,672,427		295,250	1,672,427		225,070
Excellon Resources Inc.	1,162,527		255,756	1,162,527		116,253
Troilus Gold Corp.	350,000		178,500	350,000		168,000
TC Energy Corp.	2,152		117,155	2,115		109,472
Brunswick Exploration Inc.	272,886		107,790	272,886		226,495
Maple Gold Mines Ltd.	1,294,824		97,112	1,294,824		90,638
Electric Royalties Ltd. - warrants	5,500,000		75,750	5,500,000		172,340
Algonquin Power and Utilities Corp.	8,505		72,803	8,361		69,898
Northland Power Corp.	3,145		69,599	3,065		74,785
FE Battery Metals Corp.	350,920		66,675	350,920		80,712
Infinico Metals Corp.	1,000,000		60,000	1,000,000		105,000
Allied Properties Real Estate	3,352		59,230	3,173		64,596
High Tide Resources Corp.	622,000		49,760	622,000		43,540
Renforth Resources Inc.	3,308,000		49,620	3,308,000		82,700
Falco Resources Ltd.	123,500		45,695	123,500		14,203
Consolidated Lithium Metals Inc.	2,040,816		40,816	2,040,816		61,224
Galway Metals Inc.	66,666		26,000	66,666		27,000
Integra Resources Corp.	20,480		19,661	20,480		28,467
Edison Lithium Corp.	156,250		15,625	156,250		33,594
Tres-Or Resources Ltd.	140,000		14,000	140,000		11,200
Tomagold Corporation	625,000		12,500	625,000		6,250
Vior Inc.	82,500		11,963	82,500		11,550
Pasofino Gold Limited	20,000		10,400	20,000		8,700
Abcourt Mines Inc.	99,960		5,498	99,960		3,998
Newfoundland Discovery Corp.	150,000		3,000	150,000		3,750
Rogue Resources Inc.	50,000		1,750	50,000		1,500
Class 1 Nickel and Technologies Limited	17,500		788	17,500		1,050
Opawica Explorations Inc.	10,000		500	10,000		900
Knick Exploration Inc.	1,000,000		-	1,000,000		-
Sphinx Resources Ltd.	513,000		-	513,000		-
Other equity investments	-		32,505	-		30,509
Short-term investments (1)	-		7,243,722	-		7,142,540
			$	17,898,906		$	18,014,269

Most of these investments (except for the short-term investments) were received under various mining option agreements and all of the shareholdings represent less than 12% (December 31, 2023 - less than 12%) of outstanding shares of each individual Issuer.

1. Included in short-term investments are guaranteed investment certificates ("GICs"), mutual funds and other short- term investments. The Corporation's GICs are held with a first-tier bank, with a maturity greater than 90 days but less than one year.
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GLOBEX MINING ENTERPRISES INC.

Notes to the Condensed Interim Consolidated Financial Statements March 31, 2024

(Expressed in Canadian Dollars) (Unaudited)

6.	Accounts Receivable
			March 31,	December 31,
Current		2024		2023
Trade receivables	$	42,377	$	54,503
	Bad debt provision		(4,109)		(4,109)
Net trade receivables		38,268		50,394
Taxes receivable		32,105		1,562
Deferred income		2,946,131		2,888,194
		$	3,016,504	$	2,940,150
			March 31,	December 31,
Non-current		2024		2023
Deferred income	$	2,720,479	$	2,666,967
			Face	Discounted
Deferred income		value		value
Balance, December 31, 2023	$	6,000,000	$	5,555,161
Finance income		-		111,448
Balance, March 31, 2024		6,000,000		5,666,609
Current deferred income		(3,000,000)		(2,946,131)
Non-current deferred income	$	3,000,000	$	2,720,478

7. Reclamation Bonds and Restoration Liabilities Reclamation Bonds

			March 31,	December 31,
			2024		2023
Nova Scotia bond - Department of Natural Resources	$	57,974	$	57,974
	Option reimbursement		(50,000)		(50,000)
Nova Scotia bond		7,974		7,974
Washington State bond - Department of Natural Resources		151,939		148,306
		$	159,913	$	156,280
8.	Investment in Joint Venture
Balance, December 31, 2023			$	75,328
Add:
	Globex's 50% share of DAL net income for the period ended March 31, 2024				459,272
Balance, March 31, 2024			$	534,600

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GLOBEX MINING ENTERPRISES INC.

Notes to the Condensed Interim Consolidated Financial Statements March 31, 2024

(Expressed in Canadian Dollars) (Unaudited)

9. Investment Property

Cost											Buildings
Balance, December 31, 2023 and March 31, 2024							$	174,418
Accumulated depreciation										Buildings
Balance, December 31, 2023									$	20,567
Depreciation during the period										1,745
Balance, March 31, 2024									$	22,312
Carrying value										Buildings
Balance, December 31, 2023									$	153,851
Balance, March 31, 2024									$	152,106
10.	Property, Plant and Equipment
			Land and		Mining		Office		Computer
Cost			buildings		equipment		equipment		systems		Total
Balance, December 31, 2023	$	1,234,657	$	108,210	$	165,008	$	426,738	$ 1,934,613
Additions		-		-		-		5,056		5,056
Balance, March 31, 2024	$	1,234,657	$	108,210	$	165,008	$	431,794	$ 1,939,669
Accumulated depreciation
Balance, December 31, 2023	$	256,798	$	101,210	$	154,678	$	383,069	$	895,755
Depreciation during the period		8,717		1,000		937		9,017		19,671
Balance, March 31, 2024	$	265,515	$	102,210	$	155,615	$	392,086	$	915,426
Carrying value
Balance, December 31, 2023	$	977,859	$	7,000	$	10,330	$	43,669	$ 1,038,858
Balance, March 31, 2024	$	969,142	$	6,000	$	9,393	$	39,708	$ 1,024,243
11.	Payable and Accruals
							March 31,	December 31,
								2024		2023
Trade payables and accrued liabilities						$	236,111	$	108,714
Sundry liabilities								63,897		62,687
							$	300,008	$	171,401
12.	Revenues
A summary of the revenues for the respective period-ends follows:
								Three months ended
									March 31,
									2024		2023
Option income						$		202,000	$	122,084
Royalties								238,795		-
							$		440,795	$	122,084

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