Leading Edge Materials Reports Quarterly Results to Apr 30 2018
NEWS RELEASE June 21, 2018
LEADING EDGE MATERIALS CORP.
1305 – 1090 West Georgia Street, Vancouver, BC, V6E 3V7
T +1 604 685 9316 | leadingedgematerials.com
TSX.V : LEM Nasdaq First North: LEMSE OTCQB : LEMIF
emerging materials, expanding markets
Leading Edge Materials Reports Quarterly Results to Apr 30 2018
Vancouver, Canada – Leading Edge Materials Corp . (“Leading Edge Materials”) or (the Company”)
(TSXV: LEM) (OTCQB: LEMIF) announces second quarter results for the period ending Apr 30, 2018. All
amounts in this release are in Canadian dollars.
Wok undertaken by Leading Edge Materials during th e second quarter 2018 is in line with the Board’s
strategic roadmap to support and benefit from the electrification of Europe. Key elements of the
Company’s ongoing investment strategy include high value product development from the Woxna
Graphite Mine; increasing community engagement at the Norra Kärr rare earth element project while
identifying project improvements that reduce the environmental footprint; ongoing discovery of lithium
at the Bergby project and in the surrounding regi on; and rapidly advancing various opportunities in
cobalt across Europe including Finnish and Romanian assets.
The Company is conducting testwork to identify key equipment to design and install a demonstration
plant at the Woxna Graphite Mine to produce samples of battery grade materials for customer
evaluation and demonstrate the commercial scaling of the processes. The testwork on both
spheronising and purification continues through the next quarter.
Furthermore, the Company continues to be an active participant in the EU Battery Alliance, a forum
comprised of more than 50 of Europe’s strongest corporate voices within the emerging lithium ion
battery sector, plus numerous support and government agencies.
Selected Financial Data
The following selected financial information is de rived from the unaudited condensed consolidated
interim financial statements of the Company prepared in accordance with IFRS.
Fiscal 2018 Fiscal 2017 Fiscal 2016
Three Months Ended April 30,
2018
$
January 31,
2018
$
October 31,
2017
$
July 31,
2017
$
April 30,
2017
$
January 31,
2017
$
October 31,
2016
$
July 31,
2016
$
Operations
Expenses (665,364) (1,979,241) (843,952) (598,339) (661,022) (6 69,396) (2,060,555) (454,144)
Other items 32,508 42,816 75,938 (85,392) (59,749) (78,116) 63, 761 19,661
Comprehensive loss (632,856) (1,936,425) (768,014) (683,731) (7 20,771) (747,512) (1,996,794) (434,483)
Basic and diluted loss per share (0.01) (0.02) (0.00) (0.01) (0.01) (0.01) (0.04) (0.01)
Financial Position
Working capital 2,041,550 2,698,150 3,490,760 4,430,469 3,980,1 45 3,582,767 2,436,641 1,947,010
Total assets 36,139,745 36,902,593 37,915,728 39,267,743 38,320 ,958 36,893,309 36,037,751 19,632,405
Total non-current liabilities (8,157,203) (8,204,190) (8,330,32 1) (9,557,984) (8,967,308) (7,942,687) (8,072,937) (8,272,979)
Results of Operations
Three Months Ended April 30, 2018 Compared to Three Months Ended January 31, 2018
During the three months ended April 30, 2018 (“Q2”) the Company reported a comprehensive loss of
$632,856 compared to a comprehensive loss of $1,936,425 for the prior three months ended January
31, 2018 (“Q1”), for a decrease in loss of $1,303,569, primarily attributable to the recognition of share-
based compensation of $1,168,525 on the granting of stock options in Q1. No stock options were
granted or vested in Q2.
Financial Condition / Capital Resources
During the 2018 period the Company recorded a net loss of $2,569,281 and, as at April 30, 2018, the
Company had an accumulated deficit of $25,237,320 and working capital of $2,041,550. The Company
is maintaining its Woxna Graphite Mine on a “production-ready” basis to minimize costs. The Company
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currently has no significant budget allocated for the Norra Kärr Project. Although the Company has
sufficient funding to meet anticipated levels of corporate administration and overheads for the ensuing
twelve months it anticipates that it may need additional capital to recommence operations at the Woxna
Graphite Mine and/or upgrade the plant to produce va lue added materials. There is no assurance such
additional capital will be available to the Company on acceptable terms or at all. In the longer term the
recoverability of the carrying value of the Company’s long-lived assets is dependent upon the
Company’s ability to preserve its interest in the underlying mineral property interests, the discovery of
economically recoverable reserves, the achievement of profitable operations and the ability of the
Company to obtain financing to support its ongoin g exploration programs and mining operations.
Whether the Company can generate positive cash flow and, ultimately, achieve profitability is uncertain.
These uncertainties may cast significant doubt upon the Company’s ability to continue as a going
concern.
Financings
No financings were undertaken during the 2018 period. The Company issued 340,000 common shares
on the exercise of share options for $132,600.
During the 2017 period the Company completed priv ate placement financings of 4,004,222 units at
$0.45 per unit for gross proceeds of $1,801,900. In addition, the Company issued 242,500 common
shares on the exercise of share options for $112,200. The Company allocated the net proceeds to
conduct testwork toward the production of high-purity graphite at the Woxna Graphite Mine, to further
lithium and cobalt exploration activities and for general corporate requirements.
Summary and Outlook
At the Woxna Graphite Mine, the Company is focused on optimization of the purification and shaping
processes required to convert low value graphite into high value battery-ready anode material.
Laboratory based work to date has produced batt ery-ready anode materials by both chemical and
thermal purification methods yielding high quality graphite materials that meets the electrochemical
specifications of battery cell manufacturers. Ongo ing larger scale testing and lab work is targeting
process optimization of the Woxna flow sheet to define equipment requirements to produce battery
grade materials and salable by-products. The resear ch focus is directed towards commercially proven
process improvements which can be installed on the Woxna mine site within existing operating permits.
In February 2018 the Company announced participation as a raw material industry representative within
t h e E U B a t t e r y A l l i a n c e ( t h e “ A l l i a n c e ” ) , w h i c h i s c o m p r i s e d o f m o r e t h a n 5 0 o f E u r o p e ’ s s t r o n g e s t
corporate voices within the emerging lithium ion battery sector, plus numerous support and government
agencies. The Company is the only potential suppli er of natural graphite anode material within the
Alliance, which allowed the Company’s voice to be clearly heard with regard to the sustainable supply of
European raw materials.
Qualified Person
The qualified person for the Company’s project, Mr. Blair Way B.S. (Geology) M.B.A., a Fellow of the
Australasian Institute of Mining and Metallurgy, the Company’s President and CEO, has reviewed and
verified the contents of this document.
Additional information
The Company's condensed consolidated interim financial statements for the six months ended April 30,
2018 and related management's discussion and anal ysis are available on the Company's website at
www.leadingedgematerials.com or under its profile on SEDAR at www.sedar.com
This is information that Leading Edge Materials Corp . is obliged to make public pursuant to the EU
Market Abuse Regulation. The information was submitted for publication, through the agency of the
contact person set out below, on June 21, 2018, at 6:30 PM Vancouver time.
On behalf of the Board,
"Blair Way"
Blair Way, President & CEO
For further information, contact: 1.604.685.9316
www.leadingedgematerials.com
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About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on production of high value critical raw
materials for the European market, with an operat ing base in the Nordic region, a region well
recognised for its promotion and investment in innovation. LEM’s flagship asset is the Woxna Graphite
production facility located in central Sweden target ing the supply of specialty materials for lithium ion
battery production. LEM’s assets and research focus are towards the raw materials for Li-ion batteries
(graphite, lithium, cobalt); materials for high ther mal efficiency building products (graphite, silica,
nepheline); and materials that improve the efficiency of energy generation (dysprosium, neodymium,
hafnium). Investments are linked to the global shift to low-carbon energy generation and energy
storage. Leading Edge Materials currently operate in four divisions, Graphite, Lithium, Rare Earth and
Cobalt. Remium Nordic AB is the company’s Certified Adviser (“CA”) as part of the listing requirements
for Nasdaq First North.
About Nasdaq First North
Nasdaq First North is regulated as a multilateral tr ading facility, operated by the different exchanges
within Nasdaq Nordic (Nasdaq First North Denmark is regulated as an alternative marketplace). It does
not have the legal status as an EU-regulated mark et. Companies at Nasdaq First North are subject to
the rules of Nasdaq First North and not the legal requirements for admission to trading on a regulated
market. The risk in such an investment may be higher than on the main market.
Important information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information. This news release may contain forward-looking statements and information based on
current expectations. These statements should not be read as guarantees of future performance or results. Such
statements involve known and unknown risks, uncertainti es and other factors that may cause actual results,
performance or achievements to be materially different from those implied by such statements. Such statements
include but are not limited to, the Compan y’s expectations regarding the benefits of the listing on the Nasdaq First
North; the Company’s ability to fulfil the customary conditions set out in th e conditional acceptance letter from
Nasdaq Stockholm AB; unexpected geol ogical conditions; the Company’s ex pectations regarding exploration
activities to advance critical material projects for energy storage markets, delays in obtaining or failure to obtain
necessary permits and approvals from government author ities. Although such statements are based on
management's reasonable assumptions, there are risk fa ctors which could cause the Company's actual results,
performance or achievements to be materially different from any future results, pe rformance or achievements
expressed or implied by the forward-lo oking information contained herein. All forward-looking information herein is
qualified in its entirety by this cautionary statement, an d the Company disclaims any obligation to revise or update
any such forward-looking information or to publicly announce the result of any revisions to any of the forward-
looking information contained herein to reflect future results, events or developments, except as required by law.