QUEBEC CITY, August 27, 2021 (GLOBE NEWSWIRE) – Robex Resources Inc. (« Robex »,“the group” or “the enterprise“(TSXV: RBX / FWB: RB4) announces its financial results for the quarter ended June 30, 2021.
All amounts are in Canadian dollars (CAD).
The second quarter of 2021 shows an improvement and we expect this trend to continue in the months ahead.
We continue to work on our mining strategy by developing a new strategic mine plan that will allow us to optimize the exploitation of our resources and plan our cash flow for the longer term.
With the commissioning of the new cone crusher, our operations improve. We have ordered additional equipment to further optimize the crushing cycle. This allows the plant to increase the proportion of transitional ore in the plant feed. Specifically, we can use it to process harder and mostly higher quality ores at the bottom of the old mine.
Overall, stripping remains high temporarily. Our work to optimize the mine plan suggests that the stripping ratio should decline soon. The increased production and higher grades enabled us to improve our cash performance, despite the difficulties in getting our VAT back. The total VAT refundable now amounts to $ 8.4 million as of June 30, 2021.
Construction work on the solar power plant has started and will be completed in the first quarter of 2022.
The procedures in place to fight COVID-19 since last year are still in place and have allowed us to limit the impact of this pandemic on our operations, but we remain vigilant.
Highlights:
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11,739 OZS OF GOLD SALE FOR $ 26.1 MILLION
Gold sales of $ 26.1 million in the second quarter of 2021 compared to $ 15.7 million in the same period in 2020. This increase is due to a larger amount of gold sold, 11,739 ounces compared to 6,500 ounces. On June 1st, 2020, 7,831 ounces of gold bars were for sale and were sold in the third quarter of 2020.
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OPERATING RESULT OF 9.8 MILLION. USD, A STRONG IMPROVEMENT
Operating income of $ 9.8 million compared to $ 0.2 million for the same period in 2020, including $ 3.2 million and $ 6.8 million in depreciation and amortization, respectively.
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STABLE LONG-TERM LIABILITIES
The Group's long-term debt of $ 6.9 million as of June 30, 2021, compared to $ 6.6 million as of June 31, 2021.
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POSITIVE WORKING CAPITAL WITH SLIGHT INCREASE
Positive working capital of $ 10 million as of June 30, 2021, compared to positive working capital of $ 8.8 million as of December 31, 2020.
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$ 6.6 MILLION INVESTMENT IN STRIPPING
Projected increase in production costs capitalized as stripping costs of $ 4.3 million compared to the same period in 2020 explained by the opening of 4 new pits around the main pit. A total of 2.4 million tons of degraded waste was excavated, which corresponds to an average stripping ratio of 4.8. As mentioned earlier, these costs are expected to decrease with the new mine plan.
Mining Operation – Nampala:
The story goes on
|
Quarters ended |
Halves ended |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Operating data |
||||
|
Ore mined (tons) |
507.986 |
456.091 |
985.336 |
958.371 |
|
Ore processed (tons) |
474,435 |
483,460 |
946.845 |
960.180 |
|
Decomposed waste (tons) |
2,413,671 |
1,014,426 |
5,133,709 |
2,365,232 |
|
Operational stripping ratio |
4.8 |
2.2 |
5.2 |
2.5 |
|
Head content (g / t) |
0.82 |
1.00 |
0.79 |
1.05 |
|
recreation |
89.2% |
89.5% |
90.9% |
89.1% |
|
Gold ounces produced |
11,124 |
13,921 |
21,766 |
28,839 |
|
Gold ounces sold |
11,739 |
6,500 |
23,241 |
21,146 |
|
Financial data |
||||
|
(rounded to the nearest thousand dollars) |
||||
|
Revenue – Gold Sales |
26,051,000 |
15,714,000 |
52,292,000 |
46,578,000 |
|
Expenses for mining operations |
8,892,000 |
3,728,000 |
18,000,000 |
11,163,000 |
|
Mining fees |
653,000 |
370,000 |
1,309,000 |
1,141,000 |
|
Administrative expenses |
2,196,000 |
2,551,000 |
4,440,000 |
4,200,000 |
|
Depreciation of property, plant and equipment and intangible assets |
3,190,000 |
6,759,000 |
5,822,000 |
14,147,000 |
|
Operating profit of the segment |
11,120,000 |
2,306,000 |
22,641,000 |
15,927,000 |
|
statistics |
||||
|
(in dollars) |
||||
|
Average realized sales price (per ounce) |
2,219 |
2,418 |
2,250 |
2,203 |
|
Cash operating costs (per ton processed) ii |
18th |
fifteen |
18th |
16 |
|
Total Cash Cost (per ounce sold) ii |
813 |
631 |
834 |
582 |
|
All-in maintenance cost (per ounce sold) ii |
1,560 |
1,261 |
1,645 |
1,058 |
|
Adjusted Total Sustainable Cost (per ounce sold) ii |
912 |
747 |
981 |
725 |
|
Administration costs (per ounce sold) |
187 |
392 |
191 |
199 |
|
Depreciation of property, plant and equipment and intangible assets (per ounce sold) |
272 |
1,040 |
251 |
669 |
Robex's MD&A and consolidated interim consolidated financial statements (unaudited) are available on the company's website in the Investors section at robexgold.com. These reports and other documents produced by the company are also available at sedar.com.
A word from the chairman, Mr. Georges Cohen:
“We are pleased to be able to present the results for the second quarter of 2021. As announced in the previous quarter's press release, we're already seeing a significant improvement over Q1 2021, with production up 4.5% and total sustainable costs ii down 10%. This improvement should continue for the rest of the year thanks to the operational initiatives we implemented in the first half of the year to optimize our overall operations (strategic revision of the mining plan, plant investments, improvement in processing capacity).
We continue to work hard on all growth options for the operation of Robex. “
For more informations:
Robex Resources Inc.
Benjamin Cohen, CEO
Aurélien Bonneviot, Investor Relations and Corporate Development
investor@robexgold.com
www.robexgold.com
Head office: +1 (581) 741-7421
This press release contains statements that may be considered “forward-looking information” or “forward-looking statements” with respect to security rights. These projections are subject to uncertainties and risks, some of which are beyond Robex's control. Performance and final results can differ significantly from implicitly or explicitly given forecasts. These differences can be attributed to many factors including geopolitical risks, market volatility, the effects of exchange rate and interest rate fluctuations, mispricing, the environment (hardening of regulations), unforeseen geological situations, adverse operating conditions, political risks associated with mining in developing countries, changes in government policies or regulations (laws and regulations), inability to obtain required permits and approvals from government agencies, or other risks related to mining and development. There can be no assurance that the circumstances described in these projections will occur or that Robex, if any, will benefit. The projections are based on the beliefs and opinions of the Robex management team at the time of publication. Robex undertakes no obligation to update or change these publicly available forecasts as a result of new information or events or for any other reason, except as required by applicable safety law. The TSX Venture Exchange or the Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) assumes no responsibility for the authenticity or accuracy of this press release.
i Cash flow from operating activities excludes the net change in non-cash working capital items.
ii Cash operating costs, total cash costs, all-in sustaining cost and adjusted all-in sustaining cost are non-IFRS financial measures for which there is no standardized definition under IFRS. See the “Non-IFRS Financial Performance Measures” section of MD&A.