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Robex: Q2 Operational Results Improving and Costs Under Control Despite Inflationist Environment

·7 min read
Robex Resources Inc.
Robex Resources Inc.

QUÉBEC CITY, Aug. 29, 2022 (GLOBE NEWSWIRE) -- Robex Resources Inc. ("Robex", "the Group" or "the Company") (TSXV: RBX) is pleased to publish their financial results for the second quarter ended June 30, 2022.

All amounts are in Canadian dollars (CAD).

Quarterly Corporate Summary

Operations:

The number of ounces produced was 12,185, a 9.5% increase compared to the same quarter last year. The operational improvements completed by our teams have allowed us to continue to optimize the Nampala plant’s processing capacity. The installation of the new trommel at the beginning of June made it possible to increase production by improving plant availability.

In line with the new mine plan, the operational stripping ratio has slight decreased (4.1 compared to 4.8 for the same period in 2021), prompting a 1,3% decrease in the all-in sustaining cost (per ounce sold) i, going from $1,560 to $1,540.

Exploration:

Robex continued major exploration work on all of its licenses during Q2 of 2022, including license-wide soil geochemistry (BLEG), geophysical reinterpretations, remote sensing, surface rock chip sampling and drilling, including reverse circulation (RC) and diamond drilling (DD). These exploration workstreams were completed on each of the Senegalese-Malian shear zone license areas (Sanoula and Diangounté) as well as on the licenses neighbouring Nampala (Mininko and Gladié). RC and DD commenced at the beginning of the year with the objective of increasing the overall resource. A compilation of the geological work will be done during the third quarter to establish our 2023 exploration program combined with that of Kiniéro.

Finance:

A higher grade (0.84 g/t compared to 0.82 g/t for the same period in 2021) and a slight increase in the average gold selling price ($2,400 per ounce compared to $2,219 for the same period in 2021) resulted in a 17% increase in the operating income. While improving its cash flow, the Group continues to reduce its debt with a net cash position of $2.6 million as of June 30, 2022, compared to $3.1 million as of March 31, 2022.

Transaction:

The Company continues its efforts to complete the pre-feasibility study for the Kiniéro project in Guinea which was announced on August 29. To close the transaction, accounting work, as well as the integration of Sycamore's teams and processes, is underway with a view to satisfying all conditions precedent to the completion of the transaction. The Group’s objective is to close this transaction with Sycamore Mining Ltd before the end of the third quarter.

Mr. Georges Cohen, President of Robex, declared: “Despite the uncertain environment and the inflationary pressures, the operational performance of Nampala is improving and our costs are under control. We are still integrating the Sycamore team and we have strengthened our teams in Guinea and Quebec. We hope to close the transaction we announced during this quarter, in September. This closing will be the next stage to pivot our Group toward a growth strategy in Mali and in Guinea.”

Second Quarter of 2022 Operating and Financial Results Highlights

 

Quarters ended June 30,

 

 

 

 

2022

 

2021

 

Variation

 

Gold ounces produced

12,185

 

11,124

 

+9.5

%

Gold ounces sold

10,981

 

11,739

 

-6.5

%

(rounded off to the nearest thousand dollars)

 

 

 

Revenue – Gold sales

26,359,000

 

26,051,000

 

+1.2

%

Operating income

11,502,000

 

9,821,000

 

+17.1

%

Net income attributable to equity shareholders

7,818,000

 

9,395,000

 

-16.8

%

Basic earnings per share

0.013

 

0.016

 

-18.8

%

Diluted earnings per share

0.013

 

0.016

 

-18.8

%

Adjusted amounts

 

 

 

Net income attributable to equity shareholders i

7,706,000

 

9,281,000

 

-17.0

%

Per share i

0.013

 

0.015

 

-17.0

%

Cash flows

 

 

 

Cash flows from operating activities ii

12,176,000

 

12,387,000

 

-1.7

%

Per share i

0.020

 

0.021

 

-1.8

%

Statistics

 

 

 

(in dollars)

 

 

 

Average realized selling price (per ounce)

2,400

 

2,219

 

+8.2

%

All-in sustaining cost (per ounce sold) i

1,540

 

1,560

 

-1.3

%

Adjusted all-in sustaining cost (per ounce sold) i iii

937

 

912

 

+2.7

%

 

 

 

 

 

As of March 31,
2022

 

As of December 31,
2021

 

Variation

 

Total assets

142,630,000

 

142,668,000

 

0.0

%

Total liabilities

29,650,000

 

44,020,000

 

-32,6

%

Net debt (cash) iv

(2,558,000

)

(9,281,000

)

-72.4

%



Mining Operations (Gold):

 

Quarters ended June 30,

 

Halves ended June 30,

 

 

2022

 

2021

 

2022

 

2021

 

Operating Data

 

 

 

 

Ore mined (tonnes)

643,451

 

507,986

 

1,282,223

 

985,336

 

Ore processed (tonnes)

515,979

 

474,435

 

1,025,353

 

946,845

 

Waste mined (tonnes)

2,608,623

 

2,413,671

 

4,683,224

 

5,133,709

 

Operational stripping ratio

4.1

 

4.8

 

3.7

 

5.2

 

Head grade (g/t)

0.84

 

0.82

 

0.83

 

0.79

 

Recovery

87.7%

 

89.2%

 

88.9%

 

90.9%

 

Gold ounces produced

12,185

 

11,124

 

24,274

 

21,766

 

Gold ounces sold

10,981

 

11,739

 

24,652

 

23,241

 

Financial Data

 

 

 

 

(rounded off to the nearest thousand dollars)

 

 

 

 

Revenue – Gold sales

26,359,000

 

26,051,000

 

58,692,000

 

52,292,000

 

Mining operation expenses

7,425,000

 

8,892,000

 

16,359,000

 

18,080,000

 

Mining royalties

811,000

 

653,000

 

1,813,000

 

1,309,000

 

Administrative expenses

2,609,000

 

2,196,000

 

5,787,000

 

4,440,000

 

Depreciation of property, plant and equipment and amortization of intangible assets

2,432,000

 

3,190,000

 

4,875,000

 

5,822,000

 

Segment operating income

13,082,000

 

11,120,000

 

29,858,000

 

22,641,000

 

Statistics

 

 

 

 

(in dollars)

 

 

 

 

Average realized selling price (per ounce)

2,400

 

2,219

 

2,381

 

2,250

 

Cash operating cost (per tonne processed) i

17

 

18

 

17

 

18

 

Total cash cost (per ounce sold) i

750

 

813

 

737

 

834

 

All-in sustaining cost (per ounce sold) i

1,540

 

1,560

 

1,332

 

1,645

 

Adjusted all-in sustaining cost (per ounce sold) i iii

937

 

912

 

889

 

981

 

Administrative expenses (per ounce sold)

238

 

187

 

235

 

191

 

Depreciation of property, plant and equipment and amortization of intangible assets (per ounce sold)

221

 

272

 

198

 

251

 

For more information, Robex’s MD&A and the consolidated financial statements 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.

For more information:

ROBEX RESOURCES INC CONTACTS:

RENMARK FINANCIAL COMMUNICATIONS INC.

Benjamin Cohen, CEO
Aurélien Bonneviot,
Investor Relations and Corporate Development
+1 (581) 741-7421

E-mail : investor@robexgold.com
www.robexgold.com

Robert Thaemlitz
Account Manager
+1 (416) 644-2020
or +1 (212) 812-7680

E-Mail : rthaemlitz@renmarkfinancial.com
www.renmarkfinancial.com

This news release contains statements that may be considered “forecast information” or “forecast statements” in terms of security rights. These forecasts are subject to uncertainties and risks, some of which are beyond the control of Robex. Achievements and final results may differ significantly from forecasts made implicitly or explicitly. These differences can be attributed to many factors, including market volatility, the impact of the exchange rate and interest rate fluctuations, mispricing, the environment (hardening of regulations), unforeseen geological situations, unfavourable operating conditions, political risks inherent in mining in developing countries, changes in government policies or regulations (laws and policies), an inability to obtain necessary permits and approvals from government agencies, or any other risk associated with mining and development. There can be no assurance that the circumstances set out in these forecasts will occur, or even benefit Robex, if any. The forecasts are based on the estimates and opinions of the Robex management team at the time of publication. Robex makes no commitment to make any updates or changes to these publicly available forecasts based on new information or events, or for any other reason, except as required by applicable security laws. 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 news release.

i Adjusted net income attributable to equity shareholders, adjusted basic earnings per share, operating cash flows per share, cash operating cost, total cash cost, all-in sustaining cost (or AISC) 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 the MD&A.
ii Cash flows from operating activities exclude net change in non-cash working capital items.
iii Adjusted all-in sustaining cost excludes stripping cost and exploration expenses.
iv Refer to “Net Debt (Cash) Position” section of the MD&A.