First quarter 2021 results and future
QUEBEC, May 28, 2021 (GLOBE NEWSWIRE) – Robex Resources Inc. (“Robex“,”the group” or “the company”) (TSXV: RBX / FWB: RB4) presents its financial performance for the quarter ended March 31, 2021.
All amounts are presented in Canadian dollars (CAD).
The first quarter of 2021 was, in line with our forecasts, impacted on the one hand by the drop in production linked to low-grade surface ore and on the other hand by an increase in the stripping rate of the new pits. This essential groundwork helps us prepare for the future.
With the end of the 2020 exploration program in the first quarter of 2021, the stripping of the new pits in the second quarter of 2021 and the preparation for the rainy season, Robex should be able to improve its profitability for the second half of the year.
An optimization of the mine’s strategic plan is currently underway to define the life of the Nampala mine and refine the economic variables for a possible expansion of the operation.
To date, mining operations have not been affected by recent events in Mali. COVID-19 did not present us with any difficulties during the quarter.
We are therefore reiterating our 2021 goals of producing more than 51,000 ounces with an all-inclusive sustaining cost.I between $ 900 and $ 1,000 per ounce sold.
Highlights of the first quarter of 2021:
- 6.8 MILLION DOLLARS OF DECORATIVE INVESTMENT
A total of 2.7 million tonnes of waste rock were mined, representing a surface stripping rate of 5.7.
- 26.2 MILLION DOLLARS IN GOLD SALES
11,502 ounces of gold were sold, with an average realized selling price of $ 2,281 per ounce sold.
- $ 10 MILLION OPERATING RESULTS
Operating results of $ 10 million, including $ 2.6 million in amortization of fixed assets. The operating results are 38.2% as a percentage of sales.
- CASH FLOWS FROM OPERATING ACTIVITIESii OF $ 11.5 MILLION
- LONG-TERM DEBT REDUCED TO $ 5.9 MILLION
The Group is further improving its financial health by repaying its debts. The Company’s long-term debt increased from $ 6.6 million as at December 31, 2020 to $ 5.9 million as at March 31, 2021, despite 2 new bank loans totaling $ 0.8 million for the purchase of new light vehicles.
- SHAREHOLDER INCREASE OF $ 3.9 MILLION SINCE END 2020
The carrying value of total assets held by common shareholders was $ 94 million as at March 31, 2021, including retained earnings of $ 17.9 million.
- 8 MILLION DOLLARS OF POSITIVE WORKING CAPITAL AS OF MARCH 31, 2021
- 1.8 MILLION DOLLARS IN EXPLORATION INVESTMENTS
Exploration investments of $ 1 million on the Nampala permit and $ 0.8 million on the Mininko permit for the first quarter of 2021.
- ACQUISITION OF A NEW EXPLORATION PERMIT
The Company has entered into an agreement to acquire the Gladié permit. As a reminder, this exploration permit covers 52 km2 and is adjacent to our Nampala property.
Outlook for the remainder of 2021:
For the rest of the year, the Group is focusing on the following objectives:
- Reduction of stripping rate: After the significant investment in 2020 and in the first quarter for the opening of the new pits, mining activities are expected to return to a stripping rate and grades in line with the long-term mining plan.
- Optimization of processing capacity: With the new equipment (conveyor, reject line, cyclone pumps, two-stage sieve), we intend to gradually increase the plant’s throughput. Investing in the cone crusher will allow us to process a richer transition ore.
- Environmental impact: The commissioning of a solar power plant, in partnership with VIVO Energy, should begin by the end of the year. This will allow us to reduce our energy costs and our environmental footprint.
- Growth: With continued investments in exploration, the Company intends to develop its permits around Nampala, as well as in western Mali. At the same time, we are exploring opportunities to acquire assets to build a second operation.
Mining – Nampala:
|Quarters ended March 31|
|Ore mined (tonnes)||477 350||502,280|
|Ore processed (tonnes)||472,410||476,720|
|Waste extracted (tonnes)||2,720,038||1,350,806|
|Operational stripping rate||5.7||2.7|
|Head grade (g / t)||0.76||1.10|
|Ounces of gold produced||10 642||14 918|
|Ounces of gold sold||11,502||14 646|
|(rounded to the nearest thousand dollars)|
|Revenue – Gold sales||26,241,000||30,864,000|
|Mining operating expenses||9,188,000||7,436,000|
|Amortization of tangible assets and amortization of intangible assets||2,632,000||7,387,000|
|Segment operating profit||11,521,000||13,621,000|
|Average Realized Selling Price (per ounce)||2 281||2 107|
|Cash operational cost (per tonne processed) I||18||17|
|Total cash cost (per ounce sold) I||856||560|
|All-in sustaining cost (per ounce sold) I||1,732||968|
|Adjusted all-in sustaining cost (per ounce sold) I||1,053||715|
|Administrative costs (per ounce sold)||195||113|
|Amortization of tangible assets and amortization of intangible assets
(per ounce sold)
Robex’s MD&A and condensed 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 on sedar.com.
A word from the president, Mr. Georges Cohen:
“Our first quarter results remain satisfactory given our stage of development and are still impacted by the deferred investments budgeted for 2020, now completed, and the preparation of new wells. We have invested heavily in the future of Nampala and now have a solid operation. It will enable us to improve our profitability in the second half of the year and to return to ratios comparable to those of 2020. We are now working towards a growth phase for the Group in order to replicate our success with Nampala.
I would like to congratulate all our employees who work in a complicated situation in Mali and who do their utmost to achieve the management’s objectives. It is difficult to understand the ramifications of the current political crisis in Mali, but we can assure you that we are doing all we can to ensure the safety of all our employees and the continuity of our operations.
Annual general meeting:
The 2021 Annual General Meeting of Shareholders to be held, once again, virtually Wednesday June 30 at 10:00 a.m. (Eastern time). To participate in the virtual meeting, you must reserve your place by registering online at https://inscriptions.digicast.ca/form-5899372/Robex210625, no later than Tuesday June 22, 2021 at 5:00 p.m. (Eastern time).
All holders of common shares of Robex Resources Inc. of record as of May 31, 2021 are invited to cast their vote according to the instructions received. To be valid, the form of proxy or voting instruction form must be received by Computershare Investor Services Inc. (“Computershare”) by Internet, telephone or mail at their Toronto office, 100 University Avenue, 8th Floor, Toronto, Ontario, M5J 2Y1 no after 5 p.m. EST on June 28, 2021.
You can now consult the notice of the 2021 Annual General Meeting of Shareholders and the Management Proxy Circular on the Company’s website in the Investors – Financial and Other Documents section, or on SEDAR.
For more information:
Aurélien Bonneviot, investor relations and business development
The head office: +1 (581) 741-7421
This press release contains statements that may be considered “forward-looking information” or “forward-looking statements” in terms of security interests. These forecasts are subject to uncertainties and risks, some of which are beyond Robex’s control. Achievements and end results may differ significantly from the forecasts made implicitly or explicitly. These differences can be attributed to many factors, including geopolitical risk, market volatility, impact of exchange rate and interest rate fluctuations, pricing errors, environment (tighter regulations), unforeseen geological situations, adverse operating conditions, political risks inherent in operating in developing countries, changes in government policies or regulations (laws and policies), 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 described in these forecasts will occur, or even benefit Robex, from time to time. Forecasts are based on the estimates and opinions of Robex’s management team at the time of publication. Robex does not undertake to make updates or changes to these publicly available forecasts based on new information or events, or for any other reason, except as required by applicable safety 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 press release.
i Cash operating cost, total cash cost, all-in sustaining cost and adjusted all-in sustaining cost are non-IFRS financial performance measures without a standard definition under IFRS. See the “Non-IFRS Financial Performance Measures” section of the MD&A.
ii Cash flow from operating activities excludes the net change in non-cash working capital items.