Pasinex Announces First Quarter 2022 Financial Results
May 24 2022 - 5:01PM
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The “Company” or
“Pasinex”) today reports the Company’s financial and operating
results for the three months ended March 31, 2022.
Andrew Gottwald, Chief Financial Officer of
Pasinex, commented, “This was an exceptional quarter for the
Company, with the Joint Venture posting superb operating results
both in sales and production, cash flowing from Horzum AS to
Pasinex Arama and Pasinex Canada and the start of an exploration
program on the Company’s Gunman Project in Nevada. The improvement
in the Company’s balance sheet has been substantial and we are
pleased to report we have sufficient cash on hand to fund our
activities for the next year and beyond. A statement we haven’t
been able to make in years. This has been a great start to what
could become our best year yet.”
Selected Quarterly Information
|
|
Three Months Ended March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
Financial: |
|
|
|
Equity gain
from Horzum AS |
$ |
- |
|
$ |
32,232 |
|
|
Cash
dividends received from investment in Horzum AS |
$ |
1,167,464 |
|
$ |
32,232 |
|
|
Dividend
income from Horzum AS |
$ |
4,072,320 |
|
$ |
- |
|
|
Consolidated
net income (loss) |
$ |
3,634,344 |
|
$ |
(209,646 |
) |
|
Basic and
diluted net income per share |
$ |
0.03 |
|
$ |
0.00 |
|
|
Net cash
provided by (used in) operating activities |
$ |
769,821 |
|
$ |
(234,543 |
) |
|
Weighted average shares outstanding |
|
144,554,371 |
|
|
144,554,371 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
Horzum AS operational data (100% basis): |
|
|
|
Zinc product
mined (wet) tonnes |
|
4,540 |
|
|
2,580 |
|
|
Zinc product
sold (wet) tonnes |
|
2,964 |
|
|
2,372 |
|
|
Zinc oxide
product average grade sold |
|
37.3 |
% |
|
31.0 |
% |
|
Zinc
sulphide product average grade sold |
|
52.6 |
% |
|
NA |
|
|
Gross
margin(1) |
|
72 |
% |
|
18 |
% |
|
CAD cost per
tonne mined(1) |
$ |
319 |
|
$ |
429 |
|
|
USD cash cost per pound of zinc mined(1) |
$ |
0.26 |
|
$ |
0.53 |
|
(1) Refer to Non-GAAP Measures
Highlights
- Pasinex recorded a net income of approximately $3.63 million in
the three months ended March 31, 2022, compared with a net loss of
approximately $0.21 million for the same period in 2021. Pasinex
Arama recorded dividend income of approximately $4.1 million in the
first quarter of 2022. There was no similar amount in 2021.
- The operating income in Horzum AS increased to $3.3 million for
the first quarter of 2022 versus operating income of $0.2 million
in 2021. This increase was due to higher revenue generated from
higher sales prices. The increased sales prices were the result of
higher worldwide zinc prices in the first quarter of 2022 along
with selling a greater proportion of high-grade zinc sulphide
product in 2022 compared with 2021. The higher sales prices also
resulted in the gross margin (see non-GAAP measures) for the three
months ended March 31, 2022, increasing to 72% from 18% in the same
period in 2021.
- Horzum AS declared a dividend to be paid to its shareholders of
which Pasinex Arama was entitled to TRY 44.8 million. Pasinex Arama
has received TRY 21 million of this amount as of the date of this
Interim MD&A, bringing the total amount received by Pasinex
Arama from Horzum AS in 2022 to TRY 30.7 million.
- Horzum AS sold approximately 2,500 tonnes of zinc sulphide
product in the first quarter of 2022 at an average grade of 53%
zinc and an average sale price of approximately US$1,318 per
tonne.
- Horzum AS mined 4,540 tonnes of zinc product in the first three
months of 2022, at the Pinargozu mine, including 3,842 tonnes of
high-grade zinc sulphide product.
- The CAD cost per tonne mined (see non-GAAP measures) was $319
and the USD cash cost per pound of zinc product mined (see non-GAAP
measures) was US$0.26 for the three months ended March 31,
2022.
- During the first quarter of 2022, Horzum AS completed a total
of 2,494 metres of underground and surface diamond core drilling,
in 22 holes, in the Fourth Adit and at the 616-metre level. It also
completed 404 metres of exploration and development adit
development.
- Horzum AS had another zero-fatality quarter at the Pinargozu
Mine. There were 49,048 fatality free hours worked and no serious
injuries were reported.
- The Company reached its US$200,000 of qualified exploration
expenditures spending requirement at the Gunman Project during the
quarter.
- The Company completed a review of its exploration data on its
Gunman Project during the first quarter. Subsequent to the quarter
end, the Company completed a helicopter magnetics survey and a soil
sampling program and is now awaiting results from these programs.
The Company is also in the process of completing a ground gravity
program.
- The Company issued 1,500,000 stock options during the first
quarter of 2022.
Non-GAAP Measures
Please note that all dollar amounts in this news
release are expressed in Canadian dollars unless otherwise
indicated. Refer also to the 2021 Management’s Discussion and
Analysis (MD&A) and Audited Financial Statements found on
SEDAR.com for more information. This news release includes non-GAAP
measures, including gross margin, cost per tonne mined and US$ cash
cost per pound of zinc mined. A reconciliation of these non-GAAP
measures to the GAAP financial statements is included in the
MD&A.
Qualified Person
Jonathan Challis, a fellow of the Institute of
Materials, Minerals and Mining and a Chartered Engineer, is the
qualified person (“QP”) as defined by NI 43-101 and has approved
the scientific and technical disclosure herein. Mr. Challis is a
director of the Company and Chair of Horzum AS.
About Pasinex
Pasinex Resources Limited is a Toronto-based
mining company that owns 50% of Horzum Maden Arama ve Isletme
Anonim Sirketi (“Horzum AS” or “Joint Venture”), through its 100%
owned subsidiary Pasinex Arama ve Madencilik Anonim Sirketi
(“Pasinex Arama”). Horzum AS holds 100% of the producing Pinargozu
high-grade zinc mine. Horzum AS sells directly to zinc smelters and
or refiners through commodity brokers from its mine site in Turkey.
The Company also holds an option to acquire 80% of the Gunman
high-grade zinc exploration project in Nevada. Pasinex has a strong
technical management team with many years of mineral exploration
and mining project development experience. The mission of Pasinex
is to build a mid-tier zinc company based on its mining and
exploration projects in Turkey and Nevada. Visit our website at
www.pasinex.com.
On Behalf of the Board of
Directors PASINEX
RESOURCES LIMITED
“Andrew Gottwald” |
|
|
|
Andrew Gottwald |
Evan White |
Chief Financial Officer |
Manager of Corporate Communications |
Phone: +1 416.861.9659 |
Phone: +1 416.906.3498 |
Email: info@pasinex.com |
Email: evan.white@pasinex.com |
The CSE does not accept responsibility for the
adequacy or accuracy of this news release.
This news release includes forward-looking
statements that are subject to risks and uncertainties.
Forward-looking statements involve known and unknown risks,
uncertainties, and other factors that could cause the actual
results of the Company to be materially different from the
historical results or any future results expressed or implied by
such forward-looking statements.
All statements within, other than statements of
historical fact, are to be considered forward-looking. Although
Pasinex believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not a guarantee of future performance, and actual results or
developments may differ materially from those in forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market
prices, continued availability of capital and financing,
exploration results, and general economic, market or business
conditions. There can be no assurances that such statements will
prove accurate and, therefore, readers are advised to rely on their
own evaluation of such uncertainties. We do not assume any
obligation to update any forward-looking statements.
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