Pasinex Announces Third Quarter 2022 Financial Results
November 21 2022 - 7:30AM
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The “Company” or
“Pasinex”) today reports the Company’s financial and operating
results for the three and nine months ended September 30, 2022. The
third quarter financial statements and management’s discussion and
analysis have been posted on the Company’s website at
www.pasinex.com.
Andrew Gottwald, Chief Financial Officer of
Pasinex, commented, “Horzum AS continued to deliver solid results
throughout the third quarter. We are now well funded for our
operations to continue through 2023. Sales of high-grade zinc
sulphide product continued at very impressive margins. We look
forward to receiving the official license extensions from MAPEG and
to completing the drill program in Nevada.”
Selected Quarterly Information
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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Financial: |
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Equity gain from Horzum AS |
$ |
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- |
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$ |
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- |
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$ |
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- |
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$ |
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32,232 |
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Dividend and other receivables
collected from Horzum AS |
$ |
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713,974 |
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$ |
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- |
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$ |
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4,115,058 |
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$ |
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32,232 |
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Dividend income from Horzum AS |
$ |
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- |
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$ |
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- |
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$ |
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4,072,320 |
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$ |
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- |
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Consolidated net (loss)
income |
$ |
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(637,956 |
) |
$ |
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(203,818 |
) |
$ |
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2,106,043 |
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$ |
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(1,009,080 |
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Basic and diluted net income per
share |
$ |
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0.00 |
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$ |
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(0.01 |
) |
$ |
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0.02 |
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$ |
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(0.01 |
) |
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Net cash provided by (used in)
operating activities |
$ |
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22,791 |
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$ |
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(217,399 |
) |
$ |
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2,106,129 |
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$ |
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(558,652 |
) |
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Weighted average shares
outstanding |
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144,554,371 |
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144,554,371 |
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144,554,371 |
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144,554,371 |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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Horzum AS operational
data (100% basis): |
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Zinc product mined (wet) tonnes |
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3,001 |
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2,488 |
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10,805 |
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7,744 |
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Zinc product sold (wet) tonnes |
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4,941 |
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1,999 |
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11,005 |
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6,658 |
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Zinc oxide
product average grade sold |
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NA |
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29 |
% |
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38 |
% |
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31 |
% |
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Zinc sulphide product average grade
sold |
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50 |
% |
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47 |
% |
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51 |
% |
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43 |
% |
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Zinc
low-grade sulphide product average grade sold |
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19 |
% |
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NA |
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19 |
% |
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NA |
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Gross margin (1) |
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64 |
% |
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52 |
% |
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73 |
% |
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40 |
% |
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CAD cost per tonne mined (1) |
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$ |
481 |
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$ |
371 |
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$ |
392 |
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$ |
373 |
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USD cash cost per pound of zinc mined
(1) |
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$ |
0.39 |
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$ |
0.38 |
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$ |
0.30 |
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$ |
0.42 |
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(1) Refer to
Non-GAAP MeasuresHighlights
- Pasinex recorded a net loss of
approximately $0.64 million for the three months ended September
30, 2022, and a net income of approximately $2.1 million for the
nine months ended September 30, 2022, compared with net losses of
approximately $0.2 million and $1.0 million for the same periods in
2021. Pasinex Arama recorded a dividend income of approximately
$4.1 million in the first quarter of 2022. Dividend income is
recorded when the dividends are declared. There was no similar
amount in 2021.
- The operating income in Horzum AS
increased to $3.4 million and $11.6 million for the three and nine
months ended September 30, 2022, versus operating income of $0.8
million and $1.9 million for the same periods in 2021. This
substantial increase was due to higher revenue generated from
higher sales prices. The increased sales prices were the result of
higher worldwide zinc prices in 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 and nine months ended
September 30, 2022, increasing to 64% and 73% versus 52% and 40% in
the same periods in 2021.
- Horzum AS declared a dividend to be
paid to its shareholders of which Pasinex Arama was entitled to TRY
42.2 million. Pasinex Arama has received all of this amount. Total
cash received from Horzum AS was approximately $4.1 million during
the first nine months of 2022.
- It was announced on July 1, 2022,
that Pasinex had filed a legal action against the mining ministry
in Türkiye, T.C. Maden ve Petrol Iserl Genel Mudurlugu (“MAPEG”)
following their decision not to extend the principal mining
operational license of Horzum AS beyond April 15, 2023, and the
Akkaya operational exploration license of Pasinex Arama. Since
then, negotiations have progressed with MAPEG, and it has now been
announced on the MAPEG website that these license applications have
now been approved and that these will be renewed for the requested
10-year term. The renewal for Pasinex Arama was subject to certain
minor additional information to be provided by Pasinex Arama. This
additional information has now been provided and accepted by MAPEG.
No additional information has yet been requested for the Horzum AS
license. It is expected that the licenses will be signed and issued
unconditionally.
- Horzum AS sold 3,998 and 9,569
tonnes of zinc sulphide product in the three and nine months ended
September 30, 2022, at average grades of 50% and 51% zinc and
average sale prices of approximately US$974 and US$1,185 per tonne,
respectively.
- Horzum AS mined 3,001 and 10,805
tonnes of zinc product in the three and nine months ended September
30, 2022, respectively, at the Pinargozu mine.
- The CAD cost per tonne mined (see
non-GAAP measures) was $481 and $392 for the three and nine months
ended September 30, 2022, respectively and the USD cash cost per
pound of zinc product mined (see non-GAAP measures) was US$0.39 and
US$0.30 for the same periods, respectively.
- During 2022, Horzum AS completed a
total of 7,364 metres of underground and surface diamond core
drilling, in 84 holes. It also completed 1,388 metres of
exploration and development adit development, including 150 metres
of adit development towards the Akkaya property.
- Horzum AS had another zero-fatality
quarter at the Pinargozu Mine. There was 146,112 fatality free
hours worked in 2022. Unfortunately, two serious injuries were
reported in August of 2022, where one employee suffered an injury
of two broken ribs and a broken shoulder, and another employee
suffered a broken bone in his foot. MAPEG has made two recent
safety inspections and no significant issues were found.
- The Company completed a helicopter
magnetics survey of 218 line-kilometers, a mobile metal ion soil
sampling program of 453 samples and a ground gravity program with
2,078 stations in the nine months ended September 30, 2022, at the
Gunman Project in Nevada. A drill program commenced subsequent to
the end of the quarter in November.
Non-GAAP Measures
Please note that all dollar amounts in this news
release are expressed in Canadian dollars unless otherwise
indicated. Refer also to the 2021 Management’s Discussion and
Analysis (“MD&A”) and Audited Financial Statements found on
SEDAR.com for more information. This news release includes non-GAAP
measures, including gross margin, cost per tonne mined and US$ 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
Türkiye. 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 Türkiye 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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