Pasinex Announces First Quarter 2023 Financial Results
May 29 2023 - 7:30AM
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The “Company” or
“Pasinex”) is pleased to provide a company update.
Cautionary Note
The Company has not completed a current
technical report that includes a mineral resource estimate as
defined by the Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council, and procedures for
classifying the reported Mineral Resources were undertaken within
the context of the Canadian Securities Administrators National
Instrument 43-101 (NI 43-101). The Company has no intention of
completing a NI 43-101 compliant technical report. The Joint
Venture has not followed accepted quality assurance and quality
control procedures with respect to its current drilling program and
has not used an independent third-party laboratory for its assay
analysis. The Joint Venture uses field handheld X-ray fluorescence
analysers (“XRF”) for zinc assays and grade control in exploration
and mining. In addition, assays are completed by an independent
third-party laboratory for all of the Joint Venture’s sales.
Highlights – First Quarter Ended March 31,
2023
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Three Months Ended March 31, |
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2023 |
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2022 |
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Financial: |
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Equity gain from Horzum AS |
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$ |
775,762 |
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$ |
- |
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Equity investment in Horzum AS |
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$ |
1,752,908 |
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$ |
- |
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Dividend income from Horzum AS |
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$ |
- |
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$ |
4,072,320 |
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Consolidated net (loss) income |
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$ |
(195,583 |
) |
$ |
3,634,344 |
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Basic and diluted net (loss) income per share |
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$ |
- |
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$ |
0.03 |
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Net cash provided by operating activities |
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$ |
220,486 |
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$ |
769,821 |
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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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Three Months Ended March 31, |
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2023 |
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2022 |
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Horzum AS operational
data (100% basis): |
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Zinc product mined (wet) tonnes |
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2,811 |
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4,540 |
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Zinc product sold (wet) tonnes |
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2,997 |
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2,964 |
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Zinc oxide product - average grade sold |
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NA |
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37.3 |
% |
Zinc sulphide product - average grade sold |
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49.6 |
% |
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52.6 |
% |
Gross margin (1) |
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58 |
% |
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72 |
% |
CAD cost per tonne mined (1) |
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$ |
491 |
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$ |
319 |
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USD cash cost per pound of zinc product mined (1) |
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$ |
0.34 |
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$ |
0.26 |
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(1) See
Non-GAAP Measures
- For the three months ended March 31, 2023, Pasinex recorded a
net loss of approximately $0.2 million, compared with a net income
of approximately $3.6 million for the same period in 2022. The
primary reason for the decrease in the net income in 2023 versus
2022 was the inclusion of the dividend in 2022. Also, higher
general and administration costs, higher exploration costs and the
inclusion of a loss on net monetary position all contributed to the
decrease in 2023.
- The operating income in Horzum AS decreased to $2.1 million in
2023 from $3.3 million in 2022. This decrease was due to lower
revenue as sales prices declined in 2023 compared with 2022. Gross
margin (see non-GAAP measures) for the three months ended March 31,
2023, was 58% compared with 72% for the same period in 2022.
- Horzum AS mined 2,811 tonnes of zinc product during the first
three months of 2023, at the Pinargozu mine, compared with 4,540
tonnes of zinc product for the same period in 2022. Mine production
was negatively impacted by a temporary halt in activity at the
Pinargozu mine to ensure the safety and well-being of the Joint
Venture’s employees, after the tragic earthquakes in Türkiye in the
first quarter of 2023.
- Sales volumes were 2,997 tonnes of
high-grade zinc sulphide product in the three months ended March
31, 2023, compared with 2,530 tonnes of high-grade zinc sulphide
product and 434 tonnes of oxide product for the same period in
2022.
- Sales prices per tonne on a USD
basis decreased by approximately 32% for zinc sulphide product for
the three months ended March 31, 2023, when compared to prices in
the same period in 2022. The average USD sales price for the three
months ended March 31, 2023, was US$892 per tonne for zinc sulphide
product versus US$1,318 per tonne for zinc sulphide product in the
same period in 2022.
- The average grade of the high-grade
zinc sulphide product sold was 49.6% zinc per tonne for the three
months ended March 31, 2023, which was slightly less than the 52.6%
zinc per tonne for the same period in 2022.
- The CAD cost per tonne mined (see
non-GAAP measures) increased in the first three months of 2023, to
$491 per tonne mined, compared with $319 per tonne mined in the
same period in 2022. The USD cash cost per pound of zinc product
mined (see non-GAAP measures) increased to US$0.34 per pound in the
first quarter of 2023 from US$0.26 per pound for the same period in
2022.
- Subsequent to March 31, Pasinex
Arama transferred TRY 3.0 million (approximately $0.2 million using
the exchange rate on the date of the transfer) to Pasinex
Canada.
- Also, subsequent to the quarter
ended March 31, 2023, at an Ordinary General Assembly Meeting,
Horzum AS declared a dividend and approved advance dividend
distributions totalling approximately TRY 70.0 million
(approximately $4.8 million using the exchange rate on the date the
dividend and the advanced dividend distributions were declared).
Pasinex Arama is entitled to TRY 49.0 million (approximately $3.3
million using the exchange rate on the date the dividend and the
advanced dividend distributions were declared) of this amount.
After deducting amounts already received by Pasinex Arama,
approximately TRY 26.6 million (approximately $1.8 million using
the exchange rate on the date the dividend and the advanced
dividend distributions were declared) remains to be collected.
Non-GAAP Measures
Please note that all dollar amounts in this news
release are expressed in Canadian dollars unless otherwise
indicated. Refer also to the 2022 Management’s Discussion and
Analysis (MD&A) and Audited Financial Statements found on
SEDAR.com for more information. This news release includes non-GAAP
measures, including gross margin, cost per tonne mined and US$ cash
cost per pound of zinc product 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 for all information
in this news release other than the information relating to the
Gunman Project. He has inspected the original paid sales invoices
issued by the Joint Venture for the shipment of zinc sulphide
product specified in this news release and has approved the
scientific and technical disclosure herein. Mr. Challis is a
director of the Company and Chair of the Joint Venture.
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 a 51% interest, with an option to
increase to an 80% interest of a high-grade zinc exploration
project, the Gunman Project, located in Nevada. Pasinex has a
strong technical management team with many years of mineral
exploration and mining project development experience. Pasinex
Resources Limited mission is to explore and extract high grade ore
to drive growth and wealth for all of its stakeholders including
shareholders, employees and the communities of our operations,
meeting all requirements in safety, health and the environment.
Visit our website at www.pasinex.com.
On Behalf of the Board of Directors
PASINEX RESOURCES LIMITED
“Andrew Gottwald” |
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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 |
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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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