Robex, Results Once Again Show Strong Improvement in 2019, With the Same Trend Continuing Into the First Quarter of 2020
April 28 2020 - 5:54PM
Robex Resources Inc. ("
Robex" or "
the
Company") (TSXV: RBX/FWB: RB4) is pleased to publish their
financial results for the year ending December 31, 2019
and their production results for the first quarter of 2020.
All amounts are in Canadian dollars (CAD).
Highlights for the year
2019:
- 24% INCREASE IN GOLD
PRODUCTIONThis progression is the result of continuous
efforts to optimize the Nampala plant, which have increased the
quantity of processed ore (1,909,663 tonnes vs
1,795,591 tonnes in 2018) and improved the average recovery
rate (87.5% vs 85.6% in 2018). The higher average grade of
processed ore (1.04 gpt compared to 0.94 gpt in 2018) is
another factor that contributed to improving annual production
performance in 2019 (55,685 ounces of gold compared to
44,946 ounces of gold in 2018).
- 27% INCREASE IN
REVENUEIn 2019, 53,713 ounces of gold were sold for
CAD 99.2 million compared to 47,142 ounces of gold for
CAD 78.4 million in 2018. The quantity produced being
greater than the quantity sold is attributable to the time delay
between casting and refining gold ingots.
- 15% INCREASE IN OPERATING
INCOMEThe operating income of the Company reached CAD 21.4
million compared to CAD 18.6 million in 2018, despite an increase
of CAD +14.9 million in the
depreciation rate (in accordance with IFRS).
- 89% INCREASE IN CASH FLOWS
FROM OPERATING ACTIVITIES1The cash flows from operating
activities1 reached CAD 51 million (CAD 0.088 per share2)
compared to CAD 26.9 million (CAD 0.046 per share2)
in 2018. Cash flows are 50% higher than overall revenue.
- 53% DECREASE IN
LIABILITIES, FROM CAD 52.8 MILLION AS AT DECEMBER
31, 2018 TO CAD 25 MILLION AS AT DECEMBER 31,
2019Fiscal year 2019 was a year of deleveraging for the
Company. In addition to the repayment of its bank loans, the
Company reimbursed all capital and interest on non-convertible
debentures. In 2020, 4 of the 6 bank loans should reach
their date of maturity.
- WORKING CAPITAL IMPROVEMENT
OF CAD 14.2 MILLIONAll these positive elements
enabled the Company to pay shareholders, on April 7, the first
dividend in Robex’s history of CAD 0.02 per share.
- EXPLORATION INVESTMENTS OF
CAD 3.6 MILLION IN 2019, INCLUDING CAD 1.5 MILLION FOR NAMPALA’S
OPERATING LICENCE AND CAD 2.5 MILLION FOR EXPLORATION PERMITS
OF MININKO AND KAMASSOIn 2019, Robex confirmed the Mininko
licence which was renewed. The main pit was extended to the South.
For the record, the teams and resources dedicated to exploration
were increased.Discovering additional resources is one of the
priorities for the next few years. In January 2020, the Company
started an ambitious exploration program of 171,990 drilling
meters for a budgeted amount of
CAD 13.8 million3.
Mining Operation: Nampala,
Mali
|
2019 |
|
2018 |
|
Operating Data |
|
|
Ore mined (tonnes) |
1,873,721 |
|
1,797,809 |
|
Ore processed (tonnes) |
1,909,663 |
|
1,795,591 |
|
Waste mined (tonnes) |
3,458,443 |
|
2,951,212 |
|
Operational stripping ratio |
1.8 |
|
1.6 |
|
Head grade (gpt) |
1.04 |
|
0.94 |
|
Recovery (%) |
87.5% |
|
85.6% |
|
Gold ounces produced |
55,685 |
|
44,946 |
|
Gold ounces sold |
53,713 |
|
47,142 |
|
Financial Data |
|
|
(rounded off to the
nearest thousand dollars) |
|
|
Revenue – Gold
sales |
99,192,000 |
|
78,382,000 |
|
Mining operation expenses |
30,646,000 |
|
27,744,000 |
|
Mining royalties |
2,811,000 |
|
2,582,000 |
|
Administrative expenses |
6,362,000 |
|
5,927,000 |
|
Depreciation of
property, plant and equipment and amortization of intangible
assets |
31,497,000 |
|
16,683,000 |
|
Segment
operating income |
27,876,000 |
|
25,446,000 |
|
Statistics |
|
|
(in dollars) |
|
|
Average realized selling price (per ounce) |
1,847 |
|
1,663 |
|
Cash operating cost (per tonne processed)4 |
16 |
|
15 |
|
Total cash cost (per ounce sold)4 |
623 |
|
643 |
|
All-in sustaining cost (per ounce sold)4 |
930 |
|
973 |
|
Administrative expenses (per ounce sold) |
118 |
|
126 |
|
Depreciation of
property, plant and equipment (per ounce sold) |
586 |
|
354 |
|
Robex’s MD&A and the annual audited
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.
Production results for the first quarter
of 2020
For the
first quarter of 2020, the Nampala mine reached production of
14,918 ounces of gold (464 kg) with a recovery rate of 88.8%.
The plant processed a total of 476,720 tonnes, corresponding
to a daily average of 5,239 tonnes at an average grade of
1.097 gpt. This first quarter is higher than the budget and
confirms the trend observed in 2019.
Initiatives
are in progress to continue to improve production, most
notably:
- the purchase and installation, in Q3, of a new reject line to
help eliminate one of the bottlenecks;
- the addition of a mobile conveyor in the ROM Pad area to
increase the production of the mineral sizer; and
- a study into adding a cone crusher to the grinding
circuit.
The
production data presented has been validated by Antoine Berton ENG,
Ph. D., a metallurgist working with Soutex, the consultancy firm
specializing in metallurgy and ore processing on-site in the
Nampala mine.
Health crisis
At the cost
of considerable logistical efforts undertaken urgently, the Company
managed to lockdown the entire mining site before the end of March.
The lockdown has allowed us to continue production above budget
during this exceptional COVID-19 period. The situation has
temporarily slowed exploration, as the number of active drills has
dropped from three to one single drill for a time. Everyone
understands this is being undertaken to ensure operations continue,
nevertheless the priority remains to protect the health of all our
partners. Particular attention has been paid towards ensuring
hygiene and safety rules are complied with in order to safeguard
the health of our workers.
Appointments
Robex would like to announce the appointment of
Ms. Érika St-Jean to the role of corporate secretary for the
Company.
A word from the President Mr. Georges
Cohen:
I would like to congratulate our teams who have
contributed towards exceeding our production and cost management
objectives. They have succeeded brilliantly in organizing the
complete lockdown of the entire mining site, which is relatively
isolated, and have done so while ensuring that production
continues. A truly outstanding achievement!
We have also been involved with local village
communities around the mine, assisting them and increasing their
awareness about the risks of the pandemic. We are following the
evolution of the pandemic very closely so as to respond quickly to
any new challenges that may arise.
In addition to the upturn in results caused by
the rise in the price of gold, we relentlessly strive to reduce and
optimise our production costs to maximize the Company’s
profitability.
Thanks to our improved financial position, we
are now well placed to invest in the future by assigning a
substantial prospection budget, as well as to welcome other
potential opportunities.
The strategy implemented progressively by
Management has led to a significant improvement in our financial
position, allowing us to pay out our first dividend to
shareholders, all while protecting investments and attaining new
objectives for Robex’s future.
I wish you all the best in withstanding these
unprecedented and perilous times in the safest possible way…
Stay safe!
For information:
Robex Resources Inc.
Benjamin Cohen, CEOAugustin Rousselet, CFO/COOHead office:
(581) 741-7421 info@robexgold.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.
1 Cash flows from operating activities exclude
net change in non-cash working capital items.
2 Cash flows from operating activities per share
are non-IFRS financial measures for which there is no standardized
definition under IFRS. Refer to the "Non-IFRS Financial Performance
Measures" section of the MD&A.
3 Refer to the "Exploration" section of the
MD&A for further details on planned exploration work.
4 Cash operating cost, total cash cost and
all-in sustaining cost are non-IFRS financial performance measures
with no standard definition under IFRS. Refer to the "Non-IFRS
Financial Measures" section of the MD&A.
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