Robex Resources Inc. Reaches A New Record Quarterly Turnover of CAD 45.9 Million
November 26 2020 - 4:26PM
Robex Resources Inc. (“
Robex” or “
the
Company”) (TSXV: RBX/FWB: RB4) is pleased to report its
financial results for the quarter ending September 30, 2020.
All amounts presented are in Canadian dollars
(CAD).
Highlights of the third quarter of
2020:
- GOLD SALES INCREASED
BY 80% Over the third quarter of
2020, 18,121 ounces of gold have been sold for a total of CAD 45.9
M, including all 7,831 ounces of the gold ingot stocks from June 30
for a total of CAD 19.5 M, compared to the 13,276 ounces of gold
that were sold for CAD 25.5 M in the same period in 2019, thus an
80% increase.As a reminder, the difference between the number of
ounces of gold sold and the number of ounces of gold produced
during the periods is due to the timing of shipments, and to the
Company’s liquidity management.
- 224% INCREASE FOR NAMPALA’S
OPERATING INCOMEThe mine generated an operating income of
CAD 28 M for the third quarter of 2020, compared to CAD 8.6 M for
the same period in 2019, including CAD 3.5 M in the amortization of
fixed assets for this 2020 quarter and CAD 7.4 M for the same
period in 2019. Last October, the Company filed a NI 43-101
technical report containing the mineral resources and reserve
estimates for the Nampala mine as at July 31, 2020, which has
extended the Nampala mine’s life to over eight years, thereby
slowing the amortization rate.
- PRODUCTION
COSTSFor the third quarter of 2020, there was a temporary
29% decrease in production, which reached 10,706 ounces
compared to 15,175 ounces for the same period in 2019.
- The rainy season was extremely long and heavy this year, making
the ore from the bottom of the main pit inaccessible. Normally,
each spring, a higher-grade ore is deposited on the ROM pad to
maintain production levels in anticipation of the rainy season, a
period when pit excavation is more difficult. However, the
restriction on the number of people on the mine site during the
lockdown in the second quarter of 2020 has limited pit excavation
and therefore prevented us from doing so. In the third quarter of
2020, we had to process lower-grade ore (0.86 g/t compared to 1.05
g/t for the same period in 2019).
- Also, the opening of the east pit
led us to process surface ore which, as has previously been the
case in the main pit, is of a lower grade than the core of the
mineralized zone.
Consequently:The all-in sustaining cost per
ounce sold1 is of CAD 1,072 for the third quarter of 2020, compared
to CAD 893 per ounce sold for the same period in 2019. The increase
is primarily explained by the lower grade, which has resulted in
fewer ounces being produced from the same tonnage of processed
ore.
Rather than smoothing this one-time situation,
it was decided to execute the mining plan at its economic optimum,
even if it meant having a quarter with an apparent production
underperformance. However, this did not prevent us
from achieving an overall
production for the first nine months of
2020 equivalent to the
same period in 2019. It is important to note that
since the beginning of the fourth quarter, the Nampala mine has
recovered a richer ore grade and therefore production is more
consistent with that obtained before the rainy season.
Production costs capitalized as stripping costs
were of CAD 4.7 M in the third quarter of 2020, stemming from the
fact that operating new pits around the main pit in 2020 has
temporarily involved stripping work and, consequently, the removal
of larger amounts of waste rock to reach the ore.
- CASH FLOWS FROM OPERATING
ACTIVITIES2 REPRESENTING 202% OF
THOSE FOR THE SAME PERIOD IN 2019The Company’s operating
activities have generated cash flows of CAD 28.1 M (CAD 0.047 per
share1), which corresponds to 61% of the turnover, compared to CAD
13.9 M (CAD 0,024 per share1) for the same period in 2019.
Mining Operation: Nampala,
Mali
|
Third
quartersended
September 30, |
|
Nine-month periodsended September
30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Operating Data |
|
|
|
|
Ore mined (tonnes) |
406,005 |
|
477,676 |
|
1,364,376 |
|
1,378,787 |
|
Ore processed (tonnes) |
438,367 |
|
512,377 |
|
1,398,547 |
|
1,370,536 |
|
Waste mined (tonnes) |
1,559,460 |
|
645,784 |
|
3,924,692 |
|
2,309,402 |
|
Operational stripping
ratio |
3.8 |
|
1.4 |
|
2.9 |
|
1.7 |
|
Head grade (gpt) |
0.86 |
|
1.05 |
|
0.99 |
|
1.01 |
|
Recovery (%) |
88.2 |
% |
87.7 |
% |
89.1 |
% |
86.5 |
% |
Gold ounces produced |
10,706 |
|
15,175 |
|
39,545 |
|
38,324 |
|
Gold
ounces sold |
18,121 |
|
13,276 |
|
39,267 |
|
35,971 |
|
Financial Data |
|
|
|
|
(rounded off to the nearest thousand dollars) |
|
|
|
|
Revenue – Gold sales |
45,864,000 |
|
25,478,000 |
|
92,442,000 |
|
64,789,000 |
|
Mining operation expenses |
11,194,000 |
|
7,489,000 |
|
22,357,000 |
|
22,027,000 |
|
Mining royalties |
1,085,000 |
|
681,000 |
|
2,226,000 |
|
1,891,000 |
|
Administrative expenses |
2,095,000 |
|
1,284,000 |
|
6,295,000 |
|
4,626,000 |
|
Depreciation of property, plant and equipment and
amortization of intangible assets |
3,488,000 |
|
7,384,000 |
|
17,635,000 |
|
23,193,000 |
|
Segment operating income |
28,002,000 |
|
8,640,000 |
|
43,929,000 |
|
13,052,000 |
|
Statistics |
|
|
|
|
(in dollars) |
|
|
|
|
Average realized selling price
(per ounce) |
2,531 |
|
1,919 |
|
2,354 |
|
1,801 |
|
Cash operating cost (per tonne
processed)1 |
20 |
|
16 |
|
17 |
|
17 |
|
Total cash cost (per ounce
sold)1 |
678 |
|
615 |
|
626 |
|
665 |
|
All-in sustaining cost (per
ounce sold) 1 |
1,072 |
|
893 |
|
1,064 |
|
988 |
|
Administrative expenses (per
ounce sold) |
116 |
|
97 |
|
160 |
|
129 |
|
Depreciation of property, plant and equipment (per ounce sold) |
192 |
|
556 |
|
449 |
|
645 |
|
Robex’s MD&A and the 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 at sedar.com.
Continuous improvement
The Nampala mine remains focused on improving
safe production performances:
- In early
November, a new discharge line was installed, increasing the
diameter from 315 to 450 mm, to increase production while reducing
pump speed;
- A cone crusher
is scheduled to be installed–equipment is currently being
delivered;
- A new
mechanical workshop is being completed. It is bigger and much
closer to the plant, and it will speed up the work;
- A 500 m3 diesel
tank is being installed to increase diesel reserves and better
secure production.
To improve site security, 9 members of the
National Guard are now permanently posted on the Nampala site to
support the police team and our own security service.
A word from the President, Mr. Georges
Cohen:
Performance is extremely satisfactory despite a
slight cost increase resulting from an unusually challenging rainy
season and the impacts of the pandemic. Initiatives are continually
underway to optimize performances at the Nampala mine. Our
prospecting campaign is still very promising; the work and
financial efforts will, I hope, make it possible to increase annual
production.
For information:
Robex Resources Inc.
Benjamin Cohen, CEOAugustin Rousselet, CFO/COOHead office:
(581) 741-7421info@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 operating cost, total cash cost, all-in sustaining cost
and cash flows from operating activities per share are non-IFRS
financial performance measures with no standard definition under
IFRS. See the "Non-IFRS Financial Performance Measures" section of
the MD&A.2 Cash flows from operating activities exclude the net
variation of non-cash working capital elements.
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