Pasinex Resources Limited (CSE: PSE) (FSE: PNX) reported financial results for the third quarter of 2019. As expected, production from Horzum AS was lower than the prior year and combined with lower realized zinc prices in 2019, consolidated net income was lower than it was 2018. Adjusted consolidated net income(1) for the nine months ended September 30, 2019, was approximately $2.5 million. Consolidated net loss for the nine months ended was approximately $0.6 million.
Financial and Operational Highlights
|Three Months Ended
|Nine Months Ended
|Equity gain from Horzum AS||$||135,701||$||521,675||$||672,139||$||5,311,546|
|Adjusted equity gain from Horzum AS (1)||$||1,217,147||$||521,675||$||2,470,539||$||5,311,546|
|Dividend received from investment in Horzum AS||$||135,701||$||–||$||672,139||$||765,963|
|Consolidated net (loss) income||$||(245,251)||$||(194,998)||$||(568,710)||$||1,461,216|
|Basic net income per share||$||0.00||$||0.00||$||0.00||$||0.01|
|Diluted net income per share||$||0.00||$||0.00||$||0.00||$||0.01|
|Cash used in operating activities||$||92,936||$||686,920||$||174,241||$||847,568|
|Weighted average shares outstanding||144,395,674||142,608,718||144,368,289||142,307,484|
|Operational:||Three Months Ended
|Nine Months Ended
|Horzum AS operational data (100% basis):|
|Zinc product mined (wet) tonnes||3,216||10,619||14,296||36,736|
|Zinc product sold (wet) tonnes||1,502||12,979||11,558||35,651|
|Zinc product sold grade||44%||33%||37%||33%|
|Gross margin (1)||73%||52%||64%||68%|
|CAD cost per tonne mined (1)||$||398||$||193||$||306||$||166|
|USD cash cost per pound of zinc mined (1)||$||0.38||$||0.19||$||0.30||$||0.17|
Steve Williams, CEO of Pasinex commented, “Horzum AS produced as expected for the first nine months of 2019, with an operating gross margin of 64%. However, the first nine months of 2019 ended with a net loss of $1,880,455 after recognition of an impairment of the Akmetal receivable of approximately $6.8 million.
We continue to stand by the original production guidance for 2019 which indicated 14,000 – 17,000 tonnes (wet) for the year.”
Please note that all dollar amounts in this news release are expressed in Canadian dollars unless otherwise indicated. Refer also to the year-end 2019 Management’s Discussion and Analysis (MD&A) and Audited Financial Statements found on SEDAR.com for more information. This news release includes non-GAAP measures, including adjusted equity gain from Horzum AS, adjusted consolidated net income, gross margin, cost per tonne mined and US$ 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.
Pasinex Resources Limited is a Toronto-based mining company which owns 50% of the producing Pinargozu high grade zinc mine and, under a Direct Shipping Program, sells to zinc smelters / refiners from its mine site in Turkey. The Company also holds an option to acquire 80% of the Spur high-grade zinc exploration project in Nevada. Pasinex has a strong technical management team with many years of experience in mineral exploration and mining project development. The mission of Pasinex is to build a mid-tier zinc company based on its mining and exploration projects in Turkey and Nevada.
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