Robex Resources Inc. (TSX-V: RBX) presents its operational and financial results for the first quarter ended March 31, 2023.

Aurélien Bonneviot, Chief Executive Officer of Robex, said, “In the first quarter of fiscal year 2023, the management team worked on accelerating the construction and securing financing for the Kiniero mine in Guinea. The Nampala mine in Mali, for its part, managed to maintain a solid level of production during this time period. Management continues to implement a sustainable growth strategy that is supported by a prudent and balanced financial approach.”¹

Unless indicated otherwise, all amounts and financial data in this press release are in Canadian dollars (CAD).

HIGHLIGHT SUMMARY FOR THE FIRST QUARTER OF FISCAL YEAR 2023 COMPARED TO THE FIRST QUARTER OF 2022

Operations

• Gold production reached 11,735 ounces compared to 12,089 ounces for the same period in 2022 (-2.9%) due to a drop in availability and lower average feeding grades at the Nampala plant.
  • Gold production sales stood at 12,670 ounces compared to 13,671 ounces of gold for the same period in 2022. This discrepancy can be explained in part by the drop in the number of ounces produced and the delay in the sale of 610 ounces of gold (remaining from the first quarter of 2023) to the second quarter of 2023;
  • These lower sales were offset by a 10.7% increase in the average price per ounce of gold, $2,619, in the first quarter of 2023, compared to $2,365 per ounce of gold in the first quarter of 2022.
• The adjusted all-inclusive sustaining cost(1) is established at $1,040 per ounce of gold sold in the first quarter of 2023, a 22.2% increase compared to the first quarter of 2022 due to a drop in the number of ounces sold combined with an increase in the price of fuel.

Financial

• Revenues from gold sales rose 2.6% to $33,179,878 compared to $32,333,068 in the first quarter of 2022, due to a rise in the average realized selling price (per ounce of gold sold).
• The operating income for the first quarter of 2023 reached $9,131,400 compared to $15,388,273 in the first quarter of 2022 due to an increase in mining operation expenses resulting from the higher price of fuel and administrative costs reflecting the integration of Sycamore.
• The net income attributable to common shareholders(1) in the first quarter of 2023, $6,383,858, is lower than it was for the same period in 2022, namely $12,505,081.
• Operating activities (net of non-cash working capital items) generated positive cash flows of $11,805,060 compared to $16,480,720 for the same period in 2022.
• The net debt,⁽¹⁾ for its part, stood at $21,830,970 for the period ended March 31, 2023, which is a stable amount compared to the amount of $21,673,490 at the end of December 2022.

Establishment of financing for the Kiniero mine

• In the first quarter of 2023, management pursued its efforts to accelerate construction of the Kiniero mine and implement its financing.
• At the beginning of 2023, the Company announced the signing of an engagement letter with Taurus Mining Finance Fund No. 2 L.P. for financing totalling US$115 million for the construction of the Kiniero gold project in Guinea. The financing program is comprised of the following:
  • A US$35 million Bridge Loan;
  • a project financing facility of up to US$100 million to cover repayment of the Bridge Loan and the financing of capital development and working capital costs; and
  • a US$15 million cost overrun facility.

PRODUCTION SUMMARY AND FINANCIAL RESULTS FOR THE FIRST QUARTER OF FISCAL YEAR 2023

⁽⁾ Non-IFRS financial measure, non-IFRS ratio or supplementary financial measure. See the “Non-IFRS and Other Financial Measures” section of this press release for a discussion of these measures and their reconciliation to the most directly comparable IFRS measure, as applicable.

EVENTS SUBSEQUENT TO MARCH 31, 2023

• Liquidity of Nampala: On April 4, 2023, Robex renegotiated the terms of one of its authorized lines of credit with a Malian bank, the maximum amount of which is now $4,408,219 (2,000,000,000 CFA francs). This line of credit bears interest at an annual rate of 8% and will mature on April 3, 2024.
• Change in management: Effective April 11, 2023:
  1. Benjamin Cohen, then Chief Executive Officer, became President of the Company;
  2. Aurélien Bonneviot, former Director of Investor Relations and Business Development, became Chief Executive Officer of the Company;
  3. Georges Cohen, then President of the Company, became Senior Vice-President, Strategic Development and Long-Term Growth of the Company;
  4. Julien Cohen became Senior Vice-President, Sales and Financial Affairs of the Company;
  5. Richard Faucher and Georges Cohen accepted appointments as Chair of the Board of directors and Vice-Chair of the Board of directors, respectively.

The composition of the Board of directors and of its committees remains unchanged.

• Kiniero project financing: On April 20, 2023, Robex announced that all conditions precedent to the closing of the Bridge Loan have been satisfied, and a first drawdown request had been submitted.
• Continued construction of Kiniero: After completing a pre-feasibility study compliant with Regulation 43-101 respecting standards of disclosure for mineral projects, the teams are now focusing on a feasibility study.
• Share capital consolidation: On April 28, 2023, Robex announced that its Board of directors had approved (i) a 10-for-1 consolidation of shares (subject to (A) approval by the Company’s shareholders at the Company’s next annual and special meeting of shareholders to be held on June 29, 2023 and (B) approval of the TSX Venture Exchange) and (ii) an amended and restated stock option plan (subject to approval of the TSX Venture Exchange). The amendments to the stock option plan (approved by the TSX Venture Exchange on May 15, 2023) increase the total number of common shares issuable under the plan and add housekeeping amendments to reflect changes to TSX Venture Exchange Policy 4.4 – Security Based Compensation.
• Short-form base shelf prospectus: On May 16, 2023, the Autorité des marchés financiers issued a receipt for the preliminary short-form base shelf prospectus dated May 15, 2023 (the “Preliminary Shelf Prospectus”). Robex has filed the Preliminary Shelf Prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in order to maintain financial flexibility and to have the ability to react quickly to market opportunities for raising additional capital by offering securities on an accelerated basis pursuant to the filing of prospectus supplements. Once a receipt for the final short-form base shelf prospectus has been obtained from the applicable regulatory authorities, Robex will be able to offer for sale and issue, from time to time, up to $250,000,000 in common shares, preferred shares, debt securities, warrants, subscription receipts or units, or any combination thereof, during the 25-month period during which the short form base shelf prospectus remains valid. Notwithstanding the foregoing, there can be no assurance that the Robex securities will be offered or sold during this 25-month period.

Detailed information

For a more detailed discussion of the Company’s financial results, readers are strongly advised to consult Robex’s Management’s discussion and analysis and its consolidated financial statements for the first quarter ended March 31, 2023, which are available on the Company’s website in the Investors section at robexgold.com.

About Robex Resources Inc.

Robex is a multi-jurisdictional West African gold production and development company with near-term exploration potential. The Company is dedicated to safe, diverse and responsible operations in the countries in which it operates with a goal to foster sustainable growth. The Company has been operating the Nampala mine in Mali since 2017 and is advancing the Kiniero Gold Project in Guinea.