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Robex Announces Its Third Quarter Results 2023

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Robex Announces Its Third Quarter Results 2023

 

 

 

 

 

Robex Resources Inc. (TSX-V: RBX) presents its operational and financial results for the third quarter ended September 30, 2023.

 

Aurélien Bonneviot, Chief Executive Officer: “Another strong set of operating results at Nampala, demonstrating the incredible dedication of the enlarged management team since the beginning of the year. Nampala’s operation performance continue to support the development of the group towards becoming a mid-tier gold producer in West Africa. We are on-track to deliver our 2023 guidance on production and costs1. We would like to thank all Robex employees for their hard work.”

 

Unless otherwise noted, all amounts and financials in this press release are presented in Canadian dollars (CAD).

 

SUMMARY OF HIGHLIGHTS FOR THE THIRD QUARTER OF 2023 COMPARED TO THE THIRD QUARTER OF 2022

 

Nampala Mine Operations

  • Production reached 13,375 ounces for the third quarter of 2023, compared to 11,124 ounces for the same period in 2022, despite a decrease in ore grade processed at the Nampala plant. This 20.2% increase in gold production was achieved thanks to a 25.5% increase in tonnage processed and allowed the Company to increase the quantity of gold sold by 446 ounces, or 14,090 ounces, compared to 13,644 ounces for the same period in 2022.
  • For the quarter ended September 30, 2023, despite the rainy season in Nampala, the total quantity of material extracted from the pits reached 1,321,387 tonnes, including 1,057,271 tonnes of waste rock and 264,116 tonnes of ore, corresponding to an operational stripping ratio of 4.0 which is stable compared to the same period in 2022. For the same period in 2022, 2,065,818 tonnes of material were extracted, including 1,667,252 tonnes of waste rock and 398,566 tonnes of ore, corresponding to a stripping ratio of 4.2.
  • The decrease in all-in sustaining cost2 of $1,083 per ounce of gold sold in the third quarter of 2023 compared to $1,291 per ounce sold for the same period in 2022 is explained by this decrease in waste rock mined and the decrease in stripping costs of $1,857,631 included in sustaining capital expenditures, partially offset by higher mining operating expenses of $1,064,811.

 

Financial

  • Gold sales revenues amounted at $36,188,940 compared to $30,749,561 for the same period in 2022. The favourable variance of $5,439,379 is attributable to:
    • An increase in the average realized selling price per ounce sold3 of $2,568 compared to $2,254
    • A 3.3% increase in ounces sold due to better production in the third quarter of 2023 compared to the same period in 2022.
  • Mining segment operating income was $15,097,580 in the third quarter of 2023, up 9.1% compared to the same period in 2022. This increase was obviously impacted by the increase in mining profit.
  • Net income attributable to common shareholders for the third quarter of 2023 of $6,243,934 decreased slightly compared to $6,448,074 for the same period in 2022.
  • Net debt3 amounted to $46,321,438 for the period ended September 30, 2023, increasing from $21,673,490 as at December 31, 2022. This is explained by the implementation of the Taurus bridge loan whose drawdown balance amounted to $46,557,832 as of September 30, 2023. The repayment of lines of credit, from $11,370,939 as at December 31, 2022 to $5,355,331 as at September 30, 2023, limits the increase in net debt over this period.
  • During the third quarter of 2023, operating activities generated positive cash flows of $10,169,150 compared to $5,210,524 in the third quarter of 2022. This increase of $4,958,626 is largely explained by the positive net change in non-cash working capital items of $4,456,775.

 

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

 

  Three-month periods ended September 30
  2023 2022 Variations
Ounces of Gold Produced 13 375 11 124 20,2 %
Ounces of Gold Sold 14 090 13 644 3,3 %
  $ $  
REVENUES – GOLD SALES 36 188 940 30 749 561 17,7 %
MINING INCOME 18 339 381 16 809 948 9,1 %
OPERATING INCOME 10 084 570 10 577 175 -4,7 %
NET INCOME 6 833 453 6 988 863 -2,2 %
ATTRIBUTABLE TO COMMON SHAREHOLDERS:      
Net income 6 243 934 6 448 074 -3,2 %
Basic earnings per share 0,007 0,011 -35,3  %
Diluted earnings per share 0,007 0,011 -35,2  %
CASH FLOW      
Cash flows from operating activities 10 169 150 5 210 524 95,2 %
Cash flow from operating activities per share4 0,011 0,009 30,4  %
       
  As of
September 30

2023
As of December
31
2022
Variations
TOTAL ASSETS 311 646 607 251 761 308 23,8 %
TOTAL LIABILITIES 97 316 568 55 206 985 76.3 %
NET DEBT4 46 321 438 21 673 490 113,7 %

 

OUTLOOK AND STRATEGY 2023

 

The Group’s objectives for the end of 2023 are as follows:

  • Nampala’s improved performance: The implementation of the new mining plan during 2023 has made it possible to optimize excavation activities, especially during the rainy season. Production is in line with management’s guidance of 48,000 to 52,000 ounces. Management is implementing initiatives to increase mill availability and the capacity of the existing mill to process transition ore.
  • Continued preparation for the construction of the Kiniero mine: As planned, teams of geologists completed definition drilling and engineering. The publication of the final feasibility study on June 23 validated the construction plan. The management has started to set up specialized teams for the planning of this construction project and significant technical and legal preparatory work have been carried out.
  • Progress in negotiations for the financing of the Kiniero project: The Company was able to draw on the US$35 million bridge loan obtained as part of the financing of Taurus Mining Finance Fund No.2 L.P, which is expected to be repaid in full on December 22nd 2023.

 

Management is continuing negotiation with Taurus to fund the Kiniero gold project in Guinea for up to US$115 million to cover the repayment of the bridge loan and the financing of capital development and working capital costs.

 

Detailed information

 

We strongly recommend that readers consult Robex’s Management’s Discussion and Analysis and Consolidated Financial Statements for the third quarter ended September 30, 2023, which are available on the Company’s website in the Investors section at: robexgold.com for a more complete discussion of the Company’s financial results.

 

RECONCILIATIONS AND CALCULATIONS

 

Net Debt Calculation

  As of September
30
  As of December
31
 
  2023   2022  
  $   $  
Lines of credit 5 355 331   11 370 939  
Bridge loan 46 557 832    
Long-term debt 219 713   1 395 215  
Obligations locatives 12 330 707   12 518 742  
Less: Cash (18 142 145 ) (3 611 406 )
NET DEBT 46 321 438   21 673 490  
 

The table below provides a reconciliation to the most directly comparable financial measure in the financial statements, total liabilities less current assets, for the current and comparative periods.

 

  As of September
30
  As of December
31
 
  2023   2022  
  $   $  
TOTAL LIABILITIES 97 316 568   55 206 985  
Less:    
Payable (19 086 832 ) (17 957 004 )
Warrants (1 946 823 )  
Environmental liabilities (456 280 ) (424 138 )
Deferred tax liabilities (9 902 599 ) (10 106 230 )
Other long-term liabilities (1 460 451 ) (1 434 717 )
  64 463 584   25 284 896  
CURRENT ASSETS 46 925 856   32 095 698  
Less:    
Stocks (16 389 115 ) (17 648 967 )
Debtors (8 411 186 ) (8 867 852 )
Prepaid expenses (788 176 ) (805 914 )
Deposits Paid (1 079 078 ) (1 161 559 )
Deferred financing charges (2 116 156 )  
  18 142 145   3 611 406  
NET DEBT 46 321 438   21 673 490  

All-in sustaining cost calculation (per once of gold sold)

 

 

  Three-month periods
Completed on September 30
Nine-month periods
Completed on September 30
  2023 2022 2023 2022
         
Ounces of Gold Sold 14 090 13 644 37 830 38 295
(in dollars)        
Mining expenses 10 679 996 9 615 185 30 239 337 25 974 168
Mining royalties 1 124 569 955 430 3 049 434 2 768 525
Total Cash Cost 11 804 565 10 570 615 33 288 771 28 742 693
Sustaining Capital Expenditures 3 459 494 7 041 422 14 875 365 21 712 615
All-in sustaining cost 15 264 059 17 612 037 48 164 136 50 455 308
All-in sustaining cost (per ounce of gold sold) 1 083 1 291 1 273 1 318

 

Calculation of cash flows from operating activities (per share)

 

For the three-month period ended September 30, 2023, cash flows from operating activities were equivalent to $10,169,150 and the basic weighted average number of shares outstanding was 899,859,635, for an amount per share of $0.011. For the same period in 2022, cash flows from operating activities were $5,210,524 and the basic weighted average number of shares outstanding was 601,203,403, for an amount per share of $0.009.

 

Calculation of the average realized selling price (per ounce of gold sold)

 

This measure is made up of gold sales revenue divided by the number of ounces of gold sold.

 

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.

 

Posted November 29, 2023

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