The Prospector News

Robex Reports Operational and Financial Results for Q1 2024

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Robex Reports Operational and Financial Results for Q1 2024

 

 

 

 

 

Robex Resources Inc. (TSX-V: RBX) reports operational and financial results for the first quarter ending March 31st, 2024.

 

HIGHLIGHTS

  • Safety of operations: Nampala and Kiniero accumulated 1.0 million hours worked without injury with lost time work;
  • Ore mined increased to 680,558t (+20%) compared with Q1 2023, and the operating stripping ratio improved from 3.5x to 1.6x in Q1 2024;
  • Ore processed increased to 551t (+5%), while treated ore grade and ore recoveries amounted at 0.82g/t and 89.5%, respectively;
  • Gold production reached 12,957 ounces (+10%), at an All-In Sustaining Cost (“AISC“) per ounce of gold sold1 of $1,134, down 23% from Q1 2023;
  • Operating income stood at $11,755,444, an increase of 29% compared to Q1 2023, attributable to higher volume sold, improving gold price environment and cost optimization;
  • Operating cash flow is positive at $20,907,386, up by 62% compared to Q1 2023, and;
  • Cash and net debt1 stood at $16,604,181 and $43,796,068 respectively at the end of March 2024.

 

Aurélien Bonneviot, Chief Executive Officer, commented: “Nampala continues to perform well and delivered another robust quarter of low-cost gold production. Most importantly, we continue to operate while maintaining strong safety and security standards.

 

Robex is on track to achieve annual guidance of 45-49koz of gold at an AISC per ounce of gold1 of less than CAD$ 1,500/oz (equivalent to US$ 1,100/oz).

 

The successful drilling campaign at Kiniero delivered solid resource conversion. We are currently working on engineering to increase design and throughput while advancing early works.

 

CURRENCY

 

Unless otherwise indicated, all references to “$” in this news release are to Canadian dollars. References to “US$” in this news release are to U.S. dollars.

 

OPERATIONAL AND FINANCIAL SUMMARY

 

  For Quarter Ending
March 31st
 
SAFETY OF OPERATIONS Unit 2024   2023   Variation  
Number of hours of work without lost time injury Mh 1.0   NA   NA  
         
MINING OPERATIONS        
Ore mined kt 681   569   20 %
Waste mined kt 1,090   1,975   -45 %
Operational stripping ratio x 1.6   3.5   -54 %
         
MILLING OPERATIONS        
Ore processed kt 551   525   5 %
Head grade g/t 0.82   0.77   6 %
Recovery % 89.5   90.1   -0.6pts
Gold produced oz 12,957   11,735   10 %
Gold sold oz 14,071   12,670   11 %
         
 

UNIT COST OF PRODUCTION

           
Total cash cost per ounce of gold sold(1) $/t 801   969   -17 %
All-in sustaining cost (AISC) per ounce of gold sold(1) $/oz 1,134   1,472   -23 %
         
INCOME            
Revenues – gold sales $000s 39,183   33,180   18 %
Operating mining income $000s 17,242   16,128   7 %
Operating income $000s 11,755   9,131   29 %
Net income $000s (32,082 ) 6,849    
         
CASH FLOW            
Cash flow from operating activities $000s 20,907   12,909   62 %
Cash flow from investing activities $000s (16,042 ) (11,304 ) 42 %
Cash flow from financing activities $000s (60 ) 1,811    
Increase in cash $000s 4,382   2,259   94 %
         
FINANCIAL POSITION         31st March
2024
  31st Dec.
2023
  Variation  
Cash, End of Period (“EoP“) $000s 16,604   12,222   36 %
Net debt(1) EoP $000s 43,796   46,629   -6 %

PRODUCTION AND OPERATION OVERVIEW

 

Nampala production was 12,957 ounces for Q1 2024, compared to 11,735 ounces for the same period in 2023. This is attributable to increased plant productivity and higher feed content than anticipated.

 

The increase in gold sales revenues by 18% in Q1 2024 to $39,182,893 compared to $33,179,878 in Q1 2023 is explained by a mix of higher gold sold (+1,401 ounces to 14,071 ounces) and higher realized selling price per ounce of gold sold1 of $2,785 (+6%).

 

AISC per ounce of gold sold1 decreased to $1,134 in Q1 2024 from $1,472 in Q1 2023. This is due to increased production and optimized operational costs as well as a reduction in sustaining capital expenditures of $1,702,176.

 

Operating mining income for Q1 2024 is stable at $17,242,483. Despite an increase in depreciation of property, plant and equipment due to the reduction in mine life, this improvement was done by higher gold sales revenues and lower mining expenses.

 

While operating income is improving from $9,131,400 to $11,755,444, net result is impacted by a provision for tax contingencies in Mali of CFAF 19.3bn, or approximately $44m, recorded as an income tax expense. Net income stands at $(32,082,454) for Q1 2024. In response, the Company is vigorously defending its positions and is currently in negotiations with the Malian authorities to establish a new tax framework.

 

CASH FLOW

 

Cash flow from operating activities generated $20,907,386 in Q1 2024 compared to $12,909,162 in Q1 2023.

 

Cash flow investing activities amounted to $(16,041,633) dedicated to maintenance capital costs at Nampala and development capital costs at Kiniero.

 

Cash flow from financing activities was neutral at $(60,211).

 

LIQUIDITY AND BALANCE SHEET

 

Robex cash position increased from $12,221,978 as of December 31st, 2023, to $16,604,181 as at March 31st 2024.

 

Net debt1 stood at $43,796,068 as of March 31st, 2024, decreasing from $46,628,545 as of December 31st, 2023.

 

SUMMARY OF Q1 2024 FINANCIAL RESULTS

 

  For Quarter Ending
March 31st
 
  2024   2023  
Gold production (ounces) 12,957   11,735  
Gold sales (ounces) 14,071   12,670  
  $   $  
MINING    
Revenues – gold sales 39,182,893   33,179,878  
Mining expenses (9,811,669 ) (11,253,028 )
Mining royalties (1,461,631 ) (1,019,632 )
Depreciation of property, plant and equipment and amortization
of intangible assets
(10,667,110 ) (4,779,032 )
MINING INCOME 17,242,483   16,128,186  
OTHER EXPENSES    
Administrative expenses (5,596,851 ) (6,988,690 )
Depreciation of property, plant and equipment and amortization
of intangible assets
83,501   (88,742 )
Other income 26,311   80,646  
OPERATING INCOME 11,755,444   9,131,400  
FINANCIAL EXPENSES    
Financial costs (551,814 ) (633,137 )
Foreign exchange gains (losses) (307,395 ) 485,517  
Change in fair value of share purchase warrants 733,444    
INCOME BEFORE INCOME TAXES 11,629,679   8,983,780  
Income tax expense (43,712,133 ) (2,134,873 )
NET INCOME (32,082,454 ) 6,848,907  
ATTRIBUTABLE TO COMMON SHAREHOLDERS:    
Net income (29,134,726 ) 6,383,858  
Basic earnings per share (0.322 ) 0.071  
Diluted earnings per share (0.322 ) 0.071  
Adjusted net income(1) 13,507,145   5,898,341  
Adjusted net income per share(1) 0.149   0.066  
CASH FLOW    
Cash flow from operating activities 20,907,386   12,909,162  
Cash flow from operating activities per share(1) 0.231   0.144  

DETAILED INFORMATION

 

We strongly recommend that readers consult Robex’s Management’s Discussion and Analysis and Consolidated Financial Statements for the first quarter ended March 31, 2024, which are available on Robex’s website at www.robexgold.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca for a more complete discussion of the Company’s operational and financial results.

 

NON-IFRS AND OTHER FINANCIAL MEASURES

 

The Company’s consolidated financial statements for the period ended March 31, 2024, available under the Company’s profile on SEDAR+ at www.sedarplus.ca, are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).

 

However, the Company also discloses the following non-IFRS financial measures, non-IFRS financial ratios and supplementary financial measures in this news release, for which there is no definition in IFRS: adjusted net income attributable to common shareholders, all-in sustaining cost and net debt (non-IFRS financial measures); adjusted net income attributable to common shareholders per share, all-in sustaining cost per ounce of gold sold (non-IFRS ratios); and cash flow from operating activities per share, average realized selling price per ounce of gold sold and total cash cost per ounce of gold sold (supplementary financial measures). The Company’s management believes that these measures provide additional insight into the Company’s operating performance and trends and facilitate comparisons across reporting periods. However, the non-IFRS measures disclosed in this news release do not have a standardized meaning prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information to investors and other stakeholders and should not be considered in isolation from, confused with or construed as a substitute for performance measures calculated according to IFRS.

 

These non-IFRS financial measures and ratios and supplementary financial measures and non-financial information are explained in more detail below and in the “Non-IFRS and Other Financial Measures” section of the Company’s Management’s Discussion and Analysis for the period ended March 31, 2024, which is incorporated by reference in this news release, filed with securities regulatory authorities in Canada, available under the Company’s profile on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.robexgold.com. Reconciliations and calculations between non-IFRS financial measures and the most comparable IFRS measures are set out below in the “Reconciliations and Calculations” section of this news release.

 

RECONCILIATIONS AND CALCULATIONS

 

Total cash cost per ounce of gold sold

 

Total cash cost per ounce of gold sold is a supplementary financial measure. This measure is calculated by dividing the sum of operating expenses and mining royalties by the number of ounces of gold sold. These expenses include:

  • Operating and maintenance supplies and services;
  • Fuel;
  • Reagent;
  • Employee benefits expenses;
  • Change in inventory;
  • Less: production costs capitalized as stripping costs; and
  • Transportation costs.

 

Management uses this ratio to establish the profitability of mining operations, considering operating expenses in relation to the number of ounces of gold sold.

 

  For Quarter Ending
March 31st
 
  2024   2023  
         
Ounces of gold sold 14,071   12,670  
(in dollars)        
Mining operating expenses 9,811,669   11,253,028  
Mining royalties 1,461,631   1,019,632  
Total cash cost 11,273,300   12,272,660  
Total cash cost (per ounce of gold sold) 801   969  

All-in sustaining cost and all-in sustaining cost per ounce of gold sold

 

AISC is a non-IFRS financial measure. AISC includes cash operating costs plus sustaining capital expenditures and stripping costs per ounce of gold sold. The Company has classified its sustaining capital expenditures which are required to maintain existing operations and capitalized stripping costs. AISC is a broad measure of cash costs, providing more information on total cash outflows, capital expenditures and overhead costs per unit. It is intended to reflect the costs associated with producing the Company’s principal metal, gold, in the short term and over the life cycle of its operations.

 

AISC per ounce of gold sold is a non-IFRS ratio. AISC per ounce of gold sold is calculated by adding the total cash cost, which is the sum of mining operating expenses and mining royalties, to sustaining capital expenditures and then dividing by the number of ounces of gold sold. The Company reports AISC per ounce of gold sold to provide investors with information on the main measures used by management to monitor the performance of the Nampala Mine in commercial production and its ability to generate a positive cash flow.

 

The table below provides a reconciliation of AISC for the current period and the comparative period to the most directly comparable financial measure in the financial statements: “mining operating expenses”.

 

  For Quarter Ending
March 31st
 
  2024   2023  
         
Ounces of gold sold 14,071   12,670  
(in dollars)        
Mining operating expenses 9,811,669   11,253,028  
Mining royalties 1,461,631   1,019,632  
Total cash cost 11,273,300   12,272,660  
Sustaining capital expenditures 4,679,551   6,381,727  
All-in sustaining cost 15,952,851   18,654,387  
All-in sustaining cost (per ounce of gold sold) 1,134   1,472  

Net debt

 

Net debt is a non-IFRS financial measure that represents the total amount of bank indebtedness, including lines of credit and long-term debt, as well as lease liabilities, less cash at the end of a given period. Management uses this metric to analyze the Company’s debt position and assess the Company’s ability to service its debt.

 

Net debt is calculated as follows:

 

  March 31st, 2024   December 31st, 2023  
  $   $  
Lines of credit 5,236,572   4,953,133  
Bridge loan 47,045,343   45,530,538  
Long-term debt 94,478   159,936  
Lease liabilities 8,023,856   8,206,916  
Less: Cash (16,604,181 ) (12,221,978 )
NET DEBT 43,796,068   46,628,545  

 

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 period.

 

  March 31st, 2024   December 31st, 2023  
  $   $  
TOTAL LIABILITIES 122,571,374   82,918,032  
Less:    
Accounts payable (58,463,481 ) (19,664,396 )
Warrants (607,406 ) (1,340,850 )
Environmental liabilities (1,223,375 ) (1,168,859 )
Other long-term liabilities (1,876,863 ) (1,893,404 )
  60,400,249   58,850,523  
CURRENT ASSETS 44,418,400   38,967,942  
Less:    
Inventories (15,951,243 ) (15,620,800 )
Accounts receivable (7,153,444 ) (6,733,583 )
Prepaid expenses (506,292 ) (465,795 )
Deposits paid (1,612,706 ) (1,345,035 )
Deferred financing charges (2,590,534 ) (2,580,751 )
  16,604,181   12,221,978  
NET DEBT 43,796,068   46,628,545  

Adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per share

 

Adjusted net income attributable to common shareholders is defined as adjusted net earnings attributable to common shareholders of the Company divided by the weighted average number of basic shares outstanding for the period. It consists of basic and diluted net earnings attributable to common shareholders adjusted for certain specified items that are significant, but which management believes do not reflect the underlying operations of the Company. These costs include foreign exchange gains (losses), change in the fair value of share purchase warrants, and the provision for tax contingencies, all divided by the weighted average number of shares outstanding.

 

The table below provides a reconciliation of adjusted net income attributable to common shareholders for the current period and the comparative period to the most directly comparable financial measure in the financial statements: “basic and diluted net income attributable to common shareholders.” This reconciliation is provided on a consolidated basis.

 

  For Quarter Ending
March 31st
 
  2024   2023  
(in dollars)    
Basic and diluted net earnings attributable to common shareholders (29,134,726 ) 6,383,858  
Foreign exchange gains (losses) 307,395   (485,517 )
Change in the fair value of share purchase warrants (733,444 )  
Provision for tax contingencies 43,067,920    
Adjusted net income attributable to common shareholders 13,507,145   5,898,341  
Basic weighted average number of shares outstanding 90,393,824   89,957,300  
Adjusted basic earnings per share (in dollars) 0.149   0.066  

Cash flow from operating activities per share

 

Cash flow from operating activities per share is a supplementary financial measure. It is composed of cash flow from operating activities divided by the basic weighted average number of shares outstanding. This supplementary financial measure allows investors to understand the Company’s financial performance based on cash flows generated from operating activities.

 

For the period ended March 31, 2024, cash flow from operating activities was equivalent to $20,907,386 and the basic weighted average number of shares outstanding was 90,393,824, for an amount of cash flow from operating activities per share of $0.231. For the period ended March 31, 2023, cash flow from operating activities was $12,909,162 and the basic weighted average number of shares outstanding was 89,957,300, for an amount of cash flow from operating activities per share of $0.144.

 

Average realized selling price per ounce of gold sold

 

Average realized selling price per ounce of gold sold is a supplementary financial measure. It is composed of gold sales revenue divided by the number of ounces of gold sold. This measure provides management with a better understanding of the average realized price of gold sold in each financial reporting period, net of the impact of non-gold products, and it allows investors to understand the Company’s financial performance based on the average proceeds realized from the sales of gold production during the reporting period.

 

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.

 

Robex has been operating the Nampala Mine in Mali since 2017 and is advancing the long-life, low-AISC Kiniero Project in Guinea, which demonstrates a 9.5-year mine life with 1Moz of Reserves.

 

The Feasibility Study completed in June 2023 is available on SEDAR+ and on the Company’s website.

 

Robex is supported by two strategic shareholders and has the ambition to become a mid-tier gold producer in West Africa.

Posted May 31, 2024

Share this news article

MORE or "UNCATEGORIZED"


McEwen Mining Announces Closing of Flow-Through Financing

McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) is pleased to report it... READ MORE

June 14, 2024

FRONTIER LITHIUM INTERSECTS 136.7M OF 1.32% Li2O AND EXTENDS SPARK PEGMATITE

Frontier Lithium Inc. (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is pl... READ MORE

June 14, 2024

ALX Resources Corp. Receives Analytical Results from the Gibbons Creek Uranium Project, Athabasca Basin, Saskatchewan

ALX Resources Corp. (TSX-V: AL) (FSE: 6LLN) (OTC: ALXEF) is pleas... READ MORE

June 13, 2024

enCore Energy Commences Uranium Production at its Second South Texas Project

enCore Energy Corp. (NASDAQ: EU) (TSXV: EU) announced the succes... READ MORE

June 13, 2024

West Red Lake Gold Pours Gold Bar From Madsen Mill Cleanup

West Red Lake Gold Mines Ltd. (TSX-V: WRLG) (OTCQB: WRLGF) is ple... READ MORE

June 13, 2024

Copyright 2024 The Prospector News