Mr. Benjamin Cohen reports
ROBEX RESOURCES INC. CONTINUES TO IMPROVE ITS PERFORMANCE, REDUCE ITS DEBTS AND PREPARE FOR THE FUTURE
Robex Resources Inc. has released its financial results for the quarter ended June 30, 2019.
Second quarter of 2019: Robex generates cash flows from operating activities of $8.6-million for revenue of $20.4-million, representing remarkable operating cash flow of 42.2 per cent of revenue:
- Gold production of 12,089 ounces (376 kilograms) compared with 11,716 ounces (364 kg) for the same period in 2018. Furthermore, since the beginning of 2019, gold production has increased by 7.6 per cent compared with the same period last year.
The quantity of processed ore at the plant is comparable, 433,598 tonnes in the second quarter of 2019 versus 436,224 tonnes in the second quarter of 2018. The addition of a crusher by the end of August should allow the Nampala mine to reduce unplanned stoppages caused by coarse ore.
- Gold sold totalled
$20.4-million compared with $19.4-million for the same period in 2018, corresponding respectively to 11,760 gold ounces sold (366 kg) at an average price of $1,738 per ounce and 11,481 gold ounces sold (357 kg) at an average price of $1,688 per ounce (difference in gold sales from production can be attributed to each of the periods presented).
Total cash cost of $683 per ounce sold compared with $613 per ounce sold for the same period in 2018. This increase is mainly attributed to an increase in the price and consumption of fuel and reagents per ounce sold. Several actions have already taken place: computerization of fuel control has replaced the existing mechanical control. A June initiative to optimize cyanide consumption now provides monthly savings of approximately $68,000. For the future: the planned development of a solar power plant at the mine will allow the company to produce its electricity at a reduced cost.
Following the release of new 43-101 reports, the application of international financial reporting standards has changed the amortization calculations. This had an adverse effect on operating income but had no impact on cash flows from operating activities ($8.6-million).
Decrease in the company's liability in the amount of $2.6-million compared with March 31, 2019. Total liabilities went from $60-million as at June 30, 2018, to $46.1-million as at June 30, 2019, a decrease of $13.9-million over the last 12 months.
Exploration investments using the Nampala operating permit amounting to $600,000 and $300,000 in research and exploration using the Mininko and Kamasso permits. The company invested a total of $7.1-million as part of its 2018-2019 exploration and drilling campaign.
MINING OPERATION: NAMPALA, MALI
Second quarters First halves
ended June 30, ended June 30,
2019 2018 2019 2018
Ore mined (tonnes) 402,678 448,974 901,111 940,316
Ore processed (tonnes) 433,598 436,224 858,159 881,450
Waste mined (tonnes) 839,595 819,691 1,663,618 1,867,561
Operational stripping ratio 2.1 1.8 1.8 2.0
Head grade (g/t) 1.00 0.94 0.98 0.93
Recovery (%) 86.6% 86.3% 85.8% 85.1%
Gold ounces produced 12,089 11,716 23,149 21,509
Gold ounces sold 11,760 11,481 22,695 23,469
(rounded to the nearest thousand dollars)
Revenues -- gold sales 20,441,000 19,376,000 39,311,000 39,949,000
Mining operation expenses 7,407,000 6,409,000 14,538,000 13,593,000
Mining royalties 622,000 630,000 1,210,000 1,302,000
Administrative expenses 1,569,000 1,386,000 3,342,000 2,723,000
Depreciation of property, plant and
equipment, and amortization of intangible assets 7,379,000 2,918,000 15,535,000 5,824,000
Segment operating income 3,464,000 8,033,000 4,686,000 16,507,000
Average realized selling price (per ounce) 1,738 1,688 1,732 1,702
Cash operating cost (per tonne processed) 18 15 18 15
Total cash cost (per ounce sold) 683 613 694 635
All-in sustaining cost (per ounce sold) 1,035 937 1,043 988
Administrative expenses (per ounce sold) 133 121 147 116
Depreciation of property, plant and equipment
(per ounce sold) 627 254 685 248
Robex's management discussion and analysis, and the consolidated financial statements are available on the company's website in the investors section. These reports and other documents produced by the company are also available on SEDAR.
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