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$43,796,068 respectively at the end ofMarch 2024 .
Aurélien Bonneviot, Chief Executive Officer, commented: "
Robex is on track to achieve annual guidance of 45-49koz of gold at an AISC per ounce of gold1 of less than
The successful drilling campaign at Kiniero delivered solid resource conversion. We are currently working on engineering to increase design and throughput while advancing early works."
CURRENCY
Unless otherwise indicated, all references to "$" in this news release are to Canadian dollars. References to "US$" in this news release are to
OPERATIONAL AND FINANCIAL SUMMARY
For Quarter Ending | |||||||||||
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
The increase in gold sales revenues by 18% in Q1 2024 to
AISC per ounce of gold sold1 decreased to
Operating mining income for Q1 2024 is stable at
While operating income is improving from
CASH FLOW
Cash flow from operating activities generated
Cash flow investing activities amounted to
Cash flow from financing activities was neutral at
LIQUIDITY AND BALANCE SHEET
Robex cash position increased from
Net debt1 stood at
SUMMARY OF Q1 2024 FINANCIAL RESULTS
For Quarter Ending | ||||
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
NON-IFRS AND OTHER FINANCIAL MEASURES
The Company's consolidated financial statements for the period ended
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
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 | ||||
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
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 | ||||
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:
$ | $ | |||
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.
$ | $ | |||
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 | ||||
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
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 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
The Feasibility Study completed in
Robex is supported by two strategic shareholders and has the ambition to become a mid-tier gold producer in
For more information
Aurélien Bonneviot, Chief Executive Officer
+1 581 741-7421
Email: investor@robexgold.com
www.robexgold.com
CAUTION REGARDING CONSTRAINTS RELATED TO THE REPORTING OF SUMMARY RESULTS
This earnings release contains limited information intended to assist the reader in evaluating Robex's performance, but this information should not be relied upon by readers unfamiliar with Robex and should not be used as a substitute for Robex's financial statements, notes to the financial statements and Management’s Discussion and Analysis.
FORWARD-LOOKING INFORMATION AND FORWARD-LOOKING STATEMENTS
Certain information set forth in this news release contains “forward‐looking statements” and “forward‐looking information” within the meaning of applicable Canadian securities legislation (referred to herein as “forward‐looking statements”). Forward-looking statements are included to provide information about Management’s current expectations and plans that allows investors and others to have a better understanding of the Company’s business plans and financial performance and condition.
Statements made in this news release that describe the Company’s or Management’s estimates, expectations, forecasts, objectives, predictions, projections of the future or strategies may be “forward-looking statements”, and can be identified by the use of the conditional or forward-looking terminology such as “aim”, “anticipate”, “assume”, “believe”, “can”, “contemplate”, “continue”, “could”, “estimate”, “expect”, “forecast”, “future”, “guidance”, “guide”, “indication”, “intend”, “intention”, “likely”, “may”, “might”, “objective”, “opportunity”, “outlook”, “plan”, “potential”, “should”, “strategy”, “target”, “will” or “would” or the negative thereof or other variations thereon. Forward-looking statements also include any other statements that do not refer to historical facts. Such statements may include, but are not limited to, statements regarding: the perceived merit and further potential of the Company’s properties; the Company’s estimate of mineral resources and mineral reserves (within the meaning ascribed to such expressions in the Definition Standards on Mineral Resources and Mineral Reserves adopted by the
Forward-looking statements and forward-looking information are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions, including: the ability to execute the Company’s plans relating to the
Certain important factors could cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements including, but not limited to: geopolitical risks and security challenges associated with its operations in
Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. These factors are not intended to represent a complete and exhaustive list of the factors that could affect the Company; however, they should be considered carefully. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information.
The Company undertakes no obligation to update forward-looking information if circumstances or Management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives, and may not be appropriate for other purposes.
See also the "Risk Factors" section of the Company's Annual Information Form for the year ended
Neither the
_____________________
(1) All-in sustaining cost per ounce of gold sold, net debt, adjusted net income attributable to common shareholders and adjusted net income attributable to common shareholders per share are a non-IFRS financial measure, while total cash cost per ounce of gold sold and cash flows from operating activities per share are a supplementary financial measure with no standard definitions under IFRS (as hereinafter defined). Please refer to the "Non-IFRS and Other Financial Measures" section of this news release on page 6 for a definition of these measures and their reconciliation to the most directly comparable IFRS measure, as applicable.
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