Second Quarter 2021 Results – Positive Outlook

QUEBEC, August 27, 2021 (GLOBE NEWSWIRE) – Robex Resources Inc. (“ Robex “,”the group” Where “the company”) (TSXV: RBX / FWB: RB4) reports its financial results for the quarter ended June 30, 2021.

All amounts are presented in Canadian dollars (CAD).

The second quarter of 2021 shows an improvement, and we expect this trend to continue in the months to come.

We are still working on our mining strategy by developing a new mining strategic plan that will allow us to optimize the use of our resources and plan our cash flow for the longer term.

Our operation improves with the start-up of the new cone crusher. We have ordered additional equipment to further optimize the crushing circuit. This will allow the mill to increase the proportion of transition ore in the mill feed. Specifically, this will allow us to process harder and generally higher grade ore located at the bottom of the old pit.

Overall, the stripping remains temporarily high. Our mining plan optimization work indicates that the stripping rate should soon decrease. The increased production and higher grades have allowed us to improve our cash flow performance, despite the difficulty in getting our VAT refunded. The total amount of VAT payable now stands at $ 8.4 million as of June 30, 2021.

Construction of the solar power plant has started and will be completed in the first quarter of 2022.

The procedures in place since last year to fight COVID-19 are still in force and have allowed us to limit the impact of this pandemic on our operations, but we remain vigilant.

Strong points:

  • GOLD SALES OF 11,739 OUNCES FOR $ 26.1 MILLION
    Gold sales of $ 26.1 million for the second quarter of 2021 compared to $ 15.7 million for the same period in 2020. This increase is due to a greater amount of gold sold, 11,739 ounces versus 6,500 ounces. As of June 30, 2020, 7,831 ounces of gold bullion were available for sale and were sold during the third quarter of 2020.

  • OPERATING RESULTS OF $ 9.8 M, A STRONG IMPROVEMENT
    Operating results of $ 9.8 million compared to $ 0.2 million for the same period in 2020, including respectively $ 3.2 million and $ 6.8 million in amortization of fixed assets.

  • LONG-TERM STABLE DEBT
    The Group’s long-term debt amounts to $ 6.9 million as of June 30, 2021, compared to $ 6.6 million as of December 31, 2020, including a new bank loan to, among other things, purchase vehicles, and reduce these costs.

  • POSITIVE WORKING CAPITAL WITH A SLIGHT INCREASE
    Positive working capital of $ 10 million as of June 30, 2021, compared to positive working capital of $ 8.8 million as of December 31, 2020.

  • MAJOR INVESTMENT OF $ 6.6 MILLION IN PICKLING
    As expected, increase in production costs capitalized as stripping costs of $ 4.3M compared to the same period in 2020, explained by the opening of 4 new pits around the main pit. A total of 2.4 million tonnes of mined waste rock were excavated, representing an average stripping rate of 4.8. As previously stated, these costs are expected to decrease with the new mining plan.

Mining operation – Nampala:

Finished quarters
June 30th

The finished halves
June 30th

2021

2020

2021

2020

Operational data

Ore mined (tonnes)

507,986

456,091

985 336

958 371

Ore processed (tonnes)

474,435

483,460

946,845

960 180

Waste extracted (tonnes)

2 413 671

1,014,426

5,133,709

2 365 232

Operational stripping rate

4.8

2.2

5.2

2.5

Head content (g / t)

0.82

1.00

0.79

1.05

Recovery

89.2%

89.5%

90.9%

89.1%

ounces of gold produced

11,124

13 921

21 766

28 839

ounces of gold sold

11,739

6500

23,241

21 146

Financial datas

(rounded to the nearest thousand dollars)

Turnover – Gold sales

26,051,000

15,714,000

52,292,000

46,578,000

Mining operating costs

8,892,000

3,728,000

18,080,000

11,163,000

Mining royalties

653,000

370,000

1,309,000

1,141,000

Administrative expenses

2,196,000

2,551,000

4,440,000

4,200,000

Amortization of tangible assets and amortization of intangible assets

3,190,000

6,759,000

5,822,000

14,147,000

Segment operating income

11,120,000

2,306,000

22,641,000

15,927,000

Statistics

(in dollars)

Average Realized Selling Price (per ounce)

2 219

2,418

2,250

2,203

Cash operating cost (per tonne processed) ii

18

15

18

16

Total cash cost (per ounce sold) ii

813

631

834

582

All-in sustaining cost (per ounce sold) ii

1,560

1,261

1645

1,058

Adjusted all-in sustaining cost (per ounce sold) ii

912

747

981

725

Administrative costs (per ounce sold)

187

392

191

199

Amortization of property, plant and equipment and amortization of intangible assets (per ounce sold)

272

1,040

251

669

Robex’s MD&A and condensed interim consolidated financial statements (unaudited) are available on the company’s website in the Investors section at robexgold.com. These reports and other documents produced by the Company are also available on sedar.com.

Message from the President, Mr. Georges Cohen:

“We are pleased to present the results for the second quarter of 2021. As announced in the press release for the previous quarter, we are already seeing a significant improvement compared to the first quarter of 2021, with production up 4.5% and maintenance costs. all-in. ii down 10%. This improvement should continue over the rest of the year, thanks to the operational initiatives that we put in place during the first half of the year to optimize our overall operations (review of the strategic mining plan, investments in factories, improvement of processing capacities ).

We continue to work hard on all growth options for Robex operations.

For more information:

Robex Resources Inc.

Benjamin Cohen, CEO
Aurélien Bonneviot, investor relations and corporate development
[email protected]
www.robexgold.com
The head office: +1 (581) 741-7421

This press release contains statements that may be considered “forward-looking information” or “forward-looking statements” in terms of security. These forecasts are subject to uncertainties and risks, some of which are beyond Robex’s control. Achievements and end results may differ significantly from forecasts made implicitly or explicitly. These differences can be attributed to many factors including geopolitical risk, market volatility, impact of exchange rate and interest rate fluctuations, pricing errors, environment (tighter regulation) , unforeseen geological situations, unfavorable operating conditions, political risks inherent in mining. in developing countries, changes in government policies or regulations (laws and policies), an inability to obtain necessary permits and approvals from government agencies, or any other risk associated with mining and development. There can be no assurance that the circumstances described in these forecasts will occur, or even benefit Robex, from time to time. Forecasts are based on the estimates and opinions of Robex’s management team at the time of publication. Robex does not undertake to make updates or changes to these publicly available forecasts based on new information or new events, or for any other reason, except as required by applicable safety laws. The TSX Venture Exchange or the Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) assumes no responsibility for the authenticity or accuracy of this release.

i Cash flow from operating activities excludes the net change in non-cash working capital items.
ii Cash of operations, total cash cost, all-in sustaining cost and adjusted all-in sustaining cost are non-IFRS financial measures for which there is no standardized meaning under IFRS. See the “Non-IFRS Financial Performance Measures” section of the MD&A.

About Selena J. Killeen

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