Third Quarter Results-Increase in Production/New Mine Plan QUEBEC CITY, Nov. 26, 2021 (GLOBE NEWSWIRE) -- Robex Resources Inc. (« Robex », “the Group” or “the Company”) (TSXV: RBX/FWB: RB4) reports its financial performance for the quarter ended September 30, 2021.
All amounts are presented in Canadian dollars (CAD).
In the third quarter of the year, the improvement in the recovery rate (92.1% compared to 88.2%) as well as the ore processing throughput (481,690 tonnes compared to 438,367 tonnes) enabled us to increase gold production by 6% when compared to the same period in 2020 (11,317 ounces compared to 10,706 ounces). This production performance is not reflected in the third quarter results because the gold bars were sold in other quarters, which led to a lag.
We want to draw your attention on the IFRS accounting rules which are based on gold sold and not produced. As a result, our accounting results of this semester have been negatively impacted by the gap between sales and production despite a strong operating performance of our mine as explained in this press release.
The mine continues to improve. The cone crusher is now operational, and to improve its efficiency, we have decided to change its feed by acquiring a new trommel (revolving screen). This will optimize the recirculation and efficiency of the cone crusher. The new cyclone feed pumps are now on site. The installation of these pumps should enable us to continue to increase the daily tonnage.
The stripping work for new pits was completed in the third quarter of 2021.This major project impacted our cash flow and our cost price per ounce (AISCi). This step enables us to excavate new pits optimally. We have also finalized the new excavation strategy with a new short-term mine plan and another strategic life of mine plan. This work was done in collaboration with a new mining engineer. The monitoring and monthly reconciliation of this new mining plan will make it possible to present forecast as accurately as possible.
Construction of the solar power plant is progressing. The testing period and commissioning is planned for the first quarter of 2022.
The procedures in place since last year to combat COVID-19 are still in effect and have allowed us to limit the impact of this pandemic on our operations, but we are remaining vigilant. No case has been reported at the Nampala mine.
Highlights:
- 6% INCREASE IN GOLD PRODUCTION
Gold production of 11,317 ounces compared to 10,706 ounces for the same period in 2020, which is an increase of 6%. This performance is the result of an increase in the number of processed tonnes and an improvement in the recovery, despite the decrease in the head grade.
- GROUP GOLD SALES OF 7,348 OUNCES FOR $16.7 MILLION
Gold sales of $16.7 million (7,348 ounces) for the third quarter of 2021 compared to $45.9 million (18,121 ounces) for the same period in 2020. These figures can be explained by two time lags. As of September 30, 2021, 3,834 ounces were available for sale, but were only sold in the fourth quarter for approximately $8.3 million. Whereas 7,831 ounces of gold bars produced in the second quarter of 2020 were only sold in the third quarter of 2020 for a total amount of approximately $19.4 million. The two lags combined represent $27.7 million, which account for a greater part of the $29.2 million difference in revenue.
- GROUP OPERATING RESULTS OF $4 MILLION
The operating results, prepared in accordance with IFRS, was also negatively impacted by the same lags between production and sales. Operating results of $4 million compared to $24.9 million for the same period in 2020, including respectively $2.9 million and $3.5 million in depreciation of fixed assets.
- POSITIVE CASH FLOWS FROM OPERATING ACTIVITIESii
Cash flows from operating activitiesii of $5.2 million compared to $28 million for the same period in 2020. It should be recalled that the 3,834 ounces of gold available at the end of the quarter have since been sold for approximately $8.3 million.
- REDUCTION OF LONG-TERM DEBT BY $1,3 MILLION
The Group’s long-term debt of $5.3 million as of September 30, 2021, compared to $6.6 million as of December 31, 2020.
- POSITIVE WORKING CAPITAL
Positive working capital of $8.2 million as of September 30, 2021, compared to positive working capital of $8.8 million as of December 31, 2020.
- INCREASE IN THE VALUE OF EQUITY
Shareholder value (equity) has increased by $17.8 million compared to the value as of December 31, 2020.
- SIGNIFICANT SLOWDOWN OF STRIPPING
The stripping work for the 4 new pits, which was started at the beginning of 2020, was completed at the end of August 2021. This has resulted in an average operational stripping ratio of 2.8 for this quarter, which is a significant improvement compared to 4.8 and 5.7 in the second and first quarter respectively of 2021.
https://www.globenewswire.com/news-release/2021/11/26/2341636/0/en/Robex-Resources-Inc-2021-Third-Quarter-Results-Increase-in-Production-and-New-Mine-Plan.html