Soon, Robex will be able to negotiate / conclude the financing of the construction of the Kiniero plant. A few elements make it possible to understand that a particularly favorable environment has been created over the years and it is on this basis that advantageous financing conditions can be obtained.
Overall, this enabling environment consists of an efficient operating process; a solid balance sheet; of renewed mineral resources and finally, an investment package that prepares the first stage of the growth plan. From now on, Robex is working on setting up an operating site with a known and controlled process, similar to that of Nampala, but to the power of 10. The whole sums up the desire to take the biggest step in history of Robex, in terms of increased production capacity and economic return.
Regardless of anything that characterizes a company, financing is what has the right of life or death on a project. As for the conditions, they reflect the judgment of the financial institutions with regard to the risks and other criteria, and consequently influence the economic efficiency that Robex may obtain. Between bank financing and the issuance of shares, there are countless formulas, some of which are more advantageous than others. To get the best conditions, it is better to arrive well prepared, rather than early. Consequently, here are some of the parameters that make up the winning situation in which Robex finds itself today.
1. The company generates sufficient positive cash flow to proceed with the improvement of its facilities; to participate in its growth plan; in addition to presenting a set of good results on profitability ratios. The regularity of the financial results obtained, year after year, is also a favorable element;
2. The state of Nampala's mineral reserves ensures the sustainability of its gold production and, consequently, the predictability of its financial results for the next 7-8 years;
3. The economic efficiency of its mining process is unequivocal, which makes it possible to obtain one of the lowest average production costs on the market, despite a below-average gold grade;
4. The particularly low production cost obtained per ounce of gold makes it possible to ensure profitability and to act as a safety net against downward movements in the POG;
5. By initiating a debt reduction program in 2018, Robex now presents a debt-free balance sheet;
6. By finalizing the installation of a solar power plant for the operation of Nampala, in combination with the recent agreement reached with Vivo Energy for the Kiniero project, Robex responds favorably to the responsible financing criteria;
7. The expertise of the management team is demonstrated by the quality of the financial results, supported by its good relations with government authorities, Malian banks and a set of local suppliers.
The project to be financed is an asset on which gold mining has been carried out by Semafo for several years. The site has several pieces of infrastructure that have been rehabilitated by Sycamore. Soon, the PFS category 43-101 technical report will present a statement of mineral reserves and resources, in addition to validating the mining process of the Kiniero deposit.
In conclusion, I believe that the Robex / Kiniero financing file is complete, of excellent quality, and there is no doubt that the shareholders will be able to benefit from the good financing conditions that will be obtained.