(Expressed in United States dollars except where otherwise indicated)
TSX-V: GMN
TORONTO, May 16, 2013 /CNW/ - (TSXV: GMN) GobiMin Inc. (the "Company" or "GobiMin") announces its
financial results for the year ended December 31, 2012 and the
declaration of an annual dividend of $0.01 (CAD0.01) per share.
Trading of the Company's shares on the TSX Venture Exchange was halted
on May 1, 2013 as a result of cease trade order issued on May 1, 2013
by the Alberta Securities Commission for failing to file the audited
consolidated financial statements, management's discussion and analysis
and certificates of annual filings for the year ended December 31, 2012
("2012 Annual Disclosure Documents") of the Company and its
subsidiaries (together the "Group") within the required time period.
The delay for filing the 2012 Annual Disclosure Documents was the result
of the re-consideration of the accounting for the sale of the Yanxi
Copper Property in its year ended 2010 financial statements. Due to
the timing and complexity of the issue, it proved impossible to release
the 2012 Annual Disclosure Documents by the deadline of April 30,
2013. The Company and its auditors reviewed the interpretation of this
complex transaction and how it was presented in 2010. This did result
in a restatement of the 2010 and 2011 financial statements related to
this transaction. There was no impact on the business substance of the
transaction or changes in monies received from the transaction. It was
purely a difference in how the transaction was recognized and
presented. The restatement essentially related to the timing of the
derecognition of the equity interest of an associate as a result of the
sale of the Yanxi Copper Property. The Company has received all the
consideration related to the sale as scheduled, the adjustment was with
respect to the period in which the sale was originally reflected for
financial reporting purposes.
The Company is pleased to confirm that the cease trade order and the
delay in the release of the 2012 Annual Disclosure Documents were not
related to and have no impact on the financial situation of the
Company.
The 2012 Annual Disclosure Documents will be filed with SEDAR (www.sedar.com) forthwith and will also be available on the website of the Company (www.gobimin.com). The Company will apply for the revocation of the cease trade order
immediately so as to have its common shares reinstated for trading on
the TSX Venture Exchange as soon as possible.
Effect of the restatement
The effect of the restatement on the Company's Financial Statements was
as follows:
|
December 31, 2010
|
Previously reported
|
Adjustment
|
Restated
|
|
Statement of Financial Position
|
$
|
$
|
$
|
|
|
Prepayments, deposits and other receivables
|
19,206,004
|
(11,454,312)
|
7,751,692
|
|
|
Interest in associates
|
7,098,213
|
1,102,329
|
8,200,542
|
|
|
Other financial assets
|
16,771,975
|
(223,174)
|
16,548,801
|
|
|
Other payables and accrued liabilities
|
28,225,467
|
(4,934,231)
|
23,291,236
|
|
|
Deferred gain on disposal of associates
|
5,682,689
|
(5,682,689)
|
-
|
|
|
Retained earnings
|
48,952,863
|
41,763
|
48,994,626
|
|
December 31, 2011
|
Previously reported
|
Adjustment
|
Restated
|
|
Statement of Financial Position
|
$
|
$
|
$
|
|
|
Prepayments, deposits and other receivables
|
19,341,000
|
(11,454,311)
|
7,886,689
|
|
|
Interest in associates
|
2,113,541
|
1,025,969
|
3,139,510
|
|
|
Other financial assets
|
14,106,188
|
(208,028)
|
13,898,160
|
|
|
Other payables and accrued liabilities
|
28,250,606
|
(4,964,592)
|
23,286,014
|
|
|
Deferred gain on disposal of associates
|
5,682,689
|
(5,682,689)
|
-
|
|
|
Retained earnings
|
50,769,706
|
10,911
|
50,780,617
|
|
For the year ended December 31, 2011
|
Previously reported
|
Adjustment
|
Restated
|
|
Statement of Comprehensive Income
|
$
|
$
|
$
|
|
|
General and administrative expenses
|
(4,951,789)
|
25,556
|
(4,926,233)
|
|
|
Share of results of associates
|
170,240
|
(127,783)
|
42,457
|
|
|
Exchange (loss)/gain
|
(52,880)
|
71,375
|
18,495
|
|
Profit for the year
|
2,517,276
|
(30,852)
|
2,486,424
|
|
Total comprehensive income for the year
|
4,476,871
|
(30,852)
|
4,446,019
|
|
Total comprehensive income for the year
|
|
|
|
|
Shareholders of the Company
|
4,739,491
|
(30,852)
|
4,708,639
|
|
Non-controlling interests
|
(262,620)
|
-
|
(262,620)
|
|
|
4,476,871
|
(30,852)
|
4,446,019
|
|
Net earnings per share
|
|
|
|
|
|
Basic and diluted
|
0.05
|
-
|
0.05
|
Financial Highlights
|
As at / For the year ended
|
December 31,2012
|
(Restated)
December 31,2011
|
(Restated)
December 31, 2010
|
|
|
$
|
$
|
$
|
|
Revenue
|
-
|
-
|
-
|
|
Other revenue and gains
|
1.1 million
|
0.9 million
|
0.4 million
|
|
Share of results of associates / a jointly-
|
|
|
|
|
|
controlled entity
|
0.4 million
|
0.3 million
|
(1.1 million)
|
|
Gain on disposal of an associate
|
8.2 million
|
8.8 million
|
-
|
|
Change in fair value of other financial assets
|
2.5 million
|
(2.7 million)
|
1.6 million
|
|
Profit/(loss) for the year
|
2.9 million
|
2.5 million
|
(3.5 million)
|
|
EBITDA/(LBITDA)(1)
|
5.8 million
|
2.2 million
|
(3.5 million)
|
|
Basic earnings/(losses) per share
|
0.06
|
0.05
|
(0.05)
|
|
Diluted earnings/(losses) per share
|
0.06
|
0.05
|
(0.05)
|
|
EBITDA/(LBITDA) per share(1)
|
0.10
|
0.03
|
(0.05)
|
|
|
|
|
|
|
Cash and cash equivalents
|
46.6 million
|
62.3 million
|
37.4 million
|
|
Cash and cash equivalents per share(1)
|
0.78
|
1.00
|
0.57
|
|
Working capital
|
45.9 million
|
52.4 million
|
50.3 million
|
|
Total non-current financial liabilities
|
32,000
|
83,000
|
4,000
|
|
Total liabilities
|
33.3 million
|
23.4 million
|
23.3 million
|
|
Total assets
|
121.1 million
|
110.0 million
|
108.6 million
|
|
Annual dividend per share
|
0.01
|
0.01
|
0.01
|
|
Note:
|
|
|
(1)
|
As non-IFRS measurements, EBITDA/(LBITDA) (earnings/(losses)before interest income and expense, income taxes,
depreciation and amortisation), EBITDA/(LBITDA) per share and Cash and cash equivalents per share do not
comply with IFRS and, therefore, the amounts presented in the above
table may not be comparable to similar data
presented by other companies. The data is intended to provide additional
information and should not be considered
in isolation or as a substitute for measures of performance prepared in
accordance with IFRS.
|
|
(2)
|
The 2012, 2011 and 2010 financial information were prepared in
accordance with IFRS.
|
Annual Dividend
On May 16, 2013, the Company declared an annual dividend of
$0.01(CAD0.01) per share in accordance with its dividend policy and the
2012 annual performance. The dividend is payable on June 24, 2013 to
shareholders of record on May 29, 2013.
Business Summary and Development
GobiMin holds an equity interest of 70% in a company incorporated in
China to develop and operate the Sawayaerdun Gold Project (the "Gold
Project"). The NI 43-101 compliant resource estimate update of the Gold
Project prepared by Qualified Persons as defined in NI 43-101, Mr. Neil
Gow and Mr. Reno Pressacco from RPA Inc., has been published in May
2013. At a cut-off grade of 1.0 grams/tonne gold, its Zone IV and Zone
I are estimated to contain a total of about 20 million tonnes at an
average grade of 1.90 grams/tonne Au (about 1.24 million contained oz
Au) in the Measured and Indicated Resources category and an additional
amount of about 33 million tonnes averaging 1.47 grams/tonne Au (about
1.6 million contained oz Au) in the Inferred Resources category. The
drilling in 2012 has increased the confidence in the mineral resource
estimate at the Sawayaerdun deposit with a certain quantity of the
resource upgraded to the measured category and the grade has been
enhanced accordingly. GobiMin estimates that the Gold Project has now
achieved a sufficiently advanced stage of exploration to warrant
negotiations with potential investors for co-operation or disposal of
an equity interest in the Gold Project. Early-stage negotiations also
involved additional financing in order to accelerate the construction
phase of the Gold Project.
GobiMin also holds an equity interest of 48.02% in China Precision
Material Limited ("China Precision") for the silver operation which
continued to make a satisfactory contribution to the equity of the
Group. For 2012, China Precision had a net profit of about $1.1
million, with GobiMin's share amounting to $0.5 million.
In addition, GobiMin owns 40-50% equity interests in four companies
incorporated in China to engage in base metals and precious metal
exploration, including nickel, copper, and gold, in Xinjiang, and an 8%
equity interest in the Yanxi Copper Property.
Certain statements contained in this press release constitute
forward-looking information. Such statements are based on the current
expectations of management of GobiMin. You are cautioned that such
statements are subject to a multitude of risks and uncertainties that
could cause actual results, future circumstances or events to differ
materially from those projected in the forward-looking information.
Forward looking information includes without limitation, statements
regarding the size and quality of the Company's mineral resources,
progress in development of mineral properties, the prospective
mineralization of the properties, and planned exploration programs.
The reader should not place undue reliance on the forward-looking
information included in this press release given that (i) actual
results could differ materially from a conclusion, forecast or
projection in the forward-looking information, and (ii) certain
material factors or assumptions were applied in drawing a conclusion or
making a forecast or projection as reflected in the forward-looking
information could prove to be inaccurate. These statements speak only
as of the date they are made, and GobiMin assumes no obligation to
revise such statements as a result of any event, circumstance or
otherwise, except in accordance with law.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
To receive GobiMin press releases by email, send a message to info@gobimin.com and
specify "GobiMin press releases" on the subject line
SOURCE: GobiMin Inc.
