Robex Reports Q2 2024 Results
QUEBEC CITY, Aug. 30, 2024 (GLOBE NEWSWIRE) -- Robex Resources Inc. ("Robex" or the "Company") (TSXV:RBX) today reports operational and financial results for the second quarter ending June 30th, 2024 ("Q2 2024").
HIGHLIGHTS
STRATEGIC INITIATIVES
Management and Board change: The company announced a Management and Board change. The company is now lead by Matthew Wilcox (CEO and Director) and James Askew Non-Executive Chairman. The Board has been restructured and is composed of James Askew (Chairman of the Board), John Dorward, Howard Golden, Thomas Lagrée and Gérard de Hert (all non-executive directors), and Matthew Wilcox.
Strategic initiative: The company announced a strategic decision to start a sale process for its Mali assets and its intention to relist on the ASX as a development company focused exclusively on the Kiniero Project in Guinea
FINANCING, STRONG BALANCE SHEET
Equity financing: Robex management team successfully raised $125.6 million with SCP as sole lead arranger to advance the Kiniero Project in Guinea.
Debt: Net debt (cash) position stood at $(75.5) million as of June 30th, 2024 combined effect of equity raise and US$15 million Taurus debt repayment.
Operating income stood at $23.3 million an increase of 26% compared to H1 2023, attributable to higher volume sold, improving gold price environment and cost optimization;
Operating cash flow is positive at $33.4 million up by 38% compared to H1 2023, and;
KINIERO, ON TRACK FOR FIRST POUR Q4 2025
Team: Over the summer the company opened an office in Perth and the entire development team has been hired.
Engineering: Detailed engineering for an increased throughput is underway, long lead items (Ball Mill, Power Plant) have been ordered to complement the existing equipment. Downpayment on an earthworks fleet was made to accelerate the construction schedule. The project is on track to hit first pour in Q4 2025
Feasibility Study: as announced previously Robex has retained AMC Consultants to its increased plant throughput feasibility study
In-fill drilling: A 30 000m drilling program has commenced to prove up the 589koz of inferred at 0.94 g/t on Mansounia.
NAMPALA, PRODUCTION UP, COSTS DOWN
Safety of operations: Nampala and Kiniero accumulated 526 days worked without a lost time injury;
Gold production reached 26,222 ounces (+10%), at an All-In Sustaining Cost ("AISC") per ounce of gold sold1 of $1,151, down 2% from H1 2023;
Matthew Wilcox, Managing Director: "The strategic repositioning of the company as a company focused on the development of Kiniero is an exciting evolution for Robex. The new team has been on-boarded, and the engineering is advancing quickly through the feasibility study with an increased throughput, that Robex will deliver before the end of the year. The equity raise and the debt repayment strategically position Robex to obtain the best project financing result and the fastest path to first gold. The process to potentially divest the Nampala asset has commenced, and Robex will carefully evaluate the best outcome for shareholders. In the meantime, the Nampala operation continues to produce at low costs and maintain high safety standards."
CURRENCY
Unless otherwise indicated, all references to "$" in this news release are to Canadian dollars. References to "US$" in this news release are to U.S. dollars.
OPERATIONAL AND FINANCIAL SUMMARY
Unit
For six-month EndingJune 30th
SAFETY
2024
2023
Variation
Number of hours of work without lost time injury
Days
526
163
NA
MINING
Ore
kt
1,434
1,341
7
%
Waste
kt
2,110
3,627
-42
%
Strip
x
1.5
2.7
-44
%
PROCESSING
Ore processed
kt
1,097
1076
2
%
Head grade
g/t
0.83
0.79
5
%
Recovery
%
87.9
88.6
-0.7pts
Gold produced
oz
25,721
24,145
7
%
Gold sold
oz
26,222
23,739
10
%
UNIT COST OF PRODUCTION
Total cash cost per ounce of gold sold(1)
$/t
826
905
-9
%
All-in sustaining cost (AISC) per ounce of gold sold(1)
$/oz
1,151
1,174
-2
%
INCOME
Gold sales
$000s
78,501
62,330
26
%
Operating income
$000s
23,271
16,244
43
%
Net income
$000s
-32,270
11,838
-
CASH FLOW
Operating
$000s
33,387
24,192
38
%
Investing
$000s
-30,130
-36,942
-18
%
Financing
$000s
100,056
16,833
494
%
Cash increase (decrease)
$000s
101,570
1,663
6008
%
FINANCIAL POSITION
30th June 2024
31st Dec. 2023
Variation
Cash, End of Period ("EoP")
$000s
113,792
12,221
831
%
Net debt(1) EoP
$000s
-75,493
46,629
-262
%
QUARTERLY REVIEW
During the second quarter of 2024, the Company delivered a notable performance despite significant challenges. Gold production reached 12,764 ounces, marking a slight increase from the 12,410 ounces produced in the same quarter in 2023. Gold sales generated revenue of $39.3 million, an increase of 35% compared to the same period last year. The growth was primarily due to an increase in the average realized selling price per ounce sold from $2,633 to $3,236. The increase in sales was also attributable to a 9.8% increase in ounces sold from 11,069 ounces of gold in the second quarter of 2023 to 12,150 ounces of gold for the same period in 2024. The timing difference between production and actual sales is due to the timing of shipments.
Mining operating income for the second quarter increased 19.2% to $18.0 million, despite a significant increase in depreciation and amortization expense due to the revision of the Nampala mine life, now scheduled to end by June 2026. However, net income for this quarter was negative, at -$0.2 million, due to financial expenses related to the issuance of warrants and the change in their fair value.
Gold production for the first six months of 2024 totaled 25,721 ounces, up 6.5% from 24,145 ounces in the first six months of 2023. Revenue from gold sales amounted to $78.5 million, an increase of 26% compared to the same period in 2023. Mining operating income for the six-month period was $35.3 million, an increase of 12.8% compared to the first half of 2023.
However, net income for the first half of 2024 was strongly impacted by a provision for tax contingencies in Mali, which led to a net income of -$32.3 million compared to a net income of $11.8 million for the same period in 2023.
The Company also completed a significant financing, with the issuance of 58,294,880 units, each consisting of one share and one common share purchase warrant, for gross proceeds of $126.5 million. This financing aims to support the strategic development of the Kiniéro gold project in the Republic of Guinea. In addition, the Company has signed a definitive agreement with Taurus to extend the bridge loan from US$35 million with a maturity date of the 21st of June 2024 to a new bridge loan of US$20 million with maturity date of the 22nd of June 2025.
CASH FLOW - HALF YEAR
For the first six months of 2024, operating activities generated positive cash flow of $33.4 million, a significant increase of $9.2 million compared to the same period in 2023.
Cash used in investing activities was $30.1 million for the six-month period ended June 30, 2024, compared to $36.9 million for the same period in 2023. This decrease of $6.8 million is mainly explained by a reduction in deposits paid on property, plant and equipment, which amounted to $1,4 million for the first six months of 2024 compared to $14.9 million for the same period in 2023. This decrease was partially offset by an increase in investments in mining properties of $5.1 million, mainly on the Kiniero property.
During the first six months of 2024, cash flows generated from financing activities amounted to $100 million, compared to $16.8 million for the same quarter in 2023. This difference is mainly due to the financing completed in connection with the closing of the Offering on June 27, 2019.
The Company issued 58,294,880 units, each consisting of one share and one common share purchase warrant, at a price of $2.17 per unit for gross proceeds of $126,5 million. The amount received was allocated as follows: $63.8 million for the common shares and $62.7m for the warrants. In return, a $4.2 million issuance fee for the common shares was paid, and the Company repaid $20.6 million (US$15 million) to Taurus to repay the difference between the US$35 million bridge loan and the US$20 million new bridge loan obtained on June 21.
During the first six months of 2023, the Company had received a portion of the matured bridge loan in the amount of $26 million and paid financing costs of $1.7 million in connection with this financing. We also reduced the use of our lines of credit by $6.5 million to meet the Taurus usage limit, and repaid $0.96 million on long-term debt.
LIQUIDITY AND BALANCE SHEET
The Group's cash position increased from $12,2 million as at December 31, 2023 to $113,8 million as at June 30th, 2024.
Net debt1 stood at $(75.5) million as of June 30th, 2024, decreasing from $46.6 million as of December 31st, 2023.
MANAGEMENT AND GOVERNANCE CHANGES
For the first six months of 2024, related parties of the Company include Fairchild Participation S.A. ("Fairchild"), key members of the management staff (and/or the company in which they are shareholders), independent directors as well as significant shareholders.
Last June, the Company made the following changes to its corporate governance, modifying the related parties that had been presented in the Company's annual MD&A:
Appointment of Matthew Wilcox as Chief Executive Officer and Managing Director:
Appointment of Matthew Wilcox as Chief Executive Officer, Managing Director and Director.
Aurélien Bonneviot has stepped down as CEO and Director, but continues to work at Robex as Managing Director of Strategy and Business Development.
New Board of Directors led by James Askew (Chair) :
The Board of Directors has been reduced to six members and is now composed of James Askew (Chairman of the Board), John Dorward, Howard Golden, Thomas Lagrée and Gérard de Hert (all non-executive directors), and Matthew Wilcox, Chief Executive Officer.
The following directors have resigned from the Board of Directors: Richard R. Faucher, Claude Goulet, Aurélien Bonneviot, Matthew Sharples, Georges Cohen, Benjamin Cohen and Julien Cohen.
Related party transactions include compensation and travel expenses incurred in the normal course of business for key management personnel and independent directors.
Georges Cohen, former director of the Company, purchased 3,179,724 Units under the Offer for an aggregate subscription price of $6.9 million. The former director's participation is a "related party transaction".
SUMMARY OF Q2 2024 FINANCIAL RESULTS
Three-month periods ended June 30th
Six-month periods ended June 30th
2024
2023
2024
2023
Gold production (ounces)
12,764
12,410
25,721
24,145
Gold sales (ounces)
12,150
11,069
26,222
23,739
$
$
$
$
INCOME
Revenues, gold sales
39,317,663
29,149,761
78,500,556
62,329,639
