Québec City, Quebec, August 27, 2021 —Robex Resources Inc. (« Robex », “the Group” or “the Company”) (TSXV: RBX/FWB: RB4) reports its financial performance for the quarter ended June 30, 2021.
All amounts are presented in Canadian dollars (CAD).
The second quarter of 2021 shows improvement, and we expect this trend to continue in the coming months.
We are still working on our mining strategy by developing a new strategic mine plan that will allow us to optimize the exploitation of our resources and plan our cash flow for the longer term.
Our operation is improving with the start-up of the new cone crusher. We have ordered additional equipment to further optimize the crushing circuit. This will allow the plant to increase the proportion of transition ore in the plant feed. To be precise, this will enable us to process harder and generally higher-grade ore located at the bottom of the old pit.
Overall, the stripping remains temporarily high. Our mine plan optimization work indicates that the stripping ratio should soon decrease. The increased production and the higher grades enabled us to improve our cash performance, despite the difficulty to have our VAT refunded. The total VAT to be refunded now stands at $8.4 million as of June 30, 2021.
The solar power plant construction work has begun and will be completed in 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.
- 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 compared to 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 MILLION, 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 depreciation of fixed assets.
- CASH FLOWS FROM OPERATING ACTIVITIES(i) OF $12.4 MILLIONS
Positive cash flows from operating activities(i) of $12.4 million compared to $7.5 million for the same period in 2020.
- STABLE LONG-TERM DEBT
The Group’s long-term debt of $6.9 million as of June 30, 2021, compared to $6.6 million as of December 31, 2020, including new bank loan for, 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.
- $6.6 MILLION MAJOR INVESTMENT IN STRIPPING
As planned, increase in production costs capitalized as stripping cost of $4.3 million 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 waste mined were excavated, representing an average stripping ratio of 4.8. As previously indicated, these costs are expected to reduce with the new mine plan.
- INVESTMENT OF $1.8 MILLION IN EXPLORATION
Exploration investments of $1 million on the Nampala exploitation permit and $0.8 million on the exploration of Mininko and Sanoula permits.
Mining Operation – Nampala: