QUÉBEC CITY, May 28, 2020 (GLOBE NEWSWIRE) -- Robex Resources Inc. ("Robex" or "the Company") (TSXV: RBX/FWB: RB4) is pleased to publish their financial results for the quarter ended March 31, 2020.

All amounts are in Canadian dollars (CAD).

Highlights for the first quarter of 2020:

  • 32% INCREASE IN GOLD PRODUCTION
                 
    The gold production totalled 14,918 ounces compared to 11,291 ounces produced during the same period in 2019. The 12% increase in the quantity of processed ore at the Nampala plant (476,720 tonnes vs 424,561 tonnes for the first quarter of 2019), the improvement of the average recovery rate (88.8% vs 85.0% for the same period in 2019) and the higher average grade of processed ore (1.10 gpt compared to 0.95 gpt for the first quarter of 2019) are all favourable factors for this good quarterly production performance.
                 
    The Company is continuing its efforts to optimize its plant in Mali with the objective of reaching a daily production of 5,600 tonnes until the end of 2020. In addition, work is underway to add a crushing circuit to the crusher’s milling circuit.
                 
  • 64% INCREASE IN REVENUE
                 
    During the first quarter of 2020, 14,646 ounces of gold were sold for CAD 30.9 million compared to 10,935 ounces of gold for CAD 18.9 million for the same period in 2019. The quantity produced being greater than the quantity sold is attributable to the time delay between casting and refining gold ingots.
                 
  • SIGNIFICANT INCREASE IN NET INCOME ATTRIBUTABLE TO SHAREHOLDERS FOR THIS QUARTER OF CAD 8.9 MILLION
                 
    The Company achieved net income attributable to shareholders of CAD 9.7 million (CAD 0.017 per share), including CAD 7.4 million in amortization of the book value of fixed assets for this quarter, compared to CAD 0.8 million (CAD 0.001 per share) for the same period in 2019.
                 
  • DECREASE IN THE TOTAL CASH COST1 OF 21%, I.E. CAD 560 PER ONCE SOLD FOR THE FIRST QUARTER OF 2020 COMPARED TO CAD 706 PER ONCE SOLD FOR THE SAME PERIOD IN 2019
                 
    The constant improvement of the Nampala plant and its organization now allow us, among other things, to integrate preventive maintenance program, thereby reducing costs and unplanned shutdowns and therefore significantly reducing the total cash cost1 of an ounce of gold.

  • 143% INCREASE IN CASH FLOWS FROM OPERATING ACTIVITIES2

    The operating activities of the Company generated cash flows of CAD 18.7 million (CAD 0.032 per share3) compared to CAD 7.7 million (CAD 0.013 per share3) for the same period in 2019. Cash flows are 60% higher than overall revenue.

  • IMPROVEMENT OF THE WORKING CAPITAL OF CAD 2.4 MILLION AS AT MARCH 31, 2020 COMPARED TO DECEMBER 31, 2019, AND THIS, CONSIDERING THE DECLARED DIVIDEND OF CAD 11.6 MILLION AND PAID ON APRIL 7, 2020.

Mining Operation: Nampala, Mali

Quarters ended March 31, 
   2020 2019 
Operating Data    
Ore mined (tonnes)  502,280  498,433 
Ore processed (tonnes)  476,720  424,561 
Waste mined (tonnes)  1,350,806  817,729 
Operational stripping ratio  2.7  1.6 
Head grade (gpt)  1.10  0.95 
Recovery (%)  88.8%85.0%
Gold ounces produced  14,918  11,291 
Gold ounces sold  14,646  10,935 
Financial Data     
(rounded off to the nearest thousand dollars)    
Revenue – Gold sales  30,864,000  18,870,000 
Mining operation expenses  7,436,000  7,131,000 
Mining royalties  770,000  588,000 
Administrative expenses  1,650,000  1,774,000 
Depreciation of property, plant and equipment and amortization of intangible assets  7,387,000  8,363,000 
Segment operating income  13,621,000  1,014,000 
Statistics    
(in dollars)    
Average realized selling price (per ounce)  2,107  1,726 
Cash operating cost (per tonne processed)3  17  18 
Total cash cost (per ounce sold)3  560  706 
All-in sustaining cost (per ounce sold)3  968  1,053 
Administrative expenses (per ounce sold)  113  162 
Depreciation of property, plant and equipment (per ounce sold)  504  765 

Robex’s MD&A and the condensed interim consolidated financial statements (unaudited) are available on the Company's website in the Investors section at robexgold.com. These reports and other documents produced by the Company are also available at sedar.com.

A word from the President Mr. Georges Cohen:

Beyond the improved results due to the increased price of gold, 2020 is looking promising for the Company on many levels, in spite of the COVID-19 pandemic. I would like to congratulate all the employees who are working tirelessly to reach the objectives set by Robex’s management, and to thank all those who made the Nampala mine’s lockdown possible in order to ensure continued mining.

Despite our ore’s low grade, tight management of production costs will enable us to obtain one of the lowest cash costs per ounce of gold in the sector.

For information:

Robex Resources Inc.

Benjamin Cohen, CEO
Augustin Rousselet, CFO/COO
Head office: (581) 741-7421
info@robexgold.com

This news release contains statements that may be considered “forecast information” or “forecast statements” in terms of security rights. These forecasts are subject to uncertainties and risks, some of which are beyond the control of Robex. Achievements and final results may differ significantly from forecasts made implicitly or explicitly. These differences can be attributed to many factors, including market volatility, the impact of the exchange rate and interest rate fluctuations, mispricing, the environment (hardening of regulations), unforeseen geological situations, unfavourable operating conditions, political risks inherent in mining in developing countries, changes in government policies or regulations (laws and policies), an inability to obtain necessary permits and approvals from government agencies, or any other risk associated with mining and development. There can be no assurance that the circumstances set out in these forecasts will occur, or even benefit Robex, if any. The forecasts are based on the estimates and opinions of the Robex management team at the time of publication. Robex makes no commitment to make any updates or changes to these publicly available forecasts based on new information or events, or for any other reason, except as required by applicable security laws. The TSX Venture Exchange or the Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) assumes no responsibility for the authenticity or accuracy of this news release.


1 Total cash cost is non-IFRS financial measure for which there is no standardized definition under IFRS. See the "Non-IFRS Financial Performance Measures" section of the MD&A.
2 Cash flows from operating activities exclude net change in non-cash working capital items.
3 Cash flows from operating activities per share, cash operating cost, total cash cost and all-in sustaining cost are non-IFRS financial measure for which there is no standardized definition under IFRS. Refer to the "Non-IFRS Financial Performance Measures" section of the MD&A.