Pasinex Announces Second Quarter 2023 Financial Results
August 29 2023 - 5:00PM
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The “Company” or
“Pasinex”) is pleased to provide a company update.
Cautionary Note
The Company has not completed a current
technical report that includes a mineral resource estimate as
defined by the Mineral Resources and Reserves, Definitions and
Guidelines prepared by the CIM Standing Committee on Reserve
Definitions and adopted by CIM Council, and procedures for
classifying the reported Mineral Resources were undertaken within
the context of the Canadian Securities Administrators National
Instrument 43-101 (NI 43-101). The Company has no intention of
completing a NI 43-101 compliant technical report. The Joint
Venture has not followed accepted quality assurance and quality
control procedures with respect to its current drilling program and
has not used an independent third-party laboratory for its assay
analysis. The Joint Venture uses field handheld X-ray fluorescence
analysers (“XRF”) for zinc assays and grade control in exploration
and mining. In addition, assays are completed by an independent
third-party laboratory for all of the Joint Venture’s sales.
Highlights – Second Quarter Ended June 30,
2023
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Financial: |
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Equity gain
from Horzum AS |
$ |
821,044 |
|
$ |
|
- |
|
|
$ |
1,596,806 |
|
$ |
|
- |
|
|
Dividend
income from Horzum AS |
$ |
779,128 |
|
$ |
|
- |
|
|
$ |
779,128 |
|
$ |
|
4,072,320 |
|
|
Consolidated
net income (loss) |
$ |
1,107,117 |
|
$ |
|
(890,345 |
) |
|
$ |
911,534 |
|
$ |
|
2,743,999 |
|
|
Basic and
diluted net income (loss) per share |
$ |
0.01 |
|
$ |
|
(0.01 |
) |
|
$ |
0.01 |
|
$ |
|
0.02 |
|
|
Net cash
(used in) provided by operating activities |
$ |
(48,669 |
) |
$ |
|
1,313,517 |
|
|
$ |
171,817 |
|
$ |
|
2,083,338 |
|
|
Weighted average shares outstanding |
|
144,554,371 |
|
|
|
144,554,371 |
|
|
|
144,554,371 |
|
|
|
144,554,371 |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Horzum AS operational data (100% basis): |
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|
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Zinc product
mined (wet) tonnes |
|
1,954 |
|
|
|
3,264 |
|
|
|
4,765 |
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|
|
7,804 |
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Zinc product
sold (wet) tonnes |
|
2,993 |
|
|
|
3,155 |
|
|
|
5,990 |
|
|
|
6,119 |
|
|
Zinc oxide
product average grade sold |
|
NA |
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|
|
41.6 |
% |
|
|
NA |
|
|
|
37.8 |
% |
|
Zinc
sulphide product average grade sold |
|
48.4 |
% |
|
|
49.5 |
% |
|
|
47.8 |
% |
|
|
50.9 |
% |
|
Gross
margin(1) |
|
53 |
% |
|
|
82 |
% |
|
|
56 |
% |
|
|
78 |
% |
|
CAD cost per
tonne mined(1) |
$ |
496 |
|
|
$ |
413 |
|
|
$ |
493 |
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|
$ |
358 |
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USD cash cost per pound of zinc mined(1) |
$ |
0.36 |
|
|
$ |
0.29 |
|
|
$ |
0.36 |
|
|
$ |
0.27 |
|
(1) See Non-GAAP
Measures
- For the three and six months ended
June 30, 2023, Pasinex recorded net income of approximately $1.1
million and $0.9 million, respectively, compared with a net loss of
approximately $0.89 million for the three months ended June 30,
2022, and a net income of approximately $2.7 million for the six
months ended June 30, 2022. The primary reason for the decrease in
the net income in 2023 versus 2022 was that dividend income was
considerably higher in 2022 than in 2023. Also, higher general and
administration costs and higher exploration costs contributed to
the decrease in 2023.
- The operating income in Horzum AS
decreased to $1.6 million and $3.6 million, in the three and six
months ended June 30, 2023, respectively, from $4.8 million and
$8.1 million for the same periods in 2022. The decreases were due
to lower revenue as sales prices and the number of tonnes sold
declined in 2023 compared with 2022 and costs were higher due to
inflationary pressures. Gross margin (see non-GAAP measures) for
the three and six months ended June 30, 2023, were 53% and 56%,
respectively, compared with 82% and 78% for the same periods in
2022.
- Horzum AS mined 1,954 tonnes and
4,765 tonnes of zinc product during the three and six months ended
June 30, 2023, at the Pinargozu mine, compared with 3,264 tonnes
and 7,804 tonnes of zinc product for the same periods in 2022. Mine
production was negatively impacted by a temporary halt in activity
at the Pinargozu mine to ensure the safety and well-being of the
Joint Venture’s employees, after the tragic earthquakes in Türkiye
in the first quarter of 2023. Second quarter production in 2023 was
negatively impacted by the ingress of rainwater that rendered some
of the deeper areas below the 541-metre level inaccessible.
- Sales volumes were 2,993 tonnes and
5,990 tonnes of high-grade zinc sulphide product in the three and
six months ended June 30, 2023, compared with 3,041 tonnes and
5,571 tonnes of high-grade zinc sulphide product for the same
periods in 2022. Sales in 2022 also included 493 tonnes of oxide
product and 55 tonnes of lead product.
- Sales prices per tonne on a USD
basis decreased by 47.9% for zinc sulphide product for the six
months ended June 30, 2023, when compared to prices in the same
period in 2022. The average USD sales prices for the six months
ended June 30, 2023, were US$704 per tonne for zinc sulphide
product versus US$1,353 per tonne for zinc sulphide product in the
same period in 2022. Sales prices were lower due to lower worldwide
sales prices and a lower average grade of product sold.
- The average grade of the high-grade
zinc sulphide product sold was 47.8% zinc per tonne for the six
months ended June 30, 2023, compared with 50.9% zinc per tonne for
the same period in 2022.
- The CAD cost per tonne mined (see
non-GAAP measures) increased to $493 per tonne mined for the six
months ended June 30, 2023, compared with $358 per tonne mined in
the same period in 2022. The USD cash cost per pound of zinc
product mined (see non-GAAP measures) increased to US$0.36 per
pound in the six months ended June 30, 2023 from US$0.27 per pound
for the same period in 2022.
- During the quarter ended June 30,
2023, at an Ordinary General Assembly Meeting, Horzum AS declared
and approved a dividend, a legal reserve distribution and approved
advance dividend distributions totalling approximately TRY 81.0
million (approximately $5.5 million using the exchange rate on the
date the dividend, distribution and the advanced dividend
distributions were declared and approved). Pasinex Arama will be
entitled to receive up to approximately TRY 57.0 million
(approximately $3.9 million using the exchange rate on the date the
dividend, the legal reserves distribution and the advanced dividend
distributions were declared).
Non-GAAP Measures
Please note that all dollar amounts in this news
release are expressed in Canadian dollars unless otherwise
indicated. Refer also to the 2022 Management’s Discussion and
Analysis (MD&A) and Audited Financial Statements found on
SEDAR.com for more information. This news release includes non-GAAP
measures, including gross margin, cost per tonne mined and US$ cash
cost per pound of zinc product mined. A reconciliation of these
non-GAAP measures to the GAAP financial statements is included in
the MD&A.
Qualified Person
Jonathan Challis, a Fellow of the Institute of
Materials, Minerals and Mining and a Chartered Engineer, is the
qualified person (“QP”) as defined by NI 43-101 for all information
in this news release other than the information relating to the
Gunman Project. He has inspected the original paid sales invoices
issued by the Joint Venture for the shipment of zinc sulphide
product specified in this news release and has approved the
scientific and technical disclosure herein. Mr. Challis is a
director of the Company and Chair of the Joint Venture.
About Pasinex
Pasinex Resources Limited is a Toronto-based
mining company that owns 50% of Horzum Maden Arama ve Isletme
Anonim Sirketi (“Horzum AS” or “Joint Venture”), through its 100%
owned subsidiary Pasinex Arama ve Madencilik Anonim Sirketi
(“Pasinex Arama”). Horzum AS holds 100% of the producing Pinargozu
high-grade zinc mine. Horzum AS sells directly to zinc smelters and
or refiners through commodity brokers from its mine site in
Türkiye. The Company also holds a 51% interest, with an option to
increase to an 80% interest of a high-grade zinc exploration
project, the Gunman Project, located in Nevada. Pasinex has a
strong technical management team with many years of mineral
exploration and mining project development experience. Pasinex
Resources Limited mission is to explore and extract high grade ore
to drive growth and wealth for all of its stakeholders including
shareholders, employees and the communities of our operations,
meeting all requirements in safety, health and the environment.
Visit our website at www.pasinex.com.
On Behalf of the Board of Directors
PASINEX RESOURCES LIMITED
“Andrew Gottwald” |
|
Andrew Gottwald |
Evan White |
Chief Financial Officer |
Manager of Corporate Communications |
Phone: +1 416.861.9659 |
Phone: +1 416.906.3498 |
Email: info@pasinex.com |
Email: evan.white@pasinex.com |
|
|
The CSE does not accept responsibility for the adequacy or
accuracy of this news release. This news release includes
forward-looking statements that are subject to risks and
uncertainties. Forward-looking statements involve known and unknown
risks, uncertainties, and other factors that could cause the actual
results of the Company to be materially different from the
historical results or any future results expressed or implied by
such forward-looking statements. All statements within, other than
statements of historical fact, are to be considered
forward-looking. Although Pasinex believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not a guarantee of
future performance, and actual results or developments may differ
materially from those in forward-looking statements. Factors that
could cause actual results to differ materially from those in
forward-looking statements include market prices, continued
availability of capital and financing, exploration results, and
general economic, market or business conditions. There can be no
assurances that such statements will prove accurate and, therefore,
readers are advised to rely on their own evaluation of such
uncertainties. We do not assume any obligation to update any
forward-looking statements.
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