Robex Resources release second quarter performance report
Robex Resources has released it second quarter report citing a 10% increase in gold production and a 35% rise in revenue and also posting a net loss.
The company, which is in the process of selling its sole operating mine, Nampala in Mali, is shifting its focus to the Kiniero project in Guinea. Robex announced in June 2024 its intention to divest the Nampala mine to concentrate on advancing the Kiniero project, with the goal of achieving first production by the end of 2025.
Additionally, the company plans to relist on the Australian Securities Exchange (ASX). Matthew Wilcox, the managing director of Robex Resources, emphasized that the strategic shift towards Kiniero represents a significant evolution for the company. The divestment process for Nampala has begun, with Robex assessing options to maximize shareholder value, while Nampala continues to operate efficiently with low costs and high safety standards.
Report
In Q2 2024, Nampala produced 26,222 ounces of gold, marking a 10% increase from the 23,872 ounces produced in the same period last year. Revenue from gold sales grew by 35% to C$39.3 million, driven by a higher average selling price per ounce, which increased from $1,953 to $2,400. Mining operating income rose by 19.2% to C$18 million, reflecting improved sales and effective cost management. However, the company reported a net loss of C$200,000 for the quarter, influenced by higher depreciation, amortization, and financial costs related to warrants.
For the first half of 2024, Robex recorded a net loss of C$32.3 million, a significant decline from the C$11.8 million net profit reported in the same period last year. This loss was primarily due to a C$43 million provision for tax contingencies in Mali, which was disclosed in the first quarter. The company is currently negotiating with Malian authorities to establish a new tax framework as part of its exit from Mali.
Following the Q2 results, Robex shares fell 7% to C$2.72 per share in early afternoon trading in Toronto, giving the company a market capitalization of C$404.4 million. Despite the losses, Robex raised C$125.6 million in June 2024 to support the development of the Kiniero project and reduced its net debt to C$75.5 million.
Robex is actively advancing the Kiniero project, with a 30,000-metre infill drilling program underway to upgrade resources at the Mansounia deposit. As of March 2024, the deposit held 19.4 million inferred tonnes grading 0.94 grams per tonne (g/t) of gold, equating to 589,000 ounces, and indicated resources of 9.4 million tonnes at 1 g/t of gold, totaling 303,000 ounces. The successful development of Kiniero is expected to be a key driver of future growth for Robex.
