Pasinex Announces Filing of 2024 Second Quarter Financial Results
29 August 2024 - 9:59PM
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The
“
Company” or “
Pasinex”) announces
that the Company has filed its financial statements, management's
discussion and analysis, and related certifications for the three
and six months ended June 30, 2024 (collectively, the
“
Second Quarter Results”) on SEDAR+.
Second Quarter Financial
Results
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 – Three and Six Months Ended
June 30, 2024
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|
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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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|
|
2024 |
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2023 |
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2024 |
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2023 |
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Financial: |
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|
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Equity gain from Horzum AS |
$ |
309,802 |
|
|
$ |
821,044 |
|
|
$ |
943,280 |
|
|
$ |
1,596,806 |
|
|
Dividend income from Horzum AS |
$ |
- |
|
|
$ |
779,128 |
|
|
$ |
- |
|
|
$ |
779,128 |
|
|
Consolidated net (loss) income |
$ |
(296,550 |
) |
|
$ |
1,107,117 |
|
|
$ |
(10,778 |
) |
|
$ |
911,534 |
|
|
Basic and diluted net (loss) income per share |
$ |
0.00 |
|
|
$ |
0.01 |
|
|
$ |
0.00 |
|
|
$ |
0.01 |
|
|
Net cash (used in) provided by operating activities |
$ |
(357,731 |
) |
|
|
(48,669 |
) |
|
$ |
(537,927 |
) |
|
$ |
171,817 |
|
|
Weighted average shares outstanding |
|
144,554,371 |
|
|
|
144,554,371 |
|
|
|
144,554,371 |
|
|
|
144,554,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
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Three Months Ended |
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Six Months Ended |
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June 30, |
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|
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June 30, |
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|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Horzum AS operational data (100% basis): |
|
|
|
|
|
|
|
|
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|
Zinc product mined (wet) tonnes |
|
1,225 |
|
|
|
1,954 |
|
|
|
2,728 |
|
|
|
4,765 |
|
|
Zinc product sold (wet) tonnes |
|
994 |
|
|
|
2,993 |
|
|
|
3,980 |
|
|
|
5,990 |
|
|
Zinc oxide product average grade sold |
|
NA |
|
NA |
|
|
NA |
|
NA |
|
Zinc sulphide product average grade sold |
|
49.0% |
|
|
|
48.4% |
|
|
|
49.4% |
|
|
|
47.8% |
|
|
Gross margin (1) |
|
46% |
|
|
|
53.0% |
|
|
|
41% |
|
|
|
56.0% |
|
|
CAD cost per tonne mined (1) |
$ |
887 |
|
|
$ |
496 |
|
|
$ |
833 |
|
|
$ |
493 |
|
|
USD cash cost per pound of zinc mined (1) |
$ |
0.61 |
|
|
$ |
0.36 |
|
|
$ |
0.56 |
|
|
$ |
0.36 |
|
(1) See
Non-GAAP Measures
- Horzum AS continued to pursue the
two separate legal actions, which were initiated in the second
quarter of 2024. These actions had resulted in the appointment of
an interim committee and an authorized trustee to provide oversight
of the management of the Joint Venture. In addition, a legal action
is on-going by Horzum AS for the recovery of the debt owed by
Akmetal.
- For the three and six months ended
June 30, 2024, Pasinex recorded net losses of approximately $0.3
million and $0.01 million, respectively, compared with net incomes
of approximately $1.1 million and $0.9 million for same periods in
2023. The primary reason for the decrease in the net income in 2024
versus 2023 was that lower equity gains from Horzum AS were
achieved.
- The operating income in Horzum AS
decreased to $0.7 million and $2.1 million in the three and six
months ended June 30, 2024, from $1.6 million and $3.6 million for
the same periods in 2023. The decrease was due to higher costs
being incurred as a result of inflationary pressures and lower
sales being achieved. Gross margin (see non-GAAP measures) for the
three and six months ended June 30, 2024, was 46% and 41%,
respectively compared with 53% and 56% for the same periods in
2023.
- Horzum AS mined 1,225 tonnes and
2,728 tonnes of zinc product during the three and six months ended
June 30, 2024, respectively, at the Pinargozu mine, compared with
1,954 and 4,765 tonnes of zinc product for the same periods in
2023.
- Sales volume decreased to 994
tonnes and 3,980 tonnes of high-grade zinc sulphide product in the
three and six months ended June 30, 2024, respectively compared
with 2,993 tonnes and 5,990 tonnes of high-grade zinc sulphide
product for the same periods in 2023.
- Sales prices per tonne on a USD
basis increased by 61% and 18% for the three and six months ended
June 30, 2024, respectively, for zinc sulphide product sold, when
compared to prices in the same periods in 2023. The average USD
sales price for the three and six months ended June 30, 2024, was
US$1,133 and US$941 per tonne for zinc sulphide product,
respectively, versus US$704 and US$798 per tonne for zinc sulphide
product in the same periods in 2023.
- The average grade of the high-grade
zinc sulphide product sold was 49.0% zinc per tonne and 49.4% zinc
per tonne for the three and six months ended June 30, 2024,
respectively, compared with 48.4% zinc per tonne and 47.8% zinc per
tonne for the same periods in 2023.
- The CAD cost per tonne mined (see
non-GAAP measures) increased to $887 per tonne mined and $833 per
tonne mined for the three and six months ended June 30, 2024,
respectively, compared with $496 per tonne mined and $493 per tonne
mined in the same periods in 2023. The USD cash cost per pound of
zinc product mined (see non-GAAP measures) increased to US$0.61 per
pound mined and US$0.56 per pound mined in the three and six months
ended June 30, 2024, respectively, from US$0.36 per pound mined and
US$0.36 per pound mined for the same periods in 2023.
Non-GAAP Measures
Please note that all dollar amounts in this news
release are expressed in Canadian dollars unless otherwise
indicated. Refer also to the 2022 Management’s Discussion and
Analysis (MD&A) and Audited Financial Statements found on
SEDAR.com for more information. This news release includes non-GAAP
measures, including gross margin, cost per tonne mined and US$ 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, including those relating
to the revocation of the FFCTO 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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