Pasinex Announces Filing of 2024 First Quarter Financial Results
July 08 2024 - 2:33PM
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 quarter
ended March 31, 2024 (collectively, the “
First Quarter
Results”) on SEDAR+.
The common shares of the Company are currently
halted due to a failure-to-file cease trade order (the
“FFCTO”) issued by the British Columbia Securities
Commission ("BCSC") on June 12, 2024, as a result
of the failure of the Company to timely file its First Quarter
Results. It is anticipated that as a result of filing of the First
Quarter Results that the Company will be up-to-date with its
required filings and that the FFCTO will be revoked by the
BCSC.
First 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 – Quarter Ended March 31, 2024 |
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Three Months Ended |
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March 31, |
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2024 |
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2023 |
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Financial: |
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Equity gain
from Horzum AS |
$ |
663,478 |
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$ |
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775,762 |
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Consolidated
net income (loss) |
$ |
285,772 |
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$ |
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(195,583) |
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Basic and
diluted net income (loss) per share |
$ |
0.00 |
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$ |
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0.00 |
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Net cash
(used in) provided by operating activities |
$ |
(180,196) |
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$ |
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220,486 |
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Weighted average shares outstanding |
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144,554,371 |
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144,554,371 |
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Three Months Ended |
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March 31, |
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2024 |
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2023 |
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Horzum AS operational data (100% basis): |
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Zinc product
mined (wet) tonnes |
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1,503 |
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2,811 |
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Zinc product
sold (wet) tonnes |
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2,986 |
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2,997 |
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Zinc oxide
product average grade sold |
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NA |
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NA |
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Zinc
sulphide product average grade sold |
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49.5% |
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49.6% |
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Gross margin
(1) |
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37% |
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58% |
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CAD cost per
tonne mined (1) |
$ |
789 |
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$ |
491 |
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USD cash cost per pound of zinc mined (1) |
$ |
0.51 |
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$ |
0.34 |
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(1) See Non-GAAP Measures |
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- Subsequent to the quarter end,
Horzum AS initiated two separate legal actions, which 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 months ended March
31, 2024, Pasinex recorded net income of approximately $0.3
million, compared with a net loss of approximately $0.2 million for
the three months ended March 31, 2023. The primary reason for the
increase in the net income in 2024 versus the net loss in 20232 was
that the Company did not incur exploration costs in 2024.
- The operating income in Horzum AS
decreased to $1.4 million in the three months ended March 31, 2024,
from $2.1 million for the same period in 2023. The decrease was due
to higher costs being incurred as a result of inflationary
pressures. Gross margin (see non-GAAP measures) for the three
months ended March 31, 2024, was 37% compared with 58% for the same
period in 2023.
- Horzum AS mined 1,503 tonnes of
zinc product during the three months ended March 31, 2024, at the
Pinargozu mine, compared with 2,811 tonnes of zinc product for the
same period in 2023.
- Sales volume was 2,986 tonnes of
high-grade zinc sulphide product in the three months ended March
31, 2024, compared with 2,997 tonnes of high-grade zinc sulphide
product for the same period in 2023.
- Sales prices per tonne on a USD
basis decreased by 2% for zinc sulphide product for the three
months ended March 31, 2024, when compared to prices in the same
period in 2023. The average USD sales price for the three months
ended March 31, 2024, was US$878 per tonne for zinc sulphide
product versus US$892 per tonne for zinc sulphide product in the
same period in 2023.
- The average grade of the high-grade
zinc sulphide product sold was 49.5% zinc per tonne for the three
months ended March 31, 2024, compared with 49.6% zinc per tonne for
the same period in 2023.
- The CAD cost per tonne mined (see
non-GAAP measures) increased to $789 per tonne mined for the three
months ended March 31, 2024, compared with $491 per tonne mined in
the same period in 2023. The USD cash cost per pound of zinc
product mined (see non-GAAP measures) increased to US$0.51 per
pound mined in the three months ended March 31, 2024, from US$0.34
per pound mined in the three months ended March 31, 2023.
Non-GAAP Measures
Please note that all dollar amounts in this news
release are expressed in Canadian dollars unless otherwise
indicated. Refer also to the 2022 Management’s Discussion and
Analysis (MD&A) and Audited Financial Statements found on
www.sedarplus.ca for more information. This news release includes
non-GAAP measures, including gross margin, cost per tonne mined and
US$ 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” |
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Andrew GottwaldChief Financial OfficerPhone: +1
416.861.9659Email: info@pasinex.com |
Evan WhiteManager of Corporate CommunicationsPhone: +1
416.906.3498Email: evan.white@pasinex.com |
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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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