(Expressed in United States dollars except where otherwise
indicated)
TSX-V: GMN
TORONTO, May 25, 2016 /CNW/ - (TSXV: GMN) GobiMin
Inc. ("GobiMin" or the "Company") reports its financial and
operating results for the first quarter of 2016. The
unaudited interim consolidated financial statements along with
management's discussion and analysis have been filed with SEDAR
(www.sedar.com) and are also available at the website of the
Company (www.gobimin.com).
Financial Highlights
|
3 months ended
March 31
|
12 months
ended
|
|
2016
|
2015
|
December 31,
2015
|
|
$
|
$
|
$
|
|
Net profit (loss) for
the period
|
(0.7
million)
|
(0.7
million)
|
46,000
|
|
EBITDA (LBITDA)
(1)
|
(0.5
million)
|
(0.6
million)
|
0.6 million
|
|
Basic and diluted
earnings (losses) per share
|
(0.012)
|
(0.012)
|
0.003
|
|
EBITDA (LBITDA) per
share
(1)
|
(0.009)
|
(0.011)
|
0.012
|
|
|
|
|
|
Cash and cash
equivalents
|
22.5
million
|
29.8 million
|
26.1 million
|
|
Cash and cash
equivalents per share
(1)
|
0.43
|
0.54
|
0.50
|
|
Working
capital
|
20.0
million
|
24.5 million
|
23.1 million
|
|
Total
liabilities
|
2.7
million
|
5.9 million
|
3.2 million
|
|
Total
assets
|
80.2
million
|
86.5 million
|
81.3 million
|
|
Note:
|
|
(1)
|
As non-IFRS
measurements, EBITDA (LBITDA) (earnings
(losses) before interest income and expense,
income taxes, depreciation and amortisation), EBITDA
(LBITDA) per share
and Cash and cash equivalents per
share do not comply with IFRS and, therefore, the
amounts presented in the above table may not be comparable to
similar data presented by other companies. The data is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
|
Business Summary and Development
The Company owns a 70% equity interest in a company which is
developing and operating the Sawayaerdun Gold Project ("Gold
Project") in Xinjiang. Attributable to the declining trend of
the global gold market price, GobiMin has held off the development
plan of the Gold Project in 2015 and has undertaken the process for
conversion of the exploration licence into a mining licence. In
order to obtain the mining licence, the Company would be required
to complete three Chinese standard geological reports, the first of
which have been submitted. If the process goes well, a mining
licence would be obtained by the end of 2017. In addition, GobiMin
continues to seek potential investors to develop the Gold
Project.
GobiMin holds an equity interest of 38.30% in Loco Hong Kong
Holdings Limited ("Loco HK"), which together with its subsidiaries
("Loco HK Group"), are engaged in the processing and trading of
metals and commodity forward contracts. Loco HK Group's
income was mainly generated from the sales of metals, including
silver, tin and gold. During this quarter, Loco HK Group was
under pressure of declining sales volume of silver products as a
consequence of inadequate supply of silver materials caused by low
silver market price. The sales of Loco HK Group recorded a decrease
of 44% as compared to last corresponding period. Loco HK
recorded a net loss of approximately $0.01
million for the three months ended March 31, 2016, with GobiMin's share amounting to
approximately $4,000.
In addition, GobiMin owns 40% equity interest each in three
companies incorporated in China to
engage in base metals and precious metal exploration, including
nickel, copper, and gold, in Xinjiang, and a 2.66% equity interest
in the Yanxi Copper Property.
Liquidity and Capital Resources
As at March 31, 2016, the working
capital of the Group amounted to approximately $20.0 million (December
31, 2015: $23.1 million), by
netting off its current assets of $22.7
million (December 31, 2015:
$26.2 million) with current
liabilities of $2.7 million
(December 31, 2015: $3.1 million).
Taking into account of its financial position, the management of
the Group considered that its cash and cash equivalents will be
more than sufficient to finance its operation, including the
contractual commitments of the Gold Project of approximately
$1.7 million.
Certain statements contained in this press release
constitute forward-looking information. Such statements are based
on the current expectations of management of GobiMin. You are
cautioned that such statements are subject to a multitude of risks
and uncertainties that could cause actual results, future
circumstances or events to differ materially from those projected
in the forward-looking information. Forward
looking information includes without limitation, statements
regarding the size and quality of the Company's mineral resources,
progress in development of mineral properties, the prospective
mineralization of the properties, and planned exploration
programs. The reader should not
place undue reliance on the forward-looking information included in
this press release given that (i) actual results could differ
materially from a conclusion, forecast or projection in the
forward-looking information, and (ii) certain material factors or
assumptions were applied in drawing a conclusion or making a
forecast or projection as reflected in the forward-looking
information could prove to be inaccurate. These statements
speak only as of the date they are made, and GobiMin assumes no
obligation to revise such statements as a result of any event,
circumstance or otherwise, except in accordance with
law.
"Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release."
To receive GobiMin press releases by email,
send a message to info@gobimin.com and
specify "GobiMin
press releases" on the subject line
To
unsubscribe GobiMin press releases, please send a
message to unsubscribe@gobimin.com
SOURCE GobiMin Inc.
