(Expressed in United
States dollars except where otherwise indicated)
TSX-V: GMN
TORONTO, Nov. 23, 2016 /CNW/ - (TSXV: GMN) GobiMin
Inc. ("GobiMin" or the "Company") reports its financial and
operating results for the third quarter of 2016. The
unaudited condensed interim financial statements along with
quarterly highlights of 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
September 30
|
12 months
ended
|
|
2016
|
2015
|
December 31,
2015
|
|
$
|
$
|
$
|
|
Net profit for the
period/year
|
8.9
million
|
2.5
million
|
46,000
|
|
EBITDA
(1)
|
9.1
million
|
2.6
million
|
0.6
million
|
|
Basic and diluted
earnings per share
|
0.173
|
0.048
|
0.003
|
|
EBITDA per share
(1)
|
0.176
|
0.050
|
0.012
|
|
|
|
|
|
Cash and cash
equivalents
|
29.0
million
|
28.8
million
|
26.1
million
|
|
Cash and cash
equivalents per share
(1)
|
0.56
|
0.55
|
0.50
|
|
Working
capital
|
33.8
million
|
23.3
million
|
23.1
million
|
|
Total
liabilities
|
3.9
million
|
5.7
million
|
3.2
million
|
|
Total
assets
|
89.2
million
|
86.8
million
|
81.3
million
|
|
Note:
|
|
(1)
|
As non-IFRS
measurements, EBITDA (earnings before interest
income and expense, income
taxes, depreciation and amortisation), EBITDA 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 the Sawayaerdun Gold Project (the
"Gold Project") in Xinjiang. Due to the dismal situation of
the gold market, the Company has delayed the development plan of
the Gold Project since 2015. As at 30
September 2016, the Company was awaiting the approval of the
required Chinese standard geological reports, which is necessary
for obtaining a mining licence preliminary targeted by the end of
2017. In addition, GobiMin continues to seek potential investors to
develop the Gold Project.
Loco Hong Kong Holdings Limited ("Loco HK") and its subsidiaries
engage in the trading of metals and commodity forward contracts,
including silver, tin and gold. On August 23, 2016, GobiMin disposed of 113,000,000
shares of Loco HK to a third party for gross proceed of
$10.62 million and the equity
interest in Loco HK held by GobiMin dropped from 38.3% to
10.06%. At the date of disposal, Loco HK was derecognized as
the Company's associate company and GobiMin recognised a gain of
$9.5 million. The remaining
10.06% interest in Loco HK was then accounted for as investments
held for trading. For the period from July 1, 2016 to the date of disposal, Loco HK
recorded a net profit of approximately $0.4
million, with GobiMin's share amounting to approximately
$0.2 million. As at
September 30, 2016, the fair value of
the investment in Loco HK was $3.9
million and a gain on fair value of approximately
$0.1 million was recorded for the
period under review.
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 September 30, 2016, the
working capital of the Group amounted to approximately $33.8 million (December
31, 2015: $23.1 million), by
netting off its current assets of $36.6
million (December 31, 2015:
$26.2 million) with current
liabilities of $2.8 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
$1.8 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."
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SOURCE GobiMin Inc.
