Robex Resources increases Q3 gold sales by 80%

Robex Resources Inc. [RBX-TSXV; RB4-FWB] reported its financial results for the quarter ended September 30, 2020. All figures are in Canadian dollars.

Robex has a 100% interest in the Nampala gold mine in southern Mali, West Africa. During Q3 2020, 18,121 ounces of gold were sold for $45.9 million, including all gold bullion inventories as at June 30 of 7,831 ounces for an amount of 19, $5 million, compared to 13,276 ounces of gold for $25.5 million for the same period in 2019, an increase of 80%.

Mining generated operating income of $28 million for Q3 2020 compared to $8.6 million for the same period in 2019, including $3.5 million of depreciation of fixed assets for this quarter of 2020 and $7.4 million for the same period in 2019. Last October, the company filed an NI 43-101 technical report including the estimate of the mineral resources and reserves of the Nampala mine as at July 31, 2020, extending the term of life of the Nampala mine to more than eight years and therefore to adjust the rate of depreciation.

There was a provisional 29% drop in production for Q3 2020, which reached 10,706 ounces compared to 15,175 ounces for the same period in 2019.

The rainy season in Nampala has been extremely abundant and long this year, making ore from the bottom of the main pit inaccessible. In the third quarter of 2020, Robex had to process ore with a lower grade (0.86 g/t compared to 1.05 g/t for the same period in 2019).

Also, the opening of the pit to the east led to the processing of the surface ore which, as was the case at the time in the main pit, is of a lower grade than the core of the zone. mineralized.

Consequently, the all-in sustaining cost per ounce sold was $1,072 for the third quarter of 2020 compared to $893 for the same period in 2019. This increase is mainly explained by this decrease in grade which implies a lower number ounces produced for the same tonnage of ore processed.

Cash flow in Q3 2020 was $28.1 million ($0.047 per share), corresponding to 61% of revenue, compared to $13.9 million ($0.024 per share) for the same period in 2019.