GobiMin Announces Third Quarter 2014 Results
(Expressed in United States dollars except where otherwise indicated)
TSX-V: GMN
TORONTO, Nov. 26, 2014 /CNW/ - (TSXV:GMN) GobiMin Inc. ("GobiMin" or the "Company") reports its financial and operating results for the third quarter of 2014. 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 September 30 | 12 months ended | ||
| 2014 | 2013 | December 31, 2013 | |
| $ | $ | $ | |
| Revenue | - | - | - |
| Other revenue | 0.2 million | 0.3 million | 1.5 million |
| Share of results of associates and a joint venture | 0.5 million | 0.2 million | 0.3 million |
| Loss for the period | (0.4 million) | (1.3 million) | (3.6 million) |
| LBITDA (1) | (0.3 million) | (1.4 million) | (4.2 million) |
| Basic and diluted losses per share | (0.006) | (0.018) | (0.05) |
| LBITDA per share (1) | (0.005) | (0.023) | (0.07) |
| Cash and cash equivalents | 35.0 million | 33.8 million | 54.5 million |
| Cash and cash equivalents per share (1) | 0.61 | 0.58 | 0.94 |
| Working capital | 29.2 million | 34.3 million | 39.7 million |
| Total non-current financial liabilities | 50,000 | 1.9 million | 4.5 million |
| Total liabilities | 7.5 million | 37.1 million | 34.6 million |
| Total assets | 92.1 million | 120.8 million | 118.3 million |
| Note: | |
| (1) | As non-IFRS measurements, LBITDA (losses before interest income and expense, income taxes, depreciation and amortisation), 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. In September 2014, GobiMin engaged a qualified person as defined in NI 43-101, Mining One Pty Ltd, to update the resource estimate of the Gold Project. It visited the Gold Project in October 2014 and the NI 43-101 compliant resource estimate update is expected to be available in early 2015. During the three months ended September 30, 2014, drilling of approximately 8,200 meters has been completed with a cumulative total of approximately 8,500 meters for the nine months this year. Among the 8,500 meters drilling, 46 drill holes have been completed. Other exploration work done during this quarter included core logging and sampling. The exploration program of Zone I and Zone IV for the year 2014 has been completed. GobiMin will continue the remaining planned drilling of Zone XI and the construction of the office building in October 2014. All the exploration and construction work will be suspended by the end of October 2014 due to the start of the snowing season.
GobiMin holds an equity interest of 48.02% in Loco Hong Kong Holdings Limited ("Loco HK") which together with its subsidiaries engage in metal trading and processing, predominantly in silver. To prepare for the listing of its shares on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited ("GEM"), China Precision has completed a capital reorganisation in August 2014. The dealings in the shares of Loco HK on the GEM commenced on August 5, 2014 under the stock code 8162. Each of GobiMin and its two wholly owned subsidiaries, namely GobiMin Investments Limited and GobiMin Silver Limited, as well as its Chief Executive Officer, Mr. Felipe Tan, entered into non-competition undertakings and a tax indemnity in favour of Loco HK and all the shares in Loco HK held by the Group are subject to a twelve (12) months non-disposal undertaking. The equity interest of the Group in Loco HK remains approximately at 48.02%. The Group recorded a gain from bargain purchase of $0.4 million for the reorganisation.
The Group owns 40% equity interests each in three exploration companies incorporated in Xinjiang, China for nickel, copper, and gold. They are treated as associates of the Group. The net cost of the investment in these three exploration companies amounted to $0.7 million (RMB4.3 million). The carrying value of these companies as at September 30, 2014 was $0.3 million (RMB2.0 million). Exploration programs of the three exploration companies will be continued in 2014.
GobiMin held 3.5% equity interest in Xinjiang Tongxing Minerals Limited, which is the licence holding company of the Yanxi Copper Property. After netting off the related payments and expenses of approximately $6.8 million including drilling work and costs in relation to the application of the mining licence of the new area adjacent to the Yanxi Copper Property (the "New Area") and amount payable to the local shareholders, the Group recognised an additional gain of approximately $4.0 million for the New Area in June 2014.
Liquidity and Capital Resources
As at September 30, 2014, the Group had a working capital of about $29.2 million (December 31, 2013: $39.7 million), by netting off its current assets of $36.7 million (December 31, 2013: $69.7 million) with current liabilities of $7.5 million (December 31, 2013: $30.0 million).
The Group has no difficulties in meeting obligations associated with its financial liabilities and commitment. The Group has determined that its cash and cash equivalents will be more than sufficient to finance its operation, including the current commitments of the Gold Project of approximately $5.7 million and the commitment for the capital contributions to the exploration company in Xinjiang of $0.5 million (RMB3.2 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.
Contact
Felipe Tan, Chief Executive Officer, Tel: (852) 3586-6500, Email: felipe@gobimin.com