GobiMin Announces First Quarter 2016 Results
(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.
Contact
Felipe Tan, Chief Executive Officer, Tel: (852) 3586-6500, Email: felipe@gobimin.com