(Expressed in United States dollars except where otherwise indicated)
TSX-V: GMN
TORONTO, Nov. 26, 2012 /CNW/ - (TSXV:GMN) GobiMin Inc. ("GobiMin" or the "Company") reports its financial and operating results
for the third quarter of 2012. 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
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Three months ended September 30
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Year ended
|
|
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2012
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2011
|
December 31, 2011
|
|
|
$
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$
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$
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|
Revenue
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-
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-
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-
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|
Other revenue and gains
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0.19 million
|
0.18 million
|
0.9 million
|
|
Share of results of associates and a jointly-controlled entity
|
0.40 million
|
0.44 million
|
0.5 million
|
|
Gain on disposal of an associate
|
6.0 million
|
8.2 million
|
8.8 million
|
|
Profit for the period/year
|
4.7 million
|
7.7 million
|
2.5 million
|
|
LBITDA (1) |
(1.2million)
|
(0.5 million)
|
(3.8 million)
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|
Basic and diluted earnings per share
|
0.084
|
0.123
|
0.05
|
|
LBITDA per share(1) |
(0.020)
|
(0.008)
|
(0.06)
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|
|
|
|
|
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Cash and cash equivalents
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50.3 million
|
63.0 million
|
62.3 million
|
|
Cash and cash equivalents per share
|
0.84
|
1.01
|
1.00
|
|
Working capital
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29.6 million
|
55.5 million
|
53.2 million
|
|
Total non-current financial liabilities
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44,000
|
-
|
83,000
|
|
Total assets
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112.2 million
|
123.5 million
|
120.6 million
|
|
Equity attributable to shareholders
|
86.8 million
|
86.3 million
|
84.8 million
|
|
Equity attributable to shareholders per share
|
1.45
|
1.38
|
1.36
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|
Note:
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(1)
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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.
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Business Summary and Development
1 Gold Project in Xinjiang
The Group owns a 70% equity interest in Xinjiang Tongyuan Minerals Ltd.
("Tongyuan") which is developing and operating the Gold Project.
During the quarter ended September 30, 2012, Tongyuan has obtained the
exploration and mining licences and the remaining commitment of
$873,488 has been paid. The total consideration of $7,034,237 paid for
the licences was classified as exploration and evaluation assets in
this quarter.
Tongyuan has other commitments of $10,114,437 (RMB63,686,528) for the
further development of the Gold Project including the exploration
service, construction of an office building and design of mine and
related facilities.
For this quarter, drilling of around 21,000 meters has been completed.
Up to the end of September 2012, exploration drilling totaled
approximately 30,000 meters with a total 66 drill holes completed. Due
to the weather condition in winter, it is scheduled that all the field
works are suspended by the end of October 2012.
As part of the planned work program, in October 2012 GobiMin has been
conducting sample testing and analysis. The resource estimate will be
reviewed and updated in accordance with the NI 43-101 standards after
laboratory results of the drill cores are available.
2 Silver Operation
The Group holds an equity interest of 48.02% in China Precision Material
Limited ("China Precision") which engages in metal trading and
processing, predominantly in silver.
The Group has made advances to China Precision from time to time to
finance its silver inventory. As at September 30, 2012, amounts due
from China Precision to the Group amounted to $1.1 million while China
Precision had a silver inventory of 8.8 tonnes with a market value of
about $9.6 million. The Group recorded interest income of $156,761 on
these advances for the nine months ended September 30, 2012.
For the nine months ended September 30, 2012, China Precision had a net
profit of about $1,203,000 with GobiMin's share amounting to $577,000
(nine months ended September 30, 2011: $824,000). For the three months
ended 30 September 2012, China Precision had a net profit of $843,000,
with GobiMin's share amounting to $405,000 (three months ended
September 30, 2011: $572,000).
3 Base Metal Exploration Projects in Xinjiang
(a) Four Exploration Companies
Since 2007 to the end of September 2012, the Group has invested a total
of $3,652,767 (RMB23,000,000) as capital in five exploration companies
in Xinjiang, including the Yanxi Copper Property and four exploration
companies in Xinjiang, China for nickel, copper, and gold. The Yanxi
Copper Property was disposed of in 2010 at a gain of $6.0 million
The total cost of the investment in the four remaining exploration
companies amounted to $2,382,239 (RMB15,000,000). In May 2012, the
Group received dividend income of $259,540 (RMB1,634,221) from the four
exploration companies, thus reducing the cost of investment to
$2,122,699. The equity investments as at September 30, 2012 are
$2,088,434 (RMB13,150,028), slightly less than the net cost of
investment.
GobiMin continues the exploration programs of its four exploration
companies and also actively searches for high quality mining and
exploration projects.
(b) Yanxi Copper Property
On July 22, 2010, GobiMin has completed the disposal of 32% of its
equity interest in Xinjiang Tongxing Minerals Limited which is engaged
in exploration and development of the Yanxi Copper Property in
Xinjiang, China. After the disposal, GobiMin retains an 8% indirect
unlisted equity interest in the Yanxi Copper Property.
In August 2012, the Yanxi Mining Licence was obtained and the final
payment of the consideration for the Yanxi Copper Property was
received. The total consideration of $33.3 million comprised $7.7
million cash and $25.6 million in convertible bonds. After netting off
provisions for the related tax and expenses, the disposal resulted in a
gain of $6.0 million.
The Company is currently conducting drilling work of the New Area
adjacent to the Property. The Group will be entitled to additional
consideration based on the resources estimate of the New Area. A
further announcement will be made once additional information is
available.
4 Normal Course Issuer Bid
On January 20, 2012, GobiMin renewed its normal course issuer bid to
repurchase up to an additional 3,129,814 common shares over a maximum
period of 12 months ending January 31, 2013. For the nine months ended
September 30, 2012, a total of 2,610,500 common shares were repurchased
at an aggregate cost of $1,700,955 (CAD1,729,898). For the period from
October 1, 2012 to November 26, 2012, a total of 519,314 common shares
were repurchased at an aggregate cost of $294,472 (CAD299,483), thus
completing the 2012 buy back program. All shares repurchased were
returned to treasury for cancellation.
Management believes that the repurchase by the Company of its own shares
can maximise shareholder value and is in the best interest of the
Company and its shareholders. A copy of the related Notice of Intention
to Make a Normal Course Issuer Bid for 2012 shall be provided to
shareholders upon receipt of written request to the Company at its
registered office.
5 Working Capital
As at September 30, 2012, the Group has a working capital of about $29.6
million (December 31, 2011: $53.2 million), after netting off its
current liabilities of $24.1 million (December 31, 2011: $33.9
million). The working capital is sufficient to support the development
of the existing projects and operations, including the Gold Project, in
the foreseeable future.
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.