(Expressed in United States
dollars except where otherwise indicated)
TSX-V: GMN
TORONTO, Aug. 27, 2015 /CNW/ - (TSXV: GMN) GobiMin
Inc. ("GobiMin" or the "Company") reports its financial and
operating results for the second quarter of 2015. 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
June 30
|
12 months
ended
|
|
2015
|
2014
|
December 31,
2014
|
|
$
|
$
|
$
|
Revenue
|
-
|
-
|
-
|
Other
revenue
|
0.2
million
|
0.2 million
|
0.7 million
|
Share of results of
associates and a joint venture
|
(13,000)
|
(0.2
million)
|
0.1 million
|
Gain from
reorganization of an associate
|
-
|
-
|
0.4 million
|
Additional gain on
disposal of an associate
|
-
|
4.0 million
|
3.9 million
|
Profit (loss) for the
period
|
(0.7
million)
|
2.3 million
|
0.3 million
|
EBITDA (LBITDA)
(1)
|
(0.6
million)
|
2.8 million
|
0.6 million
|
Basic and diluted
earnings (losses) per share
|
(0.01)
|
0.04
|
0.01
|
EBITDA (LBITDA) per
share
(1)
|
(0.01)
|
0.05
|
0.01
|
|
|
|
|
Cash and cash
equivalents
|
27.6
million
|
39.3
million
|
31.8 million
|
Cash and cash
equivalents per share
(1)
|
0.52
|
0.68
|
0.56
|
Working
capital
|
22.4
million
|
38.1
million
|
26.0 million
|
Total non-current
financial liabilities
|
51,000
|
1.8
million
|
42,000
|
Total
liabilities
|
5.8
million
|
8.8
million
|
6.4 million
|
Total
assets
|
84.4
million
|
93.9
million
|
88.2 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. The Company has focused on conserving
cash and controlling costs since completion of the drilling program
of the Gold Project in 2014. The development plan of the Gold
Project will only be proceeded when the economic climate and
international gold price are improved.
GobiMin holds an equity interest of 48.29% in Loco Hong Kong
Holdings Limited ("Loco HK"), which together with its subsidiaries
are engaged in the processing and trading of metals and commodity
forward contracts. During this quarter, GobiMin has acquired an
additional 1,180,000 shares of Loco HK at a consideration of
$0.1 million and so the equity
interest held by GobiMin was increased from 48.02% to
48.29%. Loco HK has completed the setting up of the testing
laboratory with the assistance from the Hong Kong Productivity
Council. It is laying down the plan on evaluating the effectiveness
and efficiency of the existing processing facilities after
fine-tuning certain equipment of the laboratory. Loco HK recorded a
net profit of about $0.19 million for
the six months ended June 30, 2015,
with GobiMin's share amounting to $0.09
million.
The Group owns 40% equity interests each in three exploration
companies incorporated in Xinjiang, China for nickel, copper, and gold. They are
accounted for as associates of the Group. The carrying value of
these companies as at June 30, 2015
was $0.1 million (RMB0.7 million). During the period ended
June 30, 2015, one of the exploration
companies reduced its share capital from $0.8 million (RMB5
million) to $0.3 million
(RMB2 million) and the Group received
$0.2 million from the capital
reduction. The Group will seek to sell certain exploration licences
held by these exploration companies to third party.
GobiMin holds 3.5% equity interest in Xinjiang Tongxing Minerals
Limited, which is the licence holding company of the Yanxi Copper
Property.
Liquidity and Capital Resources
As at June 30, 2015, the Group had
a working capital of about $22.4
million (December 31, 2014:
$26.0 million), by netting off its
current assets of $28.2 million
(December 31, 2014: $32.3 million) with current liabilities of
$5.8 million (December 31, 2014: $6.3
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 contractual
commitments of the Gold Project of approximately $4.9 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.