(Expressed in United
States dollars except where otherwise indicated)
TSX-V: GMN
TORONTO, Aug. 25, 2016 /CNW/ - (TSXV: GMN) GobiMin
Inc. ("GobiMin" or the "Company") reports its financial and
operating results for the second quarter of 2016. The
unaudited condensed interim financial statements along with
quarterly highlights of 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
|
|
2016
|
2015
|
December 31,
2015
|
|
$
|
$
|
$
|
Net profit (loss) for
the period
|
(0.5
million)
|
(0.7
million)
|
46,000
|
EBITDA (LBITDA)
(1)
|
(0.3
million)
|
(0.6
million)
|
0.6
million
|
Basic and diluted
earnings (losses) per share
|
(0.008)
|
(0.013)
|
0.003
|
EBITDA (LBITDA) per
share
(1)
|
(0.005)
|
(0.011)
|
0.012
|
|
|
|
|
Cash and cash
equivalents
|
20.9
million
|
27.6
million
|
26.1
million
|
Cash and cash
equivalents per share
(1)
|
0.40
|
0.52
|
0.50
|
Working
capital
|
20.3
million
|
22.4
million
|
23.1
million
|
Total
liabilities
|
3.8
million
|
5.8
million
|
3.2
million
|
Total
assets
|
80.3
million
|
84.4
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 the Sawayaerdun Gold Project (the
"Gold Project") in Xinjiang. After delaying the development
plan of the Gold Project in 2015, the Company has been
concentrating in undertaking the process for conversion of the
exploration licence into a mining licence. As at 30 June 2016, the Company submitted and was
awaiting the approval of the first of the three required Chinese
standard geological reports. 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.
As at June 30, 2016, GobiMin held
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 the period under review, benefit from resumption
of gold and tin trading and increase in silver processing
activities, Loco HK Group achieved a significant increase of 101%
in turnover for the six months ended 30 June
2016 as compared with the corresponding period last
year. Loco HK recorded a net profit of approximately
$0.5 million for the three months
ended June 30, 2016, with GobiMin's
share amounting to approximately $0.2
million. On August 23,
2016, GobiMin realized part of its investment in Loco HK by
disposal of 113,000,000 shares of Loco HK to third parties (the
"Transaction") for gross proceeds of approximately $10.62 million which will be received on
August 26, 2016. After the
Transaction, GobiMin remains having a 10% equity interest in Loco
HK. In view of the market price of Loco HK shares and
the economic conditions, the Group believed that it was a good
timing and value for GobiMin to realise part of its investment in
Loco HK. GobiMin can increase the flexibility to invest
in more potential assets or projects in future and strengthen its
financial resources.
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 June 30, 2016, the working
capital of the Group amounted to approximately $20.3 million (December
31, 2015: $23.1 million), by
netting off its current assets of $23.0
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
$1.8 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.