Press release from CNW Group
GobiMin Announces Second Quarter 2013 Results
Thursday, August 22, 2013
GobiMin Announces Second Quarter 2013 Results11:30 EDT Thursday, August 22, 2013
(Expressed in United States dollars except where otherwise indicated)
TORONTO, Aug. 22, 2013 /CNW/ - (TSXV:GMN) GobiMin Inc.("GobiMin" or the "Company") reports its financial and operating results for the second quarter of 2013. 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).
|3 months ended||12 months ended||3 months ended|
|June 30, 2013||December 31, 2012||June 30, 2012|
|0.2 million||1.1 million||0.4 million|
Share of results of associates and a joint venture
|0.1 million||0.4 million||(0.08 million)|
|(Loss)/Profit for the period||(0.8 million)||2.9 million||(0.9 million)|
|(LBITDA)/EBITDA(1)||(0.8 million)||5.8 million||(1.1 million)|
|Basic and diluted (losses)/earnings per share||(0.012)||0.06||(0.013)|
|(LBITDA)/EBITDA per share(1)||(0.014)||0.10||(0.018)|
|Cash and cash equivalents||32.6 million||46.6 million||58.8 million|
|Cash and cash equivalents per share(1)||0.55||0.78||0.96|
|Working capital||37.9 million||45.9 million||50.6 million|
|Total non-current financial liabilities||1,950,000||32,000||56,000|
|Total liabilities||35.1 million||33.3 million||32.8 million|
|Total assets||120.8 million||121.1 million||116.8 million|
| As non-IFRS measurements, (LBITDA)/EBITDA ((losses)/earnings before interest income and
expense, income taxes, depreciation and amortisation), (LBITDA)/EBITDA 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
GobiMin owns a 70% equity interest in a company in China to develop and operate the Sawayaerdun Gold Project (the "Gold Project"). Due to the winter weather conditions, the 2013 drilling campaign of 12,000 meters and mine development has commenced in early May 2013. In addition to the ongoing Zone IV, the planned 2013 drilling program also covers Zone I, Zone II and Zone XI. For this quarter, drilling of approximately 4,300 meters has been completed. Among the total ongoing 10 drill holes, 6 drill holes were from Zone IV, 2 drill holes were from Zone I and the remaining 2 drill holes were from Zone XI. Other exploration works done during this quarter include relevant core logging and sampling of relevant Zones. GobiMin will continue to pursue the major design and construction including tailing ponds, camp facilities and access roads and applications for the related licenses.
GobiMin also holds an equity interest of 48.02% in China Precision Material Limited ("China Precision") which engages in metal trading and processing, predominantly in silver. GobiMin recorded interest income of $68,286 on advances to China Precision for the six months ended June 30, 2013. China Precision had a net profit of about $0.6 million for the period, with GobiMin's share amounting to $0.3 million.
During the quarter, GobiMin has invested in a 40% equity interest of a company newly incorporated in Xinjiang, China for potential exploration projects. The Company's total committed capital cost is $0.6 million (RMB4 million) and $0.1 million (RMB0.8 million) has been injected as capital contributions as at June 30, 2013. Its remaining 60% equity interests are owned by two local partners. Other than this new exploration company, the Company owns 40% to 50% equity interests in four exploration companies in Xinjiang, China for nickel, copper, and gold and an 8% equity interest in Yanxi Copper Property.
Liquidity and Capital Resources
As at June 30, 2013, GobiMin had a working capital of about $37.9 million (December 31, 2012: $45.9 million), by netting off its current assets of $71.1 million (December 31, 2012: $79.1 million) with current liabilities of $33.2 million (December 31, 2012: $33.2 million).
The Company has no difficulties in meeting obligations associated with its financial liabilities. GobiMin has determined that its cash and cash equivalents will be more than sufficient to fund its requirements, including the current commitments of the Gold Project of approximately $8.3 million and the commitment for the capital contributions to the exploration company newly incorporated 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.
For further information:
Felipe Tan, Chief Executive Officer
Tel: (852) 3586-6500