Pasinex Reports 2015 Financial Results
TORONTO, ONTARIO--(Marketwired - May 20, 2016) - Pasinex Resources Ltd. (CSE:PSE) (FRANKFURT:PNX) (the "Company" or "Pasinex") released its 2015 full year financial results on April 29, 2016 through SEDAR.com and the website www.pasinex.com.
Pasinex is focused on base metal mining and exploration in Turkey with a priority focus on zinc mining and exploration in Adana province, Turkey. Pasinex formed a 50 / 50 joint venture with Turkish mining house Akmetal AS, and through the joint venture company, called Horzum AS, they are developing the Pinargozu Zinc project in Adana province.
- Objective to grow Pasinex through exploration which can now be initially funded through cash-flows from the Pinargozu mine.
- Small ambitious zinc producer, showing profitability in it's joint venture company Horzum AS
The following is a summary of the Horzum AS Joint Venture Balance Sheet and Income Statement for the year ended 2015.
| Balance Sheet at December 31, 2015: | ||||
| TRY ($) | CAD ($) | |||
| Current assets | ||||
| Cash and prepaid expenses | 1,027,199 | 487,714 | ||
| Accounts receivable | 10,356,818 | 4,917,417 | ||
| Inventory | 808,301 | 383,781 | ||
| Non-current assets | ||||
| Plant and equipment | 397,246 | 188,612 | ||
| Property costs | 2,210,335 | 1,049,467 | ||
| Other non-current assets | 410,488 | 194,901 | ||
| Total Assets | 15,210,187 | 7,221,892 | ||
| Current liabilities | 8,003,474 | 3,800,049 | ||
| Due to JV partners | 5,185,701 | 2,462,171 | ||
| Share capital | 500,000 | 237,400 | ||
| Surplus (deficit) | 1,521,212 | 707,832 | ||
| Foreign exchange difference | - | 14,400 | ||
| 15,210,387 | 7,221,892 | |||
| Statement of Operations for the Year Ended December 31, 2015: | |||||
| TRY ($) | CAD ($) | ||||
| Gross sales | 9,581,636 | 4,506,244 | |||
| Cost of sales | (7,662,202 | ) | (3,603,534 | ) | |
| General and administrative expenses | (145,919 | ) | (71,085 | ) | |
| - | |||||
| Net income for the year | 1,773,515 | 831,625 | |||
| As at December 31, 2015, the property costs for the Joint Venture includes the following expenditures: | |||
| Pinargozu Property cost details: | TRY ($) | CAD ($) | |
| Deposits and guarantees | 100,278 | 47,612 | |
| Preparation and development | 2,110,057 | 1,001,855 | |
| Total | 2,210,335 | 1,049,467 | |
The highlights of these results are discussed here:
- Sales for the Horzum AS Joint venture company were $4,506,244 CAD for 2015. This income was realized from the sale of 13,906 tonnes of direct shipping high grade zinc mineralization of between 30 - 38% Zn.
- The JV company Horzum AS recorded an operating profit from these mining operations at Pinargozu of $831,625 CAD (an operating margin of 18.5%)
- A total of 10,162 wet tonnes were mined from Pinargozu mine in 2015 giving an average of 27.8 wet tonnes per day of production. In total, 13,906 wet tonnes of product was sold in 2015 with the difference between what was mined and sold coming from 2014 production.
- A total of 14,443 meters of drilling (both diamond and percussion drilling) was conducted by the JV company in 2015. The cost of this was approximately $875,000 USD spent in 2015.
- The balance sheet for the Horzum AS joint venture company shows Total Assets at $7,221,892 CAD; the capital asset for Pinargozu property exploration was $1,049,467. Drilling continued on the Pinargozu property thus capital asset for exploration increased in 2015. Surplus was $707,832.
Steve Williams, President and CEO of Pasinex Resources Ltd. commented: "2015 was a great and critical year for Pasinex. We continued to grow the Pinargozu mine. In 2015 we averaged 850 wet tonnes per month of high grade direct shipping zinc product from Pinargozu. In 2016 we are already producing at 1800 wet tonnes per month (though to April 2016). In 2015 all of the surplus operational cash generated was spent on exploration at Pinargozu. As can be seen from our JV company financial results, the company was profitable in 2015. We expect profitability to further strengthen in 2016. Also in 2016, we anticipate being able to fund all our exploration again and to also pay required capital for the mine growth. This is a major step forward for Pasinex. We have now built the PInargozu mine to sufficient productivity to provide the funds for exploration, as we push hard for the bigger zinc opportunity there."
The overall consolidated financial results for Pasinex Resources Ltd. are presented below. The Joint Venture company, Horzum AS, is 50% owned by Pasinex and as such is accounted for by the equity method.
| Pasinex Resources Limited | |||||||
| Consolidated Statements of Financial Position | |||||||
| For the years ended December 31, 2015 and 2014 | |||||||
| (Expressed in Canadian dollars) | |||||||
| 2015 | 2014 | ||||||
| Assets | |||||||
| Current | |||||||
| Cash and cash equivalents | $ | 25,749 | $ | 151,045 | |||
| GST/HST/VAT receivable | 4,035 | 6,852 | |||||
| Other receivables | 2,238 | 2,961 | |||||
| Prepaid expenses and deposits | 43,894 | 42,558 | |||||
| Share subscription receivable | 92,500 | 27,500 | |||||
| Marketable securities | 17,160 | 16,567 | |||||
| 185,576 | 247,483 | ||||||
| Due from related parties | 547,828 | 372,679 | |||||
| Investment in joint venture | 377,794 | 61,974 | |||||
| Equipment | 31,439 | 48,072 | |||||
| Exploration and evaluation assets | 1,226,226 | 1,051,247 | |||||
| $ | 2,368,863 | $ | 1,781,455 | ||||
| Liabilities | |||||||
| Current | |||||||
| Accounts payable and accrued liabilities | $ | 289,595 | $ | 160,090 | |||
| Due to related parties | 92,306 | 24,492 | |||||
| 381,901 | 184,582 | ||||||
| Shareholders' equity | |||||||
| Share capital | 8,781,434 | 7,645,473 | |||||
| Share subscriptions received | - | 19,800 | |||||
| Reserves | 1,208,833 | 1,193,566 | |||||
| Deficit | (7,868,912 | ) | (7,188,103 | ) | |||
| Accumulated other comprehensive (loss) | (134,393 | ) | (73,863 | ) | |||
| 1,986,962 | 1,596,873 | ||||||
| $ | 2,368,863 | $ | 1,781,455 | ||||
| Pasinex Resources Limited | ||||||
| Consolidated Statements of Operations and Comprehensive Loss | ||||||
| For the years ended December 31, 2015 and 2014 | ||||||
| (Expressed in Canadian dollars) | ||||||
| 2015 | 2014 | |||||
| Expenses | ||||||
| Administrative fees | $ | 150,000 | $ | 150,000 | ||
| Advertising and promotions | 93,003 | 178,245 | ||||
| Amortization | 15,046 | 21,967 | ||||
| Consulting and management fees | 479,469 | 336,961 | ||||
| Investor relations | 56,867 | 54,573 | ||||
| Office and general | 43,083 | 47,231 | ||||
| Professional fees | 75,760 | 87,623 | ||||
| Project investigation costs | 92,435 | - | ||||
| Share-based payments | 15,068 | 233,632 | ||||
| Supplies and equipment | 8,527 | 4,698 | ||||
| Transfer agent and regulatory authority fees | 20,665 | 23,181 | ||||
| Travel and meals | 95,672 | 110,541 | ||||
| (1,145,595 | ) | (1,248,652 | ) | |||
| Other income (expenses) | ||||||
| Unrealized gain (loss) on marketable securities | 1,427 | 1,318 | ||||
| Interest income | 167 | 153 | ||||
| Equity gain (loss) from joint venture | 417,042 | (5,887 | ) | |||
| Other income (expense) | 71,122 | (14,080 | ) | |||
| Gain (loss) on disposition of marketable securities | - | 17,350 | ||||
| Foreign exchange gain (loss) | (19,387 | ) | (8,980 | ) | ||
| Impairment of mineral properties | (5,585 | ) | (239,645 | ) | ||
| 464,786 | (249,771 | ) | ||||
| Net income (loss) for the year | (680,809 | ) | (1,498,423 | ) | ||
| Other comprehensive income (loss) | ||||||
| Currency translation adjustment | (60,530 | ) | 4,193 | |||
| Comprehensive income (loss) for the year | (741,339 | ) | (1,494,230 | ) | ||
| Basic and diluted earnings (loss) per share | $ | (0.01 | ) | $ | (0.02 | ) |
| Weighted average number of common shares outstanding - basic and diluted | 82,472,473 | 69,938,488 | ||||
The following comment relate to the Pasinex Resources Ltd. balance sheet and income statement.
- The equity gain realized from the joint venture company is seen as a $417,042 CAD "Equity gain" on the income statement.
- The equity gain on the income statement (together with other item movements, particularly on property impairment) lead to a decrease in the net loss for 2015 versus 2014. In 2015 this net loss was $680,809 CAD versus a loss of $1,498,423 CAD in 2014.
- Pasinex Resource Limited operational costs in 2015 were in total $1,145,595 CAD versus $1,248,652 CAD in 2014.
- The Total Assets for Pasinex increased from $1,781,455 CAD in 2014 to $2,368,863 CAD in 2015. This mostly reflected increases in project investment seen as "Due from related parties", "Investment in joint venture" and "Exploration and evaluation assets". This reflects activity in the Joint venture company and the Turkish assets of Pasinex.
- Shareholder equity was $1,986,962 CAD in 2015 versus $1,596,873 CAD in 2014. Again this reflects growth of the business in Turkey.
Steve Williams, President and CEO commented on the Pasinex Resources financial results: "2015 was a tough year for raising equity in the junior resource market, therefore we only raised about $500,000 in equity. Nevertheless, we stayed focused on our game plan of building our zinc story in Turkey by developing the Pinargozu mine to production and enhancing our geological asset there. We expect to see our balance sheet strengthen over the next year. Equally as important, we are hopeful that we will see the rewards of our persistent focus on exploration at Pinargozu in 2016."
About Pasinex
Pasinex Resources Ltd. (CSE:PSE) (FRANKFURT:PNX) is a base-metal and precious-metal focused Company with a goal to build a mid-tier international mining company. The Company's initial priority is to build a prospective portfolio of base-metal opportunities in Turkey. The Company has a strong technical management team with many years of experience in mineral exploration and mining project development. The focus of Pasinex is to build a mid-tier zinc company based on their Turkey zinc projects.
The Pinargozu mine is included in the 50-50 company, Horzum Arama Isletme AS (Horzum AS), which is a corporate joint venture between Pasinex and Turkish mining house, Akmetal Madencilik San ve Tic. AS (Akmetal AS). Akmetal A.S is one of Turkey's largest family-owned conglomerates with the past-producing Horzum zinc Mine nearby.
Visit our web site at: www.pasinex.com
On Behalf of the Board of Directors
PASINEX RESOURCES LTD.
Steve Williams
The CSE does not accept responsibility for the adequacy or accuracy of this news release.
This news release includes forward-looking statements that are subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements.
All statements within, other than statements of historical fact, are to be considered forward looking. Although Pasinex Resources Ltd. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including the ability to complete financings. On-going exploration activity, does not guarantee future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, exploration results, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.
Contact
Pasinex Resources Ltd.
Steve Williams
President/CEO
416.861.9659
info@pasinex.com
CHF Investor Relations
Cathy Hume
416.868.1079 ext. 231
cathy@chfir.com