Bay Street News

Pasinex Reports Third Quarter Results

TORONTO, Dec. 04, 2018 (GLOBE NEWSWIRE) — Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The “Company” or “Pasinex”) reported a small loss for the third quarter (Q3) of 2018 of $0.2 million compared to net income of $1.8 million in Q3 2017. The decrease in net income is due to a lower equity gain from Horzum AS (the 50% owned joint venture that holds the Pinargozu mine) caused mainly by the drop in zinc prices in Q3.

Highlights – Q3 2018 and 2017 (1)

(Canadian dollars) Third Quarter
 
    2018     2017  
Pasinex financial results:    
Equity gain from Horzum AS $ 521,675   $ 2,698,696  
Dividend received from Horzum AS        
Consolidated net income $ (194,998 ) $ 1,838,461  
Basic net income per share $   $ 0.01  
     
Horzum AS operational data (100% basis):    
Zinc produced (wet) tonnes   10,619     15,760  
Zinc sold (wet) tonnes   12,979     13,976  
Zinc grade   33 %   35 %
Gross margin (2)   54 %   70 %
C$ cost per tonne mined (2) $ 193   $ 94  
US$ cash cost per pound of zinc produced (2) $ 0.19   $ 0.09  
             
  1. Refer to Note 1
  2. Refer to Note 2

Steve Williams, CEO of Pasinex commented, “The third quarter equity gain from Horzum AS showed a 54% gross margin and although this is a strong result we recorded a small loss on the Pasinex income statement. This small loss was due to a weaker zinc price in Q3 leading to a lower equity gain from Horzum AS as well as expenditures for exploration at the Spur Zinc Project in Nevada.”

“Liquidity issues facing our joint venture partner in Turkey have put a significant drain on our cash flow. We are optimistic going forward that with sales being invoiced and collected directly from Horzum AS we can control cash flows and bring dividend funds back to Pasinex in the short term.”

“We are particularly excited about the discovery of zinc sulphides at the Spur Zinc Project and want to continue to move this project forward in 2019. Pasinex looks forward to continued strength in the new year.”

Pasinex Highlights

Horzum AS Highlights (described on a 100% basis)

Note 1
Please note that all dollar amounts in this news release are expressed in Canadian dollars unless otherwise indicated. Refer also to the interim unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2018 and the corresponding Management’s Discussion and Analysis (MD&A) found on SEDAR.com and Pasinex.com for more information.

Note 2
This news release includes non-GAAP measures, including gross margin, cost per tonne mined and US$ cash cost per pound of zinc produced. A reconciliation of these non-GAAP measures to the GAAP financial statements is included in the MD&A.

About Pasinex

Pasinex Resources Limited is a Toronto-based mining company which owns 50% of the producing Pinargozu high grade zinc mine and, under a Direct Shipping Program, sells to zinc smelter / refiners from its mine site in Turkey. The Company also holds an option to acquire 80% of the Spur (formerly named Gunman) high-grade zinc exploration project in Nevada. Pasinex has a strong technical management team with many years of experience in mineral exploration and mining project development. The mission of Pasinex is to build a mid-tier zinc company based on its mining and exploration projects in Turkey and Nevada.

The Pinargozu mine is held in a separate entity, Horzum Maden Arama ve Isletme A.S. (Horzum AS), which is a corporate joint venture held equally between Pasinex and Turkish mining house, Akmetal Madencilik San ve Tic. AS (Akmetal AS). Akmetal AS is one of Turkey’s largest family-owned conglomerates which also owns the nearby past-producing Horzum zinc mine. 

Visit our web site at: www.pasinex.com

On Behalf of the Board of Directors
PASINEX RESOURCES LIMITED

“Steve Williams”

Steve Williams
President/CEO
Phone: +1 416.861.9659
Email: info@pasinex.com
  Evan White
Manager of Corporate Communications
Phone: +1 416.906.3498
Email: evan.white@pasinex.com
     

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 believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of 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.