Robex Reports Operational and Financial Results for Q1 2025

QUÉBEC CITY, June 02, 2025 (GLOBE NEWSWIRE) -- Robex Resources Inc. ("Robex" or the "Company") (TSXV: RBX/ASX: RXR)

Matthew Wilcox, Managing Director, commented: "The company has had a strong start to 2025, construction continues to advance at Kiniero, and we are well positioned for first gold in Q4 2025, meeting both schedule and budget. In parallel, we closed the senior debt facility with Sprott for US$130 million USD in Q1 2025 and progressed our ASX IPO with trading set to commence on 5th June 2025."

CURRENCY
Unless otherwise indicated, all references to "$" in this news release are to Canadian dollars. References to "US$" in this news release are to U.S. dollars.

KEY PRIORITIES 2025
Delivering the construction project in Guinea as planned: Construction is progressing well and remains on schedule. Concrete work for the process plant is nearing completion. The first shipment of structural steel has arrived on site, with additional deliveries scheduled every two weeks. The Structural, Mechanical & Piping contract has commenced, with structural steel erection for the first process plant set to begin in early June. The milling installation contract has been awarded with key mill deliveries arriving on site. Work for the mill installation will also begin in early June.

Securing subsequent utilization of a senior debt facility for the Kiniero Project: The Company has used US$25 million from the US$130 million senior debt facility obtained from Sprott Lending Corp. (“Sprott”) to finance the construction of Kiniero.

ASX listing and equity raise: The Company has received approval, subject to the usual conditions, from the ASX to Robex’s admission to the Official List and to the Official Quotation of Robex’s CDIs. Robex is working with ASX to meet the listing conditions, and it is expected that trading in Robex’s CDIs (assigned a code of "RXR") on the ASX will commence on a normal settlement basis on June 5th , 2025.

The net proceeds of AUD$120 million raised through the dual listing on the ASX will be used for the development of Kiniero – as well as to cover financing costs, corporate expenses and working capital requirements.

RESULTS HIGHLIGHTS (Q1 2025)

• Ore mined was at 632 kt in Q1 2025, a 7% decrease compared to the same quarter in 2024, the operational stripping ratio was 3.8 compared to 1.6;
• Ore processed increased by 1.5% to 559 kt, while grade and recoveries stood at 0.82 g/t and 87.6%, respectively;
• Gold production reached 12,892 ounces, at an all-In Sustaining Cost (“AISC”) per ounce of gold sold1 of $2,342.
• Operating income was $16.3 million in Q1 2025;
• Operating cash flow was positive at $17.2 million in Q1 2025 and;
• Cash and net debt1 stood at $33.0 million and $6.1 million respectively at the end of Q1 2025.

OPERATIONAL AND FINANCIAL SUMMARY

Gold Production and Financial Results

For the quarter ended March 31st, 2025, gold production reached 12,892 ounces, down 0.5% from the corresponding period in 2024. This slight decline resulted from a decrease in the recovery rate to 87.6% in the quarter ended 31st March 2025 from 89.5% in the comparative period. The quantity of ore processed came in 1.4% higher at 559,013 tonnes than in the comparative quarter in 2024 while head grade was flat at 0.82g/t.

The volume of gold sold declined by 15.7%, from 14,071 ounces in the first quarter of 2024 to 11,869 ounces in the first quarter of 2025. Gold sales declined due to the timing of shipments of gold produced alongside a decrease in production as outlined above.

Gold sales revenues rose by 26.0% reaching $49.4 million in the first quarter of 2025, compared to $39.2 million in the same period of 2024. This increase was driven by a 49.4% rise in the average realized selling price, which reached $4,160 per ounce in the Q1 2025, up from $2,785 per ounce in Q1 2024.

The increase in mining income for the quarter was partially offset by a significant rise in mining royalties, which totaled $6.8 million in Q1 2025, compared to $1.5 million in the comparative period. This increase was directly attributable to the new Mining Convention signed in Mali in February 2025 which implemented a higher effective tax regime under the 2023 Mining Code.

Despite the increase in mining income, the Company recorded a net loss of $29.2 million for the first quarter of 2025, compared to a net loss of $32.1 million in the same period of 2024, representing an 8.9% reduction. The Q1 2025 result was mainly impacted by a $17.6 million change in the fair value of share purchase warrants and the $14.7 million buyback of the Taurus Kiniero Royalty. In comparison, the net loss for Q1 2024 included a $43.0 million provision for tax contingencies in Mali, recorded following a final notice of reassessment received in May 2024.

Cash Flows and Strategic Investments

Cash flows from operating activities totaled $17.2 million in the first quarter of 2025, compared to $20.9 million for the same period in 2024. The decrease was mainly attributable to an increase in VAT receivable, primarily related to unrecovered value-added tax on recent property, plant and equipment additions for the Kiniero Gold Project in Guinea, as well as the repayment of the Taurus Royalty. These outflows were partially offset by an increase in accounts payable, and by higher mining income before non-cash depreciation expense compared to the first quarter of 2024.

Investing cash flows amounted to $49.6 million in Q1 2025, an increase of $33.6 million, or 209.5%, compared to the same period in 2024. This significant increase reflects the Group’s continued investment in the development of the Kiniero project, as construction activities accelerated ahead of the expected first gold pour in Q4 2025.

To support the advancement of the Kiniero Gold Project, the Company completed a $34.0 million equity financing in January 2025 and drew down $35.9 million (USD$25 million) from the Sprott project financing facility in March 2025. These funds enabled the Group to advance feasibility work, pursue earthworks, erect key infrastructure, and procure critical production equipment. Separately, the Company repaid in full the remaining balance of the Taurus bridge loan ($28.7 million) in January 2025, as part of its broader capital management strategy. As a result, financing activities generated $24.5 million in the first quarter of 2025, compared to nil in the same period of 2024.

SUMMARY OF Q1 2025 FINANCIAL RESULTS

OUTLOOK AND 2025 STRATEGY

Nampala’s 2025 forecast is as follows:

 
The 2025 forecast for sustaining capital expenditures is expected to range between $24 million to $28 million, while stripping costs are estimated to range between $20 million and $24 million.

The following assumptions were used in preparing the 2025 forecast:
- Average realized selling price for gold: $3,197 per ounce
- Fuel price: $1.85 per litre
- USD/$ exchange rate: 1.39

The Nampala AISC (per ounce of gold sold) has been revised in the forecast for 2025 from <$1,500 per ounce of gold sold at December 31, 2024 to <$2,000 per ounce of gold sold at March 31, 2025. The upward adjustment follows the implementation of the 2023 mining code and associated fiscal terms during Q1 2025.

Kiniero’s 2025 forecast is as follows:

 
While the budgets were prepared in U.S. dollars, the amounts presented above have been converted to Canadian dollars using a USD/CAD exchange rate of 1.39 for the forecast.

DETAILED INFORMATION

We strongly recommend that readers consult Robex's Management's Discussion and Analysis and Consolidated Financial Statements for the first quarter of 2025, which are available on Robex's website at www.robexgold.com and under the Company’s profile on SEDAR+ at www.sedarplus.ca for a more complete discussion of the Company’s operational and financial results.

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(1) Non-IFRS financial measure, non-IFRS ratio, or supplementary financial measure. Please refer to the “Non-IFRS and other financial measures” section of this press release for definitions of these measures and their reconciliation to the most directly comparable IFRS measure, as applicable.

NON-IFRS AND OTHER FINANCIAL MEASURES

The Company's audited consolidated financial statements for the quarter ended 31 March, 2025, are available under the Company's profile on SEDAR+ at www.sedarplus.ca, are prepared in accordance withIFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (IASB).

However, the Company also discloses the following non-IFRS financial measures, non-IFRS financial ratios and supplementary financial measures in this news release, for which there is no definition in IFRS: all-in sustaining cost and net debt (non-IFRS financial measures); adjusted net income, cash operating cost per tonne processed, all-in sustaining cost per ounce of gold sold and adjusted basic earnings per share (non-IFRS ratios); and cash flow from operating activities per share and average realized selling price per ounce of gold sold (supplementary financial measures). The Company's management believes that these measures provide additional insight into the Company’s operating performance and trends and facilitate comparisons across reporting periods. However, the non-IFRS measures disclosed in this news release do not have a standardized meaning prescribed by IFRS, they may not be comparable to similar measures presented by other companies. Accordingly, they are intended to provide additional information to investors and other stakeholders and should not be considered in isolation from, confused with or construed as a substitute for performance measures calculated according to IFRS.

These non-IFRS financial measures and ratios and supplementary financial measures and non-financial information are explained in more detail below and in the "Non-IFRS and Other Financial Measures" section of the Company’s Management's Discussion and Analysis for the for the quarter ended 31 March, 2025 ("MD&A"), which is incorporated by reference in this news release, filed with securities regulatory authorities in Canada, available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.robexgold.com. Reconciliations and calculations between non-IFRS financial measures and the most comparable IFRS measures are set out below in the "Reconciliations and Calculations" section of this news release.

RECONCILIATIONS AND CALCULATIONS

All-in sustaining cost and all-in sustaining cost per onces of gold sold

AISC and adjusted AISC per ounce of gold sold are non-IFRS ratios.

AISC per ounce of gold sold is calculated by adding the total cash cost, which is the sum of mining expenses and mining royalties, to sustaining capital expenditures and then dividing by the number of ounces of gold sold. Adjusted AISC per ounce of gold sold is calculated in the same manner as AISC and by deducting stripping costs and exploration expenses, then dividing by the number of ounces of gold sold.

The Company reports AISC and adjusted AISC per ounce of gold sold to provide investors with information on the main measures used by management to monitor the performance of the mine site in commercial production (the Nampala mine) and its ability to generate a positive cash flow.

The following tables reconcile AISC and adjusted AISC, as well as AISC and adjusted AISC per ounce of gold sold for the current and comparative periods to the most directly comparable financial measure in the financial statements, i.e., Mining expenses.

 
Net debt

Net debt (net cash position) is a non-IFRS financial measure that represents the total amount of bank indebtedness, including lines of credit, project financing facility, long term debt and lease liabilities, less cash at the end of a given period. Management uses this metric to analyze the Company’s debt position and assess the Company’s ability to service its debt. The following table presents a reconciliation to the most directly comparable financial measure in the financial statements, i.e., total liabilities less current assets, for the current and comparative periods. Net debt (net cash position) is calculated as follows.

 
Adjusted net income attributable to common shareholders

Adjusted net earnings attributable to common shareholders per share is a non-IFRS ratio calculated by dividing adjusted net earnings available to common shareholders by the basic weighted average number of common shares issued and outstanding. The Company uses this measure as an indicator of the financial performance of the Company’s activities, and it allows the Company to present adjusted net earnings attributable to Robex shareholders. Share price divided by adjusted net earnings attributable to common shareholders per share allows investors to compare the Company’s valuation to that of its peers.

The following table reconciles adjusted net earnings attributable to common shareholders and adjusted net earnings attributable to common shareholders per share for the current and comparative periods to the most directly comparable financial measure in the financial statements, i.e., “Basic and diluted net earnings attributable to common shareholders”. This reconciliation is provided on a consolidated basis.

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