Pasinex Announces Second Quarter 2022 Financial Results

Pasinex Resources Limited

TORONTO, Aug. 29, 2022 (GLOBE NEWSWIRE) — Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (the “Company” or “Pasinex”) today reports the Company’s financial and operating results for three and six months ended June 30, 2022.

Andrew Gottwald, Chief Financial Officer of Pasinex, said, “We continued to make positive progress on many fronts, including the exceptional operating results of the Pinargozu mine and the advances on the exploration front of our project. Gunman in Nevada. We met with MAPEG and the Ministry of Energy and Natural Resources. The meetings were constructive and the two agencies continue to work with Horzum AS and Pasinex Arama to reach a negotiated solution for the benefit of all.

Selected quarterly information

Three months completed

Semester completed

June 30th,

June 30th,

2022

2021

2022

2021

Financial:

Capital gain of Horzum AS

$

$

$

$

32,232

Dividends and other receivables received from Horzum AS

$

1,167,464

$

$

3,401,084

$

32,232

Dividend income from Horzum AS

$

$

$

4,072,320

$

Consolidated net profit (loss)

$

(890,345

)

$

(595,616

)

$

2,743,999

$

(805 262

)

Basic and diluted net earnings per share

$

(0.01

)

$

(0.01

)

$

0.02

$

(0.01

)

Net cash provided by (used in) operating activities

$

1,313,517

$

(221,457

)

$

2,083,338

$

(456,000

)

Weighted average number of shares outstanding

144,554,371

144,554,371

144,554,371

144,554,371

Three months completed

Semester completed

JJune 30th,

June 30th,

2022

2021

2022

2021

Horzum AS operational data (base 100%):

Tonnes mined (wet) of zinc product

3,264

2,676

7,804

5,256

Zinc product sold (wet) tonnes

3,155

2,287

6,119

4,659

Average content of zinc oxide products sold

42

%

34

%

38

%

32

%

Average content of zinc sulphide products sold

50

%

40

%

51

%

40

%

Gross margin (1)

82

%

50

%

78

%

35

%

CAD cost per ton mined (1)

$

413

$

319

$

358

$

373

Cash cost in USD per pound of zinc mined (1)

$

0.29

$

0.35

$

0.27

$

0.43

(1) View non-GAAP measures

Strong points

  • Pasinex recorded a net loss of approximately $0.89 million for the three months ended June 30, 2022 and net earnings of approximately $2.7 million for the six months ended June 30, 2022, compared to net losses of approximately $0.6 million and $0.8 million for the same periods in 2021. Pasinex Arama recorded dividend income of approximately $4.1 million in the first quarter of 2022. There is no had a similar amount in 2021.

  • Horzum AS operating profit increased to $4.8 million and $8.1 million for the three and six months ended June 30, 2022 from operating profit of $0.8 million and $1.1 million for the same periods in 2021. This increase is due to higher revenues generated by higher selling prices. The increase in selling prices is the result of higher global zinc prices in 2022 as well as the sale of a greater proportion of high-grade zinc sulphide products in 2022 compared to 2021. higher sales also drove gross margin (see non-GAAP measures) for the three and six months ended June 30, 2022 to 82% and 78% from 50% and 35% for the same periods in 2021.

  • Horzum AS declared a dividend to be paid to its shareholders of which Pasinex Arama was entitled to TRY 42.2 million. Pasinex Arama has received all of this amount as of the date of this interim management report. The total cash amount received from Horzum AS was approximately $3.4 million in the first six months of 2022.

  • On July 1, 2022, the Company announced that TC Maden ve Petrol Iserl Genel Mudurlugu (“MAPEG”), the Ministry of Mines of Turkey, had not extended Horzum AS’ main mining license beyond 15 April 2023, and Akkaya’s operating license Pasinex Arama’s exploration permit at that time. As a result, Pasinex Arama and Horzum AS each filed a lawsuit in Adana, Turkey challenging the denial of the license extensions. The actions were filed on July 1, 2022, in order to respect the limitation period provided for by the mining law. Since the filing of the appeals, representatives of Horzum AS and Pasinex Arama have met with MAPEG and the Ministry of Energy and Natural Resources. The meetings were constructive and the two agencies continue to work with Horzum AS and Pasinex Arama to reach a negotiated solution for the benefit of all.

  • Horzum AS sold 3,041 and 5,571 tonnes of zinc sulphide during the three and six months ended June 30, 2022, at average grades of 50% and 51% zinc and at average selling prices of approximately 1 US$353 and US$1,337 per ton, respectively.

  • Horzum AS extracted 7,804 tonnes of zinc product in the first six months of 2022, at the Pinargozu mine.

  • CAD cost per tonne mined (see non-GAAP measures) was $413 and $358 for the three and six months ended June 30, 2022, respectively, and USD cash cost per pound of zinc product extract (see non-GAAP measures) was US$0.29 and US$0.27 for the three and six-month periods ended June 30, 2022, respectively.

  • In 2022, Horzum AS completed a total of 4,870 meters of underground and surface diamond drilling, in 63 holes. It also completed 851 meters of exploration and development drift development, including 150 meters of drift development towards the Akkaya property.

  • The Company completed a helicopter magnetic survey of 218 line kilometers, a mobile metal ion soil sampling program of 453 samples and a ground gravity program with 2,078 stations during and after the quarter ended June 30, 2022, at Gunman project in Nevada. A drilling program of 3,000 to 4,000 meters is due to start in the third quarter of 2022.

Non-GAAP Measures

Please note that all dollar amounts in this press release are expressed in Canadian dollars, unless otherwise indicated. Also refer to the 2021 MD&A and audited financial statements available on SEDAR.com for more information. This press release includes non-GAAP measures, including gross margin, cost per tonne mined and US dollar cash cost per pound of zinc mined. A reconciliation of these non-GAAP measures to the GAAP financial statements is included in the MD&A.

Qualified person

Jonathan Challis, Fellow of the Institute of Materials, Minerals and Mining and Chartered Engineer, is a Qualified Person (“QP”) as defined by NI 43-101 and has approved the scientific and technical disclosure herein. Mr. Challis is a director of the Company and chairman of Horzum AS.

About Pasinex

Pasinex Resources Limited is a Toronto-based mining company that owns 50% of Horzum Maden Arama ve Isletme Anonim Sirketi (“Horzum AS” or “Joint Venture”), through its wholly owned subsidiary Pasinex Arama ve Madencilik Anonim Sirketi ( “Pasinex Arama”). Horzum AS owns 100% of the high-grade producing Pinargozu zinc mine. Horzum AS sells directly to zinc smelters and/or refiners through commodity brokers from its mine site in Turkey. The Company also holds an option to acquire 80% of the Gunman high-grade zinc exploration project in Nevada. Pasinex has a strong technical management team with many years of experience in mineral exploration and development of mining projects. Pasinex’s mission is to build a mid-sized zinc company based on its mining and exploration projects in Turkey and Nevada. Visit our website at www.pasinex.com.

On behalf of the Board of Directors
PASINEX RESOURCES LIMITED

“Andre Gottwald”


CSE does not accept responsibility for the adequacy or accuracy of this press release.

This press release contains forward-looking statements subject to risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the Company’s actual results to be materially different from historical results or any future results expressed or implied by such forward-looking statements.

All statements contained herein, other than statements of historical fact, should be considered forward-looking. Although Pasinex believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include market prices, the continued availability of capital and financing, exploration results and general economic, market or business conditions. There can be no assurance that such statements will prove to be accurate and, therefore, readers are urged to rely on their own assessment of these uncertainties. We assume no obligation to update forward-looking statements.

About Louis Miller

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