Highlights Include:
Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF)
(FRA:2D9) ("Ascendant" or the "Company”) is very pleased to
announce its first quarter of net income and third consecutive
month of positive adjusted EBITDA1 just nine months after acquiring
the El Mochito mine in Honduras. The Company has aggressively
ramped up monthly production by 67% year to date, and is on track
to exceed its fourth quarter targeted average production rate of
2,200 tonnes per day (“tpd”) as well as exit the year with free
cash flow.
Milled production for the third quarter (“Q3
2017”) at the El Mochito mine was 176,037 tonnes (or an average of
1,934 tonnes per operating day) representing a 17% improvement over
the second quarter (“Q2 2017”) production of 150,785 tonnes (or an
average of 1,733 tonnes per operating day). Milled production for
the month of September was 59,601 tonnes (or an average of 2,055
tonnes per operating day), representing an 8% increase from August
production of 58,978 (or an average of 1,903 tonnes per operating
day).
The substantial increase in production rates can
be largely attributed to the near completion of a comprehensive
turnaround program at all areas of El Mochito. Delivery of new
mining equipment continued with the commissioning of two trucks and
two scoops early in the quarter. An additional truck, three new
scoops and a single-boom jumbo drill are expected to be delivered
in the fourth quarter. As part of the same order, another four
trucks, two bolters and a second single-boom jumbo drill are
expected to be delivered in the first four months of 2018. This
additional equipment along with the on-going operational
improvement programs will support continued strong production
performance through the year-end and provide even further growth
opportunity into 2018 with reduced operating costs.
Q3 2017 Financial Results
All financial figures are in US dollars unless
otherwise stated.
The Company reports financial results for the
three months ended September 30, 2017 with net concentrate sales
revenue of $17.4 million, an increase of 75% versus revenue of $9.9
million in the second quarter, generating net income of $0.8
million and earnings per share of $0.01 and adjusted EBITDA(1) of
$2.4 million.
The Company sold 4,553 tonnes of zinc
concentrate and 1,770 tonnes of lead concentrate at weighted
average metal prices of $1.43 per pound zinc, $1.06 per pound lead
and $16.02 per ounce of silver.
Q3 2017 Financial Results
Highlights:
- Net concentrate sales revenue of $17.4 million, up
75% from Q2 2017
- Net income of $0.8 million and
earnings per share of $0.01
- Adjusted EBITDA(1) of $2.4 million
- Operating cash flow before changes in working capital of $2.3
million
- Total cash position of $6.6 million
- Quarterly milled tonnes increased 17% to 1,934
tpd, up from 1,733 tpd in Q2 2017
- Quarterly payable zinc equivalent (ZnEq)(2) production
increased 14% to 14.9 million lbs from Q2 2017 with
payable zinc, lead and silver production of 10.0 million lbs, 3.9
million lbs and 117,727 ozs produced respectively
Chris Buncic, President and CEO of Ascendant,
commented: "We are extremely pleased to report our first quarter of
net income. This is quite a milestone for Ascendant as it firmly
marks the transition towards our objective of Free Cash Flow. Our
operational success at El Mochito has provided significantly higher
revenues that have led to positive EBITDA for the past three months
and gives good visibility to achieve our targeted free cash flow in
the fourth quarter and into 2018.”
He continued, “Our primary focus for 2017 was to
drive monthly tonnage to confirm El Mochito was capable of higher
production rates as well as to fix a myriad of issues needed to
attain operational stability and provide a path to future growth.
The focus now and into 2018 will be to drive increased value per
tonne mined, primarily through improving grade while at the same
time reducing costs. This mine optimization will provide the
foundation for the next phase of growth led by the success of our
current exploration program.”
Summary of Financial and Operating
Results
Financial Results |
|
|
|
|
Q3 2017 |
Q2 2017 |
|
Q1 2017 |
|
9 Months YTD |
|
|
|
|
|
Average
Realized Metal Price |
Zinc ($/lb) |
|
1.43 |
1.25 |
|
1.26 |
|
1.32 |
Lead ($/lb) |
|
1.06 |
0.98 |
|
1.04 |
|
1.03 |
Silver ($/oz) |
|
16.02 |
16.97 |
|
18.01 |
|
16.2 |
Revenues |
|
17,399,214 |
9,941,830 |
|
7,924,416 |
|
35,265,460 |
Adjusted EBITDA(1) |
|
2,423,205 |
(5,552,201) |
|
(1,932,694) |
|
(4,818,380) |
Net income (loss) |
|
821,009 |
(8,555,453) |
|
(2,893,917) |
|
(10,628,361) |
Basic Income (loss) per
share |
|
$0.01 |
($0.15) |
|
($0.04) |
|
($0.17) |
|
|
|
|
|
|
|
|
El
Mochito Operational Results |
|
|
|
|
Q3 2017 |
Q2 2017 |
Q1 2017 |
9 Months YTD |
Tonnes Mined
(tonnes) |
|
177,631 |
|
151,028 |
|
131,325 |
|
459,984 |
Tonnes Milled
(tonnes) |
|
176,037 |
|
150,785 |
|
131,115 |
|
457,938 |
Operating Days |
|
91 |
|
87 |
|
81 |
|
259 |
Tonnes Milled
(tpd) |
|
1,934 |
|
1,733 |
|
1,619 |
|
1,768 |
Average Head Grade |
|
|
|
|
Zinc (%) |
|
3.51 |
|
3.36 |
|
3.43 |
|
3.44 |
Lead (%) |
|
1.46 |
|
1.34 |
|
1.33 |
|
1.38 |
Silver (oz/t) |
|
38.3 |
|
48.9 |
|
52.1 |
|
45.8 |
Zinc Equivalent Head
Grade (%) (2) |
|
5.36 |
|
5.50 |
|
5.56 |
|
5.47 |
Average Recoveries |
|
|
|
|
Zinc (%) |
|
88.8 |
|
88.9 |
|
89.8 |
|
89.1 |
Lead (%) |
|
73.7 |
|
72.3 |
|
76.9 |
|
74.2 |
Silver (%) |
|
78.0 |
|
79.3 |
|
78.8 |
|
79.4 |
Contained Metal
Production: |
|
|
|
|
Zinc
(tonnes) |
|
5,488 |
|
4,505 |
|
4,032 |
|
14,025 |
Lead
(tonnes) |
|
1,894 |
|
1,459 |
|
1,341 |
|
4,694 |
Silver (oz) |
|
168,181 |
|
188,245 |
|
173,041 |
|
529,640 |
Zinc Equivalent
(tonnes) (2) |
|
7,936 |
|
6,975 |
|
6,201 |
|
21,111 |
Zinc Equivalent
(lbs) (2) |
|
17,496,673 |
|
15,376,986 |
|
13,671,410 |
|
46,541,979 |
Zinc Equivalent
(tonnes) Payable Produced (2) |
|
6,746 |
|
5,929 |
|
5,271 |
|
17,944 |
Zinc Equivalent (lbs)
Payable Produced (2) |
|
14,872,172 |
|
13,070,438 |
|
11,620,699 |
|
39,560,682 |
Site
Operating Cost per Tonne Milled (ex. CAPEX) |
|
$87.86 |
|
$89.97 |
|
$98.91 |
|
$91.72 |
(1) EBITDA (earnings before interest, taxes,
depreciation and amortization) is a Non-IFRS measure and is
calculated by considering Company's earnings before interest
payments, tax, depreciation and amortization are subtracted for any
final accounting of its income and expenses. (2) ZnEq Payable
tonnes Produced = ((Zn Payable tonnes Produced x Zn Price)+(Pb
Payable tonnes Produced x Pb Price)+ (Ag oz Payable Produced x Ag
Price/oz x Oz to tonnes conversion ratio))/Zn Price where Zn and Pb
prices are in tonne.
Contained metal production for the third quarter
was 5,488 tonnes of zinc, 1,894 tonnes of lead and 168,181 ounces
of silver. On a Zinc equivalent (ZnEq) basis accounting for
recoveries and payability rates, metal production was 7,936 tonnes
during the quarter, a 14% increase from Q2 2017.
Revenues were up by 75% in the third quarter, at
$17,399,214 as compared to $9,941,830 in Q2 2017 as the Company was
able to increase concentrate shipments due to increased ZnEq
payable production as well as benefitting from higher realized
prices for both zinc and lead. With the addition of two new trucks
and scoops in mid-July, the availability of the mobile equipment
improved, contributing to the production and revenue increases.
Gross profit in the third quarter was also up sharply at $3,058,992
as compared with a loss of ($4,992,993) in Q2 2017.
In Q3 2017 the Company generated its first
quarter of net income since taking ownership of the mine in late
December, just nine months ago. Net income was $821,009, or $0.01
per share. Cash from operations was $2,277,774 before changes in
working capital, and cash used in operations was ($713,452) after
taking into account the increases in inventory for our next
shipment, increased sales receivables and other working capital
items. As production and sales have ramped up during the year, the
associated increases in concentrate inventory and sales receivable
have increased cash used in operations. As production normalizes,
the changes in cash flow due to working capital items should also
normalize. Management now believes it has visibility on the
path to increased head grades and production rates for the fourth
quarter and into 2018, which will continue the trend of
increasingly improved financial performance.
Total mine operating costs, or cost of goods
sold, excluding capital expenditures were $14.3 million as compared
to $14.8 million in Q2 2017 due to timing of sales. On a cash cost
basis, direct operating costs increased to $15.5 million in Q3 2017
from $13.6 million due to higher production volumes and increased
maintenance and labour costs. On a per unit cost basis, total cost
per tonne milled was lowered to $87.86 in Q3 2017 from $89.97 in Q2
2017. Excluding extraordinary items, however, costs totaled $84.43
per tonne milled.
Unit costs remained higher than originally
budgeted during the quarter due to delayed delivery of new
equipment and a few other non-recurring cost items. Unit costs are
expected to improve in Q4 2017 and into 2018, with some cost
savings expected earlier this year being shifted out into the next
few quarters, including cost reductions from the replacement of the
aging mining fleet and changes at the mine including
infrastructure, mining methods and labour. Following additional
analysis, the Company believes it will deliver an annualized cost
per tonne milled of approximately $87 for 2017, versus the original
$70 estimate. While a faster reduction in costs would have been
optimal, Management is confident in exiting the year at $80/t
milled with great potential to reduce this further. Cost reduction
is and will remain a primary focus of the Company.
Conference Call
Management will host a conference call tomorrow,
Tuesday, November 14, 2017 at 10:00 am EST. Participants may join
the call by dialing North America toll free 1-833-696-8362 or
1-612-979-9908 for calls outside Canada and the U.S., and entering
the participant passcode 9386218. A recorded playback of the third
quarter 2017 results call will be available from 1:00 pm EST on
November 14, 2017 until 1:00 pm EST on December 14, 2017 by dialing
1-855-859-2056 or 1-404-537-3406 and entering the call back
passcode 9386218.
The information provided within this release
should be read in conjunction with Ascendant’s unaudited condensed
consolidated interim financial statements and management's
discussion and analysis for the three and nine months ended
September 30, 2017, which are available on Ascendant’s website and
on SEDAR. As at January 1, 2017, the Company has changed its
presentation currency to the U.S. dollar (US). All financial
figures are in US dollars unless otherwise stated.
About Ascendant Resources
Ascendant Resources Inc. is a Toronto-based
mining company focused on its 100%-owned producing El Mochito zinc,
silver and lead mine in west-central Honduras, which has been in
production since 1948. Since acquiring the mine in December 2016,
Ascendant has been focused on a continuous optimization program
aimed at restoring the historic potential of the El Mochito mine.
To date, the Company has been successful at increasing production
and reducing costs with the expectation of free cash flow in the
near-term. Ascendant is also focused on expanding and upgrading
known resources through extensive exploration work for near-term
growth. With a significant land package of 11,000 hectares and an
abundance of historical data there are several regional targets
providing longer term exploration upside which could lead to
further resource growth. The Company is also engaged in the
evaluation of producing and advanced development stage mineral
resource opportunities, on an ongoing basis. The Company's common
shares are principally listed on the Toronto Stock Exchange under
the symbol "ASND". For more information on Ascendant Resources,
please visit our website at www.ascendantresources.com.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX) accepts responsibility for the adequacy or
accuracy of this release. For further information please
contact:
Katherine PrydeDirector, Communications &
Investor RelationsTel: 888-723-7413info@ascendantresources.com
Cautionary Notes to US
Investors
The information concerning the Company’s mineral
properties has been prepared in accordance with National Instrument
43-101 (“NI-43-101”) adopted by the Canadian Securities
Administrators. In accordance with NI-43-101, the terms
“mineral reserves”, “proven mineral reserve”, “probable mineral
reserve”, “mineral resource”, “measured mineral resource”,
“indicated mineral resource” and “inferred mineral resource” are
defined in the Canadian Institute of Mining, Metallurgy and
Petroleum (the “CIM”) Definition Standards for Mineral Resources
and Mineral Reserves adopted by the CIM Council on May 10,
2014. While the terms “mineral resource”, “measured mineral
resource”, “indicated mineral resource” and “inferred mineral
resource” are recognized and required by NI 43-101, the U.S.
Securities Exchange Commission (“SEC”) does not recognize
them. The reader is cautioned that, except for that portion
of mineral resources classified as mineral reserves, mineral
resources do not have demonstrated economic value. Inferred
mineral resources have a high degree of uncertainty as to their
existence and as to whether they can be economically or legally
mined. It cannot be assumed that all or any part of any
inferred mineral resource will ever be upgraded to a higher
category. Therefore, the reader is cautioned not to assume
that all or any part of an inferred mineral resource exists, that
it can be economically or legally mined, or that it will ever be
upgraded to a higher category. Likewise, you are cautioned
not to assume that all or any part of a measured or indicated
mineral resource will ever be upgraded into mineral reserves.
Readers should be aware that the Company’s
financial statements (and information derived therefrom) have been
prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board and are subject to Canadian auditing and auditor
independence standards. IFRS differs in some respects from United
States generally accepted accounting principles and thus the
Company’s financial statements (and information derived therefrom)
may not be comparable to those of United States companies.
Forward Looking
Information
This news release contains "forward-looking statements" and
"forward-looking information" (collectively, "forward-looking
information") within the meaning of applicable Canadian securities
legislation. All information contained in this news release, other
than statements of current and historical fact, is forward-looking
information. Often, but not always, forward-looking information can
be identified by the use of words such as "plans", "expects",
"budget", "guidance", "scheduled", "estimates", "forecasts",
"strategy", "target", "intends", "objective", "goal",
"understands", "anticipates" and "believes" (and variations of
these or similar words) and statements that certain actions, events
or results "may", "could", "would", "should", "might" "occur" or
"be achieved" or "will be taken" (and variations of these or
similar expressions). Forward-looking information is also
identifiable in statements of currently occurring matters which may
continue in the future, such as "providing the Company with", "is
currently", "allows/allowing for", "will advance" or "continues to"
or other statements that may be stated in the present tense with
future implications. All of the forward-looking information
in this news release is qualified by this cautionary note.
Forward-looking information in this news release
includes, but is not limited to, statements regarding the potential
of free cash flow, growth, improved head grades and production and
improved costs. Forward-looking information is not, and cannot be,
a guarantee of future results or events. Forward-looking
information is based on, among other things, opinions, assumptions,
estimates and analyses that, while considered reasonable by
Ascendant at the date the forward-looking information is provided,
inherently are subject to significant risks, uncertainties,
contingencies and other factors that may cause actual results and
events to be materially different from those expressed or implied
by the forward-looking information. The material factors or
assumptions that Ascendant identified and were applied by Ascendant
in drawing conclusions or making forecasts or projections set out
in the forward-looking information include, but are not limited to,
obtaining free cash flow, increasing growth, improvement of head
grades and production, improvement in costs, and other events that
may affect Ascendant's ability to develop its project; and no
significant and continuing adverse changes in general economic
conditions or conditions in the financial markets.
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), the company’s ability to obtain free cash
flow from its operations, the ability to improve head grades,
production and costs, uncertainties related to the development and
operation of Ascendant's projects, dependence on key personnel and
employee and union relations, risks related to political or social
unrest or change, rights and title claims, operational risks and
hazards, including unanticipated environmental, industrial and
geological events and developments and the inability to insure
against all risks, failure of plant, equipment, processes,
transportation and other infrastructure to operate as anticipated,
compliance with government and environmental regulations, including
permitting requirements and anti-bribery legislation, volatile
financial markets that may affect Ascendant's ability to obtain
additional financing on acceptable terms, the failure to obtain
required approvals or clearances from government authorities on a
timely basis, uncertainties related to the geology, continuity,
grade and estimates of mineral reserves and resources, and the
potential for variations in grade and recovery rates, uncertain
costs of reclamation activities, tax refunds, hedging transactions,
as well as the risks discussed in Ascendant's most recent Annual
Information Form on file with the Canadian provincial securities
regulatory authorities and available at www.sedar.com.
Should one or more risk, uncertainty,
contingency or other factor materialize, or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, the reader should not place undue reliance on
forward-looking information. Ascendant does not assume any
obligation to update or revise any forward-looking information
after the date of this news release or to explain any material
difference between subsequent actual events and any forward-looking
information, except as required by applicable law.
Ascendant Resources (TSX:ASND.WT)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Ascendant Resources (TSX:ASND.WT)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024