Pasinex Files 2024 Second Quarter Financial Results
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) has officially filed its financial statements, management discussion and analysis, and related certifications for the three and six months ending June 30, 2024. These documents, collectively referred to as the "Second Quarter Results," are now available on SEDAR+.
Second Quarter Financial Overview
The Company has yet to complete a current technical report that includes a mineral resource estimate. Additionally, the Joint Venture has not adhered to accepted quality assurance and quality control practices for its ongoing drilling program, nor has it engaged an independent third-party laboratory for assay analysis.
Financial Performance Highlights
Highlights for the Three and Six Months Ended June 30, 2024
Financial Summary:
During the three and six months ending June 30, 2024, Pasinex reported net losses of approximately $0.3 million and $0.01 million, respectively. This is a significant decline compared to net incomes of around $1.1 million and $0.9 million for the same periods in 2023. The main factor contributing to this decrease in net income was lower equity gains from Horzum AS.
Operating income from Horzum AS fell to $0.7 million and $2.1 million for the three and six months ending June 30, 2024, down from $1.6 million and $3.6 million for the same periods in 2023. This decline is attributed to rising costs and decreased sales. The gross margin for these periods was 46% and 41%, respectively, compared to 53% and 56% in 2023. Horzum AS mined 1,225 tonnes and 2,728 tonnes of zinc product during these periods.
Operational Data Overview
The sales volume of high-grade zinc sulphide product decreased to 994 tonnes and 3,980 tonnes for the three and six months ending June 30, 2024, respectively, compared to 2,993 tonnes and 5,990 tonnes for the same periods in 2023. However, the sales prices per tonne for zinc sulphide increased by 61% and 18% for the three and six months ending June 30, 2024, respectively, compared to the same periods in 2023.
Non-GAAP Measures
All dollar amounts in this report are expressed in Canadian dollars. It is important to note that this report includes non-GAAP measures, such as gross margin, cost per tonne mined, and USD cash cost per pound of zinc mined, which are reconciled to the GAAP financial statements.
About Pasinex Resources Limited
Pasinex Resources Limited is a mining company that holds a 50% stake in Horzum Maden Arama ve Isletme Anonim Sirketi ("Horzum AS") through its wholly owned subsidiary, Pasinex Arama ve Madencilik Anonim Sirketi ("Pasinex Arama"). Horzum AS operates the Pinargozu high-grade zinc mine and sells its products directly to smelters and refiners. Additionally, Pasinex has a 51% interest in the Gunman Project located in Nevada. The mission of Pasinex Resources is to explore and extract high-grade ore, fostering growth and wealth for stakeholders while upholding commitments to safety, health, and environmental standards.
Contact Information
If you have any questions, please reach out to:
Andrew Gottwald
Chief Financial Officer
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
Frequently Asked Questions
What are the main financial highlights from Pasinex's Q2 2024 results?
Pasinex reported net losses of approximately $0.3 million and $0.01 million for the three and six months ending June 30, 2024, marking a decline from the net incomes recorded in the same periods of the previous year.
How much zinc product did Horzum AS mine in Q2 2024?
During the three and six months ending June 30, 2024, Horzum AS mined 1,225 tonnes and 2,728 tonnes of zinc product, respectively.
What has contributed to the decrease in operating income for Pasinex?
The decline in operating income is primarily due to increased costs driven by inflation and decreased sales performance, as reflected in the financial results.
What is the average sales price for zinc sulphide produced in Q2 2024?
For the three months and six months ending June 30, 2024, the average USD sales price for zinc sulphide product was US$1,133 per tonne and US$941 per tonne, respectively.
What is the operational strategy of Pasinex Resources Limited?
Pasinex Resources is focused on exploring and extracting high-grade ore while ensuring the safety and health of its employees and the surrounding environment.
