(Expressed in United
States dollars except where otherwise indicated)
TSX-V: GMN
TORONTO, May 28, 2015 /CNW/ - (TSXV:GMN) GobiMin
Inc. ("GobiMin" or the "Company") reports its financial and
operating results for the first quarter of 2015. The
unaudited interim consolidated financial statements along with
management's discussion and analysis have been filed with SEDAR
(www.sedar.com) and are also available at the website of the
Company (www.gobimin.com).
Financial Highlights
|
3 months ended
March 31
|
12 months
ended
|
|
2015
|
2014
|
December 31,
2014
|
|
$
|
$
|
$
|
|
Revenue
|
-
|
-
|
-
|
|
Other
revenue
|
0.2
million
|
0.2
million
|
0.7
million
|
|
Share of results of
associates
|
48,000
|
0.2
million
|
0.1
million
|
|
Gain from
reorganization of an associate
|
-
|
-
|
0.4
million
|
|
Gain on disposal of
an associate
|
-
|
-
|
3.9
million
|
|
Profit (loss) for the
period
|
(0.7
million)
|
(0.6
million)
|
0.3
million
|
|
EBITDA (LBITDA)
(1)
|
(0.6
million)
|
(0.6
million)
|
0.6
million
|
|
Basic and diluted
earnings (losses) per share
|
(0.012)
|
(0.009)
|
0.01
|
|
EBITDA (LBITDA) per
share
(1)
|
(0.011)
|
(0.010)
|
0.01
|
|
|
|
|
|
Cash and cash
equivalents
|
29.8
million
|
40.9
million
|
31.8
million
|
|
Cash and cash
equivalents per share
(1)
|
0.54
|
0.71
|
0.56
|
|
Working
capital
|
24.5
million
|
39.1
million
|
26.0
million
|
|
Total non-current
financial liabilities
|
63,000
|
4.5
million
|
42,000
|
|
Total
liabilities
|
5.9
million
|
17.4
million
|
6.4
million
|
|
Total
assets
|
86.5
million
|
100.5
million
|
88.2
million
|
|
Note:
|
|
|
(1)
|
As non-IFRS
measurements, EBITDA (LBITDA) (earnings
(losses) before interest income and expense, income taxes,
depreciation and amortisation),
EBITDA
(LBITDA) per share and
Cash and cash equivalents per share
do not comply with IFRS and, therefore, the amounts presented in
the above table may not be comparable to similar data presented by
other companies. The data is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS.
|
Business Summary and Development
The Company owns a 70% equity interest in a company which is
developing and operating the Sawayaerdun Gold Project ("Gold
Project") in Xinjiang. The drilling program of the Gold
Project has been completed in 2014. Given the tough
macroeconomic climate and the sustained drop in gold prices, the
Company will not proceed with the development plan in 2015.
In the meantime, the Company will focus on conserving cash and
controlling costs and expenditures.
GobiMin holds an equity interest of 48.02% in Loco Hong Kong
Holdings Limited ("Loco HK") which together with its subsidiaries
are engaged in the processing and trading of metals and commodity
forward contracts. Loco HK has commenced design of the
laboratory with the assistance from the Hong Kong Productivity
Council to match with the plan of expansion. Loco HK is also
studying the possibility of building a raw material supply base in
China. Loco HK recorded a net profit of about $0.11 million for the three months ended
March 31, 2015, with GobiMin's share
amounting to $0.05 million.
The Group owns 40% equity interests each in three exploration
companies incorporated in Xinjiang, China for nickel, copper, and gold. They are
treated as associates of the Group. The net cost of the
investment in these three exploration companies amounted to
$0.7 million (RMB4.3 million). The carrying value of these
companies as at March 31, 2015 was
$0.3 million (RMB1.9 million). The Group will search for
opportunities to sell the exploration licences of these exploration
companies to third party.
GobiMin held 3.5% equity interest in Xinjiang Tongxing Minerals
Limited, which is the licence holding company of the Yanxi Copper
Property.
Liquidity and Capital Resources
As at March 31, 2015, the Group
had a working capital of about $24.5
million (December 31, 2014:
$26.0 million), by netting off its
current assets of $30.3 million
(December 31, 2014: $32.3 million) with current liabilities of
$5.8 million (December 31, 2014: $6.3
million).
The Group has no difficulties in meeting obligations associated
with its financial liabilities and commitment. The Group has
determined that its cash and cash equivalents will be more than
sufficient to finance its operation, including the current
commitments of the Gold Project of approximately $4.9 million and the commitment for the capital
contributions to the exploration company in Xinjiang of
$0.5 million (RMB3.2 million).
Certain statements contained in
this press release constitute forward-looking information. Such
statements are based on the current expectations of management of
GobiMin. You are cautioned that such statements are subject to a
multitude of risks and uncertainties that could cause actual
results, future circumstances or events to differ materially from
those projected in the forward-looking information.
Forward looking information includes without limitation,
statements regarding the size and quality of the Company's mineral
resources, progress in development of mineral properties, the
prospective mineralization of the properties, and planned
exploration programs. The reader should
not place undue reliance on the forward-looking information
included in this press release given that (i) actual results could
differ materially from a conclusion, forecast or projection in the
forward-looking information, and (ii) certain material factors or
assumptions were applied in drawing a conclusion or making a
forecast or projection as reflected in the forward-looking
information could prove to be inaccurate. These statements speak
only as of the date they are made, and GobiMin assumes no
obligation to revise such statements as a result of any event,
circumstance or otherwise, except in accordance with
law.
"Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release."
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SOURCE GobiMin Inc.