Gold miner Robex reports loss as it pivots from Mali to Guinea

West Africa-focused gold miner Robex Resources (TSXV: RBX) reported a 10% increase in gold production and a 35% rise in revenue for the second quarter of 2024. However, the company still posted a net loss. 

Robex announced in June it would sell its sole operating mine Nampala, in Mali, to focus on its Kiniero project in Guinea. It also said it plans to relist on the ASX. 

Robex is advancing Kiniero towards first production by the end of 2025.

“The strategic repositioning of the company towards the development of Kiniero is an exciting evolution for Robex,” said Robex Resources managing director Matthew Wilcox in the second-quarter news release. 

“The process to potentially divest the Nampala asset has begun, and Robex will carefully assess the best outcome for shareholders. In the meantime, Nampala continues to produce at low costs and maintain high safety standards,” Wilcox added. 

Q2 performance 

In the second quarter, Nampala produced 26,222 oz. gold, up from 23,872 oz. in the same period last year. Revenue from gold sales rose 35% to $39.3 million, driven by a higher average selling price per ounce, which climbed from $2,633 (US$1,953) to $3,236 (US$2,400). Mining operating income grew by 19.2% to $18 million, reflecting improved sales and cost management. 

The company reported a net loss of $200,000 for the quarter, impacted by increased depreciation, amortization and financial costs related to warrants. For the first half of 2024, it recorded a net loss of $32.3 million, down from the $11.8 million net profit reported in the same period last year. This decline was mainly due to a provision for tax contingencies in Mali. 

Robex shares fell 7% on the results, trading at $2.72 per share in early afternoon in Toronto. The company has a market cap of $404.4 million. 

In its first quarter results, Robex reported a $43-million provision for tax contingencies in Mali. The company said at the time it was negotiating with Malian authorities to establish a new tax framework. The tax relates to the broader context of the company’s exit from Mali, which involves managing and resolving various tax and regulatory issues as part of its transition. 

The company raised $125.6 million to support the Kiniero project in June, and announced new leadership under Wilcox. It also reduced net debt to $75.5 million.

A 30,000-metre infill drilling program is under way to upgrade resources at the Mansounia deposit at Kiniero. The deposit holds 19.4 million inferred tonnes grading 0.94 gram gold per tonne for 589,000 oz., according to a March resource update. It also holds indicated resources of 9.4 million tonnes at 1 gram gold for 303,000 ounces.