GobiMin reports its 2021 Financial Results
Montreal, Canada, April 21, 2022 (GLOBE NEWSWIRE) -- (TSXV: GMN) GobiMin Inc. (“GobiMin” or the “Company”, together with its subsidiaries collectively the “Group”) today announced its financial results for the year ended December 31, 2021.
Financial Highlights
| As at / For the year ended December 31, | 2021 | 2020 | 2019 |
| $’000 | $’000 | $’000 | |
| Revenue | 937 | 891 | 1,300 |
| (Loss)/gain on disposal of financial assets | (250) | 266 | 565 |
| Fair value (loss)/gain on financial assets | (168) | (106) | 897 |
| Net loss for the year | (2,363) | (3,349) | (479) |
| Loss attributable to shareholders of the Company | (2,085) | (3,057) | (344) |
| LBITDA (1) | (2,109) | (3,001) | (624) |
| Basic and diluted loss per share (in dollar) | (0.042) | (0.062) | (0.007) |
| LBITDA per share (1) (in dollar) | (0.043) | (0.061) | (0.013) |
| Cash and cash equivalents | 15,456 | 19,471 | 17,778 |
| Cash and cash equivalents per share (1) (in dollar) | 0.31 | 0.40 | 0.36 |
| Working capital | 17,215 | 21,306 | 21,313 |
| Total current liabilities | 2,659 | 2,536 | 2,467 |
| Total non-current financial liabilities | - | - | 354 |
| Total assets | 73,725 | 74,985 | 76,020 |
Note:
(1) As non-IFRS measurements, LBITDA (loss before interest income and expense, income taxes, depreciation and amortization), LBITDA per share and Cash and cash equivalents per share are not mandatorily required by 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 Highlights
1. Gold Project
The Company owns a 70% equity interest in Xinjiang Tongyuan Minerals Limited which holds Sawayaerdun Gold Project in Xinjiang. Impacted by the COVID-19 pandemic, the on-site industrial test on applying bio-leaching methodology on extraction of metals from large-scale samples of gold ores was delayed during the year under review. According to the analysis results on the ore sample and the immersion gold tests conducted by the Research Institute, arsenic and iron in the ore samples have been successfully removed by oxidation. It is targeted to complete the trial run gold immersion in the mid 2022.
2. Financial Assets
(i) Listed Securities - As at December 31, 2021, the fair value of listed securities held by the Group amounted to $758,000 (2020: $247,000) which mainly included $458,000 (2020: $127,000) investment in listed stock, futures and options trading through registered brokerage firm in Hong Kong and $300,000 (2020: $120,000) for stocks listed in Canada. For the year ended December 31, 2021, the loss on disposal of listed securities amounted to $249,000 (2020: $262,000) and fair value loss was $88,000 (2020: fair value gain of $16,000).
(ii) Unlisted Investments - The Group holds 670,000 shares of Dragon Silver Holdings Limited (“Dragon Silver”) representing 9.90% of its total issued capital at an investment cost of $1,121,000 (equivalent to HK$8,710,000). During the year ended December 31, 2021, due to continuous difficult market conditions and the impact of COVID-19, the Group agreed with the guarantor and Dragon Silver to waive the compensation for Profit Guarantee for the financial years ended up to June 30, 2022, and to extend (i) the Relevant Years for Dividend Guarantee to the financial years ending from June 30, 2022 to June 30, 2027; and (ii) the exercisable period of Put Option to December 28, 2027. As Dragon Silver has not paid any dividend to the Group for the financial year ended June 30, 2021, the guarantor paid to the Group the compensation for the Dividend Guarantee of $108,000 in October 2021. As at December 31, 2021, the fair value of the investment in Dragon Silver together with the Dividend Guarantee and the Put Option was $1,226,000 (2020: $1,286,000) and the fair value loss was $53,000 (2020: $128,000).
During the year under review, the Group acquired 40,153,000 shares, representing about 6.28% equity interest in Infinity Technology Limited (“Infinity Tech”), whose group provides in Hong Kong a one-stop solution cloud POS system integrating automated ordering and payment, menu digitalisation, logistics, marketing analysis, supply chains and inventory management at an investment cost of $1,500,000.
As at December 31, 2021, the Group also held other unlisted investments amounting to $268,000 (2020: $257,000). During the year under review, the fair value gain on other unlisted investments was $10,000 (2020: $18,000).
(iii) Debentures - As at December 31, 2021, the Group held debentures of $1,803,000 (2020: $2,741,000) with coupon rates ranged from 5.000% to 7.000% (2020: 4.250% to 7.375%) per annum and with perpetual maturities (2020: maturities ranging from May 31, 2021 to perpetual). For the year ended December 31, 2021, interest income from debentures amounted to $143,000 (2020: $188,000), fair value loss on debentures was $37,000 (2020: $13,000) and loss on disposal of debentures was $1,000 (2020: gain on disposal of $3,000).
3. Investment Properties
As at December 31, 2021, the Group held investment properties with carrying amount of $4,795,000 (2020: $5,003,000) in Shenzhen, Xinjiang and Hong Kong. The estimated fair value of the investment properties was approximately $7,685,000 as at December 31, 2021 (2020: $7,705,000). Certain investment properties were leased to third parties and related parties while some remain vacant. For the year ended December 31, 2021, rental income from the leased properties was $205,000 (2020: $190,000).
4. Liquidity and Capital Resources
As at December 31, 2021, working capital of the Group amounted to about $17,215,000 (2020: $21,306,000), which was computed by netting off its current assets of $19,875,000 (2020: $23,842,000) with current liabilities of $2,660,000 (2020: $2,536,000). Taking into account of its financial position, the management of the Group considered that its cash and cash equivalents will be more than sufficient to finance its operation, including the contractual commitments of the Gold Project of approximately $1,647,000 (2020: $1,633,000) as at December 31, 2021.
Full Financial Results and Management’s Discussion and Analysis are posted to SEDAR.
For further information, please contact:
| Felipe Tan, Chief Executive Officer Tel: (852) 3586-6500 Email: felipe.tan@gobimin.com |
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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