Pasinex is focused on base metal mining and exploration in Turkey with a priority focus on zinc mining and exploration in Adana province, Turkey. Pasinex formed a 50 / 50 joint venture with Turkish mining house Akmetal AS, and through the joint venture company, called Horzum AS, they are developing the Pinargozu Zinc project in Adana province.
Objective to grow Pasinex through exploration which can now be initially funded through cash-flows from the Pinargozu mine. Small ambitious zinc producer, showing profitability in it’s joint venture company Horzum AS
The following is a summary of the Horzum AS Joint Venture Balance Sheet and Income Statement for the year ended 2015.
Sales for the Horzum AS Joint venture company were $4,506,244 CAD for 2015. This income was realized from the sale of 13,906 tonnes of direct shipping high grade zinc mineralization of between 30 – 38% Zn.
The JV company Horzum AS recorded an operating profit from these mining operations at Pinargozu of $831,625 CAD. A total of 10,162 wet tonnes were mined from Pinargozu mine in 2015 giving an average of 27.8 wet tonnes per day of production. In total, 13,906 wet tonnes of product was sold in 2015 with the difference between what was mined and sold coming from 2014 production. A total of 14,443 meters of drilling was conducted by the JV company in 2015. The cost of this was approximately $875,000 USD spent in 2015. The balance sheet for the Horzum AS joint venture company shows Total Assets at $7,221,892 CAD; the capital asset for Pinargozu property exploration was $1,049,467. Drilling continued on the Pinargozu property thus capital asset for exploration increased in 2015. Surplus was $707,832.
Steve Williams, President and CEO of Pasinex Resources Limited commented: “2015 was a great and critical year for Pasinex. We continued to grow the Pinargozu mine. In 2015 we averaged 850 wet tonnes per month of high grade direct shipping zinc product from Pinargozu. In 2016 we are already producing at 1800 wet tonnes per month. In 2015 all of the surplus operational cash generated was spent on exploration at Pinargozu. As can be seen from our JV company financial results, the company was profitable in 2015. We expect profitability to further strengthen in 2016. Also in 2016, we anticipate being able to fund all our exploration again and to also pay required capital for the mine growth. This is a major step forward for Pasinex. We have now built the PInargozu mine to sufficient productivity to provide the funds for exploration, as we push hard for the bigger zinc opportunity there.”
The overall consolidated financial results for Pasinex Resources Limited are presented below. The Joint Venture company, Horzum AS, is 50% owned by Pasinex and as such is accounted for by the equity method.
The following comment relate to the Pasinex Resources Limited balance sheet and income statement.
The equity gain realized from the joint venture company is seen as a $417,042 CAD “Equity gain” on the income statement.
The equity gain on the income statement (together with other item movements, particularly on property impairment) lead to a decrease in the net loss for 2015 versus 2014. In 2015 this net loss was $680,809 CAD versus a loss of $1,498,423 CAD in 2014.
Pasinex Resource Limited operational costs in 2015 were in total $1,145,595 CAD versus $1,248,652 CAD in 2014.
The Total Assets for Pasinex increased from $1,781,455 CAD in 2014 to $2,368,863 CAD in 2015. This mostly reflected increases in project investment seen as “Due from related parties”, “Investment in joint venture” and “Exploration and evaluation assets”. This reflects activity in the Joint venture company and the Turkish assets of Pasinex.
Shareholder equity was $1,986,962 CAD in 2015 versus $1,596,873 CAD in 2014. Again this reflects growth of the business in Turkey.
Steve Williams, President and CEO commented on the Pasinex Resources financial results: “2015 was a tough year for raising equity in the junior resource market, therefore we only raised about $500,000 in equity. Nevertheless, we stayed focused on our game plan of building our zinc story in Turkey by developing the Pinargozu mine to production and enhancing our geological asset there. We expect to see our balance sheet strengthen over the next year. Equally as important, we are hopeful that we will see the rewards of our persistent focus on exploration at Pinargozu in 2016.”