AXMIF - Axmin Inc. (Gold Royalty)

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  1. AXM.V Year End Results. (Finacials + MD&A) Ending December 31st 2017
    All Information Can Be Found On www.Sedar.com

    Tickers: AXM(CDN) & AXMIF(US)

    Price: $0.14
    Common Shares: 130,497,381

    Options: 8,240,000

    Insider/Institutional Holdings: 82,089,114 – 63%

    Financials For 2017 – All Numbers Are In USD. 2016 Comparison Numbers Added
    Multiply By 1.28 To Get CAD Value

    ASSETS($USD)
    Cash: $1,115,331 (2016 - $270,238)
    Receivables: $610,477 (2016 - $133,799)
    Prepaid Expenses: $12,934 (2016 - $12,084)

    Total Assets: $1,738,742 (2016 - $516,121)

    LIABILITIES($USD)

    Accounts Payable: $2,440,820 (2016 - $2,448,203)
    Amounts Due To Related Parties: $190,355 (2016 - $180,979)
    Liabilities Of Discontinued Operations: $323,103 (2016 - $323,103)
    Total Liabilities: $2,954,278 (2016 - $2,952,285)

    Revenue($USD)
    Royalty Income: $1,585,578
    G&A Expenses: $388,268
    Net Income: $1,141,752

    2017 Net Income Converted Into Earnings

    $1,141,752USD X 1.28CAD = $1,461,443 CAD earnings for 2017

    $1,461,443 / 130,497,381 = $0.011 cents earnings per share in CAD

    MD&A Highlights

    Operations

    Central African Republic – Passendro Gold Project

    The Company’s primary asset is the Passendro gold project, which is situated in the centre of a 25-year Mining License (355 sq km) that was awarded to AXMIN in August 2010. At the same time, the Company was also awarded two, three-year renewable Exploration Licenses, Bambari 1 and 2 (1,240 sq km), which ring fence the Mining License and cover a 90 km strike along the highly prospective Bambari greenstone belt.

    November 28, 2016, the Minister of Mines, Energy and Hydraulics of the CAR issued the Ministerial Order No 246/16/MMEH/DIRCAB/DGMD, giving an Exemption Certificate of one (1) year for exploration and research of the primary layer of gold and others related to substances of Licenses of BAMBARI 1 and 2 to Aurafrique SARL, a wholly-owned subsidiary of the Company. The period of the Exemption is valid within duration of one year from November 28, 2016 to November 27, 2017. In 2016, the Company incurred $1,000,000 for the extension of the licenses of BAMBARI 1 and 2, which is included in accounts payable and accrued liabilities in consolidated statements of financial position as of December 31, 2016.


    On March 26, 2018, the Minister of Mining and Geology issued an executive order No 032/18/MMG/DIRCAB/DGM to grant Aurafrique SARL an extension period of exemption from exploration and research for one (1) year, running from March 22, 2018 to March 21, 2019.


    The Company through its in-country staff have maintained close communications with senior ministers and officials in Bangui and also in Bambari which is the closest city to the Company’s asset near Ndassima. AXMIN’s country manager Mr Boubacar Sidbe recently meet with the Vice Mayor of Bambari and Sub-prefect to discuss the situation on the ground and express the Company’s desire to get back on site. Meetings have also been held with the Mining Minister and Chief of the Office of the Head of State. AXMIN remains confident that stability will eventually return to the country and that the Company will be well positioned and ready to work with the elected government of the CAR to develop a pragmatic mining plan focusing on the extremely high-grade deposits that will be safe for our employees and contractors, have limited capital expenditure and hopefully achieve very profitable returns in a very timely fashion for shareholders.


    As of the date of this report, operations at Passendro remain suspended and although the Company continues to maintain a presence in the CAR (through its administrative office and permanently stationed employees in Bangui) and relationship with the State in the CAR, the Company is unable to predict when it will be able to resume its operations at Passendro for the foreseeable future, if at all. As a result, impairment in the amount of $37,346,576 was recognized at December 31, 2013 on exploration and evaluation (“E&E”) assets for the Bambari properties to reflect the decrease in their recoverable value as of result of the current unstable situation in CAR. As at December 31, 2017, given that impairment was recognized and the unstable condition remains the same, the residual value of E&E assets for the Passendro gold project was written down to $nil in 2016.


    This impairment recognized in the financial statements does not in any way mean that the Company is relinquishing its rights to the assets and it reflects the utmost conservative view by management on the objective circumstances and will be reviewed annually and subject to recovery when certain conditions are met pursuant to the accounting standards the Company has adopted.


    Senegal Joint Venture


    With regarding of Axmin owned 20% interest in the Sounkouko and Heremokono explorations permits, on June 18, 2015, in addition to its royalty interest of 1.5% NSR in the Gora Target Area, AXMIN has elected to convert its 20% interests in another 15 Target Areas into a 1.5% NSR from each Target Area. On January 12, 2016, AXMIN elected to convert its 20% interest in one new Target area into a 1.5% NSR. After these Royalty Elections, AXMIN holds a 1.5% NSR on 17 Royalty Target Areas (being Target Areas have been made Royalty Election on) in total and maintains 20% interests of Remainder Areas within the Senegal permits. Axmin’s royalty rights are intended to continue and survive the Joint Venture Agreement and remain tied to the permits themselves, irrespective of title holder.


    Since August 2015, Axmin Inc. started to generate the 1.5-per-cent net-smelter-return royalty’s income from the Gora deposit. The total royalty income for the year ended December 31, 2017 was $1,585,578 (for the year ended December 31, 2016 - $980,380). The royalty is applied to the production of gold from the Gora deposit, located in the Senegal Republic. The Gora deposit is operated by Axmin's joint venture partner, Sabodala Mining Company SARL, a wholly owned subsidiary of Teranga Gold Corp.


    In February 2012, AXMIN elected to hold a 1.5% NSR royalty interest in the Gora deposit. Since August 2015, Axmin Inc. started to generate the 1.5-per-cent net-smelter-return royalty’s income from the Gora deposit.


    During the year ended December 31, 2017, the Company reported royalty income of $1,585,578 from Gora Projects, compared with $980,380 for the same time period of 2016.


    Readers are advised that the information about the Gora project contained in this MD&A is based on information publicly disclosed by Teranga and has not been independently verified by the Company. Specifically, as a royalty holder, the Company has limited, if any, access to the Gora project and is dependent on the operator of the property and its qualified persons to provide information to the Company regarding the project or on publicly available information and the Company generally has limited or no ability to independently verify such information.


    Results of Financial


    For the year ended December 31, 2017, Axmin reported royalty income of $1,585,578 from Gora Projects, compared with $980,380 for the same time period of 2016.


    The net income for the year ended December 31, 2017 was $1,230,930 compared to an $246,758 net loss in the same period of 2016, an increase in the net income of $1,477,688. The increase in net income was mainly due to:


    Increased in royalty income of $605,198 from $980,380 in 2016 to $1,585,578 in 2017.


    Decreased in expenses of $922,115 in the year ended December 31, 2017 from $1,310,383 in the year of 2016 to $388,268 in the same period of 2017. The decrease in expenses was primarily due to a $1,003,274 decrease in project costs due to the $1,000,000 consulting fee incurred in 2016 for the extension of Exploration Licenses of BAMBARI 1 and 2 and the extension of exemption from the development work and productions of the Passendro gold, which was not incurred in the year of 2017. The decrease in expenses was also due to $11,410 decrease in consulting fees, offset by a $14,283 increase in salary and wages, a $69,658 increase in share-based compensation, and a $9,078 increase in travel expenses. Offset by:


    Decreased in other income of $49,625 from $83,245 in 2016 to $33,620 in 2017.


    For the fourth quarter ended December 31, 2017, the Company incurred an income of $437,814 from continuing operations compared with a loss of $841,007 from continuing operations for the quarter ended December 31, 2016, an increase in the net income of $1,278,821. The increase in net income during the quarter ended December 31, 2017 was mainly due to the followings:


    Increased in royalty income of $489,441 from $125,282 in 2016 to $614,723 in 2017.


    Decreased in expenses of $957,219 in the fourth quarter of 2017 compared with the same period of 2016. The decrease in expenses was primarily due to the $1,000,000 in project costs related to consulting fee for the extension of Licences of BAMBARI 1 and 2 incurred in 2016, which was not incurred in the same fiscal year of 2017. The decrease in other income was primarily due to the decrease in loss on foreign exchange.
     
  2. Symbol C : AXM
    Shares Issued 130,497,381
    Close 2018-05-07 C$ 0.13
    Recent Sedar Documents

    View Original Document

    Axmin earns $1.2-million (U.S.) in 2017

    2018-05-07 11:33 MT - News Release


    Ms. Lucy Yan reports

    CHAIRMAN PROVIDES AXMIN'S YEAR END 2017 FINANCIAL AND OPERATIONAL RESULTS

    Axmin Inc. has released highlights from its audited annual financial statements for the year ended Dec. 31, 2017, which have been filed on SEDAR (amounts are in U.S. dollars).

    2017 highlights

    Financial:
    • Revenue of $1.6-million (2016: $1-million);
    • Net income of $1.2-million (2016: loss of $250,000);
    • Cash balance of $1.1-million (2016: $400,000).
    Operational:
    • Revenue from the company's net smelter return (NSR) royalty with Teranga Gold Corp. for the Gora deposit has grown from $1-million in 2016 to $1.6-million in 2017. For the avoidance of doubt, at the moment, only the Gora deposit contributed the NSR royalty revenue of $1.6-million for the year 2017 to Axmin.
    • Axmin staff are in discussions with Teranga regarding progress on developing other properties in which Axmin has an interest.
    • Axmin holds an additional 16 target areas in conjunction with Teranga subject to future development with no further capital participation contribution required from Axmin.
    Central African Republic (CAR):

    • Axmin is delighted to confirm that, on March 26, 2018, the Minister of Mining and Geology in the CAR issued an executive order No. 073/18/MMG/DIRCAB/DGM to grant Somio Toungou an extension of the period of exemption from development and exploration under the mining licence for one year, running from March 22, 2018, to March 21, 2019, relating to the Passendro gold project.
    • By the executive order, Aurafrique also was granted a one-year extension, running from March 22, 2018, to March 21, 2019, of an exemption from exploration and research work on the Bambari 1 and 2 exploration permits.
    • The situation in the CAR remains difficult, but Axmin's in-country representative, Boubacar Sidibe, has recently visited Bambari and has met with the district commissioner, Prefect of Ouaka, the Vice-Mayor of Bambari, head of MINUSCA at Bakala and representatives of the illegal miners who were at one time active on the Passendro gold project site. Axmin is maintaining excellent relations at the regional level as well as at the central government level.
    • Axmin regrets the instability that has plagued the CAR but is confident that stability will return under the stewardship of the current government and looks forward to working with all stakeholders to develop a safe, rapid and profitable mining operation on the company's mineral properties in the CAR.

    Commenting on the 2017 annual results, Lucy Yan, Axmin's chairman, said: "During the past year of my tenure as chairman, we are starting to see some positive developments in the CAR. We believe that the duly elected government working with MINUSCA will in time bring stability to the country and specifically to the region around Ndassima, where our main asset is located. We have been in close communication with the senior ministers and officials of the governments both in Bangui and locally in Bambari and look forward to the time when we can reclaim the site to become operational again."

    The counsellor to the CAR president for disarmament, demobilization, reinsertion and repatriation (DDRR), Colonel Noel Bienvenu Selesson, wrote to Axmin: "We thank you not only for the efforts made by your company but also for the reaffirmation of its commitment and its determination to go to the operation. The DDRR process is evolving. After the successful completion of the DDRR/RSS pilot project that ended on Dec. 19, 2017, we are very actively preparing for the launch of the large DDRR. The provisions in this framework, will allow your company to resume fairly quickly all its activities in the area as well as in the rest of the country."

    The CAR Minister of Mining and Geology, Leopold Mboli Fatrane, also wrote to Axmin: "... the Ndassima mine is one of the main projects on which the government is setting out to revive the national economy. To this end, the government and the Integrated Multidimensional Stabilization Mission of the United Nations in Central African Republic (MINUSCA) have already undertaken the restoration of the authority of the State in the Ouaka and its surroundings."

    David Weill, lead independent director of Axmin, commented: "Management has done a superb job during this time of adversity to firstly secure the financial situation of the company by strictly controlling costs and secondly develop the royalty revenue streams for the benefit of all shareholders. Management has also maintained an excellent relationship and ongoing dialogue with the government of the CAR so that, when the company regains access to and control over the mining site, the company may rapidly implement a pragmatic mining plan focusing on developing the extremely high-grade deposits that will provide operational security for our employees and contractors, require limited capital expenditures from the company, and hopefully achieve very profitable returns in a very timely fashion for our shareholders."

    This press release should be read in conjunction with the company's audited annual financial statements for the year ended Dec. 31, 2017, together with its management discussion and analysis for the year ended Dec. 31, 2017, both of which are available from the company's website and on SEDAR.

    About Axmin Inc.

    Axmin is a Canadian exploration and development company with a strong focus on Central and West Africa. Axmin is positioned to grow in value as it progresses its Passendro gold project toward development and builds on its project pipeline focusing on transitioning from an explorer to producer.

    We seek Safe Harbor.

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