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Forum - Mining and Commodities Eh! (Axmin - AXM.V)    All things commodities, with a Canadian Junior Miner focus.

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From: Jimjones1972 (Rep: 3)Date: 2018-04-04 10:48:26
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6136 - Part 1/22 (Rec: 0)
AXM.V Due Diligence Report (Most Recent Financials + MD&A)

Price: $0.05
Common Shares: 130,497,381
Options: 8,240,000
Insider/Institutional Holdings: 82,089,114 (as per Sedar Information Circular)

Axmin Inc. is a gold royalty and production based company focused in Africa. They own 100% interest in the only large scale gold mine in the CAR(Central African Republic), as well as a 1.5% royalty in Senegal on a multi million ounce deposit that TGZ.T(Teranga Gold) put into production at the start of 2016.

Axmin received a $185 million USD loan in 2011 after proving up 2+ million ounces of gold in CAR and was ready to create the first large mine in that country. Shortly after, an internal conflict broke out, suspending operations for several years. Now, the conflict is pretty much over and there are numerous larger institutions backing support for not on the Central African Republic, but also for Axmin’s mine. This is because it can bring immense economic benefit to the country of only 5 million people. In the meantime, the royalty from Senegal has added tremendous cash flow to the company that can help rebuild assets.

The website is currently being updated(as per my conversation with management) but this 2012 presentation has all the information on the CAR gold deposit. Keep in mind that Senegal was not in production at this time, so it’s not included in it.

https://www.yumpu.com/en/document/view/29893170/passendro-gold-project-axmin-inc

AXM will have year end results in April and Q1 2018 results in May, two more quarters of revenue/profit from the gold royalties.

Financials + MD&A (All Assets Are In $USD)

ASSETS
Cash: $1,088,948
Receivables: $278,321
Prepaid Expenses: $2,184
Total Assets: $1,369,453 (2016 - $516,121)

LIABILITIES
Accounts Payable: $2,468,754
Due To Related Parties: $235,737
Liabilities Of Discontinued Operations: $323,103
Total Liabilities: $3,027,594 (2016 - $2,952,285)

2017 & 2016 Revenue Summary (All $USD)

2016 (Q1-Q4)
Royalty Income: $980,380
G&A Expenses: $295,821
Net Income: $684,559
*note – Show loss due to $1 million being spent on increasing CAR acreage in preparation for going back into the country and increasing the reserves

2017 (Q1-Q3)
Royalty Income: $970,855
G&A Expenses: $292,824
Net Income: $705,718

As you can see, AXM is very profitable just on the gold royalty alone. But having the CAR project back would add literally a few billion dollars worth of gold value since all the work has been done on that property and it is ready to go into production. Recent news shows the UN, EU, IMF, Russia and numerous countries/institutions supporting the resumption of business in the country.

MD&A Highlights From Q3 2017

AXMIN is a publicly listed corporation with its shares trading on the TSX Venture Exchange (“TSXV”) under the symbol AXM. The Company is an international mineral exploration and development company with a strong focus on the African continent. AXMIN, through its wholly-owned subsidiaries, has exploration projects in the Central African Republic (“CAR”) and Senegal. The Company’s primary asset is the Passendro gold project situated in the CAR. Due to escalating interreligious conflicts in the CAR, all in-country operations other than administrative functions, carried out in the capital city of Bangui, have been suspended.

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 nine months ended September 30, 2017 was $970,855 (2016 - $855,098). 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.

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.

On December 24, 2012, the Company officially notified the CAR Minister of Mines and Defence of the existence of a state of Force Majeure due to the escalating rebel activity in the country and the necessity to withdraw its field operations. Since that time, AXMIN has not had access to its Passendro project. The Mining Convention of 2006 and the addendum thereto concluded in August 2010 provide the Company with full protection under the circumstances and, in the event that there is a change of Government in the CAR, the existence of Force Majeure stays work related obligations. It is these circumstances that have caused the Company to suspend all Passendro based operations as well as negotiations with prospective lenders. Prior to the Force Majeure, the Company was working towards securing financing to develop the Passendro gold project into CAR’s first modern gold mine. The following is a brief summary of the status at Passendro gold project as at December 2012. A full description of the Passendro gold project can be found in the Company’s audited financial statements for 2014 and 2013, its June 2012 Annual Information Form, the 2011 Bankable Feasibility Study Optimization & Update and its 2009 Mineral Resource Estimate prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). All reports can be accessed under the Company’s profile on the SEDAR website at www.sedar.com.

On November 28, 2016, the Minister of Mines, Energy and Hydraulics of the CAR issued Ministerial Order No 245/16/MMEH/DIRCAB/DGMD, giving an Exemption Certificate of one (1) year to start the development and pre-production work at the Passendro Gold Project to SOMIO Toungou SA, a wholly-owned subsidiary of the Company. The period of the Exemption is valid within duration of one (1) year starting from November 28, 2016 to November 27, 2017. Also on 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 September 30, 2017. 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 September 30, 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. 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

On February 28, 2012, AXMIN and its joint venture partner and manager, Sabodala Mining Company SARL (“SMC”), a whollyowned subsidiary of Teranga Gold Corporation (“Teranga”) amended its 2008 joint venture agreement. At the time, Teranga had earned an 80% interest in the Sounkounkou, Heremokono and Sabodala NW explorations licenses (the “Project”) located in the Birimian belt of eastern Senegal, by spending US$6 million on exploration. AXMIN has retained a 20% interest in the Project. The amended joint venture and royalty agreement (the “Agreement”) supersedes and replaces the original joint venture agreement. Under the terms of the Agreement, AXMIN had a free-carried interest of $2.5 million, with respect to the Project work costs starting from October 1, 2011, after which both parties are to jointly fund the Project work costs on a pro-rata basis. As of September 30, 2017, the free-carried interest balance was $nil.

The 2012 Agreement with SMC includes, among other things, the following terms: (a) both parties agree that their respective interests (Teranga–80% and AXMIN–20%) in the Project are divided into Target Areas (being areas subject to exploration) and Remainder Areas (areas not yet subject to exploration); and (b) that both parties will retain all respective interests in all of these areas, until an election is made by AXMIN to convert its 20% interest in a Target Area into a 1.5% NSR or Royalty Interest (“Royalty Election”). After AXMIN has made a Royalty Election with respect to the Target Area, SMC will solely fund all finance work costs for each of the Royalty Interests.

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 this Royalty Election, 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. The free carried interest of US$2.5 million granted to AXMIN under the Agreement has been depleted on account of its 20% Participation Interest in respect of all Participation Target Areas (being areas subject to exploration and both parties remain their respective interests (Teranga – 80% and AXMIN – 20%)). No further participation contribution needs to be made by AXMIN beyond this $2.5 million free carried interest with respect to the Participation Target Areas where a Royalty Election has been made. Full details of the exploration programs at the Senegal JV can be found on the Teranga website at www.terangagold.com.
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-04-04 11:28:19
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6137 - Part 2/22 (Rec: 0)
https://www.journalducameroun.com/en/wb-clears-cfaf5bn-for-car-mining-industry/

The World Bank has approved a CFAF5 billion loan for the Central African Republic to improve the management of its natural resources.Under the terms of the loan agreement signed in Bangui on Saturday by CAR’s minister of Planning and Economy, Felix Moloua, and the World Bank’s country representative, Robert Bougeaoud, will for the next three years, build the capacity of the mining sector staff.

It will also give the country a new mining code which will attract more investors. CAR’s main natural resources are gold and diamonds in addition to other untapped mineral endowments.


Reply to Jimjones1972 - Msg #6136 - 04/04/2018 10:48
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-04-10 18:46:05
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6139 - Part 3/22 (Rec: 0)
TGZ Renew's Axmin Inc. Land Package In Senegal. On Page 24 of TGZ.T Annual Information.

Regional Land Package (RLP)

On March 2, 2018, Teranga’s wholly-owned subsidiary executed two (2) mining conventions with the Ministry of Mines
which will govern the terms of two (2) new exploration permits which are expected to be issued in due course. These
new exploration permits, Bransan and Sounkounkou, will comprise the RLP and will have an initial term of four (4)
years.

As background, over the course of 2016 and 2017, the prior 8 permits that comprised the RLP expired, and in advance
of that the Company worked in collaboration with the Senegalese Ministry of Mines to reduce our overall exploration
land package while at the same time filing applications for two new permits that would comprise approximately 2/3 of
the previous RLP that covered nearly 1,000km2.

All exploration permits are granted by ministerial decree and are subject to a mining convention signed between SMC
and the government of Senegal. The gold exploration permits are held in a combination of full SMC ownership and
earn-in joint ventures where SMC is the funding and managing party as outlined in below.

Given the Sabodala Mining Convention signed with the government of Senegal on April 7, 2015 and its provisions
extending to SMC exploration permits, it is anticipated that permits that move into production will be merged into this
mining convention and be bound by its revised fiscal terms regarding royalty rate and tax exoneration periods.
Summary of Joint-Venture Agreements in Place over SMC's Exploration Permits

There are currently two joint venture agreements over SMC’s exploration permits:
• Axmin Joint Venture – covers the areas under the former Sounkounkou and Heremakono permits to the extent
they are included within portions of the new Sounkounkou permit.
• Bransan Agreement – cover the areas under the former Bransan permit to the extent they are included within the
new Bransan permit. Although the new Bransan permit will be fully held by SMC, there is a 30% ownership right
assigned to a Senegalese company, Senegal Nominees Limited.


Reply to Jimjones1972 - Msg #6136 - 04/04/2018 10:48
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-04-23 15:04:59
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6142 - Part 4/22 (Rec: 0)
https://www.journalducameroun.com/en/car-world-bank-pledges-12-5b-for-economic-reforms/

The World Bank will support the Central African Republic (CAR) with 12.5 billion CFA francs to boost economic reforms in the country, the Ministry of Economy and Planning announced Monday.A Ministry of the Economy press release said the Bank’s aid is part of the project to support state consolidation.

The project aims to restore fiscal management and transparency by increasing tax revenue, improving wage management, reducing the use of extraordinary budgetary procedures and strengthening budget control.

Among its objectives is the establishment of a post-transition pro-poor reform programme that can reinvigorate the drivers of economic growth, in key sectors and sub-sectors such as roads, agriculture and telecommunications.

These reforms can contribute to improving the living conditions of the poorest populations, which represent 40 percent of the distribution of social assistance in the CAR.

These economic reforms are contained in the Recovery and Peacebuilding Plan (RCPCA) that the government presented to its partners in 2016 during its donors’ roundtable in Brussels, Belgium, to receive financial support.


Reply to Jimjones1972 - Msg #6136 - 04/04/2018 10:48
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-04-24 18:28:27
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6143 - Part 5/22 (Rec: 0)
A new high hit today as the CAR deposit gets optimism from the government. Also, results will be out between now and next week and the Senegal Royalty from TGZ.T will be updated in the financials. See today's article:

https://www.businesslive.co.za/bd/world/africa/2018-04-24-central-african-republics-president-tells-un-he-wants-to-accelerate-disarmament/

Central African Republic’s president tells UN he wants to accelerate disarmament

New York — The Central African Republic’s president, Faustin-Archange Touadera, told the UN on Monday that he wants to "accelerate" the disarmament, demobilisation and reintegration of members of armed groups.

"I have instructed my government to work toward reducing the harm and threat of armed groups in the Central African Republic, by accelerating the implementation of the disarmament, reintegration and repatriation program," he said at a meeting concerning the peace process in his country.

Such an operation would require "necessary reforms of the security sector for the reconstitution of national defence forces and interior security forces," Touadera said.

His comments come as the Popular Front for the Rebirth of Central Africa (FPRC), one of the country’s main armed groups, threatened to march on Bangui.

The group said it wanted to act following a UN peacekeeper operation against militia in the volatile PK5 Muslim enclave of the capital.

Touadera urged "dialogue" as the preferred approach to combat the violence that has ravaged his country since 2013.

He stressed that "consolidation of peace … can only be achieved through the restoration of security throughout the territory, the fight against impunity, [and] the restoration of state authority throughout the territory".

Morocco’s UN envoy Omar Hilale, who initiated Monday’s meeting, assured the Central African Republic of the UN’s "support" and said he would soon travel to Bangui.

The country’s authorities control only a small part of the national territory, with a number of armed groups fighting over control of diamonds, gold and livestock in one of the world’s poorest countries.

AFP


Reply to Jimjones1972 - Msg #6142 - 04/23/2018 15:04
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-04-28 11:54:16
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6149 - Part 6/22 (Rec: 0)
Things are progressing positively in CAR. More support means AXM will get their claim back sooner than later. In the meantime Senegal will keep adding cash to the books while we wait.

1) Ivory Coast to send 450 peacekeepers to C. Africa

https://www.independent.co.ug/ivory-coast-to-send-450-peacekeepers-to-c-africa/

2) Video: The UN Security Council members are focusing their attention on Africa

https://www.youtube.com/watch?v=FiW5U1diWsY&feature=youtu.be

3) The CAR Humanitarian Fund releases $ 11 Million to Support Humanitarian Response

https://reliefweb.int/report/central-african-republic/car-humanitarian-fund-releases-11-million-support-humanitarian


Reply to Jimjones1972 - Msg #6143 - 04/24/2018 18:28
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-04-29 14:21:18
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6150 - Part 7/22 (Rec: 0)
There is a major undervaluation in the resource estimate from the Gora deposit in Senegal. Teranga Gold(TGZ) has said on their website and in previous MD&A reports that only 140,000 ounces of Gold exist. However, Axmin clearly states on their website that Gora has just under 400,000 ounces of Gold. Now if we break this down, Gora has much more life ahead of it and here are the numbers to prove it.

Note – Gora did not start production until Q4 2015.

TGZ Gora Estimate – 140,000 Ounces Proven + Probable
AXM Gora Estimate – 395,000 Ounces Proven + Probable


2015
Ounces Mined: 22,814
Royalty Paid To Axmin: $300K USD


2016
Ounces Mined: 67,948
Royalty Paid To Axmin: $1M USD

2017
Ounces Mined: 115,398 – 60,587 coming from Q4 2017, major increase in production
Royalty Paid To Axmin: $1.6M USD

Total ounces mined: 206,160 (from 2015 to 2017)

So that has already exceeded TGZ’s estimate by 60,000 ounces. However, that is only over half of what Axmin has stated. As well, keep in mind that TGZ mined the most gold out of Gora in the most recent quarter, how is that possible if the resource is ending? Someone must of made a huge mistake on the Teranga side. On top of this, there are three other adjacent claims that could very well go into production soon (Honey, Jam, Cinnamon) as these are 1-2km’s away from Gora and results were similar or better from the 70,000m of drilling, bulk sampling and other tests performed.


Sources:

http://www.axmininc.com/Senegal.php


The Gora deposit, located on the Sounkounkou licence, has a proven and probable reserve, based on a US$1,500 gold price, of 2.1 Mt grading 4.22 g/t Au containing 285,000 ounces. The Measured and Indicated Resource at Gora has increased to 374,000 ounces of gold at 5.0 g/t Au and an Inferred resource of 20,000 ounces grading 3.4 g/t Au.



Note - This was last updated in 2012, so the resource could easily have increased since then with more exploration.



http://www.terangagold.com/English/investors/news/newsreleasedetails/2017/Teranga-Gold-Increases-Sabodalas-Reserve-Base-to-27-Million-Ounces-Adds-More-Than-400000-Ounces-of-Gold-and-Improves-Five-Year-Production-and-Cash-Flow-Profile/default.aspx



Financials on Sedar for TGZ show all the sales from Gora and royalties paid.


Reply to Jimjones1972 - Msg #6136 - 04/04/2018 10:48
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-05-01 09:26:14
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6151 - Part 8/22 (Rec: 0)
All Information Can Be Found On www.Sedar.com

Price: $0.085
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.


Reply to Jimjones1972 - Msg #6150 - 04/29/2018 14:21
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-05-03 14:26:54
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6153 - Part 9/22 (Rec: 0)
TGZ Q1 results are out, shows them paying axmin $500,000 USD in royalties. This is low considering they mined 58,400 ounces and AXM gets 1.5% of that. But if you look at the Teranga Gold presentation released today, it clearly says that only 22,500 ounces were actually sold. So again there is more back pay to Axmin. Nice thing is that G&A costs for AXM is between $80-100K per quarter, so it should be a $400K net income quarter for Q1 2018. The actual results will be out end of May.

Reply to Jimjones1972 - Msg #6151 - 05/01/2018 09:26
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From: Jimjones1972 (Rep: 3) reply to Jimjones1972Date: 2018-05-03 19:01:10
Forum: Mining and Commodities Eh! - Thread #674001235 - List AXM.V msgsMsg #6154 - Part 10/22 (Rec: 0)
All In USD. Numbers Can Be Found On Sedar.

Q3 2015
Gold Ounces Mined At Gora: 2,414 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $0 – Delayed payment as TGZ needs to sell gold
Cash: $136,274
Receivables: $0 – No receivables until TGZ sells gold
Total Assets: $143,189
Total Liabilities: $2,570,565

Q4 2015 – First Quarter Of Gora Payments
Gold Ounces Mined At Gora: 20,401 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $252,721
Cash: $ 14,039
Receivables: $258,939
Total Assets: $347,504
Total Liabilities: $2,520,590

Q1 2016
Gold Ounces Mined At Gora: 27,560 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $457,259
Cash: $203,850
Receivables: $465,098
Total Assets: $717,454
Total Liabilities: $2,548,366

Q2 2016
Gold Ounces Mined At Gora: 14,517 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $232,045
Cash: $188,321
Receivables: $235,427
Total Assets: $426,091
Total Liabilities:$2,111,294 – Portion of cash used for liabilities

Q3 2016
Gold Ounces Mined At Gora: 8,570 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $165,794
Cash: $299,540
Receivables: $172,008
Total Assets: $473,972
Total Liabilities: $2,081,329

Q4 2016
Gold Ounces Mined At Gora: 17,301 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $125,282
Cash: $370,238
Recivables: $12,084
Total Assets: $516,121 - $1 million paid from Bambari license Until March 2019
Total Liabilities: $2,952,285

Q1 2017
Gold Ounces Mined At Gora: 22,286 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $310,684
Cash: $436,764
Receivables: $320,874
Total Assets: $766,439
Total Liabilities: $2,988,656

Q2 2017
Gold Ounces Mined At Gora: 21,402 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $386,655
Cash: $713,569
Receivables: $390,276
Total Assets: $1,109,413
Total Liabilities: $3,010,128

Q3 2017
Gold Ounces Mined At Gora: 11,123 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $273,516
Cash: $1,088,948
Receivables: $278,321
Total Assets: $1,369,453
Total Liabilities: $3,027,594

Q4 2017
Gold Ounces Mined At Gora: 60,587 – From TGZ MD&A
Royalty Income(1.5% Of Gora Sales): $614,723
Cash: $1,115,331
Receivables: $610,477
Total Assets: $1,738,742
Total Liabilities: $2,954,279

* Despite record production at Gora, the royalty income was only double the prior quarter despite having 5.5 times the amount of gold mined. This is again delayed due to TGZ being able to safely sell the gold and get paid from it.

Q1 2018 – Estimate From Teranga Gold Payment Announced May 3rd
Gold Ounces Mined At Gora: 58,384 – From TGZ MD&A
Royalty Income From TGZ MD&A (1.5% Of Gora Sales): $500,000 as per TGZ financial results.

Teranga Gold May 2018 corporate presentation clearly states on page 18 that 22,500 ounces are to be sold to Franco Nevada. Well this is only a fraction of what was produced which again confirms that payments to Axmin are deferred to upcoming quarters which should be reflected in the receivables.

118,971 ounces of gold were mined between Q4 2017 and Q1 2018 at Gora. Lets use basic gold numbers such as $1,300 per ounce(lower than the last 6 months) and see what we should be getting:

118,971 ounces X $1,300 gold price = $154,662,300 (if all gold was sold)

$154,662,300 X 0.015% (Axmin royalty) = $2,319,935. Keep in mind that gold is higher than $1,300 so the royalty should be a bit more

What was paid in Q4 2017 and announced for Q1 2018: $614,723 + $500,000 = $1,114,723

So Axmin is still owed a lot more money and this will likely be paid between Q2-Q4 this year.




Reply to Jimjones1972 - Msg #6153 - 05/03/2018 14:26
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