|AXM.V Year End Results. (Finacials + MD&A) Ending December 31st 2017|
All Information Can Be Found On www.Sedar.com
Common Shares: 130,497,381
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
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)
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)
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
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|
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
Ounces Mined: 22,814
Royalty Paid To Axmin: $300K USD
Ounces Mined: 67,948
Royalty Paid To Axmin: $1M USD
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.
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.
Financials on Sedar for TGZ show all the sales from Gora and royalties paid.