Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF)
(FRA:2D9) ("Ascendant" or the "Company”) is pleased to report
continued positive momentum in August with adjusted EBITDA1
of $0.8MM at the mine for the month, marking the second
consecutive month of positive cash flow before changes in working
capital since Ascendant assumed ownership of the El Mochito mine in
December 2016 and supporting management’s view that the turnaround
of its Honduran mine is on a solid path to profitability.
The El Mochito mine milled 58,978 tonnes of ore
in August averaging 1,903 tpd, an increase from 1,853 tpd in July
and the second quarter average of 1,733 tpd. This reflects a 53%
increase in ore throughput per calendar day per month since January
2017. August results reflect the benefit from the
introduction of new mining equipment to operations in
mid-July. A third truck ordered in March was delayed by the
manufacturer and is currently being transported to the mine with
its expected arrival in late October. Additionally, the
Company is expecting to take delivery of a fourth truck and third
scoop in November, in line with its strategy to replace the
existing aging fleet which will have the effect of reducing unit
costs and increasing productivity. The Company has further ordered
five new trucks, two new scoops, two jumbo drills and two rock
bolters from Sandvik for delivery over the next ten months.
With the ongoing benefits from operational
improvements and the introduction of new mining equipment
management remains confident of continuing its 2017 ramp up in ore
production.
President and CEO Chris Buncic commented: “Our
turnaround of the operations at El Mochito is nearly complete. The
new equipment in July made a material contribution to the overall
availability of our fleet in August. We view August as a strong
validation of our efforts to rehabilitate and optimize the
operations at El Mochito. We firmly believe we see the path to
material free cash flows from the mine once the fleet availability
issue is addressed with the delivery of the additional equipment.
Near-term improvements in head grade are expected from several
conventional sections that are being developed to enter the
production schedule imminently, and our exploration program is well
underway, with further results expected soon”.
1 Adjusted EBITDA is a Non-IFRS measure and is
calculated by considering the Company's earnings before interest
payments, tax, depreciation and amortization, adjusted for net
foreign exchange expenses.
About Ascendant Resources
Ascendant Resources Inc. is a mining company
focused on its producing El Mochito zinc, silver and lead mine in
west-central Honduras in which the Company has a 100% interest. El
Mochito has been in production since 1948. The Company evaluates
producing and advanced development stage mineral resource
opportunities in North, South and Central America, on an ongoing
basis. The Company's common shares are principally listed on the
Toronto Stock Exchange under the symbol "ASND". For more
information on Ascendant Resources, please visit our website at
www.ascendantresources.com.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX) accepts responsibility for the adequacy or
accuracy of this release. For further information please
contact:
Chris BuncicPresident & CEOTel:
888-723-7413 info@ascendantresources.com
Forward Looking
Information
This news release contains "forward-looking
statements" and "forward-looking information" (collectively,
"forward-looking information") within the meaning of applicable
Canadian securities legislation. All information contained in this
news release, other than statements of current and historical fact,
is forward-looking information. Often, but not always,
forward-looking information can be identified by the use of words
such as "plans", "expects", "budget", "guidance", "scheduled",
"estimates", "forecasts", "strategy", "target", "intends",
"objective", "goal", "understands", "anticipates" and "believes"
(and variations of these or similar words) and statements that
certain actions, events or results "may", "could", "would",
"should", "might" "occur" or "be achieved" or "will be taken" (and
variations of these or similar expressions). Forward-looking
information is also identifiable in statements of currently
occurring matters which may continue in the future, such as
"providing the Company with", "is currently", "allows/allowing
for", "will advance" or "continues to" or other statements that may
be stated in the present tense with future implications. All
the forward-looking information in this news release is qualified
by this cautionary note.
Forward-looking information in this news release
includes, but is not limited to, statements regarding the ordering
and delivery of new equipment; the Company’s ability to obtain
financing for the acquisition of new equipment; the ability of the
Company to use its cash flow from operations to finance the
acquisition of new equipment; the ability of the Company to ramp up
the ore throughput or its ability to increase the head grade to the
mill or the value per tonne mined and the ability of the Company to
develop new areas of interest to be incorporated into the mine
plan. Forward-looking information is not, and cannot be, a
guarantee of future results or events. Forward-looking information
is based on, among other things, opinions, assumptions, estimates
and analyses that, while considered reasonable by Ascendant at the
date the forward-looking information is provided, inherently are
subject to significant risks, uncertainties, contingencies and
other factors that may cause actual results and events to be
materially different from those expressed or implied by the
forward-looking information. The material factors or assumptions
that Ascendant identified and were applied by Ascendant in drawing
conclusions or making forecasts or projections set out in the
forward-looking information include, but are not limited to, the
specific assumptions set forth above in this press release; that
the Company will be able to order and receive new equipment; that
the Company will be able to obtain financing for the
acquisition of the new equipment; that the Company will be able to
use its cash flow from operations to finance the acquisition of new
equipment; that the Company will be able to ramp up the ore
throughput or increase the head grade to the mill or the value per
tonne mined and that the Company will be able to develop areas of
interest to be incorporated into the mine plan; other events that
may affect Ascendant's ability to develop its project; and no
significant and continuing adverse changes in general economic
conditions or conditions in the financial markets.
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), uncertainties related to the development
and operation of Ascendant's projects, dependence on key personnel
and employee and union relations, risks related to political or
social unrest or change, rights and title claims, operational risks
and hazards, including unanticipated environmental, industrial and
geological events and developments and the inability to insure
against all risks, failure of plant, equipment, processes,
transportation and other infrastructure to operate as anticipated,
compliance with government and environmental regulations, including
permitting requirements and anti-bribery legislation, volatile
financial markets that may affect Ascendant's ability to obtain
financing on acceptable terms, the failure to obtain required
approvals or clearances from government authorities on a timely
basis, uncertainties related to the geology, continuity, grade and
estimates of mineral reserves and resources, and the potential for
variations in grade and recovery rates, uncertain costs of
reclamation activities, tax refunds, hedging transactions, as well
as the risks discussed in Ascendant's most recent Annual
Information Form on file with the Canadian provincial securities
regulatory authorities and available at www.sedar.com.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, the reader should not place undue reliance on
forward-looking information. Ascendant does not assume any
obligation to update or revise any forward-looking information
after the date of this news release or to explain any material
difference between subsequent actual events and any forward-looking
information, except as required by applicable law.
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