Ascendant Resources Inc. (TSX: ASND) ("Ascendant"
or the "Company”) reports fourth quarter and full year 2019
results, highlighted by record grades of 8.5% zinc equivalent
(“ZnEq”) and the twelfth consecutive quarter of metal production
growth in the fourth quarter with annual total contained metal
production of 106.2 million ZnEq pounds at the El Mochito mine in
Honduras. Despite the strong operation results achieved,
profitability was impacted by ongoing suppressed metal prices and
rising external costs resulting in a net loss of $8.21 million, or
a loss per share of $0.11 for the full year 2019.
Subsequent to the fourth quarter reporting
period, on April 27, 2020, the Company announced the completion of
the sale of the El Mochito mine. The sale was the result of a
strategic decision by the Company to address its financial
liquidity concerns which continued to deteriorate in Q1 2020, and
improve its financial position by eliminating operating budget
pressures related to the El Mochito mine. The sale allowed the
Company to clean up its balance sheet and focus on its highly
attractive, high-grade Lagoa Salgada VMS project (the "Lagoa
Salgada project") located on the prolific Iberian Pyrite Belt in
Portugal.
________________________________
1 ZnEq lbs and grades in ZnEq % represent zinc
metal considered together with the lead and silver expressed in
zinc equivalent terms of zinc using average spot metal prices and
monthly production ratios.
President and CEO Chris Buncic stated: “We are
very pleased with the continued improvements achieved at El Mochito
in 2019 and the record production growth quarter over quarter since
our acquisition of the mine in 2016. Our team’s achievement of
twelve consecutive quarters of improved performance and metal
production at the mine was formidable despite the macroeconomic
challenges we faced globally which have been visibly heightened
this year with the impact of COVID-19. The sale of El Mochito and
our AMPAC subsidiary has strengthened our balance sheet and set the
stage for our future growth as we focus on progressing the Lagoa
Salgada project on the Iberian pyrite belt in Portugal.”
He continued, “Lagoa Salgada will be a great
driver of future value and growth for the Company based on the
continued resource growth and economic potential the project has
demonstrated to date. We look forward to being able to allocate all
our resources to the project and commence 2020 exploration work
aimed at expanding and upgrading the resource base with an update
to the Mineral resource Estimate, advancing the project to
feasibility stage thereafter.”
A summary of key operational and
financial performance for the fourth quarter and full year 2019 is
provided in the tables below:
|
|
|
|
Three months ended |
Year ended |
Key Operating Information |
|
|
December
31, |
December 31, |
|
|
|
|
2019 |
2018 |
2019 |
2018 |
Total Tonnes Mined |
|
tonnes |
191,579 |
|
187,533 |
|
794,690 |
|
758,067 |
|
|
|
|
|
|
|
|
|
Total Tonnes Milled |
|
tonnes |
186,987 |
|
184,913 |
|
775,559 |
|
756,034 |
|
|
|
|
|
|
|
|
|
Average Head Grades |
|
|
|
|
|
|
|
Average Zn grade |
|
% |
4.6 |
% |
4.2 |
% |
4.4 |
% |
4.3 |
% |
|
Average Pb
grade |
|
% |
2.3 |
% |
1.9 |
% |
2.0 |
% |
1.7 |
% |
|
Average
Silver grade |
|
g/t |
81 |
|
77 |
|
70 |
|
54 |
|
|
ZnEq Head
grade |
(1) |
% |
8.5 |
% |
7.0 |
% |
7.4 |
% |
6.5 |
% |
|
|
|
|
|
|
|
|
Average Recoveries |
|
|
|
|
|
|
|
Zinc |
|
% |
86.0 |
% |
84.1 |
% |
85.2 |
% |
88.0 |
% |
|
Lead |
|
% |
79.9 |
% |
77.6 |
% |
80.4 |
% |
77.8 |
% |
|
Silver |
|
% |
81.1 |
% |
76.6 |
% |
81.2 |
% |
77.9 |
% |
|
|
|
|
|
|
|
|
Contained Metal Production |
|
|
|
|
|
|
|
Zinc |
|
000's
lbs |
16,450 |
|
14,435 |
|
64,426 |
|
62,658 |
|
|
Lead |
|
000's
lbs |
7,730 |
|
6,023 |
|
27,134 |
|
21,810 |
|
|
Silver |
|
ozs |
393,902 |
|
347,251 |
|
1,401,141 |
|
1,001,514 |
|
|
ZnEq |
(1) |
000's
lbs |
29,360 |
|
23,173 |
|
106,202 |
|
91,429 |
|
|
|
|
|
|
|
|
|
Payable Production |
|
|
|
|
|
|
|
Zinc |
|
000's
lbs |
13,982 |
|
12,270 |
|
54,762 |
|
53,259 |
|
|
Lead |
|
000's
lbs |
7,344 |
|
5,722 |
|
25,777 |
|
20,719 |
|
|
Silver |
|
ozs |
275,731 |
|
243,076 |
|
980,798 |
|
701,060 |
|
|
ZnEq |
(1) |
000's
lbs |
24,956 |
|
19,697 |
|
90,271 |
|
77,715 |
|
|
|
|
|
|
|
|
|
Payable Metal Sold |
|
|
|
|
|
|
|
Zinc |
|
000's
lbs |
13,399 |
|
14,636 |
|
53,274 |
|
55,427 |
|
|
Lead |
|
000's
lbs |
6,962 |
|
5,231 |
|
24,493 |
|
22,466 |
|
|
Silver |
|
ozs |
338,884 |
|
243,413 |
|
1,201,601 |
|
782,960 |
|
|
ZnEq |
(1) |
000's
lbs |
24,796 |
|
21,511 |
|
90,158 |
|
81,871 |
|
|
|
|
|
|
|
|
|
Average Realized Metal Price |
|
|
|
|
|
|
|
Zinc |
|
$/lb |
$1.08 |
|
$1.18 |
|
$1.15 |
|
$1.31 |
|
|
Lead |
|
$/lb |
$0.95 |
|
$0.89 |
|
$0.92 |
|
$1.00 |
|
|
Silver |
|
$/oz |
$17.36 |
|
$14.51 |
|
$16.20 |
|
$15.34 |
|
|
|
|
|
|
|
|
|
Cash operating cost per ZnEq payable lb sold |
(2) |
$/ZnEq
lb |
$0.61 |
|
$0.83 |
|
$0.70 |
|
$0.79 |
|
AISC per ZnEq payable lb sold - El Mochito |
(2) |
$/ZnEq
lb |
$1.00 |
|
$1.22 |
|
$1.14 |
|
$1.23 |
|
AISC per ZnEq payable lb sold - Consolidated |
(2) |
$/ZnEq
lb |
$1.01 |
|
$1.28 |
|
$1.19 |
|
$1.31 |
|
Direct operating cost per tonne milled (excl.
CAPEX) |
(2) |
$/tonne |
$85.63 |
|
$85.38 |
|
$83.62 |
|
$78.98 |
|
(1 |
) |
Assumes
average spot metal prices for the period. |
|
|
|
|
|
|
(2 |
) |
This is a non-IFRS performance measure, see Non-IFRS Performance
Measures section of the MD&A. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
Year ended |
Financial |
|
|
December
31, |
December 31, |
|
|
|
|
2019 |
2018 |
2019 |
2018 |
|
Total
revenue |
|
$000's |
19,968 |
|
21,564 |
|
77,816 |
|
85,618 |
|
|
Mine
operating expenses |
|
$000's |
16,184 |
|
22,009 |
|
72,222 |
|
74,162 |
|
|
Income
(loss) from mining operations |
|
$000's |
3,784 |
|
(444 |
) |
5,594 |
|
11,456 |
|
|
Net income
(loss) |
|
$000's |
3,591 |
|
(3,020 |
) |
(8,209 |
) |
3,005 |
|
|
Adjusted
EBITDA |
(2) |
$000's |
5,511 |
|
(115 |
) |
7,822 |
|
13,492 |
|
|
Operating
cash flow before movements in working capital |
(2) |
$000's |
5,530 |
|
(122 |
) |
11,657 |
|
10,868 |
|
|
Operating
cash flow |
|
$000's |
300 |
|
(273 |
) |
7,731 |
|
16,276 |
|
|
Cash and
cash equivalents |
|
$000's |
1,684 |
|
3,808 |
|
1,684 |
|
3,808 |
|
|
Working
capital surplus (deficiency) |
|
$000's |
(17,054 |
) |
(7,109 |
) |
(17,054 |
) |
(7,109 |
) |
|
Capital Expenditures |
|
$000's |
3,461 |
|
3,620 |
|
15,646 |
|
21,943 |
|
(1 |
) |
Assumes
average spot metal prices for the period. |
|
|
|
|
|
|
(2 |
) |
This is a non-IFRS performance measure, see Non-IFRS Performance
Measures section of the MD&A. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year and Fourth Quarter 2019
Operational Performance
Contained metal production for the fourth
quarter 2019 (“Q4/19”) was 29.4 million pounds of zinc equivalent
(“ZnEq”) metal, comprised of 16.5 million pounds of zinc, 7.7
million pounds of lead and 394k ounces of silver. Total contained
metal production for the quarter increased by 27% over the fourth
quarter 2018 (“Q4/18”) production of 23.2 million pounds of ZnEq
metal and 2% over the third quarter 2019 (“Q3/19”) production of
28.8 million pounds of ZnEq metal, due to higher zinc (6%) and
substantially increased lead (11%) and silver grades (17%).
Contained metal production for the full year 2019 was 106.2 million
pounds of ZnEq metal, in-line with the Company’s production
guidance. This was comprised of 64.4 million pounds of zinc, 27.1
million pounds of lead and 1.4 million ounces of silver. Overall
production represents a 16% increase over 2018 contained metal
production of 91.4 million pounds of ZnEq.
Milled production in Q4/19 of 187 kt
demonstrated a marginal improvement over 185 kt in Q4/18 and was 7%
lower than the 200 kt in Q3/19, predominantly a result of seasonal
holidays. Milled production for 2019 of 775k tonnes demonstrated a
marginal improvement over 756k tonnes milled in 2018.
The average head grade in Q4/19 of 8.5% ZnEq for
the quarter represents an increase of 22% over Q4/18 and a 9%
increase over Q3/19. Milled zinc grades for the quarter were 4.6%,
up 10% as compared to Q4/18 and up 6% as compared to Q3/19. Lead
head grades of 2.3% demonstrated an increase of 23% over Q4/18 and
11% over the previous quarter. Silver feed grades increased by 17%
to 81g/t from the 69g/t achieved in previous quarter and was up 5%
from 77g/t in Q4/18. For full year 2019, average recoveries were
85.2% zinc, 80.4% lead and 81.2% silver. Average head grades for
the year were 4.4% zinc, 2.0% lead and 70 g/t silver resulting in a
ZnEq grade of 7.4% representing a 14% increase over the 6.5% ZnEq
grade achieved in 2018. The increase in silver and lead grades in
Q4 and year over year ZnEq grade improvement is a direct result of
the Company focussing on dilution and improved production from
various, small high-grade pillars in the upper historical part of
the mine.
Zinc processing recoveries of 86% in Q4/19 were
2% higher than both the Q3/19 and Q4/18 results. Lead recoveries of
80% were marginally down 1% from Q3/19 and up 3% against Q4/18.
Overall silver recoveries were 81%, a decrease of 2% from Q3/19 but
up 6% from Q4/18. The reduced performance in lead and silver
recovery against Q3/19 was a result of reduced capacity in the
float cells due to the higher lead head grade in the plant,
residence time in these cells being to the low side for the
higher-than-average grade lead. For 2019, average recoveries were
85.2% zinc, 80.4% lead and 81.2% silver.
Full Year and Fourth Quarter 2019
Financial Performance
The Company generated revenues of $19.97 million
in Q4/19 as a result of the sale of 24.8 million pounds of ZnEq
metal, comprised of 13.4 million pounds of payable zinc in
concentrates, 6.9 million pounds of payable lead in concentrates
and 338,884 ounces of payable silver in concentrates. Average
realized metal prices were $1.08 per pound zinc, $0.95 per pound
lead and $17.36 per ounce silver. Revenues in Q4/19 were down 7%
over Q4/18, and down 9% from Q3/19, as a result of lower metal
prices for the comparative quarters, though higher than current
spot prices. On a per tonne basis, the company generated a net
smelter return (“NSR”) of $107.78 per tonne milled during Q4/19,
down 11% from $121.42 per tonne in Q4/18, due to the drop in metal
prices year over year. This compares to NSR of $115.68 per tonne
milled in Q3/19. Revenue for the full year 2019 was $77.82 million,
a decrease of 9% over revenue of $85.62 million in 2018. This is
due to the lower year over year average realized metal prices for
both zinc and lead as the average zinc price of $1.15/lb was 12%
lower than $1.31 in 2018 and the average lead price of $0.92/lb was
8% lower than the $1.00 realized in 2018. NSR per tonne milled was
$95.73 in 2019, which was 16% lower than the $113.60 achieved in
2018, due to significantly lower metal prices.
Cash operating cost per zinc equivalent payable
pound sold for Q4/19 was $0.61, representing a substantial decrease
of 27% from $0.83 in Q4/18 and a decrease of 13% from $0.70 in
Q3/19. As well the All-In Sustaining Cost (”AISC”) for Q4/19 of
$1.05 per zinc equivalent payable pound sold, demonstrated a 18%
decrease from Q4/18 of $1.28 and an decrease of 7% over the
previous quarter of $1.13. The significant decrease achieved
overall in unit costs on a ZnEq payable pound sold basis is a
direct result of the increase in payable pounds sold given Q4/19
represented the Company’s strongest operational quarter yet at El
Mochito driven by a significant improvement to the grade profile.
Cash operating cost per ZnEq payable pound sold for the year was
$0.70, a decrease of 11% from $0.79 per pound in 2018. The AISC on
a consolidated basis for the year was $1.21 per ZnEq payable pound
sold, down 8%% from $1.31 in 2018.
Direct operating costs per tonne milled for
Q4/19 at El Mochito were $85.63, in line with Q4/18 direct
operating costs per tonne milled of $85.38, and a 1% decrease
compared to Q3/19 direct operating costs per tonne milled of
$86.52. This was due to reduced capitalized development, which
resulted in a larger than expected amount of fixed costs being
allocated to operating costs. While higher than anticipated direct
operating costs have persisted, the Company is pleased to
demonstrate a small improvement over the previous quarter as we
have a strong emphasis on decreasing costs in light of energy,
labour cost and concentrate treatment charge pressures. Capital
expenditures totaled $3.46 million, or $18.51 per tonne milled in
Q4/19, as compared to $3.62 million, or $19.58 per tonne milled, in
Q4/18. Capital expenditures totaled $3.25 million, or $16.25 per
tonne milled, in Q3/19. Direct operating costs per tonne milled for
2019 averaged $83.62, a 6% increase from the average of $78.98 in
2018. Heading into 2019, the Company worked to offset input cost
pressures resulting from the previously disclosed 15% increase in
national power rates imposed in September 2018 as well as the 6%
increase in labour costs that took place in October 2018. However,
with the increased portion of labour intensive conventional mining
required to mine the higher grade chimney ore in the upper portion
of the mine combined with lower capital expenditure on underground
development for the year, resulting in a higher portion of fixed
costs being allocated to operating costs, average direct operating
costs for the year were high than anticipated. Capital expenditures
totaled $15.65 million, or $20.17 per tonne milled in 2019, as
compared to $21.94 million, or $29.02 per tonne milled, in
2018.
Net income and basic and diluted earnings per
share in Q4/19 were $3.59 million and $0.05 and $0.04 respectively,
compared to net loss and basic and diluted loss per share of $3.02
million and $0.04 in Q4/18, and $5.21 million and $0.07
respectively in Q3/19. Income from mining operations in Q4/19 was
$3.78 million. The net loss for 2019 was $8.21 million, or a basic
and diluted loss per share of $0.11 per share, compared to net
income of $3.00 million or a basic and diluted earnings per share
of $0.04 for the full year 2018. Income from mining operations was
$5.59 million compared to $11.46 million in 2018.
Lagoa Salgada Project
In 2019, the Company continued with its efforts
to grow and advance the Lagoa Salgada project located on the
Iberian Pyrite Belt in Portugal. Following the successful Mineral
Resource Estimate announced on February 13, 2019, the Company
executed on its second exploration program at Lagoa Salgada, since
acquisition of an interest in the project.
The 2019 exploration program included a diamond
drill program consisting of 24 holes totaling 8,164 metres, a
grounded Induced Polarization (“IP”) survey covering the 8km
gravity anomaly identified in the 2018 program and selected
borehole IP. Drilling primarily focused on infill drilling in the
North Zone to increase the confidence in the grade and tonnage,
while four holes were allocated to test the strong IP chargeability
anomaly in the Central and South Zones.
Drill hole highlights from the 2019 drill
program include (true thickness):
Gossan • LS_MS_26- 9.1m at 0.16% Cu, 9.79%
Pb, 1.13% Zn, 2.54g/t Au, 37.64g/t Ag and 0.39% Sn (16.52%
ZnEq)• LS_MS_30- 13.4m at 0.06% Cu,
5.99% Pb, 0.33% Zn, 3.95g/t Au, 16.56g/t Ag and 0.61% Sn
(13.19% ZnEq)
Massive Sulphide • LS_MS_33- 24.9m at
0.42% Cu, 6.56% Pb, 5.76% Zn, 1.17g/t Au, 184.84g/t Ag and 0.23% Sn
(21.09%ZnEq)•
LS_MS_36- 20.3m at 0.23% Cu, 6.14% Pb, 9.76% Zn,
1.42g/t Au, 104.65g/t Ag and 0.19% Sn (22.61%
ZnEq)• LS_MS_35- 37.6m at 0.25% Cu,
4.10% Pb, 6.87% Zn, 1.19g/t Au, 99.42g/t Ag and 0.17% Sn
(17.21% ZnEq)•
LS_MS_22- 60.1m at 0.46% Cu, 2.91% Pb, 3.70% Zn,
0.77g/t Au, 81.04g/t Ag and 0.11% Sn (11.62%
ZnEq)• LS_MS_25- 19.6m at 0.21% Cu,
5.23% Pb, 5.76% Zn, 1.29g/t Au, 137.32g/t Ag and 0.23% Sn
(18.32%
ZnEq)• LS_MS_39- 36.2m at 0.39%
Cu, 6.26% Pb, 7.30% Zn, 1.37g/t Au, 165.63g/t Ag and 0.20% Sn
(21.90%
ZnEq)• LS_MS_38- 35.2m at 0.19%
Cu, 2.28% Pb, 4.01% Zn, 0.70g/t Au, 47.98g/t Ag and 0.13% Sn
(9.84% ZnEq)
Stockwork• LS_ST_16- 130.6m at 0.32% Cu,
0.82% Pb, 1.50% Zn, 0.04g/t Au, 12.89g/t Ag and 0.01% Sn
(1.33% CuEq)• Including-
26.7m at 0.58% Cu, 1.13% Pb, 2.66% Zn, 0.03g/t Au, 24.78g/t Ag
and 0.01% Sn (2.24% CuEq)
Overall, the drill program at Lagoa Salgada was
modest, yet identified significant high-grade mineralization,
indicating the extension the North Zone in particular. This success
led the company to complete an updated Mineral Resource Estimate
for Lagoa Salgada, which the company announced on September 25,
2019.
The updated Mineral Resource Estimate was
prepared in accordance with Canadian National Instrument 43-101
with an effective date of September 5, 2019 and was successful in
significantly upgrading the resources at Lagoa Salgada. Results
demonstrated material growth in the North Zone (the main massive
sulphide) with the conversion of significant resources into the
Measured & Indicated category. To date the North Zone has been
delineated by less than a total of 76 holes.
- Highlights from the Mineral Resource Estimate are as
follows:
- North Zone: Measured Mineral Resources increased by 57% to 2.8
Mt at 10.7% ZnEq1.
- North Zone: Measured & Indicated Mineral Resources
increased by 71% to 10.3 Mt at 9.1% ZnEq:
- 170% increase in the precious metal rich gossan zone to 1.7 Mt
at 4.6g/t AuEq2.
- Global NI 43-101Measured and Indicated Resources of 12.8
million tonnes and Inferred Resources of 10.3 million tonnes.
- Drilling in the Central and South Zones identified Copper rich
sulphide mineralization. The new resources in these zones are
reported in Copper equivalent grades. Future drill programs will
focus on expanding and upgrading the strong potential anticipated
in these zones.
1 ZnEq% = ((Zn Grade*25.35)+(Pb Grade*23.15)+(Cu
Grade*67.24)+(Au Grade*40.19)+(Ag Grade*0.62)
)+(Sn Grade*191.75))/25.352 AuEq(g/t) = ((Zn Grade*25.35)+(Pb
Grade*23.15)+(Cu Grade*67.24)+(Au Grade*40.19)+(Ag Grade*0.62)
)+(Sn Grade*191.75))/40.19
A summary of the updated Mineral Resource Estimate is set out in
the table below:
Lagoa Salgada Mineral Resource Estimate -
Effective September 5, 2019
North Zone Mineral Resource Estimate
|
|
|
|
|
Average Grade |
Contained Metal |
Deposit |
Category |
Min |
Cut-off |
Tonnes |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
ZnEq |
AuEq |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
|
|
Zones |
ZnEq% |
(kt) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
(%) |
(g/t) |
(kt) |
(kt) |
(kt) |
(kt) |
(koz) |
(koz) |
North |
Measured(M) |
GO |
2.5 |
234 |
0.13 |
0.70 |
4.32 |
0.36 |
51 |
1.50 |
11.38 |
7.18 |
0.3 |
1.6 |
10.1 |
0.9 |
385.2 |
11.3 |
|
Indicated(I) |
GO |
2.5 |
1,462 |
0.08 |
0.43 |
2.55 |
0.26 |
37 |
0.51 |
6.63 |
4.18 |
1.2 |
6.2 |
37.3 |
3.8 |
1,742.1 |
23.8 |
|
M &
I |
GO |
2.5 |
1,696 |
0.09 |
0.47 |
2.79 |
0.27 |
39 |
0.64 |
7.28 |
4.60 |
1.5 |
7.9 |
47.4 |
4.6 |
2,127.2 |
35.1 |
|
Inferred |
GO |
2.5 |
831 |
0.08 |
0.48 |
2.62 |
0.17 |
27 |
0.37 |
5.66 |
3.57 |
0.7 |
4.0 |
21.8 |
1.4 |
727.6 |
9.9 |
|
Measured(M) |
MS |
3.0 |
2,444 |
0.40 |
3.12 |
2.97 |
0.15 |
72 |
0.74 |
10.95 |
6.91 |
9.7 |
76.3 |
72.5 |
3.7 |
5,623.9 |
58.4 |
|
Indicated(I) |
MS |
3.0 |
5,457 |
0.45 |
2.35 |
2.30 |
0.13 |
75 |
0.67 |
9.55 |
6.03 |
24.5 |
128.1 |
125.6 |
7.3 |
13,221.5 |
116.9 |
|
M &
I |
MS |
3.0 |
7,902 |
0.43 |
2.59 |
2.51 |
0.14 |
74 |
0.69 |
9.98 |
6.30 |
34.2 |
204.4 |
198.1 |
10.9 |
18,845.5 |
175.2 |
|
Inferred |
MS |
3.0 |
1,529 |
0.23 |
1.96 |
1.32 |
0.09 |
45 |
0.49 |
6.36 |
4.01 |
3.6 |
30.0 |
20.2 |
1.4 |
2,219.7 |
24.0 |
|
Measured(M) |
Str |
2.5 |
94 |
0.37 |
0.88 |
0.28 |
0.05 |
17 |
0.12 |
3.08 |
1.94 |
0.3 |
0.8 |
0.3 |
0.0 |
51.0 |
0.4 |
|
Indicated(I) |
Str |
2.5 |
643 |
0.34 |
0.90 |
0.23 |
0.09 |
17 |
0.06 |
3.23 |
2.04 |
2.2 |
5.8 |
1.5 |
0.6 |
354.0 |
1.3 |
|
M & I |
Str |
2.5 |
737 |
0.34 |
0.90 |
0.24 |
0.09 |
17 |
0.07 |
3.21 |
2.03 |
2.5 |
6.6 |
1.7 |
0.6 |
405.0 |
1.7 |
|
Inferred |
Str |
2.5 |
142 |
0.24 |
1.12 |
0.39 |
0.04 |
17 |
0.09 |
2.95 |
1.86 |
0.3 |
1.6 |
0.6 |
0.1 |
75.6 |
0.4 |
North |
M &
I |
All
zones |
2.9 |
10,334 |
0.37 |
2.12 |
2.39 |
0.16 |
64 |
0.64 |
9.06 |
5.72 |
38.2 |
219.0 |
247.2 |
16.2 |
21,377.7 |
212.0 |
North |
Inferred |
All
zones |
2.8 |
2,502 |
0.18 |
1.42 |
1.70 |
0.12 |
38 |
0.43 |
5.93 |
3.74 |
4.6 |
35.6 |
42.6 |
2.9 |
3,022.8 |
34.3 |
Central and South Zones Mineral Resource
Estimate
|
|
|
|
|
Average Grade |
Contained Metal |
Deposit |
Category |
Min |
Cut-off |
Tonnes |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
CuEq |
Cu |
Zn |
Pb |
Sn |
Ag |
Au |
|
|
Zones |
CuEq% |
(kt) |
(%) |
(%) |
(%) |
(%) |
(g/t) |
(g/t) |
(%) |
(kt) |
(kt) |
(kt) |
(kt) |
(koz) |
(koz) |
Central |
Inferred |
Str |
0.9 |
1,707 |
0.15 |
0.16 |
0.06 |
0 |
12 |
2.22 |
1.66 |
2.5 |
2.7 |
1.0 |
- |
635.2 |
121.9 |
South |
Measured(M) |
Str/Fr |
0.9 |
0 |
— |
— |
— |
— |
— |
— |
— |
|
|
|
|
|
|
|
Indicated(I) |
Str/Fr |
0.9 |
2,473 |
0.47 |
1.53 |
0.83 |
0.00 |
19 |
0.06 |
1.54 |
11.5 |
37.9 |
20.6 |
0.0 |
1,484.7 |
4.7 |
South |
M &
I |
Str/Fr |
0.9 |
2,473 |
0.47 |
1.53 |
0.83 |
0.00 |
19 |
0.06 |
1.54 |
11.5 |
37.9 |
20.6 |
0.0 |
1,484.7 |
4.7 |
South |
Inferred |
Str/Fr |
0.9 |
6,085 |
0.40 |
1.34 |
0.80 |
0.00 |
17 |
0.05 |
1.37 |
24.6 |
81.6 |
48.7 |
0.0 |
3,285.2 |
10.0 |
Notes to tables:(1) Min(eralized) Zones: GO=Gossan, MS=Massive
Sulphide, Str=Stringer, Str/Fr=Stockwork(2) ZnEq% = ((Zn
Grade*25.35)+(Pb Grade*23.15)+(Cu Grade*67.24)+(Au Grade*40.19)+(Ag
Grade*0.62)+(Sn Grade*191.75))/25.35(3) CuEq% = ((Zn
Grade*25.35)+(Pb Grade*23.15)+(Cu Grade * 67.24)+(Au
Grade*40.19)+(Ag Grade*0.62))/67.24(4) AuEq(g/t) = ((Zn
Grade*25.35)+(Pb Grade*23.15)+(Cu Grade * 67.24)+(Au
Grade*40.19)+(Ag Grade*0.62) )+(Sn Grade * 191.75))/40.19(5) Metal
Prices: Cu $6,724/t, Zn $2,535/t, Pb $2,315/t, Au $1,250/oz, Ag
$19.40/oz, Sn $19,175/t(6) Densities: GO=3.12, MS=4.76, Str=2.88,
Str/Fr=2.88
Based on the significant results of the updated
Mineral Resource Estimate, the Company completed a PEA for the
Lagoa Salgada project based on the North Zone only. While the work
was completed in 2019, the results of the PEA were announced
subsequent to the year’s end, on January 14, 2020.
The Technical Report entitled, “Technical Report
and PEA for the Lagoa Salgada Property, Setúbal District,
Portugal”, supporting the robust results from the maiden
Preliminary Economic Assessment (“PEA”) for the North Zone at the
Lagoa Salgada VMS project was prepared in accordance with Canadian
National Instrument 43-101 (“NI 43-101”) with an effective date of
December 19, 2019.
The report outlines a robust and compelling
economic assessment for Lagoa Salgada as it assumes a two-stage
underground mining development scenario, with single trackless ramp
access, transverse sub-level open stoping method with pastefill.
Ventilation and secondary escape ways are planned through
raise-bored holes to surface. Milling rates of 2,700 tonnes per day
in a standard process circuit is anticipated, with primary
crushing, grinding, flotation and leaching of tailings to produce
concentrates including lead, zinc, copper and tin, as well as gold
and silver doré. There is ample opportunity for extensive expansion
from future exploration work to define additional resources to
extend the mine life or increase the scale of the outlined
operation.
Highlights from the PEA for the North Zone include:
- After-tax IRR of 31% and NPV8% of $106M (C$139M
@$1.31CAD/USD)
- Nine-year mine life with production scenario of 2,700 tpd
- Average annual EBITDA of $54.2 million
- Four-year payback period of initial Capex of $162.7
million
- Average operating costs of $49.43/t milled represents low cost
production scenario
- Low average annual cash costs of $0.44/lb ZnEq and average
annual All-In Sustaining Cost (AISC) of $0.66/lb ZnEq
- Significant upside opportunities remain with near-resource
exploration targets identified with multiple deposits open
laterally and at depth, and broader targets untested
Highlights of the key project metrics are
provided in the following table on a 100% basis:
PEA Key Highlights |
|
Project IRR pre-tax |
37% |
NPV8% pre-tax |
$137 million |
Project IRR after-tax |
31% |
NPV8% after-tax |
$106 million |
Life of mine pre-tax cash flow |
$ 250 million |
Life of mine after-tax cash flow |
$ 202 million |
Construction period |
2 years |
Payback period |
4 years |
Life of mine |
9 years |
Average Annual Production |
1.0 million tonnes |
Initial Capital Expenditure |
$ 162.7 million |
LOM Sustaining Capital Expenditure & Closure |
$ 20.2 million |
Average annual operating costs |
$ 49.43 /t milled |
Average Annual operating costs (C1) |
$0.44 /lb ZnEq |
Average annual All-In Sustaining Costs (AISC) |
$0.66 /lb ZnEq |
Metal Price Assumptions1 |
|
Zinc |
$1.20/lb |
Lead |
$1.05/lb |
Copper |
$2.70/lb |
Silver |
$18/oz |
Gold |
$1,400/oz |
Tin |
$7.50/lb |
Recovery Assumptions |
Massive Sulphide |
Zn |
80% |
Pb |
65% |
Cu |
25% |
Ag |
75% |
Au |
75% |
Sn |
30% |
Recovery Assumptions |
Gossan |
Pb |
65% |
Sn |
40% |
Ag |
66% |
Au |
86% |
Average Annual Metal Production |
|
Zn |
12.5kt |
Pb |
13.7kt |
Cu |
0.2kt |
Ag |
1.1Moz |
Au |
13koz |
Sn |
0.3kt |
Notes to Table:1 The project economics have been
calculated using consensus prices at the time of the Resource
Estimate report in September 2019.
The PEA was prepared by AMC Mining Consultants
(Canada) Ltd (AMC) with contributions from Resource Development Inc
(RDI) for Mineral Processing and Micon International Limited
(Micon), who estimated the Mineral Resources.
The PEA is preliminary in nature, as it includes
Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them
that would enable them to be categorized as Mineral Reserves, and
there is no certainty that the preliminary economic assessment will
be realized.
The Technical Report is available for review
under the Company’s profile on SEDAR and on the Company’s
website.
Other Corporate Highlights
On February 2019, the Company entered into an
advance sales transaction pursuant to which, the Company received
advanced consideration of $4.0 million in exchange for future
quarterly physical deliveries of zinc and lead concentrates from
the Company’s El Mochito mine production to the counterparty. The
advanced consideration is accounted for as a financial liability to
be repaid, as zinc and lead concentrates are delivered to the
counterparty. The facility may be immediately renewable upon
settlement of the quarterly delivery of zinc and lead concentrate.
During the year, the Company repaid the $4.0 million facility and
increased the facility to $10.0 million.
At December 31, 2019, the Company had drawn down
a total $28.5 million and repaid a total $18.5 million under the
revised revolving prepayment facility. As at December 31, 2019 the
$10.0 million balance bears interest at the rate of 3 Month LIBOR +
5.50% until repaid. Refer to Note 11 of the consolidated financial
statements.
On March 28, 2019, the Company entered into the
Silver Stream Arrangement with Maverix Metals Inc. (“Maverix”)
whereby the Company received an Initial Advance Payment of $7.5
million against delivery of 22.5% of payable silver over the
remainder of El Mochito’s mine life (the “Silver Stream
Agreement”). Refer to Note 12 of the consolidated financial
statements.
2020 Outlook
2019 was a strong operational year for Ascendant
as the El Mochito mine ended the year demonstrating its 12th
consecutive quarter of ZnEq metal production growth and achieved
record quarterly head grades of 8.5% ZnEq since the Company’s
acquisition of the mine. The Company’s financial performance was
affected by the tumultuous metals market persisting throughout much
of 2019, placing downward pressure on zinc prices particularly in
the second half of the year. Also contributing were the high
treatment and refining charges as well as costs pressures at the
mine site.
Since the acquisition in December 2016,
Ascendant has dedicated significant capital and resources to the
operations at El Mochito. While the mine has seen continual growth
and record production quarter over quarter, as demonstrated by
fourth quarter and full year 2019 operating results, it did not
meet the Company’s profitability objectives and continued to
require additional considerable financial investment. It is for
this reason the Company made the strategic decision to divest of
the El Mochito mine through a sale transaction as announced in the
Company’s press release dated April 17, 2020 and subsequently
completed on April 27, 2020. The Company received a cash
consideration of $1.0 million and an additional $0.1 in working
capital adjustments, as well as a royalty on zinc sales from the El
Mochito mine subject to the future price of zinc, wherein Ascendant
will receive US$0.0125 per lb of zinc for all sales through
December 31, 2029 when the price of zinc is in excess of US$1.15
per lb. The sale effectively eliminated the Company’s direct AMPAC
expenses, liabilities and obligations, estimated at approximately
$20-25 million, providing for an immediate strengthening of the
Company’s financial position.
With the sale of El Mochito completed, Ascendant
is now able to focus on its highly attractive, high-grade Lagoa
Salgada VMS project located on the prolific Iberian Pyrite Belt in
Portugal and devote the desired resources to a project that the
Company believes will be a significant driver of growth and
value.
For 2020, the Company remains focused on mining
high-grade material to maintain and drive elevated metal production
levels achieved in the second half of 2019. The Company is
assessing operations as the current market situation develops and
will provide a more detailed update on 2020 expectations in the
future.
Planned exploration work at Lagoa Salgada will
include downhole IP and drilling aimed at expanding and upgrading
the copper-rich resource in the Central and South Zones with
additional drilling of the southern extension of the
high-grade massive sulphide mineralization of the North Zone
expected to expand the Indicated Mineral Resources. The program
also includes four metallurgical drill holes for further
metallurgical testing. All zones remain open along strike and at
depth and from the extensive ongoing gravimetric work conducted on
the LS West region, there is strong indication mineralization
extends in all directions providing confidence in the potential
growth potential. More information on the planned exploration
program can be found in our April 23rd, 2020 press release.
Based on results from the 2020 drill program at
Lagoa Salgada, the Company plans to complete an updated Mineral
Resource Estimate in the latter half of the year which will be used
as a basis for a Feasibility Study to begin thereafter.
The results of the PEA for Lagoa Salgada,
announced on January 14, 2020, highlight the robust potential of
the project and outlines a compelling case for the future growth
potential of the project. Management expects Lagoa Salgada to be an
important value driver for the Company going forward as we seek to
rapidly develop the Project towards its mineable potential. The
Company is actively engaged with potential strategic and financial
partners for funding the advancement and development of the Lagoa
Salgada property.
The information provided within this release
should be read in conjunction with Ascendant’s unaudited condensed
consolidated interim financial statements and management's
discussion and analysis for the year ended December 31, 2019, which
are available on Ascendant’s website and on SEDAR. As at January 1,
2017, the Company has changed its presentation currency to the U.S.
dollar (US). All financial figures are in US dollars unless
otherwise stated.
Technical Disclosure/Qualified
Person
All technical information contained herein has
been reviewed and approved by Robert A. Campbell, M.Sc, P.Geo, a
director of the Company. Mr. Campbell is a "qualified person"
within the meaning of NI 43-101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”).
About Ascendant Resources
Inc.
Ascendant Resources Inc. is a Toronto-based
mining company focused on the exploration and development of the
highly prospective Lagoa Salgada VMS project located on the
prolific Iberian Pyrite Belt in Portugal. Through focused
exploration and aggressive development plans, the Company aims to
unlock the inherent potential of the project, maximizing value
creation for shareholders.
Lagoa Salgada contains over 12.8 million tonnes
of M&I Resources and over 10.3 million tonnes in Inferred
Resources and demonstrates typical mineralization characteristics
of Iberian Pyrite Belt VMS deposits containing zinc, copper, lead,
tin, silver and gold, and demonstrates. Extensive exploration
upside potential lies both near deposit and at prospective step-out
targets across the large 10,700ha property concession. The project
also demonstrates compelling economics with scalability for future
resource growth in the results of the Preliminary Economic
Assessment completed in 2020. Located just 80km from Lisbon, Lagoa
Salgada is easily accessible by road and surrounded by exceptional
Infrastructure. Ascendant holds a 21.25% interest in the Lagoa
Salgada project through its 25% position in Redcorp -
Empreendimentos Mineiros, Lda, (“Redcorp”) and has an earn-in
opportunity to increase its interest in the project to 80%. Mineral
& Financial Investments Limited owns the additional 75% of
Redcorp. The remaining 15% of the project is held by Empresa de
Desenvolvimento Mineiro, S.A. (EDM), a Portuguese Government owned
company supporting the strategic development of the country’s
mining sector. The Company’s interest in the Lagoa Salgada project
offers a low-cost entry to a potentially significant exploration
and development opportunity, already demonstrating its mineable
scale.
Ascendant Resources is also engaged in the
ongoing evaluation of producing and development stage mineral
resource opportunities. The Corporation'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:
Katherine PrydeDirector, Communications &
Investor RelationsTel:
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 of 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 exploration
and capital expenditures at the Lagoa Salgada project, expanding
and upgrading the resource base at Lagoa Salgada and the ability to
bring the Lagoa Salgada project to a feasibility stage.
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 ability of the Company to
reduce costs, exploration and capital expenditures, maintain robust
adjusted EBITDA and free cash flow and 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.
NON-IFRS PERFORMANCE
MEASURES
The non-IFRS performance measures presented do
not have any standardized meaning prescribed by IFRS and are
therefore unlikely to be directly comparable to similar measures
presented by other issuers.
Non-IFRS reconciliation of Adjusted
EBITDA
EBITDA is a non-IFRS measure that represents an
indication of the Company’s continuing capacity to generate
earnings from operations before taking into account management’s
financing decisions and costs of consuming capital assets, and
management’s estimate of their useful life. EBITDA comprises
revenue less operating expenses before interest expense (income),
property, plant and equipment amortization and depletion, and
income taxes. Adjusted EBITDA has been included in this document.
Under IFRS, entities must reflect in compensation expense the cost
of share-based payments. In the Company’s circumstances,
share-based payments involve a significant accrual of amounts that
will not be settled in cash but are settled by the issuance of
shares in exchange for cash. EBITDA and Adjusted EBITDA do not have
any standardized meaning prescribed by IFRS and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. EBITDA and Adjusted
EBITDA exclude the impact of cash costs of financing activities and
taxes, and the effects of changes in operating working capital
balances, and therefore are not necessarily indicative of operating
profit or cash flow from operations as determined under IFRS. Other
companies may calculate EBITDA and Adjusted EBITDA differently. As
such, the Company has made an entity specific adjustment to EBITDA
for these expenses. The Company has also made an entity-specific
adjustment to the foreign currency exchange (gain)/loss.
The following table provides a reconciliation of
net income (loss) to Adjusted EBITDA:
|
|
|
|
Three months ended |
Year ended |
Adjusted EBITDA |
|
|
December
31, |
December 31, |
|
|
|
|
2019 |
2018 |
2019 |
2018 |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$000's |
3,591 |
|
(3,020 |
) |
(8,209 |
) |
3,005 |
|
|
|
|
|
|
|
|
|
Adjusted for: |
|
|
|
|
|
|
|
Advances to joint venture |
|
$000's |
613 |
|
2,248 |
|
2,639 |
|
2,248 |
|
|
Gain on
remeasurement of environmental obligation |
|
$000's |
- |
|
(2,788 |
) |
- |
|
(2,788 |
) |
|
Depletion
and depreciation |
|
$000's |
2,020 |
|
1,454 |
|
7,313 |
|
4,724 |
|
|
Finance
expenses |
|
$000's |
812 |
|
249 |
|
2,669 |
|
1,022 |
|
|
Accretion
expense on rehabilitation liabilities |
|
$000's |
80 |
|
(333 |
) |
284 |
|
310 |
|
|
Charge on
termination obligations |
|
$000's |
(651 |
) |
1,089 |
|
2,842 |
|
2,335 |
|
|
Share-based
payments |
|
$000's |
24 |
|
152 |
|
318 |
|
1,022 |
|
|
Foreign
currency exchange gain/loss |
|
$000's |
(74 |
) |
(113 |
) |
(34 |
) |
(49 |
) |
|
Income taxes |
|
$000's |
(904 |
) |
947 |
|
- |
|
1,663 |
|
Adjusted EBITDA |
|
$000's |
5,511 |
|
(115 |
) |
7,822 |
|
13,492 |
|
|
|
|
|
|
|
|
|
Direct operating cost per tonne milled
The Company uses the non-IFRS measure of direct
operating cost per tonne milled to manage and evaluate operating
performance. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use
this information to evaluate the Company’s performance and ability
to generate cash flows. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. The Company considers cost of sales per tonne milled to
be the most comparable IFRS measure to direct operating cost per
tonne milled and has included calculations of this metric in the
reconciliations within the applicable tables to follow.
Direct operating cost per tonne milled includes
mine direct operating production costs such as mining, processing,
administration, indirect charges as surface maintenance and camp
expenses, and inventory sales adjustments but does not include,
smelting, refining and freight costs, royalties, depreciation,
depletion, amortization, reclamation, and capital costs.
The following table provides a reconciliation of
direct operating costs to cost of sales, as reported in the
Company’s consolidated statement of income (loss) for the year
ended December 31, 2019:
|
|
|
|
Three months ended |
Year ended |
Direct operating cost per tonne milled |
|
|
December
31, |
December 31, |
|
|
|
|
2019 |
2018 |
2019 |
2018 |
|
Mine operating expenses (from consolidated income statement) |
|
$000's |
|
16,184 |
|
|
22,009 |
|
|
72,222 |
|
|
74,162 |
|
|
Add:
Termination Liability Payments |
|
$000's |
|
67 |
|
|
257 |
|
|
289 |
|
|
933 |
|
|
Add
(deduct): Supplies Inventory Obsolescence Adjustment |
|
$000's |
|
- |
|
|
(266 |
) |
|
- |
|
|
(266 |
) |
|
Add
(deduct): Supplies Inventory Adjustment |
|
$000's |
|
- |
|
|
(1,391 |
) |
|
- |
|
|
(1,391 |
) |
|
Deduct
(Add): Variation in Finished Inventory |
|
$000's |
|
784 |
|
|
(2,129 |
) |
|
1,559 |
|
|
(4,641 |
) |
|
Deduct: Depreciation in production |
|
$000's |
|
(1,993 |
) |
|
(1,452 |
) |
|
(7,204 |
) |
|
(4,712 |
) |
Total cash costs (including royalties) |
|
$000's |
|
15,042 |
|
|
17,028 |
|
|
66,866 |
|
|
64,085 |
|
|
Deduct: Government taxes and royalties |
|
$000's |
|
970 |
|
|
(1,240 |
) |
|
(2,011 |
) |
|
(4,375 |
) |
Direct operating costs |
|
$000's |
|
16,012 |
|
|
15,788 |
|
|
64,855 |
|
|
59,710 |
|
|
Tonnes Milled |
|
tonnes |
|
186,987 |
|
|
184,913 |
|
|
775,559 |
|
|
756,034 |
|
Direct operating cost per tonne milled |
|
$/tonne |
$85.63 |
|
$85.38 |
|
$83.62 |
|
$78.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
Year ended |
AISC per ZnEq payable pound sold |
|
|
December
31, |
December 31, |
|
|
|
|
2019 |
2018 |
2019 |
2018 |
|
|
|
|
|
|
|
|
ZnEq payable pounds sold |
|
000's
lbs |
|
24,796 |
|
|
21,511 |
|
|
90,158 |
|
|
81,871 |
|
|
|
|
|
|
|
|
|
Cash Operating Costs Reconciliation |
|
|
|
|
|
|
|
Direct
operating costs |
|
$000's |
|
16,012 |
|
|
15,788 |
|
|
64,855 |
|
|
59,710 |
|
|
Add (deduct): Variation in Finished Inventory |
|
$000's |
|
(784 |
) |
|
2,129 |
|
|
(1,559 |
) |
|
4,641 |
|
Cash operating costs |
|
$000's |
|
15,228 |
|
|
17,917 |
|
|
63,296 |
|
|
64,351 |
|
Cash operating cost per ZnEq payable pound
sold |
|
$/ZnEq lb |
$0.61 |
|
$0.83 |
|
$0.70 |
|
$0.79 |
|
|
|
|
|
|
|
|
|
All-in Sustaining Costs (AISC) Reconciliation |
|
|
|
|
|
|
|
Total cash
operating costs |
|
$000's |
|
15,228 |
|
|
17,917 |
|
|
63,296 |
|
|
64,351 |
|
|
Add:
Government taxes and royalties |
|
$000's |
|
(970 |
) |
|
1,240 |
|
|
2,011 |
|
|
4,375 |
|
|
Add:
Adjustment to government taxes and royalties |
(1) |
$000's |
|
1,685 |
|
|
- |
|
|
1,685 |
|
|
- |
|
|
Add: TC
& RCs |
|
$000's |
|
5,399 |
|
|
3,996 |
|
|
20,174 |
|
|
14,474 |
|
|
Add:
G&A, excluding depreciation and amortization |
|
$000's |
|
214 |
|
|
1,328 |
|
|
4,953 |
|
|
5,974 |
|
|
Add:
Accretion expense on rehabilitation liabilities |
|
$000's |
|
80 |
|
|
(333 |
) |
|
284 |
|
|
310 |
|
|
Add: Sustaining capital expenditure |
|
$000's |
|
3,372 |
|
|
3,437 |
|
|
15,325 |
|
|
17,555 |
|
Total All-in sustaining costs - Consolidated |
|
$000's |
|
25,008 |
|
|
27,585 |
|
|
107,728 |
|
|
107,039 |
|
|
Deduct: G&A, excluding depreciation and amortization |
|
$000's |
|
(214 |
) |
|
(1,328 |
) |
|
(4,953 |
) |
|
(5,974 |
) |
Total All-in sustaining costs - El Mochito |
|
$000's |
|
24,794 |
|
|
26,257 |
|
|
102,775 |
|
|
101,065 |
|
AISC per ZnEq payable pound sold -
Consolidated |
|
$/ZnEq lb |
$1.01 |
|
$1.28 |
|
$1.19 |
|
$1.31 |
|
AISC per ZnEq payable pound sold - El Mochito |
|
$/ZnEq lb |
$1.00 |
|
$1.22 |
|
$1.14 |
|
$1.23 |
|
|
|
|
|
|
|
|
|
Additional non-IFRS measures
The Company uses other financial measures, the
presentation of which is not meant to be a substitute for other
subtotals or totals presented in accordance with IFRS, but rather
should be evaluated in conjunction with such IFRS measures. The
following other financial measures are used:
- Operating cash flows before
movements in working capital - excludes the movement from
period-to-period in working capital items including trade and other
receivables, prepaid expenses, deposits, inventories, trade and
other payables and the effects of foreign exchange rates on these
items.
The terms described above do not have a
standardized meaning prescribed by IFRS, and therefore the
Company’s definitions are unlikely to be comparable to similar
measures presented by other companies. The Company’s management
believes that their presentation provides useful information to
investors because cash flows generated from operations before
changes in working capital excludes the movement in working capital
items. This, in management’s view, provides useful information of
the Company’s cash flows from operations and are considered to be
meaningful in evaluating the Company’s past financial performance
or its future prospects. The most comparable IFRS measure is cash
flows from operating activities.
Ascendant Resources (TSX:ASND.WT)
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