Pasinex Resources Reports 2015 Financial Results

Pasinex Resources Limited (CSE:PSE,FSE:PNX) announced its 2015 full year financial results.
As quoted in the press release:

Pasinex is focused on base metal mining and exploration in Turkey with a priority focus on zinc mining and exploration in Adana province, Turkey. Pasinex formed a 50 / 50 joint venture with Turkish mining house Akmetal AS, and through the joint venture company, called Horzum AS, they are developing the Pinargozu Zinc project in Adana province.

• Objective to grow Pasinex through exploration which can now be initially funded through cash-flows from the Pinargozu mine.
• Small ambitious zinc producer, showing profitability in it’s joint venture company Horzum AS

The highlights of these results are discussed here:

1. Sales for the Horzum AS Joint venture company were $4,506,244 CAD for 2015. This income was realized from the sale of 13,906 tonnes of direct shipping high grade zinc mineralization of between 30 – 38% Zn.
2. The JV company Horzum AS recorded an operating profit from these mining operations at Pinargozu of $831,625 CAD (an operating margin of 18.5%)
3. A total of 10,162 wet tonnes were mined from Pinargozu mine in 2015 giving an average of 27.8 wet tonnes per day of production. In total, 13,906 wet tonnes of product was sold in 2015 with the difference between what was mined and sold coming from 2014 production.
4. A total of 14,443 meters of drilling (both diamond and percussion drilling) was conducted by the JV company in 2015. The cost of this was approximately $875,000 USD spent in 2015.
5. The balance sheet for the Horzum AS joint venture company shows Total Assets at $7,221,892 CAD; the capital asset for Pinargozu property exploration was $1,049,467. Drilling continued on the Pinargozu property thus capital asset for exploration increased in 2015. Surplus was $707,832.

Pasinex Resources President and CEO, Steve Williams, stated:

2015 was a great and critical year for Pasinex. We continued to grow the Pinargozu mine. In 2015 we averaged 850 wet tonnes per month of high grade direct shipping zinc product from Pinargozu. In 2016 we are already producing at 1800 wet tonnes per month (though to April 2016). In 2015 all of the surplus operational cash generated was spent on exploration at Pinargozu. As can be seen from our JV company financial results, the company was profitable in 2015. We expect profitability to further strengthen in 2016. Also in 2016, we anticipate being able to fund all our exploration again and to also pay required capital for the mine growth. This is a major step forward for Pasinex. We have now built the PInargozu mine to sufficient productivity to provide the funds for exploration, as we push hard for the bigger zinc opportunity there.

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