Axmif - Axmin Inc. (gold)

Discussion in 'Penny Stocks' started by Jon Alba, May 17, 2018.

  1. Jon Alba

    Jon Alba Senior Investor

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    Used to be an expensive stock before they ran into some issues in 2012. Over the last month it's taken off and the company announced a new gold royalty that's paying them serious bucks every quarter. Not only that, if they get back to this old asset they own, it's a multi billion dollar value injection into a small cap. You can look up news on Google. For $0.11 it's worth taking a chance on.
     
  2. Jon Alba

    Jon Alba Senior Investor

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    Didn't realize you could upload financial summaries. The text attached if AXM's year end results, got this from Sedar which is identical to Edgar.
     

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  3. Jon Alba

    Jon Alba Senior Investor

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    Axmin earns $1.2-million (U.S.) in 2017

    2018-05-07 11:33 MT - News Release

    Ms. Lucy Yan reports

    CHAIRMAN PROVIDES AXMIN'S YEAR END 2017 FINANCIAL AND OPERATIONAL RESULTS

    Axmin Inc. has released highlights from its audited annual financial statements for the year ended Dec. 31, 2017, which have been filed on SEDAR (amounts are in U.S. dollars).

    2017 highlights

    Financial:
    • Revenue of $1.6-million (2016: $1-million);
    • Net income of $1.2-million (2016: loss of $250,000);
    • Cash balance of $1.1-million (2016: $400,000).

    Operational:

    • Revenue from the company's net smelter return (NSR) royalty with Teranga Gold Corp. for the Gora deposit has grown from $1-million in 2016 to $1.6-million in 2017. For the avoidance of doubt, at the moment, only the Gora deposit contributed the NSR royalty revenue of $1.6-million for the year 2017 to Axmin.
    • Axmin staff are in discussions with Teranga regarding progress on developing other properties in which Axmin has an interest.
    • Axmin holds an additional 16 target areas in conjunction with Teranga subject to future development with no further capital participation contribution required from Axmin.
    Central African Republic (CAR):

    • Axmin is delighted to confirm that, on March 26, 2018, the Minister of Mining and Geology in the CAR issued an executive order No. 073/18/MMG/DIRCAB/DGM to grant Somio Toungou an extension of the period of exemption from development and exploration under the mining licence for one year, running from March 22, 2018, to March 21, 2019, relating to the Passendro gold project.
    • By the executive order, Aurafrique also was granted a one-year extension, running from March 22, 2018, to March 21, 2019, of an exemption from exploration and research work on the Bambari 1 and 2 exploration permits.
    • The situation in the CAR remains difficult, but Axmin's in-country representative, Boubacar Sidibe, has recently visited Bambari and has met with the district commissioner, Prefect of Ouaka, the Vice-Mayor of Bambari, head of MINUSCA at Bakala and representatives of the illegal miners who were at one time active on the Passendro gold project site. Axmin is maintaining excellent relations at the regional level as well as at the central government level.
    • Axmin regrets the instability that has plagued the CAR but is confident that stability will return under the stewardship of the current government and looks forward to working with all stakeholders to develop a safe, rapid and profitable mining operation on the company's mineral properties in the CAR.


    Commenting on the 2017 annual results, Lucy Yan, Axmin's chairman, said: "During the past year of my tenure as chairman, we are starting to see some positive developments in the CAR. We believe that the duly elected government working with MINUSCA will in time bring stability to the country and specifically to the region around Ndassima, where our main asset is located. We have been in close communication with the senior ministers and officials of the governments both in Bangui and locally in Bambari and look forward to the time when we can reclaim the site to become operational again."

    The counsellor to the CAR president for disarmament, demobilization, reinsertion and repatriation (DDRR), Colonel Noel Bienvenu Selesson, wrote to Axmin: "We thank you not only for the efforts made by your company but also for the reaffirmation of its commitment and its determination to go to the operation. The DDRR process is evolving. After the successful completion of the DDRR/RSS pilot project that ended on Dec. 19, 2017, we are very actively preparing for the launch of the large DDRR. The provisions in this framework, will allow your company to resume fairly quickly all its activities in the area as well as in the rest of the country."

    The CAR Minister of Mining and Geology, Leopold Mboli Fatrane, also wrote to Axmin: "... the Ndassima mine is one of the main projects on which the government is setting out to revive the national economy. To this end, the government and the Integrated Multidimensional Stabilization Mission of the United Nations in Central African Republic (MINUSCA) have already undertaken the restoration of the authority of the State in the Ouaka and its surroundings."

    David Weill, lead independent director of Axmin, commented: "Management has done a superb job during this time of adversity to firstly secure the financial situation of the company by strictly controlling costs and secondly develop the royalty revenue streams for the benefit of all shareholders. Management has also maintained an excellent relationship and ongoing dialogue with the government of the CAR so that, when the company regains access to and control over the mining site, the company may rapidly implement a pragmatic mining plan focusing on developing the extremely high-grade deposits that will provide operational security for our employees and contractors, require limited capital expenditures from the company, and hopefully achieve very profitable returns in a very timely fashion for our shareholders."

    This press release should be read in conjunction with the company's audited annual financial statements for the year ended Dec. 31, 2017, together with its management discussion and analysis for the year ended Dec. 31, 2017, both of which are available from the company's website and on SEDAR.

    About Axmin Inc.

    Axmin is a Canadian exploration and development company with a strong focus on Central and West Africa. Axmin is positioned to grow in value as it progresses its Passendro gold project toward development and builds on its project pipeline focusing on transitioning from an explorer to producer.

    We seek Safe Harbor.

    © 2018 Canjex Publishing Ltd. All rights reserved.
     
  4. Jon Alba

    Jon Alba Senior Investor

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    Just to note, that CAR deposit is 2 million ounces of proven gold, worth around $2.5 billion USD. They got financing for it back in 2011 before everything went downhill, but if it comes back, watch out. But for now the company has the amazing royalty from TDGCF so they can just keep adding cash while we wait.
     
  5. Jon Alba

    Jon Alba Senior Investor

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    https://content.usaa.com/mcontent/static_assets/MMF/MONHLD_FND0050.pdf

    Looks as if this fund has started accumulating Axmin Inc. shares. The cutoff was March 31st 2018 for Q1, but their Q2 should be out sometime this summer. Doesn't make sense for a fund with $550 million USD to only pick up 240,000 shares of a small cap. Their other holdings are between $100K to $20 million each, so I suspect more will be purchased. Keep in mind that AXM insiders currently own 85 of the 130.5 million common shares.
     
  6. Jon Alba

    Jon Alba Senior Investor

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    Based on the recent news from Axmin Inc, the government, UN, and other global support will help the company get this project back hopefully sometime this year. Right now AXM stock value is based solely on the royalty payment earnings multiple and has not given any value towards the CAR asset, or future Senegal royalty targets. Thus making AXM severly undervalued.

    Project Link: http://www.axmininc.com/Corporatenbsp.php

    AXMIN Inc. (AXM-TSX Venture) is a gold exploration company with a track record of finding and developing mines in Africa. AXMIN's strategy is to focus on newly democratic countries where it has the opportunity to acquire highly prospective ground as an early entrant.

    In June 2010, AXMIN announced the completion of the acquisition of AfNat Resources Limited, at the same time the Company announced a restructuring of management and the Board, George Roach was appointed President and CEO. Shortly thereafter, in August 2010, AXMIN was awarded a 25 year Mining Licence (ML) for its Passendro Gold Project and two 3-year renewable exclusive Exploration Permits that ring-fence the ML and cover 90 sq km of strike along the prolific Bambari greenstone belt.

    The Passendro Gold Project is located in the centre of its 90 km long Bambari permits, located in north-central Central African Republic (CAR). Passendro has as of June 2009, a NI 43-101 Indicated mineral resource of 2.03 million ounces Au (31.5 Mt grading 2.0 g/t Au) and Inferred mineral resource of 1.10 million ounces Au (21.7 Mt grading 1.6 g/t Au). In January 2011, AXMIN announced the results of its revalidated Feasibility Study, which indicated a robust project with a NPV at 5% discount of US$340 million, an IRR of 32% and a low cash cost of US$484/oz over a mine life of 8.3 years. In addition, the first three years provide an average annual production of 205,000 ounces with a cash cost of US$437/oz resulting in a rapid project payback of 2.2 years. With the feasibility study in hand, AXMIN has all the documentation it needs t secure the debt financing to develop Passendro project.

    Highlight of the 2011 FS is detailed below:

    Assumed Gold Price

    US$1,100/oz

    Assumed Oil Price

    US$80/bbl

    Mine Throughput

    2.8 mtpa

    Mine Life

    8.3 years

    Development & Construction

    24 months

    Strip Ratio

    5.4:1

    Average Annual Production years 1-3

    205,000 oz

    Average Annual Production (LOM)

    163,000 oz

    Initial Capital Costs (excluding contingency)

    US$246 million

    Total Cash Costs (including royalties) (LOM)

    US$484/oz

    Average Metallurgical Recovery

    94%

    Gravity Recovery

    30%

    IRR (after tax & royalties)

    32.1%

    NPV (after tax, 5% discount)

    US$340 million

    Operating Cash Flows

    US$493 million

    Payback Period

    2.2 years

    On December 24, 2012, the Company officially notified the CAR Minister of Mines and Defence, as per its 2006 Mining Convention, of the existence of Force Majeure due to the escalating rebel activity in the country, providing the Company full protection under the circumstances and in the event there is a change of administration in CAR. Under these circumstances all in country operations other than administrative, as well as all negotiations with the Company’s debt lenders have been suspended pending the lifting of the Force Majeure. The Force Majeure is an unexpected event that crucially affects our ability to carry out our activities under the terms of various agreements and represents a lawful reason for failure to have done so.

    Subsequently, on April 2, 2013, AXMIN referenced the COMMUNIQUE GOUVERNEMENTAL NUMERO 01 of the CAR Transitional Governmentthat confirmed that all lawfully and legitimately concluded contracts with the State will be honoured, further confirming the validity of AXMIN’s legally binding contractual agreements with the State.

    During 2012, the Company’s main focus was securing the financing required to build the mine. By the first quarter of 2012, AXMIN had successfully, with the assistance of its financial advisor Endeavour Financial (“Endeavour”), executed Mandate Letters for a total of $235 million in debt facility that is a mix of senior and subordinate convertible debt with a number of development agencies and commercial banks from Europe and South Africa. The debt providers’ Mandate Letters are commitments to arrange financing on a best efforts basis and are subject to legal, technical and environmental due diligence, execution of acceptable terms and documentation and obtaining final credit and board approvals. As indicated above, all lenders’ due diligence activities and negotiations with debt providers have been suspended until the lifting of the Force Majeure. On April 15, 2013, one of the four financial institutions terminated its debt Mandate Letter pursuant to a decision of certain European States to withdraw recognition of the Central African Republic as a result of the current political situation. This financial institution has indicated that it is willing to reconsider the project if the relevant circumstances change.

    In May 2013, AXMIN's shareholders voted overwhelmingly in support of the Dickson Resources Change of Control, at which time the two-stage Offering closed and AXMIN issued a total of 45,000,000 Units for gross proceeds of approximately C$6.8 million. Under the terms of the Offering AXMIN announced the appointment of three Dickson Resources represetatives to the AXMIN Board.
     
  7. Jon Alba

    Jon Alba Senior Investor

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    Between Russia, MINUSCA(UN), CAR Government, and other powers in the Central African Republic, rebels will be dealt with sooner than later.

    http://en.kremlin.ru/events/president/news/57534

    President of Russia Vladimir Putin: Mr President,

    It is a pleasure to welcome you to St Petersburg.

    I would like to thank you for coming to the St Petersburg International Economic Forum.

    At the outset, I would like to recall that our country was one of the first to recognise the independence of the Central African Republic.

    In the 1960s and 70s, specialists from our country worked in many spheres in your country, dozens of highly qualified specialists in many fields. Over 500 people were trained in Russia and managed to apply the knowledge and skills they received to develop their homeland.

    Later, for many reasons our cooperation was, if not completely curtailed, stuck at a rather low level. We will be happy to consider various plans to boost our relations, first of all in the economic and humanitarian fields, including personnel training.

    I am happy to see you, Mr President, and hope that today we will manage to find areas where we can work together to advance our relations.

    President of the Central African Republic Faustin Archange Touadera (retranslated): Thank you very much, Mr President.

    I am most grateful to you personally and the Government of the Russian Federation for the invitation. It is a great honour for me to take part in the St Petersburg Economic Forum.

    You mentioned the very important historical cooperation between our country and the Russian Federation in the 1960s and 1970s. In these periods, our contacts were much closer.

    You spoke about personnel training. Some students received education in the Soviet Union, while others studied in our country. For example, I studied at home but my teachers were Russian, which illustrates the very high level our relations were at.

    I am very happy to be here at your invitation. I think this is a wonderful opportunity to enhance our cooperation in many areas. I believe we can map out ways, areas and means for more active cooperation. You mentioned the economy and humanitarian contacts and I agree with you.

    Today our country is among the least developed but we have huge potential. I think participation in the economic forum will allow us to tell its participants about this potential and the business and economic opportunities opening up in our country.

    I went to Sochi on October 7 and saw that there is an opportunity for large-scale partnership based on trust between our countries.

    I would like to once again thank you, Mr President, the entire Government and the people of the Russian Federation for your support in the process of consolidation and reconciliation in our country.

    Incidentally, recently a Russian convoy covered a very difficult route from the East to the West in the framework of such partnership. Its goal was to set up mobile hospitals that will render simply invaluable support to our population that is currently in a very difficult humanitarian situation.

    We have big expectations for potential economic and humanitarian exchanges. We will discuss ways of promoting our cooperation.
     
  8. Jon Alba

    Jon Alba Senior Investor

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    AXM.V Q1 2018 Results (Financials + MD&A) Ending March 31st 2018
    All information is available through Sedar. Numbers below are in US Dollars

    Tickers: AXM(CDN) & AXMIF(US)
    Price: $0.11
    Common Shares: 130,497,381
    Options: 8,240,000

    Insider/Institutional Holdings: 82,089,114 – 63%

    ASSETS (USD)
    Cash: $1,628,835 (December 2017 - $1,115,331)
    Receivables: $497,302 (December 2017 - $610,477)
    Prepaid Expenses: $9,094 (December 2017 - $12,934)
    Total Assets: $2,135,231 (December 2017 - $1,738,742)

    LIABILITIES (USD)
    Accounts Payable: $2,432,023 (December 2017 - $2,440,820)
    Amounts Due To Parties: $174,345 (December 2017 - $190,355)
    Discontinued Operations: $323,103 (December 2017 - $323,103)
    Total Liabilities: $2,929,471 (December 2017 - $2,954,278)

    Q1 2018 Revenue (USD)
    Royalty Income: $490,551
    G&A Expenses: $117,185
    Net Income: $386,115

    2017 Revenue($USD)
    Royalty Income: $1,585,578
    G&A Expenses: $388,268
    Net Income: $1,141,752

    The company has added $1,527,867 USD or $1,986,227 CAD (based on 1.30 exchange) over the last 5 quarters. This is $0.0152 cents earnings per share. Small cap multiples for earnings based companies should be around 10 times earnings minimum.


    MD&A Highlights


    During the three months ended March 31, 2018, the Company reported royalty income of $490,551 from Gora Projects,· compared with $310,684 for the same time period of 2017. The net income for the three months ended March 31, 2018 was $373,527 compared to a $226,989 net income in the· same period of 2017.


    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.


    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.


    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 March 31, 2018, 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.


    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 representative 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.


    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. 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.
     
  9. longtermbull

    longtermbull Administrator Staff Member

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    Interesting - to a certain extent the movement in the price of gold is irrelevant for this share. It is more reducing the risk to the company's operations and maximising extraction of the gold.
     
  10. Jon Alba

    Jon Alba Senior Investor

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    I totally agree with you. TGZ(Teranga Gold) that pays Axmin Inc. it's royalties has Gold prices locked in at $1350 for 8 months, so the payments will be solely based on tonnage mined. I also checked the numbers and there's a backlog of royalty payments owed, but this is because Teranga can only refine so much ore at a time. Then on the same token we await the resumption of operations in CAR which will make the stock move up significantly.
     

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