- Adjusted EBITDA1 of $1.6 million in November
- Record tonnes hoisted in November and Q4 production gains expected to drive robust operating and financial results in 2018
- Milled production tonnes up 67% year to date
TORONTO, Dec. 12, 2017 (GLOBE NEWSWIRE) -- Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF) (FRA:2D9) ("Ascendant" or the "Company”) is pleased to report its fifth consecutive month of positive adjusted EBITDA1 of $1.6 million at the El Mochito mine for the month of November. With strong operational and financial momentum, management remains confident that the El Mochito mine is on a solid path to sustained profitability and expects to exit 2017 with positive free cash flow.
Hoisted ore for the month of November was 67,690 tonnes, 8% above the 62,595 tonnes hoisted in October. Milled production for November was 64,327 tonnes of ore (2,144 tonnes per operating day), consistent with October’s production level of 64,449 tonnes of ore (or an average of 2,184 tonnes per operating day), representing a 67% increase in monthly tonnes milled since January 2017. On a calendar day basis, milled tonnes per day increased by 72% since January 2017, only eleven months after the Company assumed ownership of the mine.
The upward trend in production continues into December with increasing contributions from the new higher-grade conventional underground sections and the introduction of new long hole stopes into the existing mine plan. Management remains confident in achieving a strong month of milled production in December, exceeding the 2017 annual production target of 66MM lbs of zinc equivalent. The Company expects further strong operational and financial growth in 2018.
President and CEO Chris Buncic stated: “This has been an incredible turnaround year for the Company as we have successfully delivered consistent operational and financial improvements through our rehabilitation and optimization efforts at the El Mochito mine. With production now reaching targeted levels, the mine has demonstrated its ability to manage sustained higher production rates and provide a solid path for future growth that will continue to drive improved profitability.” He continued, “Throughout the remainder of the year and into 2018 we will continue to focus on further optimizing operations, increasing the head grade to the mill and introducing additional new mining equipment; all of which will serve to improve the cost profile at El Mochito, supporting an expected increased value per tonne milled which will generate strong free cash flow in 2018 and in the years to come.”
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 Toronto-based mining company focused on its 100%-owned producing El Mochito zinc, silver and lead mine in west-central Honduras, which has been in production since 1948. Since acquiring the mine in December 2016, Ascendant has been focused on a continuous optimization program aimed at restoring the historic potential of the El Mochito mine. To date, the Company has been successful at increasing production and reducing costs with the expectation of free cash flow in the near-term. Ascendant is also focused on expanding and upgrading known resources through extensive exploration work for near-term growth. With a significant land package of 11,000 hectares and an abundance of historical data there are several regional targets providing longer term exploration upside which could lead to further resource growth. The Company is also engaged in the evaluation of producing and advanced development stage mineral resource opportunities, 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.
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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 the continuous ramp up in ore production, production targets, further growth, improvement of the mine performance and improvement of profitability. 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 continue the ramp up in ore production, its ability to achieve production targets, future growth, improvements in performance and profitability 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 additional 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.
Source:Ascendant Resources Inc.