Robex Faces Rising Costs and Permit Risks Amid $34M Q2 Loss

Operational and Financial Highlights

Robex Resources Inc. has released its financial and operational results for the second quarter and first half of 2025, revealing a mixed performance shaped by both external challenges and strategic progress. Gold production at the Nampala mine in Mali declined by 8.1% in Q2 2025 compared to the same period last year, primarily due to a drop in ore grade from 0.83 to 0.76 grams per tonne. Despite a slight increase in ore processed, this lower quality ore led to a production of 11,735 ounces, down from 12,764 ounces in Q2 2024.

However, gold sales revenue rose sharply by 53%, reaching $60.1 million, buoyed by a 41.7% increase in the average realized gold price to $4,586 per ounce and a 7.8% increase in ounces sold. This revenue growth was partially offset by a significant rise in mining royalties, which jumped to $8.4 million from $1.5 million due to a new mining convention with the Government of Mali that introduced higher revenue-based taxes and royalties effective in 2025.

Legal and Non-Cash Charges Weigh on Profitability

Despite improved mining income, Robex reported a net loss of $34.3 million for Q2 2025, a stark contrast to a modest loss of $0.18 million in the prior year quarter. This loss was heavily influenced by a $21.6 million legal settlement related to the 2022 acquisition of the Sycamore Group and a non-cash loss of $20 million from the dissolution of its wholly owned subsidiary African Peak Trading House Limited. These one-off charges overshadowed operational gains and highlight ongoing integration and restructuring costs.

Kiniéro Project Development and Financing

On the growth front, Robex is advancing its Kiniéro Gold Project in Guinea, with first gold production targeted for the fourth quarter of 2025. Construction milestones include mill installation and tailings facility liner completion, with grade control drilling delivering promising assay results consistent with resource models. The project benefits from a $130 million senior secured debt facility arranged with Sprott Resource Lending, of which $25 million has been drawn down, alongside a successful AUD 120 million IPO on the Australian Securities Exchange (ASX) in June 2025. These capital injections enhance Robex’s financial flexibility to fund project completion and support its strategic ambition to become a multi-asset gold producer in West Africa.

Cost Pressures and Operational Challenges

Robex faces rising cost pressures, notably from increased mining royalties and fuel costs following the removal of tax exemptions in Mali. The all-in sustaining cost (AISC) per ounce of gold sold surged 81.5% to $2,125 in Q2 2025, reflecting these higher royalties and sustaining capital expenditures. Operationally, the Nampala mine experienced increased waste stripping ratios and unplanned shutdowns, although throughput remained steady. The company’s strategy to mitigate energy cost volatility includes leveraging its solar power plant in Mali and plans to implement similar initiatives in Guinea.

Outlook and Risks

Management remains focused on safely operating Nampala while progressing Kiniéro’s development on schedule and within budget. The company is actively pursuing further drawdowns from the Sprott facility, contingent on government approvals for mining permits in Guinea. However, uncertainties persist around permit timing, financing availability, and geopolitical risks in West Africa. Robex acknowledges these risks and the material uncertainties related to its going concern status beyond 2026, emphasizing the importance of securing additional financing and operational efficiencies.