Why Did Robex Resources Post a $63.6M Loss While Advancing Kiniéro?
Robex Resources Inc reported a substantial net loss for the first half of 2025, reflecting operational challenges and legal settlements, while advancing financing and construction of its key Kiniéro gold project in Guinea.
- Reported net loss of $63.6 million for six months ended June 30, 2025
- Raised A$120 million in ASX IPO and secured US$130 million Sprott financing facility
- Working capital deficit of $41.6 million as of June 30, 2025
- Legal settlement related to Sycamore Group acquisition increased expenses
- Nampala mine life estimated under 24 months; Kiniéro project development underway
Robex’s Financial Performance and Operational Context
Robex Resources Inc, a Canadian gold mining company operating primarily in West Africa, has released its unaudited interim financial statements for the three- and six-month periods ended June 30, 2025. The company reported a net loss of $34.3 million for the quarter and $63.6 million for the half-year, marking a significant deterioration compared to the prior year. These losses stem from a combination of operating expenses, legal claim settlements, and financial costs tied to its ongoing project financing arrangements.
The Nampala mine in Mali remains Robex’s main cash generator, delivering gold revenues of approximately $60 million in the quarter. However, the mine’s estimated remaining life is less than 24 months, with operations expected to cease by December 2026. This limited mine life underscores the urgency for Robex to successfully develop its new Kiniéro gold project in Guinea to sustain future production and cash flow.
Capital Raising and Financing Initiatives
In June 2025, Robex completed a successful initial public offering (IPO) on the Australian Securities Exchange (ASX), raising A$120 million (approximately $108 million) through the issuance of CHESS Depository Interests. This capital injection is earmarked for the construction of the Kiniéro project, working capital, and corporate overheads.
Complementing the equity raise, Robex secured a US$130 million senior secured term loan facility with Sprott Resource Lending Corp. to fund Kiniéro’s development. The facility, with a five-year term and interest linked to prevailing rates plus a gold price-based embedded derivative, saw its first drawdown of US$25 million in March 2025. The company remains compliant with all financial covenants under this facility as of June 30, 2025.
Financial Risks and Legal Settlements
Robex’s financial statements reveal a working capital deficit of $41.6 million at mid-year, highlighting liquidity pressures. The company is actively managing foreign exchange risks and has begun hedging currency exposures since May 2025. A notable expense impacting the period’s results was a $22.6 million legal claim settlement related to the acquisition of the Sycamore Group, which included cash payments and the issuance of share purchase warrants.
Additionally, Robex dissolved its wholly owned subsidiary African Peak Trading House Limited in May 2025, resulting in derecognition of retained earnings previously consolidated. The company also faces a potential retrospective royalty claim from the Malian government estimated at around $3 million, which it is contesting.
Outlook and Going Concern Considerations
Management has flagged material uncertainties regarding the company’s ability to continue as a going concern beyond the next 12 months without securing additional financing. While the current cash position combined with projected cash flows from Nampala may cover obligations through mid-2026, the development of Kiniéro is critical for longer-term viability.
Robex’s progress on the Kiniéro project is supported by the recent release of $25 million previously held in a cash sweep account under the Sprott facility, following an amendment to the financing agreement in July 2025. The company is also expanding its corporate footprint with the establishment of a subsidiary in Ivory Coast to provide regional services.
Investors will be watching closely how Robex navigates these financial and operational challenges while advancing its growth projects in a complex geopolitical environment.
Bottom Line?
Robex’s next chapters hinge on securing further financing and delivering on the Kiniéro project amid ongoing operational and regulatory challenges.
Questions in the middle?
- Will Robex secure additional financing to sustain operations beyond Nampala’s closure?
- How will the Malian government’s retrospective royalty claim impact future cash flows?
- What are the timelines and risks associated with Kiniéro’s construction and commercial production?