Robex Faces Legal Costs and Gold Price Risks Amid Major Project Financing
Robex Resources reported a $16.5 million net loss in Q3 2025 and completed full drawdown of its $130 million project financing facility, progressing its Kiniéro gold project with a planned first gold pour in December. The company also announced a merger agreement with Predictive Discovery Limited, signaling strategic growth.
- Q3 2025 net loss of CAD 16.5 million, nine-month loss of CAD 60.1 million
- Full drawdown of US$130 million project financing facility completed
- Raised A$120 million via ASX IPO in June 2025
- Kiniéro gold project construction advancing, first gold pour expected December 2025
- Merger agreement signed with Predictive Discovery Limited, expected closing early 2026
Financial Performance and Loss Drivers
Robex Resources Inc. released its unaudited interim financial results for the three- and nine-month periods ended September 30, 2025, reporting a net loss of CAD 16.5 million for Q3 and CAD 60.1 million for the first nine months of the year. The losses were primarily driven by mining expenses, legal claim settlements related to the Sycamore Group acquisition, and financial expenses associated with its project financing facility.
Despite these losses, the company’s operational progress and financing achievements provide a more nuanced picture. Non-cash charges such as depreciation and write-offs, alongside one-off legal settlement expenses, contributed significantly to the reported losses.
Financing Milestones and Capital Position
Robex successfully completed the full drawdown of its US$130 million project financing facility with Sprott Resource Lending Corp., a critical step in funding the construction of the Kiniéro Gold Project in Guinea. The facility, secured by shares in the Sycamore Group, carries an interest rate of 6.5% plus a variable component linked to gold prices.
In addition to the project financing, Robex raised A$120 million through its initial public offering on the Australian Stock Exchange in June 2025, issuing over 38 million CHESS Depository Interests. These proceeds are earmarked for Kiniéro construction, working capital, and corporate overheads, bolstering the company’s liquidity position.
As of September 30, 2025, Robex held a working capital surplus of CAD 101 million and complied with all financial covenants under its financing agreements, supporting its status as a going concern.
Operational Progress and Project Outlook
The company continues to advance the Kiniéro Gold Project, with construction well underway and a targeted first gold pour scheduled for December 2025. This milestone is pivotal for transitioning Robex from exploration and development into production, which could materially improve cash flow and profitability.
Robex also operates the Nampala mine in Mali and holds multiple exploration permits across Mali and Guinea, maintaining a diversified asset base in West Africa.
Strategic Developments and Legal Settlements
In April 2025, Robex settled legal claims related to its 2022 acquisition of the Sycamore Group, incurring a cash payment and issuing share purchase warrants as part of the settlement. The company also resolved a separate minority shareholder claim in late 2025, paying CAD 4.81 million to settle the dispute.
Looking ahead, Robex announced a merger agreement with Predictive Discovery Limited in October 2025. The transaction, structured as a statutory plan of arrangement, will issue approximately 2.1 billion shares of Predictive Discovery to Robex shareholders and is expected to close by early 2026, pending regulatory and shareholder approvals. This merger could significantly reshape Robex’s strategic footprint in the region.
Risk Factors and Market Sensitivities
Robex faces several financial risks, including exposure to foreign exchange fluctuations across multiple currencies and an embedded derivative linked to future gold prices, which affects interest payments under its financing facility. The company has begun implementing hedging strategies to mitigate currency risks.
Additionally, the timing of regulatory approvals for mining permits, particularly the Mansounia permits in Guinea, remains a key operational risk, as certain funds from the financing facility are restricted until these permits are granted.
Bottom Line?
Robex’s financial losses mask significant progress on financing and project development, setting the stage for a transformative production phase and strategic merger in the coming months.
Questions in the middle?
- How will the merger with Predictive Discovery Limited impact Robex’s operational focus and capital structure?
- What are the implications of the embedded derivative linked to gold prices on future financing costs?
- Will the Kiniéro project meet its December 2025 first gold pour target amid regulatory and operational challenges?