Jochen: Mining 2017, here in London. Ladies and gentlemen, welcome. And with me here is Pasinex Resources. You remember Steve Williams, the CEO. We have spoken in Munich already about the company, but the company brought out their Q3 numbers, yeah, for this year and we wanna talk about this shortly. Steven, welcome again.
Steve: Hi. How are you doing?
Jochen: You’re doing an excellent job at Pasinex. I mean, it’s fantastic how you developed the last two, three years, your company. And now your Q3 numbers, they show a clear uptrend to profits.
Steve: Yes, it’s nice.
Jochen: Please elaborate on that. Yes, I love them. I always love profits.
Steve: You know, it’s really wonderful. Yeah, I mean, we ended up with, Q3, $1.8 million Canadian. This is a joint venture with a Turkish partner, 50:50, so after, you know, just 50% to Pasinex, after paying our taxes in Turkey, after paying our corporate overheads, we still had a profit. So, yeah, it’s wonderful and it reflects the fact that the mine is growing, continues to grow. Our production was up again from Q3 to Q2.
Jochen: I think your margin was also higher, right?
Steve: Margins are, you know, it’s high grade, at 32% zinc. So, yeah, our productivity is up, our margin’s up. That all goes to the bottom line. Now, the zinc price is up, of course.
Jochen: Of course, yeah.
Steve: Yeah, it’s wonderful.
Jochen: Yeah, yeah, fantastic. So you said the production is up. Can you give us a little bit more numbers? I mean, what do you think? How many tonnes you are producing for 2017 completely, and where do you see the average margin for this year and also for next year…as you’re growing production of course?
Steve: So, I mean, the big thing was last year we put in a new adit in the second half of the year, and then we’ve done a lot more mine development this year. So, as you’ve looked at the year, we’ve went from an average of around 140 tons per day, or even a bit less than that, 130 tons per day at the beginning of the year. In Q3 we averaged a bit over 170 tons per day. We’ll probably do pretty much the same in Q4. That’s what I’m expecting. But it reflects the fact that we did the mine development. So, as we’ve continued do the mine development, so our productivity is gone up and up and up. Now, it’s to a level now. We’ll end up this year maybe about 60,000 tons in total production. Q4 also should be, in terms of production, as I said, very similar to Q3. That’s what I’m expecting.
And then as we go into next year, we’re planning to probably hold it there now. We did a lot of development this year, a lot of mine development this year, and we’ve opened up areas in the mine for at least the next two years of mining production. So, basically, what we need to do now is just to get in and produce 60,000 tons again next year. So that’s the way I’m seeing next year.
Jochen: And also some underground exploration because you want to prolong the mine life, right?
Steve: Yeah. So that’s on the production side. Obviously, still the top, top priority is continuing exploration, continuing to grow the resource. So, basically, we’ve got two drills running constantly and it’s all about trying to increase the resource. And, you know, there’s no guarantees in this game, but I remain quite optimistic that we can have success as well.
Jochen: Obviously, I have a good feeling on that too. So, overall, Q4 is going as well as Q3. Are you satisfied so far?
Steve: Oh yeah. Yeah, I mean, what I already said. We’ve done the hard work this year by doing all the development. There’s a little bit left to complete, but we’ll complete it. And yes, so Q4, I think, looks to be another good period. That’s what I’m expecting, hoping for. And, you know, I don’t see anything that… well, there is always untold things can happen. But putting aside that, I think Q4 should be another very solid performance for us.
Jochen: Super. So that means this year 2017, the business year, will be the first real super profitable year for you guys, right?
Steve: Yeah, this was, you know, this was our breakout year. You know, we did a lot. I’ve already said that we did a lot of work last year in building that new adit. We’ve had to do a lot more work again this year, building the mine, making it bigger. And, you know, now the production’s there. Zinc prices help the cause enormously. You know, you put all these combinations together and yeah, this is our breakout year and you know, as I look at next year…we just recently been going through our budgeting for next year. The analysis on the zinc price is still very positive for next year. As I said, our production should be the same, so I’m hopeful for another good year next year.
Jochen: Super. Perfect. Steven, thanks for the update and all the best, and Merry Christmas.
Steve: Yeah, Merry Christmas to you and all your viewers.
Jochen: Thank you. Yeah, ladies and gentlemen, it was Steven Williams, the CEO of Pasinex. And you heard it, 2017 is the breakout year for profits for the company. 2018 should be even better. Hopefully then, profit wise, the production shall be stable. So we’ll be keep you posted. Thanks for watching us. Bye-bye from London.