Ascendant Resources Reports Free Cash Flow in Q4 and Record December Production at the Rehabilitated El Mochito Mine

Mar 21 2018

(All dollar amounts are in U.S. dollars (“$”) unless otherwise specified)

Q4 2017 Highlights

  • Positive Free Cash Flow of $0.75 million for Q4 2017 with $8.04 million in cash exiting 2017
  • Adjusted EBITDA of $2.28 million for Q4 2017; six consecutive months of positive Adjusted EBITDA
  • Record tonnes milled in December; Q4 2017 production average of 2,241 tonnes per day, a 13% increase over Q3 2017

2017 Annual Highlights

  • Successful rehabilitation of the El Mochito mine post acquisition
  • Milled production increased 81% and direct operating costs decreased 31% throughout 2017
  • Adjusted EBITDA of ($2.49) million for first year of operation by Ascendant
  • Production rates exiting 2017 support higher sustained rates for 2018
  • Strong exploration results form basis for Updated NI 43-101 report expected in Q2 2018

TORONTO, March 21, 2018 (GLOBE NEWSWIRE) — Ascendant Resources Inc. (TSX:ASND) (OTCQX:ASDRF) (FRA:2D9) („Ascendant“ or the „Company”) reports results for its fourth quarter and full year 2017, achieving free cash flow of $0.75 million in the fourth quarter 2017 and attaining the second strongest month of production ever achieved at the El Mochito mine in December 2017. Operations at the El Mochito mine are now well positioned for increased profitability in 2018 as demonstrated by recently released 2018 guidance. (see press release dated January 11, 2018)

Fiscal 2017 represented the first full year of operations at the El Mochito mine by the Ascendant management team since its acquisition in late December 2016. During the year, significant progress was made improving the overall operations as well as the financial performance of the mine as demonstrated by an 81% increase in monthly tonnes processed and a 31% reduction in direct operating costs from January to December 2017. This success was driven by a marked improvement in equipment availability, equipment utilization, general working conditions underground, safety, and increased employee supervision and accountability.

President and CEO Chris Buncic stated: “Ascendant ended 2017 on an exceptionally high note having completed the successful rehabilitation of the El Mochito mine, achieving free cash flow ahead of expectations and exceeding annual production targets. The mine has demonstrated the potential to be a capable asset with the opportunity to generate significant free cash flow over the long-term.”

He continued, “Throughout 2018, we are looking forward to maintaining this momentum while layering in further operational improvements. The Company remains dedicated to further operational improvements and increasing head grade to the mill to improve value per tonne milled, while evaluating opportunities to improve contribution margins and cut costs.”

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