Pasinex Announces First Quarter 2026 Financial Results

Losses widened despite higher zinc output and new capital raised.

What the company is saying

Pasinex Resources Limited is presenting its unaudited financial and operational results for the quarter ended June 30, 2026, the first full period after acquiring 100% of Horzum A.Ş. and Aydın Teknik A.Ş. The company emphasizes increased zinc production, with 587 wet tonnes mined versus 280 tonnes in the prior year, and highlights new revenue of C$223,650 primarily from low-grade zinc sales. Management underscores the completion of a C$2,014,880 private placement and C$275,000 in proceeds from exercised stock options, framing these as steps to strengthen the balance sheet. Operational progress is showcased through updates on drilling at Sarikaya (976.4 metres, 12 holes) and mine development at Pinargozu (+410 project at 85 metres, T1 drift at 72 metres). The narrative positions the company as advancing both production and exploration, while acknowledging a net loss of C$(745,023) and increased costs post-acquisition. The tone remains factual and measured, with no promotional language or exaggerated forward-looking statements.

What the data suggests

Revenue for the quarter reached C$223,650, up from zero in the prior year, but mine operating income was only C$13,553, indicating thin margins. The consolidated net loss widened to C$(745,023) from C$(282,935) year-over-year, and net cash used in operating activities increased sharply to C$(1,534,257) from C$(322,112). Cash on hand fell to C$820,715 at June 30, 2026, from C$1,807,179 three months earlier, reflecting significant cash burn. Total assets declined to C$8,426,416, while liabilities decreased modestly to C$4,948,841. Shareholders' equity slipped to C$3,477,575, and shareholder loans stood at C$1,779,055. The company raised C$2,014,880 through a private placement and received C$275,000 from exercised options, partially offsetting operating losses. Operationally, zinc output more than doubled to 587 wet tonnes, and 976.4 metres of drilling were completed at Sarikaya, but no assay or resource results are disclosed. Development at Pinargozu advanced, but the financial trajectory remains negative, with costs outpacing new revenue and capital raises only temporarily bolstering liquidity.

Analysis

The announcement is factual and restrained, providing unaudited financial and operational results for the quarter following the acquisition of Horzum and Aydin Teknik. All key financial and operational metrics (revenue, mine operating income, net loss, cash, tonnes mined, drilling/metres advanced) are disclosed and supported by numerical data. The tone is neutral, with no promotional or exaggerated language. Forward-looking statements are present but limited, and are clearly separated from realised results. The financial direction is negative, with increased losses and cash burn despite higher revenue, but this is not spun positively. There is no evidence of narrative inflation or overstatement; the language is proportionate to the results. No large capital outlay is paired with long-dated, uncertain returns in this update.

Risk flags

• ●Sustained operating losses and accelerating cash burn threaten liquidity, as the company used C$(1,534,257) in operating activities this quarter and cash reserves dropped to C$820,715 despite recent capital raises. Without a turnaround in operating performance or further financing, the company may face funding constraints.
• ●Revenue growth is not translating into profitability, with mine operating income of only C$13,553 on C$223,650 in sales and a net loss of C$(745,023). This suggests either low-grade product pricing, high costs, or both, raising questions about the underlying economics of current operations.
• ●Operational disclosures lack detail on cost drivers, such as general and administrative expenses, making it difficult to assess where losses are concentrated or how management plans to achieve breakeven. This limits transparency and impedes a full risk assessment.

Bottom line

Pasinex Resources Limited delivered higher zinc output and completed key financing steps, but losses widened and cash burn accelerated in its first full quarter post-acquisition. While operational progress at Sarikaya and Pinargozu is measurable, the absence of assay results or resource estimates means exploration value remains unproven. The company's financial trajectory is negative, with new capital only temporarily offsetting persistent deficits. The core challenge is converting increased production into sustainable margins; until this is demonstrated, the investment case rests on future exploration success and further funding. The most important takeaway is that operational scale-up has not yet translated into financial improvement, and liquidity risk is rising.

Announcement summary

(CSE:PSE) Pasinex Resources Limited announced its unaudited financial results for the three months ended June 30, 2026, marking its first full reporting period following the acquisition of 100% of Horzum A.Ş. and Aydın Teknik A.Ş. For the quarter, the company reported revenue of C$223,650, mine operating income of C$13,553, and a consolidated net loss of C$(745,023), with a basic and diluted net loss per share of C$(0.003). Net cash used in operating activities was C$(1,534,257). Horzum mined 587 wet tonnes of zinc product during the quarter. As at June 30, 2026, cash was C$820,715, total assets were C$8,426,416, total liabilities were C$4,948,841, shareholders' equity was C$3,477,575, and shareholder loans were C$1,779,055. The company completed the second and final tranche of its private placement, bringing aggregate gross proceeds to C$2,014,880, and 6,875,000 stock options were exercised at C$0.04 per option for aggregate proceeds of C$275,000. Subsequent to quarter-end, underground diamond drilling at Sarikaya totalled 976.4 metres with 12 drill holes completed, the +410 development project at Pinargozu advanced to 85 metres, and the T1 exploration drift advanced to 72 metres.

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