Business
ROK Resources Files Financial Results for the Second Quarter of 2023 and Provides Lithium Update
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES REGINA, S...
About this update from Rok Resources, Inc. Class B
[{"type":"text","content":"ROK Resources Files Financial Results for the Second Quarter of 2023 and Provides Lithium UpdateNOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATESREGINA, SK / ACCESSWIRE / August 17, 2023 / ROK Resources Inc. (\"ROK\" or the \"Company\") (TSXV:ROK) has filed its interim Financial Results and Management Discussion & Analysis for the three and six months ended June 30, 2023 and provides an update on the second lithium well drilled.Q2 2023 HIGHLIGHTSProduction up 8% YoY: Production was up 8% from 3,054 boepd in Q2 2022, to 3,297 boepd in Q2 2023.Net Debt reduced by 90% YoY: Net debt was reduced from $38.4 million at June 30, 2022, to $3.8 million. Note: 2023 net debt calculation is inclusive of $7.2 million of the current portion of hedges to be realized in the next 12 months based on mark-to-market fair value.Term loan fully repaid: The Company fully repaid its non-revolving Term Loan, 20 months prior to expiry without penalty. Since March 2022, the Company has retired more than $60 million of debt.Credit facility renewed: The Company renewed its $22.5 million revolving credit facility.2024 - 2025 hedges unwound: The Company made the strategic decision to unwind certain 12 to 24-month commodity swap hedges with the elimination of this requirement with the termination of the Term Loan.Lithium National Instrument 43-101 Technical Report Released: The Company announced the results of Hub City Lithium Corp.'s (\"Hub City Lithium\") National Instrument 43-101 technical report confirming an inferred lithium resource of 1.15 million tonnes of lithium carbonate equivalent.Delineated Viewfield lithium asset: Drilled the second lithium test well at Viewfield and confirmed high Lithium concentrations.2023 CORPORATE OUTLOOKThe first six months of 2023 were focused on corporate debt reduction, accretive asset purchases, non-core divestitures and the integration of new assets, as well as the restructuring of the Company's hedge book to provide greater exposure to an inclining commodity price environment. Total debt was reduced by over 90% year-over-year, which has provided the Company with the flexibility to allocate additional development capital across some of the most economic plays in North America. Given the significant delivering in the first half of the year, the Company will utilize a portion of its ...