VANCOUVER, BC / ACCESSWIRE / May 29, 2019 / Majestic Gold Corp. ("Majestic" or the "Company") (TSX.V: MJS, FSE: A0BK1D) reports its financial and operational results for the second quarter ended March 31, 2019. This release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and associated management discussion and analysis ("MD&A") for the same period that are available on SEDAR (www.sedar.com) and www.majesticgold.com. The following financial results are expressed in US dollars unless otherwise stated.
SECOND QUARTER 2019 HIGHLIGHTS
- Gold production decreased by 12% to 7,276 ounces for the second quarter of 2019, compared to 8,297 ounces for the 2018 comparative quarter due primarily to a 21% decrease in tonnes milled and was partially offset with higher average head grade for the quarter. Gold production for the second quarter of fiscal 2019, was from 324,783 tonnes milled with an average head grade of 0.73 g/t and a 96% recovery rate, compared to 410,703 tonnes milled, with an average head grade of 0.64 g/t, and a 96% recovery rate for 2018 comparative quarter. Gold production for the second quarter of 2019, included 2,027 ounces from the underground development from the 24,909 tonnes milled at an average head grade of 2.53 g/t;
- Gold sales revenue reached $11 million for the second quarter of fiscal 2019, from the sale of 8,612 ounces, at an average realized gold price of $1,281 per ounce, compared to gold sales revenue of $8.2 million from the sale of 6,030 ounces, at an average realized gold price of $1,354 per ounce, for the 2018 comparative quarter. The 35% increase in gold sales revenue for the current quarter is primarily due to a 43% increase in ounces sold and partially offset by a lower average realized gold price;
- Total cash costs and all-in sustaining costs ("AISC") for the second quarter of fiscal 2019 were $659 per ounce and $741 per ounce, compared to $605 per ounce and $719 per ounce for the second quarter of fiscal 2018. The cash costs and all-in sustaining costs for the first six months of fiscal 2019 were $614 per ounce and $712 per ounce, compared to $631 per ounce and $738 per ounce for the 2018 comparative period. The Company continues to anticipate that its cash costs and AISC averages for the full year will remain below $675 per ounce and $775 per ounce, respectively. Refer to pages 14-15 for the MD&A for the computation of this Non-IFRS financial measure;
- Adjusted EBITDA was $4,761,592 for the second quarter of 2019, compared to $3,969,970 for the comparative quarter of fiscal 2018. Adjusted EBITDA for the first six months of 2019 was $8,183,604, compared to $$7,763,508 for the comparative period of fiscal 2018. Refer to pages 14-15 of the MD&A for the computation of this Non-IFRS financial measure;
- Net income for the second quarter of 2019 was $2,664,549, compared to $1,628,257 for the 2018 comparative quarter. The significant increase in net income is the result of the increase in gold sales.
- The Company's balance sheet benefitted from the second quarter of 2019's operating and financial performance, increasing its cash to $22.6 million at March 31, 2019 from $18.8 million at September 30, 2018. As of March 31, 2019, the Company had working capital of $2.9 million compared to a working capital deficit of $2.2 million at September 30, 2018.
FINANCIAL INFORMATION
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Three months ended March 31, |
Six months ended March 31, |
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|
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2019 |
|
2018 |
|
2019 |
|
2018 |
|
Operating data |
|
|
|
|
|
|
|
|
|
Gold produced (ozs) |
|
7,276 |
|
8,297 |
|
15,319 |
|
15,347 |
|
Gold realized net of smelting fees (ozs) |
|
6,664 |
|
7,487 |
|
14,073 |
|
13,985 |
|
Gold sold (ozs) |
|
8,612 |
|
6,030 |
|
14,420 |
|
12,753 |
|
Average realized gold price ($/oz sold) |
$ |
1,281 |
$ |
1,354 |
$ |
1,264 |
$ |
1,325 |
|
Total cash costs ($/oz sold) (1) |
|
659 |
|
605 |
|
614 |
|
631 |
|
Total production costs ($/oz sold) (1) |
|
782 |
|
804 |
|
761 |
|
797 |
|
All-in sustaining costs ($/oz sold) (1) |
|
741 |
|
719 |
|
712 |
|
738 |
|
Financial data |
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|
|
|
|
|
|
|
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Total revenues |
$ |
11,114,761 |
$ |
8,250,650 |
$ |
18,384,008 |
$ |
17,069,668 |
|
Gross profit (2) |
|
4,376,656 |
|
3,401,579 |
|
7,415,541 |
|
6,910,272 |
|
Adjusted EBITDA (1) |
|
4,761,592 |
|
3,969,970 |
|
8,183,604 |
|
7,763,508 |
|
Net income |
|
2,664,549 |
|
1,628,257 |
|
4,301,925 |
|
3,965,462 |
|
Net income attributable to shareholders |
|
1,774,483 |
|
1,011,750 |
|
2,839,630 |
|
2,573,963 |
|
Basic and diluted gain per share |
|
0.00 |
|
0.00 |
|
0.00 |
|
0.00 |
|
|
|
|
|
|
|
March 31, |
|
September 30, |
|
|
|
|
|
|
|
2019 |
|
2018 |
|
Cash |
|
|
|
|
|
$22,623,822 |
|
$18,842,863 |
|
Total assets |
|
|
|
|
|
127,906,455 |
|
123,643,649 |
|
Total current liabilities |
|
|
|
|
|
27,950,131 |
|
29,183,046 |
(1) See "Additional Non-IFRS Financial Measures" on pages 14-15 in the Company's MD&A.
(2) "Gross profit" represents total revenues, net of cost of goods sold.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company's website at www.majesticgold.com.
For further information, please contact:
Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: [email protected]
Website: www.majesticgold.com
Cautionary Notes
Certain statements contained herein may constitute forward‐looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward‐looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
In some cases, you can identify forward‐looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward‐looking statements.
While these forward‐looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forward‐looking statements to conform these statements to actual results.
SOURCE: Majestic Gold Corp.