Vancouver, British Columbia (FSCwire) - 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, 2016. This release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements and associated management discussion and analysis 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.
2016 Second Quarter Overview
- Gold production from the Songjiagou Gold Mine was 5,498 ounces for the second quarter of 2016, compared to 4,807 ounces produced in the second quarter of 2015;
- Tonnes milled for the quarter ended March 31, 2016, were 442,331 tonnes with an average head grade of 0.44 g/t, compared to 364,232 tonnes milled, with an average head grade of 0.42 g/t, for the comparative quarter of 2015;
- Gold sales revenue was $10.3 million for quarter ended March 31, 2016, from the sale of 9,259 ounces, at an average realized gold price of $1,115 per ounce, compared to gold sales revenue of $5.9 million from the sale of 4,501 ounces, at an average realized gold price of $1,309 per ounce, for the comparative quarter of 2015;
- For the second quarter ended March 31, 2016, cash costs were $1,004 per ounce, production costs were $1,076 per ounce and all-in sustaining costs were $1,188 per ounce compared to cash costs of $1,135 per ounce, production costs of $1,256 per ounce and all-in sustaining costs of $1,304 per ounce for the comparative quarter of 2015;
- General and administrative (“G&A”) expenses were $630,546 for second quarter of 2016 (2015 Q2 -694,763);
- On January 21, 2016 the Company announced it had filed an amended technical report titled "Independent Technical Report of Songjiagou Project, Shandong Province, The People's Republic of China" dated January 19, 2016 as prepared by SRK Consulting (China) Ltd.; and
- On January 28, 2016, the Company granted 27,700,000 stock options at an exercise price of CAD$0.12 exercisable for a term of five years under normal vesting terms.
PRODUCTION RESULTS
| Three months ended March 31, | Six months ended March 31, | |||
| 2016 | 2015 | 2016 | 2015 | |
| Production data | ||||
| Tonnes mined | 377,867 | 384,945 | 918,472 | 819,037 |
| Tonnes milled | 442,331 | 364,232 | 860,881 | 795,918 |
| Head grade (g/t) | 0..44 | 0.42 | 0.51 | 0.42 |
| Mill recovery | 89% | 88% | 90% | 88% |
| Gold produced (ozs) | 5,498 | 4,807 | 12,711 | 9,871 |
| Gold realized, net of smelting fees (ozs) | 5,207 | 4,476 | 12,183 | 9,271 |
FINANCIAL INFORMATION
| Three months ended March 31, | Six months ended March 31, | |||||||
| 2016 | 2015 | 2016 | 2015 | |||||
| Operating data | ||||||||
| Gold produced (ozs) | 5,498 | 4,807 | 12,711 | 9,871 | ||||
| Gold realized net of smelting fees (ozs) | 5,207 | 4,476 | 12,183 | 9,271 | ||||
| Gold sold (ozs) | 9,259 | 4,501 | 12,796 | 9,967 | ||||
| Average realized gold price ($/oz sold) | $ | 1,115 | $ | 1,309 | $ | 1,148 | $ | 1,269 |
| Total cash costs ($/oz sold) (1) | 1,004 | 1,135 | 1,012 | 1,136 | ||||
| Total production costs ($/oz sold) (1) | 1,076 | 1,256 | 1,133 | 1,255 | ||||
| All-in sustaining costs ($/oz sold) (1) | 1,188 | 1,304 | 1,197 | 1,283 | ||||
| Financial data | ||||||||
| Total revenues | $ | 10,434,943 | $ | 5,889,843 | $ | 14,879,403 | $ | 12,652,735 |
| Gross profit (2) | 475,669 | 235,283 | 379,491 | 142,912 | ||||
| Net loss attributable to shareholders | (1,454,033) | (544,256) | (2,003,032) | (1,468,444) | ||||
| Basic and diluted loss per share | (0.00) | (0.00) | (0.00) | (0.00) | ||||
| March 31, | September 30, | |||||||
| 2016 | 2016 | |||||||
| Cash and cash equivalents | 9,899,586 | 9,899,586 | 9,899,586 | 9,899,586 | ||||
| Total assets | 96,367,547 | 96,367,547 | 96,367,547 | 96,367,547 | ||||
| Total debt | 23,884,663 | 23,884,663 | 23,884,663 | 23,884,663 | ||||
- See “Additional Non-IFRS Financial Measures” in the Company’s MD&A.
- “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: info@majesticgold.com
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
