Vancouver, British Columbia (FSCwire) - Majestic Gold Corp. (“Majestic” or the “Company”) (TSX.V: MJS, FSE: A0BK1D) announces its financial and operational results for the year ended September 30, 2017. The following financial results are expressed in US dollars unless otherwise stated.
This release should be read in conjunction with the Company’s audited consolidated financial statements for the years ended September 30, 2017, and 2016 and associated Management Discussion and Analysis (“MD&A”) which are available on SEDAR www.sedar.com and on the Company’s website www.majesticgold.com.
OVERVIEW
- Gold production from the Songjiagou Gold Mine was 25,363 ounces for 2017 (2016 – 22,975), an over 10% increase in production over the prior year;
- Gold produced for the fourth quarter of 2017, was 6,733 ounces, compared to 5,258 ounces produced for the 2016 comparative quarter;
- Gross profit for 2017 was $9,644,581 compared to gross profit of $1,741,197 for 2016;
- Gold sales revenue was $29.1 million for 2017, from the sale of 22,973 ounces, at an average realized gold price of $1,269 per ounce, compared to gold sales revenue of $27.5 million from the sale of 22,924 ounces, at an average realized gold price of $1,198 per ounce, for 2016;
- Net income for 2017 was $3,677,352 compared to a net loss of ($3,277,816) for 2016;
- Majestic’s adjusted EBITDA was $10,053,576 for 2017, (2016 – $1,851,687). Refer to pages 17-19 for the computation of this Non-IFRS financial measure;
- For 2017, cash costs were $723 per ounce (2016 - $1,014), and all-in sustaining costs (“AISC”) were $850 per ounce (2016 - $1,174);
- Tonnes milled for 2017 were 1,578,261 tonnes with an average head grade of 0.55 g/t and a 93% recovery rate, compared to 1,619,876 tonnes milled, with an average head grade of 0.49 g/t, and a 90% recovery rate for 2016;
- General and administrative (“G&A”) expenses were $3,054,209 for 2017 (2016 – $3,036,630);
- The Company continues its underground development on the Songjiagou North property and has progressed in developing 1,000 meters of the 2,075 meter ramp. The Company anticipates the development to be completed at Songjiagou North in late fiscal 2018 to early fiscal 2019; and
- On January 25, 2018, the Company announced that it is proposing to sell by way of a non-brokered private placement up to 66.7 million common shares at a price of C$0.15 per common share for gross proceeds of up to C$10,000,000.
FINANCIAL INFORMATION
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Year ended |
Year ended |
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Operating data |
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Gold produced (ozs) |
25,363 |
22,975 |
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Gold realized net of smelting fees (ozs) |
24,206 |
21,644 |
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Gold sold (ozs) |
22,973 |
22,924 |
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Average realized gold price ($/oz sold) |
$ |
1,269 |
$ |
1,198 |
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Total cash costs ($/oz sold) (1) |
723 |
1,014 |
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Total production costs ($/oz sold) (1) |
863 |
1,137 |
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All-in sustaining costs per ounce ($/oz sold) (1) |
850 |
1,174 |
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Financial data |
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Total revenues |
$ |
29,478,603 |
$ |
27,801,966 |
|
Gross profit (2) |
9,664,581 |
1,741,197 |
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Adjusted EBITDA (1) |
10,053,576 |
1,851,687 |
||
|
Net income (loss) |
3,677,352 |
(3,277,816) |
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|
Net income (loss) attributable to shareholders |
2,225,753 |
(2,914,351) |
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Basic and diluted income (loss) per share |
0.00 |
(0.00) |
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Balance Sheet |
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Cash and cash equivalents |
$ |
10,227,054 |
$ |
9,037,258 |
|
Total assets |
105,726,421 |
93,305,139 |
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|
Total current liabilities (3) |
29,040,099 |
32,565,060 |
(1) See “Additional Financial Measures” in the Company’s MD&A on page 17-19.
(2) “Gross profit” represents total revenues, net of cost of goods sold.
(3) “Total current liabilities” does not include deferred income and deferred revenue.
PRODUCTION RESULTS
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Year ended |
Year ended |
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Production data |
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Tonnes mined |
1,509,566 |
1,662,583 |
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Tonnes milled |
1,578,261 |
1,619,876 |
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Head grade (g/t) |
0.55 |
0.49 |
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Mill recovery |
93% |
90% |
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Gold produced (ozs) |
25,363 |
22,975 |
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|
Gold realized, net of smelting fees (ozs) |
24,206 |
21,644 |
All technical information contained in this news release has been reviewed and approved by Stephen Kenwood, P. Geo., who is a director of the Company and a qualified person under the definitions established by NI 43-101.
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.
