(TheNewswire)
Vancouver, British Columbia – TheNewswire - March 28, 2024 - Majestic GoldCorp. (“Majestic” or the “Company”)(TSX.V: MJS, FSE: A0BK1D) announces its financial and operationalresults for the year ended December 31, 2023. The following financialresults are expressed in US dollars unless otherwise stated.
FULL YEAR HIGHLIGHTS
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Goldproduction was 30,837 ounces for FY2023, a decrease of 18% from37,641 ounces produced for FY2022. FY2023 goldproduction was lower due to the expansion work at the SJG open pit,resulting in both lower gold grades and mining volume for the year.Gold production in FY2022 was a record high as the Company achieved anew high in mill throughput of 2 million tonnes for the year;
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Revenue was $55 million for FY2023, comparedto $63.5 million for FY2022. The decrease in revenue is primarilyattributed to the 20% decrease in gold sales in FY2023;
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Grossprofit from mining operations decreased by 22% to$26.6 million in FY2023, from $33.9 million for FY2022
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Netincome was a $12.2 million for FY2023 , a decrease of 30% from $17.4 millionfor FY2022;
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Cash flow fromoperating activities decreased by 19% to $24.5million, from $30.3 million for FY2022
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Strong financial position at December 31, 2023. The Company had cash of $98 million(FY2022 cash and short-term investments - $52.7 million) and workingcapital of $76.5 million (FY2022 - $36.4 million);
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Total cash costsand all-in sustaining costs (“AISC”) for FY2023 were $793 per ounce and $947 per ounce,compared to $657 per ounce and $751 per ounce for FY2022. For AISCcomputation details, refer to pages 16-18 of the MDA for this Non-IFRSfinancial measure;
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AdjustedEBITDA for FY2023 was $25.4 million, compared to$35 million for FY2022. For EBITDA computation details, refer to pages 16-18 of theMDA for this Non-IFRS financial measure; and
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On December 22, 2023 , the Company successfully completed an initial publicoffering of 25% of the shares of its subsidiary, Persistence ResourcesGroup Ltd. (“Persistence”), on the Main Board of The StockExchange of Hong Kong Limited (the "HKEX").
FOURTH QUARTER HIGHLIGHTS
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Goldproduction decreased by 5% to 7,543 ounces, from7,924 ounces produced for the FY2022 comparativequarter;
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Revenue was $14.2 million, an increase of 9%from $13 million for the FY2022 comparative quarter;
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Grossprofit from mining operations increased by 32% to$7.4 million, from $5.6 million for the FY2022comparative quarter
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Netincome was $1.9 million , anincrease from $ 1 million for the FY2022 comparative quarter;
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Total cash costsand all-in sustaining costs (“AISC”) were $787 per ounce and $1,018 per ounce, compared to $ 757 per ounce and $ 862 per ounce for the same quarter inFY2022; For AISC computation details, refer to pages 16-18 of the MDAfor this Non-IFRS financial measure; and
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AdjustedEBITDA was $5.5 million, compared to $5.2million for the same quarter in FY2022. For EBITDA computationdetails, refer to pages 16-18 of the MDA for this Non-IFRS financialmeasure.
SELECTED QUARTERLY AND FULL YEAR FINANCIAL AND OPERATINGRESULTS
Three months ended December 31, | Year ended December 31, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Operating data | ||||||||
Gold produced (ozs) | 7,543 | 7,924 | 30,837 | 37,641 | ||||
Gold realized net of smelting fees (ozs) | 6,941 | 7,251 | 28,366 | 34,481 | ||||
Gold sold (ozs) | 6,850 | 7,589 | 28,044 | 34,880 | ||||
Average realized gold price ($/oz sold) | $ 2,047 | $ 1,680 | $ 1,938 | $ 1,775 | ||||
Total cash costs ($/oz sold) (1) | 787 | 757 | 793 | 657 | ||||
All-in sustaining costs ($/oz sold) (1) | 1,018 | 862 | 947 | 751 | ||||
Financial data | ||||||||
Gold revenue | $ 14,229,019 | $ 12,972,456 | $ 55,025,192 | $ 63,474,357 | ||||
Gross profit (2) | 7,368,443 | 5,643,433 | 26,572,295 | 33,881,688 | ||||
Adjusted EBITDA (1) | 5,487,055 | 5,246,464 | 25,420,701 | 34,909,463 | ||||
Net income | 1,924,245 | 1,024,694 | 12,229,398 | 17,422,560 | ||||
Net income attributable to shareholders | 822,986 | 181,940 | 7,557,829 | 11,078,664 | ||||
Basic and diluted income per share | 0.00 | 0.00 | 0.01 | 0.01 | ||||
December 31, 2023 | December 31, 2022 | |||||||
Balance Sheet | ||||||||
Cash and short-term investments | $ 97,971,465 | $ 52,745,546 | ||||||
Other current assets | 4,358,471 | 4,691,848 | ||||||
Non-current assets | 84,900,667 | 82,168,555 | ||||||
Total assets | $ 187,230,603 | $ 139,605,949 | ||||||
Current liabilities | $ 25,873,002 | $ 21,059,237 | ||||||
Non-current liabilities | 9,056,236 | 9,213,308 | ||||||
Total liabilities | $ 34,929,238 | $ 30,272,545 | ||||||
Total equity | 152,301,365 | 109,333,404 | ||||||
Total liabilities and equity | $ 187,230,603 | $ 139,605,949 |
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(1) See “Additional FinancialMeasures” in the Company’s MDA on pages 16-18.
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(2) “Gross profit” representstotal revenues, net of cost of goods sold.
This release should be read in conjunction with theCompany’s audited consolidated financial statements for the yearsended December 31, 2023 and 2022 and associated Management Discussionand Analysis (“MD&A”) which are available on SEDAR www.sedarplus.c a and on the Company’s website www.majesticgold.com .
About Majestic Gold
Currently focused inChina, Majestic Gold Corp. is a British Columbia based company engagedin commercial gold production at the Songjiagou Gold Mine in easternShandong Province, China, with exploration properties located inAustralia, and Canada. Additional information on the Company and itsprojects is available at www.sedarplus.ca and on the Company’s website at www.majesticgold.com .
For further information, pleasecontact:
James Mackie, CFO and CorporateSecretary
Telephone: (604) 560-9060
Email: info@majesticgold.com
Website: www.majesticgold.com
Cautionary Notes
Certain statements contained hereinmay constitute forward?looking statements and are made pursuant tothe "safe harbor" provisions of the United States PrivateSecurities Litigation Reform Act of 1995 and Canadian securities laws.Forward?looking statements are statements which relate to futureevents. Such statements include estimates, forecasts, and statementsas to management's expectations with respect to, among other things,business and financial prospects, financial multiples and accretionestimates, future trends, plans, strategies, objectives, andexpectations, including with respect to production, explorationdrilling, reserves and resources, exploitation activities and eventsor future operations. Information inferred from the interpretation ofdrilling results and information concerning mineral resource estimatesmay also be deemed to be forward-looking statements, as it constitutesa prediction of what might be found to be present when, and if, aproject is actually developed.
In some cases, you can identifyforward?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. Thesestatements are only predictions and involve known and unknown risks,uncertainties and other factors that may cause our or our industry'sactual results, level of activity, performance, or achievements to bematerially different from any future results, levels of activity,performance, or achievements expressed or implied by theseforward?looking statements.
While these forward?lookingstatements, and any assumptions upon which they are based, are made ingood faith, and reflect our current judgment regarding the directionof our business, actual results will almost always vary, sometimesmaterially, from any estimates, predictions, projections, assumptions,or other future performance suggestions herein. Except as required byapplicable law, Majestic Gold does not intend to update anyforward?looking statements to conform these statements to actualresults
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