(TheNewswire)
Vancouver, British Columbia – The March 25, 2022 - Majestic Gold Corp. (“Majestic” or the “Company”) (TSX.V: MJS, FSE: MJT) announcesits financial and operational results for the year ended December 31,2021. The following financial results are expressed in US dollarsunless otherwise stated.
This release should be read in conjunction with theCompany’s audited consolidated financial statements for the yearsended December 31, 2021 and 2020 and associated Management Discussionand Analysis (“MD&A”) which are available on SEDAR www.sedar.com and on theCompany’s website www.majesticgold.com .
Three months ended December 31,2021
-
Goldproduction decreased by 6% to 8,543 ounces, from9,089 ounces produced for the FY2020 comparativeperiod;
-
Goldrevenue was $14 million, a decrease of 6% from$15 million for the FY2020 comparative period;
-
Grossprofit from mining operations decreased by 2% to$9 million, from $9.2 million for the FY2020comparative period
-
Netloss was $146,728 , comparedto a net income of $3.8 million for the sameperiod in FY2020;
-
Total cash costsand all-in sustaining costs (“AISC”) were $607 per ounce and $924 perounce, compared to $592 per ounce and $744 per ounce for the sameperiod in FY2020; For AISC computation details, refer to pages 15-17of the MDA for this Non-IFRS financial measure;
-
AdjustedEBITDA was $6.6 million, compared to $8.7million for the same period in FY2020. For EBITDA computation details,refer to pages 15-17 of the MDA for this Non-IFRS financialmeasure.
Year ended December 31, 2021
-
Netincome was $7.7 million for FY2021 , a decline of 49% from $15 million for FY2020 The decrease in netincome is due to the impact of the temporary suspension of all miningoperations in the Shandong Province, including the SJG Project, during2021, pending the completion of governmental safety inspectionsthroughout the industry. The SJG Open-Pit Mine resumed operations onAugust 12, 2021
-
Goldproduction decreased by 42% to 19,955 ounces for FY2021 , from 34,236ounces produced for FY2020. The decrease inproduction is due to the temporary suspension of mining operations forthe period during 2021;
-
Goldrevenue was $38.5 million, a decrease of 27%from $52.4 million for FY2020. The decline in revenue isprimarily due to the decrease in gold available for sale as result ofthe curtailment of the mining operations in 2021;
-
Grossprofit from mining operations decreased by 23% to$21.7 million, from $28.2 million for FY2020 dueto the curtailment of the mining operations since January 27,2021
-
Cash flow from operating activities decreased by 58% to$15.5 million, from $36.8 million for FY2020
-
Total cash costsand all-in sustaining costs (“AISC”) for FY2021 , were $677 per ounce and $972 per ounce,compared to $588 per ounce and $716 per ounce for FY2020. For AISCcomputation details, refer to pages 15-17 of the MDA for this Non-IFRSfinancial measure;
-
AdjustedEBITDA for FY2021, was $17.3 million, comparedto $29.8 million for FY2020. For EBITDA computation details, refer topages 15-17 of the MDA for this Non-IFRS financial measure;
-
On June 15, 2021, the Company entered into a letter ofintent (“LOI”) with Western Explorers PTY Ltd. (“WesternExplorers”), a private Australian corporation, to acquire a 65%interest in four separate tenements located in Western Australia, anarea with demonstrated potential for the discovery of lithium oxidemineralization;
-
As mining operations have resumed at the SJG Project, t he Company expects gold production levels to return to thoseachieved prior to the suspension of itsoperations , and with theCompany resuming its focus on the expansion of the SJG Open-PitMine.
Three months ended December 31, | Year ended December 31, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Operating data | ||||||||
Gold produced (ozs) | 8,543 | 9,089 | 19,955 | 34,236 | ||||
Gold realized net of smelting fees (ozs) | 8,188 | 8,524 | 18,549 | 31,875 | ||||
Gold sold (ozs) | 7,617 | 8,391 | 20,753 | 31,745 | ||||
Average realized gold price ($/oz sold) | $ 1,844 | $ 1,783 | $ 1,853 | $ 1,650 | ||||
Total cash costs ($/oz sold) (1) | 607 | 592 | 677 | 588 | ||||
Total production costs ($/oz sold) (1) | 657 | 688 | 806 | 762 | ||||
All-in sustaining costs per ounce ($/oz sold) (1) | 924 | 744 | 972 | 716 | ||||
Financial data | ||||||||
Gold revenue | $ 14,045,604 | $ 14,962,881 | $ 38,445,273 | $ 52,363,436 | ||||
Gross profit (2) | 9,041,628 | 9,189,154 | 21,714,245 | 28,184,067 | ||||
Adjusted EBITDA (1) | 6,627,166 | 8,743,230 | 17,280,458 | 29,811,456 | ||||
Net income | (146,728) | 3,789,196 | 7,717,662 | 15,062,301 | ||||
Net income attributable to shareholders | (811,045) | 1,884,881 | 4,508,586 | 9,430,192 | ||||
Basic and diluted income per share | (0.00) | 0.00 | 0.01 | 0.01 | ||||
December 31, 2021 | December 31, 2020 | |||||||
Balance Sheet | ||||||||
Cash and cash equivalents | $ 34,867,831 | $ 33,774,231 | ||||||
Total assets | 128,037,022 | 126,715,193 | ||||||
Total current liabilities | 24,764,929 | 31,920,104 |
-
(1) See “Additional FinancialMeasures” in the Company’s MDA on pages 15-17.
-
(2) “Gross profit” representstotal revenues, net of cost of goods sold.
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.sedar.com and on the Company’s website at www.majesticgold.com .
For further information, pleasecontact:
Stephen Kenwood, P.Geo. , President and CEO
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 statements asto 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 direction ofour business, actual results will almost always vary, sometimesmaterially, from any estimates, predictions, projections, assumptionsor 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
Copyright (c) 2022 TheNewswire - All rights reserved.