(TheNewswire)
Vancouver, British Columbia – TheNewswire – August 24, 2021 - Majestic GoldCorp. (“Majestic” or the “Company”)(TSXV:MJS ) ( FSE:MJT) reports its financial and operational results forthe first six months ended June 30, 2021. The following financialresults are expressed in US dollars unless otherwise stated.
This release should be read in conjunction with theCompany’s unaudited condensed consolidated interim financialstatements for the quarter end June 30, 2021 and associated ManagementDiscussion and Analysis (“MD&A”) which are available on SEDAR www.sedar.com and on the Company’s website www.majesticgold.com .
OPERATIONAL HIGHLIGHTS
Six months ended June 30,2021
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- On August 12, 2021, the Company received approval toresume mining operations at the Songjiagou Open Pit Mine followingsuccessful completion of its safety inspection. The mining operationshave been suspended since January 27, 2021, pending a province widegovernmental cautionary safety inspections of all non-coal operatingmines;
- Net income was $6.0 million for the six months endedJune 30, 2021, a decline from $6.5 million for the FY2020 comparativeperiod. Net income for 2021 includes a one-time income tax recovery of$2.8 million from a retrospective change of the Company’s subsidiarycorporate tax rate from 25% to 15%;
- Gold production decreased by 54% to 7,287 ounces,from 15,912 ounces produced for the FY2020 comparative period. Thedecrease in production is due to mining operations being curtailedsince January 27, 2021 pending completion of the governmental safetyinspections;
- Gold revenue was $14.7 million, a decrease of 37%from $23.5 million for the FY2020 comparative period. Thedecline in revenue is primarily due to the decrease in gold availablefor sale as result of the curtailment of the mining operations sinceJanuary 27, 2021;
- Gross profit from mining operations decreased by 39%to $6.9 million, from $11.2 million for the FY2020 comparative perioddue to the curtailment of the mining operations since January 27,2021;
- Total cash costs and all-in sustaining costs(“AISC”) for the first six months ended June 30, 2021, were $732per ounce and $965 per ounce, compared to $607 per ounce and $737 perounce for the FY2020 comparative period; For AISC computation details,refer to pages 17-18 of the MD&A for this Non-IFRS financialmeasure;
- Adjusted EBITDA for the first six months ended June30, 2021, was $7.2 million, compared to $12.5 million for the FY2020comparative period. For EBITDA computation details, refer to pages17-18 of the MD&A for this Non-IFRS financial measure;and
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- On July 2, 2021, the Company entered into a letter ofintent (“LOI”) with Western Explorers PTY Ltd. (“WesternExplorers”), a private Australian corporation, to acquire a 65%interest in four separate tenements located in Western Australia, anarea with demonstrated potential for the discovery of lithium oxidemineralization.
Three months ended June 30, | Six months ended June 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Operating data | ||||||||
Gold produced (ozs) | 2,084 | 9,034 | 7,287 | 15,912 | ||||
Gold realized net of smelting fees (ozs) | 1,948 | 8,356 | 6,750 | 14,716 | ||||
Gold sold (ozs) | 4,900 | 8,298 | 7,930 | 15,053 | ||||
Average realized gold price ($/oz sold) | $ | 1,832 | $ | 1,587 | $ | 1,859 | $ | 1,560 |
Total cash costs ($/oz sold) (1) | 907 | 537 | 732 | 607 | ||||
Total production costs ($/oz sold) (1) | 1,080 | 716 | 995 | 814 | ||||
All-in sustaining costs ($/oz sold) (1) | 1,092 | 670 | 965 | 737 | ||||
Financial data | ||||||||
Total revenues | $ | 8,975,339 | $ | 13,169,364 | $ | 14,745,825 | $ | 23,481,272 |
Gross profit (2) | 3,682,594 | 7,231,897 | 6,857,461 | 11,222,591 | ||||
Adjusted EBITDA (1) | 3,622,838 | 7,739,341 | 7,158,491 | 12,524,068 | ||||
Net income | 1,315,785 | 4,392,775 | 6,022,428 | 6,546,337 | ||||
Net income attributable to shareholders | 806,339 | 2,932,040 | 4,078,797 | 4,352,136 | ||||
Basic and diluted gain per share | 0.00 | 0.00 | 0.01 | 0.01 | ||||
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
Cash | $ | 35,277,188 | $ | 33,774,231 | ||||
Total assets | 132,067,467 | 126,715,193 | ||||||
Total current liabilities | 33,465,025 | 31,920,104 |
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(1) See “Additional FinancialMeasures” in the Company’s MD&A on pages 17-18.
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(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, China and Canada. Additional information on the Company andits projects is available at www.sedar.com and on theCompany’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
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