(TheNewswire)
Vancouver, BritishColumbia – TheNewswire - November 23, 2021 - Majestic Gold Corp. (“Majestic” or the “Company”) (TSXV:MJS ) , (OTC:MJGCF), ( FSE:MJT) reports its financial and operational results forthe first nine months ended September 30, 2021. The followingfinancial results are expressed in US dollars unless otherwisestated.
This release should be read in conjunction with theCompany’s unaudited condensed consolidated interim financialstatements for the nine-month period ended September 30, 2021 andassociated Management Discussion and Analysis (“MD&A”) whichare available on SEDAR www.sedar.com and on theCompany’s website www.majesticgold.com .
Nine months ended September 30, 2021
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Net income was $7.9 million forthe nine months ended September 30, 2021 , adecline of 30% from theFY2020 comparative period. The decrease in netincome is due to the impact of the temporary suspension of all miningoperations in the Shandong Province since January 27, 2021, pendingthe completion of mandated governmental safety inspections throughoutthe industry. The Songjiagou Open Pit resumed operations on August 12,2021
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Gold production decreased by 55%to 11,412 ounces, from 25,147 ounces produced for the FY2020 comparative period. The decrease in production isdue to the temporary suspension of mining operations since January 27,2021;
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Gold revenue was $24.4 million, adecrease of 35% from $37.4 million for the FY2020 comparative period. The decline in revenue is primarily due to thedecrease in gold available for sale as result of the curtailment ofthe mining operations since January 27, 2021;
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Gross profit from miningoperations decreased by 33% to $12.7 million, from $19 million for the FY2020 comparative period due to thecurtailment of the mining operations since January 27, 2021
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Cash flow from operatingactivities decreased by 43% to $10.4 million, from $18.1 million for the FY2020 comparative period
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Total cash costs and all-in sustainingcosts (“AISC”) for thefirst nine months ended September 30, 2021, were $717 per ounce and$928 per ounce, compared to $587 per ounce and $706 per ounce for theFY2020 comparative period; For AISC computation details, refer topages 15-17 of the MDA for this Non-IFRS financial measure;
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Adjusted EBITDA for the firstnine months ended September 30, 2021, was $10.7 million, compared to$21.1 million for the FY2020 comparative period. For EBITDAcomputation details, refer to pages 15-17 of the MDA for this Non-IFRSfinancial measure;
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On June 15, 2021, the Company entered into a letter ofintent (“LOI”) with Western Explorers PTY Ltd. (“WesternExplorers”), a private Australian corporation, to acquire a 65%interest in four separate tenements located in Western Australia, anarea with demonstrated potential for the discovery of lithium oxidemineralization.
Three months ended September 30, | Nine months ended September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Operating data | ||||||||
Gold produced (ozs) | 4,125 | 9,235 | 11,412 | 25,147 | ||||
Gold realized net of smelting fees (ozs) | 3,611 | 8,635 | 10,361 | 23,351 | ||||
Gold sold (ozs) | 5,206 | 8,301 | 13,136 | 23,354 | ||||
Average realized gold price ($/oz sold) | $ | 1,854 | $ | 1,677 | $ | 1,857 | $ | 1,601 |
Total cash costs ($/oz sold) (1) | 693 | 549 | 717 | 587 | ||||
Total production costs ($/oz sold) (1) | 737 | 741 | 893 | 788 | ||||
All-in sustaining costs ($/oz sold) (1) | 872 | 650 | 928 | 706 | ||||
Financial data | ||||||||
Total revenues | $ | 9,653,844 | $ | 13,919,283 | $ | 24,399,669 | $ | 37,400,555 |
Gross profit (2) | 5,815,156 | 7,772,322 | 12,672,617 | 18,994,913 | ||||
Adjusted EBITDA (1) | 3,494,801 | 8,544,158 | 10,653,292 | 21,068,226 | ||||
Net income | 1,841,962 | 4,726,768 | 7,864,390 | 11,273,105 | ||||
Net income attributable to shareholders | 1,240,834 | 3,193,175 | 5,319,631 | 7,545,311 | ||||
Basic and diluted gain per share | 0.00 | 0.01 | 0.01 | 0.01 | ||||
September 30, | December 31, | |||||||
2021 | 2020 | |||||||
Cash | $ | 39,068,514 | $ | 33,774,231 | ||||
Total assets | 134,620,977 | 126,715,193 | ||||||
Total current liabilities | 34,624,983 | 31,920,104 |
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(1) See “Additional FinancialMeasures” in the Company’s MDA on pages 15-17.
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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, 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 constituteforward?looking statements and are made pursuant to the "safeharbor" provisions of the United States Private SecuritiesLitigation 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 identify forward?lookingstatements by terminology such as "may", "should","expects", "plans, "anticipates",believes", "estimates", "predicts","potential", or "continue" or the negative ofthese terms or other comparable terminology. These statements are onlypredictions and involve known and unknown risks, uncertainties andother factors that may cause our or our industry's actual results,level of activity, performance or achievements to be materiallydifferent from any future results, levels of activity, performance, orachievements expressed or implied by these forward?lookingstatements.
While these forward?looking statements, and anyassumptions upon which they are based, are made in good faith andreflect our current judgment regarding the direction of our business,actual results will almost always vary, sometimes materially, from anyestimates, predictions, projections, assumptions or other futureperformance suggestions herein. Except as required by applicable law,Majestic Gold does not intend to update any forward?lookingstatements to conform these statements to actual results
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