(TheNewswire)
Vancouver, British Columbia – TheNewswire - May 12, 2022 - Majestic Gold Corp. (“Majestic” or the “Company”) (TSXV:MJS) reports its financialand operational results for the first quarter ended March 31, 2022. The following financial results are expressed in US dollars unlessotherwise stated.
This release should be read in conjunction with theCompany’s unaudited condensed consolidated interim financialstatements for the quarter end March 31, 2022 and associatedManagement Discussion and Analysis (“MD&A”) which areavailable on SEDAR www.sedar.com and on theCompany’s website www.majesticgold.com .
PERFORMANCE HIGHLIGHTS
Three months ended March 31,2022
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Goldproduction increased by 94% to 10,071 ounces,from 5,203 ounces produced for the FY2021comparative period;
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Goldrevenue was $17 million, an increase of 194%from $5.8 million for the FY2021 comparative period;
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Grossprofit from mining operations increased by 194%to $9.3 million, from $3.2 million for theFY2021 comparative period
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Netincome was $5.4 million , anincrease of 15% from $4.7 million for the FY2021 comparative period;
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AdjustedEBITDA was $9.5 million, compared to $3.5million for the same period in FY2021. For EBITDA computation details,refer to pages 14-16 of the MDA for this Non-IFRS financialmeasure;
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Total cash costsand all-in sustaining costs (“AISC”) were $659 per ounce and $813 perounce, compared to $450 per ounce and $758 per ounce for the sameperiod in FY2021; For AISC computation details, refer to pages 14-16of the MDA for this Non-IFRS financial measure;
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On March 30, 2022, the Company announced that its 94%owned subsidiary, SINOGOLD Resources Holdings Group Co., Ltd.("Sinogold") has submitted its application for listing ofshares in the capital of Sinogold (the "Shares") on the MainBoard of The Stock Exchange of Hong Kong Limited (the"HKEX") concurrent with the proposed initial public offeringof newly issued Shares of Sinogold representing 25% of its totalissued and outstanding Shares upon successful listing of theShares;
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On May 2, 2022, the Company announced results from itsgeochemical sampling program at its Australian tenements, confirming anorthwest trending lithium anomaly coincident with elevated rubidiumand potassium in the southwestern portion of the grid. The Companyintends to follow up this program with a phase 2 program consisting ofcloser spaced grid geochemical sampling and a ground magnetometersurvey in order to better define targets for a possible phase onedrill program.
Three months ended | Three months ended March 31, 2021 | ||||
Operating data | |||||
Gold produced (ozs) | 10,071 | 5,203 | |||
Gold realized net of smelting fees (ozs) | 9,168 | 4,802 | |||
Gold sold (ozs) | 9,185 | 3,030 | |||
Average realized gold price ($/oz sold) | $ | 1,847 | $ | 1,904 | |
Total cash costs ($/oz sold) (1) | 659 | 450 | |||
Total production costs ($/oz sold) (1) | 830 | 857 | |||
All-in sustaining costs per ounce ($/oz sold) (1) | 813 | ||||
Financial data | |||||
Gold revenues | $ | 16,966,985 | $ | 5,770,486 | |
Gross profit (2) | 9,343,917 | 3,174,867 | |||
Adjusted EBITDA (1) | 9,524,776 | 3,535,653 | |||
Net income | 5,417,860 | 4,706,643 | |||
Net income attributable to shareholders | 3,477,452 | 3,272,458 | |||
Basic and diluted income per share | 0.01 | ||||
March 31, 2022 | December 31, 2021 | ||||
Balance Sheet | |||||
Cash and cash equivalents | $ | 42,073,176 | $ | 34,867,831 | |
Total assets | 134,969,306 | 128,037,022 | |||
Total current liabilities | 25,456,090 | 24,764,929 |
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(1) See “Additional FinancialMeasures” in the Company’s MDA on pages 14-16.
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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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