(TheNewswire)
Vancouver, British Columbia – TheNewswire - November 29, 2022 - Majestic GoldCorp. (“Majestic” or the “Company”)(TSX.V: MJS) reports its financial and operational results for thenine months ended September 30, 2022. 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 nine months ended September 30, 2022 and associatedManagement Discussion and Analysis (“MD&A”) which areavailable on SEDAR www.sedar.com and on the Company’s website www.majesticgold.com .
PERFORMANCE HIGHLIGHTS
Three months ended September 30,2022
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Netincome was $5.1 million, an increase of 179%from $1.8 million for the FY2021 comparative period;
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Goldproduction increased by 139% to 9,853 ounces,from 4,125 ounces produced for the FY2021comparative period;
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Goldrevenue was $15.8 million, an increase of 63%from $9.7 million for the FY2021 comparative period;
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Grossprofit from mining operations increased by 53% to$8.9 million, from $5.8 million for the FY2021comparative period
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AdjustedEBITDA was $9.4 million, compared to $3.5million for the same period in FY2021. For EBITDA computation details,refer to pages 15-17 of the MDA for this Non-IFRS financialmeasure;
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Total cash costsand all-in sustaining costs (“AISC”) were $580 per ounce and $726 perounce, compared to $693 per ounce and $872 per ounce for the sameperiod in FY2021; For AISC computation details, refer to pages 15-17of the MDA for this Non-IFRS financial measure.
Nine months ended September 30,2022
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Netincome was $16.4 million, an increase of 109%from $7.9 million for the FY2021 comparative period ;
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Goldproduction increased by 160% to 29,717 ounces,from 11,412 ounces produced for the FY2021 comparativeperiod;
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Goldrevenue was $49.2 million, an increase of 102%from $24.4 million for the FY2021 comparative period;
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Grossprofit from mining operations increased by 112%to $26.9 million, from $12.7 million for the FY2021 comparativeperiod
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AdjustedEBITDA was $28.3 million, compared to $10.7million for the same period in FY2021. For EBITDA computation details,refer to pages 15-17 of the MDA for this Non-IFRS financialmeasure;
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Total cash costsand all-in sustaining costs (“AISC”) were $629 per ounce and $775 perounce, compared to $717 per ounce and $928 per ounce for the sameperiod in FY2021; For AISC computation details, refer to pages 15-17of the MDA for this Non-IFRS financial measure; and
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On August 25, 2022, the Company provided a furtherupdate, to its March 30, 2022 news release, that the Company was stillin the application process and currently responding to queries fromthe HKEX and Securities and Futures Commission.On March 30, 2022, the Company announced that its 94% ownedsubsidiary, Persistence Resources Group Ltd. (“PRG”) (formerlyknown as SINOGOLD Resources Holdings Group Co., Ltd., has submittedits application for listing of shares in the capital of PRG (the"Shares") on the Main Board of The Stock Exchange of HongKong Limited (the "HKEX") concurrent with the proposedinitial public offering of newly issued Shares of PRG representing 25%of its total issued and outstanding Shares upon successful listing ofthe Shares.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Three months ended September 30, | Nine months ended September 30, | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
Operating data | |||||||||
Gold produced (ozs) | 9,853 | 4,125 | 29,717 | 11,412 | |||||
Gold realized net of smelting fees (ozs) | 9,089 | 3,611 | 27,230 | 10,361 | |||||
Gold sold (ozs) | 9,024 | 5,206 | 27,291 | 13,136 | |||||
Average realized gold price ($/oz sold) | $ | 1,747 | $ | 1,854 | $ | 1,802 | $ | 1,857 | |
Total cash costs ($/oz sold) (1) | 580 | 693 | 629 | 717 | |||||
Total production costs ($/oz sold) (1) | 763 | 7370 | 816 | 893 | |||||
All-in sustaining costs ($/oz sold) (1) | 726 | 872 | 775 | 928 | |||||
Financial data | |||||||||
Total revenues | $ | 15,762,546 | $ | 9,653,844 | $ | 49,168,207 | $ | 24,399,669 | |
Gross profit (2) | 8,877,265 | 5,815,156 | 26,904,561 | 12,672,617 | |||||
Adjusted EBITDA (1) | 9,399,528 | 3,494,801 | 28,329,305 | 10,653,292 | |||||
Net income | 5,135,207 | 1,841,962 | 16,397,866 | 7,864,390 | |||||
Net income attributable to shareholders | 3,394,308 | 1,240,834 | 10,896,724 | 5,319,631 | |||||
Basic and diluted gain per share | 0.01 | 0.00 | 0.012 | 0.01 | |||||
September 30, | December 31, | ||||||||
2022 | 2021 | ||||||||
Balance Sheet | |||||||||
Cash | $ | 51,518,792 | $ | 34,867,831 | |||||
Total assets | 134,719,393 | 128,037,022 | |||||||
Total current liabilities | 25,668,165 |
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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 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
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