Vancouver, British Columbia / TheNewswire / January 28, 2019 - Majestic Gold Corp. ("Majestic" or the "Company") (TSX.V: MJS, FSE: A0BK1D) announces its financial and operational results for the year ended September 30, 2018. The following financial results are expressed in US dollars unless otherwise stated.
This release should be read in conjunction with the Company's audited consolidated financial statements for the years ended September 30, 2018, and 2017 and associated Management Discussion and Analysis ("MD&A") which are available on SEDAR www.sedar.com and on the Company's website www.majesticgold.com.
- Gold production for fiscal year 2018 was 29,160 ounces (2017 - 25,363), a 15% increase in production over the prior 2017 fiscal year;
- Gold produced for the fourth quarter of fiscal 2018, was 6,123 ounces, compared to 6,733 ounces produced for the 2017 comparative quarter;
- Gross profit for fiscal 2018 was $13,046,333 compared to gross profit of $9,644,581 for fiscal 2017;
- Gold sales revenue was $33.5 million for fiscal 2018, from the sale of 25,584 ounces, at an average realized gold price of $1,308 per ounce, compared to gold sales revenue of $29.1 million from the sale of 22,973 ounces, at an average realized gold price of $1,269 per ounce, for fiscal 2017;
- Net income for fiscal 2018 was $6,876,418 compared to a net income of $3,677,352 for fiscal 2017;
- Majestic's adjusted EBITDA was $14,244,144 for fiscal 2018, (2017 - $10,053,576). Refer to pages 17-19 of the Company's MD&A for the computation of this Non-IFRS financial measure;
- For fiscal 2018, cash costs were $651 per ounce (2017 - $723), and all-in sustaining costs ("AISC") were $774 per ounce (2017 - $850);
- Tonnes milled for fiscal 2018 were 1,471,565 tonnes with an average head grade of 0.64 g/t and a 96% recovery rate, compared to 1,578,261 tonnes milled, with an average head grade of 0.55 g/t, and a 93% recovery rate for fiscal 2017;
- General and administrative ("G&A") expenses for fiscal 2018 were $3,181,094 for 2018 (2017 - $3,054,209);
- The Company has completed the majority of the underground development on the Songjiagou North property, with initial production commencing in the latter part of the first quarter of fiscal 2019;
- On February 14, 2018, the Company raised CAD$9,708,738 (USD$7,729,126) through the issuance of 64,724,919 common shares at CAD$0.15 per common share pursuant to a non-brokered private placement; and
- During fiscal 2018, the Company received total proceeds of CAD$10,462,500 ($8,011,524) through the issuance 67,500,000 shares pursuant to the exercise share purchase warrants.
Gold produced (ozs)
Gold realized net of smelting fees (ozs)
Gold sold (ozs)
Average realized gold price ($/oz sold)
Total cash costs ($/oz sold) (1)
Total production costs ($/oz sold) (1)
All-in sustaining costs per ounce ($/oz sold) (1)
Gross profit (2)
Adjusted EBITDA (1)
Net income attributable to shareholders
Basic and diluted income per share
Cash and cash equivalents
Total current liabilities (3)
(1)See "Additional Financial Measures" in the Company's MD&A on page 17-19.
(2)"Gross profit" represents total revenues, net of cost of goods sold.
(3)"Total current liabilities" does not include deferred income and deferred revenue.
Head grade (g/t)
Gold produced (ozs)
Gold realized, net of smelting fees (ozs)
All technical information contained in this news release has been reviewed and approved by Stephen Kenwood, P. Geo., who is a director of the Company and a qualified person under the definitions established by NI 43-101.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company's website at www.majesticgold.com.
For further information, please contact:
Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Certain statements contained herein may constitute forward-looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward-looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.
In some cases, you can identify forward-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. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forward-looking statements to conform these statements to actual results