Maya GOLD & Silver Reports First Quarter, 2019 Financial Results
PRESS RELEASE Mining in Sustainability
MAYA GOLD & SILVER REPORTS FIRST QUARTER, 2019 FINANCIAL RESULTS
May 15, 2019 (Montréal, Qc ), Maya Gold & Silver I nc. (“Maya” or the “Corporation”) (TSX: MYA)
released its financial results for the three month period ended March 31, 2019. Maya operates in the
Kingdom of Morocco where it owns the Zgounder Silver mine (Ag), have just completed a preliminary
economic assessment to advance the Boumadine polymetallic (Au, Ag, Zn, Pb, Ge) project and brought
into the development phase its Azegour project (W, Mo, Cu, Co, U).
FIRST QUARTER 2019 FINANCIAL HIGHLIGHTS
• The Corporation converted to a US dollar reporting currency starting January 1, 2019.
• The Corporation reached commercial production at it s Zgounder mine as of January 1, 2019. This
results in the Corporation reporting operations on a commercial production basis, recognizing revenue
from silver sales and cost of sales in net income f or an amount of $2,067,397 and $1,510,863
respectively for the three-month period ended March 31, 2019, resulting in a gross margin of
$556,534. Prior to the first quarter of 2019 and th e declaring of commercial production, exploration
and evaluation expenditures were capitalized to min ing asset under development, net of net proceeds
from sales of silver.
• Declaration of the commercial production also triggered the transfer of costs from mining assets under
development into the appropriate asset classes of p roperty, plant and equipment and the
commencement of depreciation, which amounted to $264,535 for the first quarter of 2019.
• For the three-month period ended March 31, 2019, cash flow from operating activities was $2,652,083
compared to a use ( outflow ) of $104,643 for the first quarter of 2018. The change in cash flow can be
attributed to reporting on a commercial production basis. During the first quarter of 2019, the
Corporation also paid $1,040,850 towards the repaym ent of the balance of purchase price payable. As
at March 31, 2019, cash amounted to $17,118,023.
• Net income of $304,745, during the three-month peri od ended March 31, 2019 compared to a net loss
of $413,380 for the same period of 2018
• Comprehensive income for the three-month period end ed March 31, 2019 of $1,061,225 compared to
a comprehensive loss of $477,218 for the same period of 2018
• First quarter revenue from silver sales of $2,067,3 97 compared to $nil for the same quarter last year
due to the commercial production of the Zgounder mine reached as of January 1, 2019.
• Cash of $17,118,023 as at March 31, 2019 compared to $19,000,163 as at December 31, 2018
• Working capital of $15,022,287 compared to a workin g capital of $16,578,011 as at December 31,
2018
• Cash inflow from operating activities were $2,652,0 83 for the first quarter of 2019 compared to a use
(outflow ) of $104,643 for the same period of 2018.
First quarter 2019 financial results
Financial results presented in this press release a re taken from the Company’s Management's Discussion and
Analysis (MD&A) and unaudited consolidated financia l statements for the three-month period ended March
31, 2019, which have been prepared in accordance wi th International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board. The MD&A and the unaudited consolidated financial
statements can be found at www.sedar.com and www.ma yagoldsilver.com. Unless specified otherwise, all
amounts in this press release are in United States dollars and all capitalized terms have the meaning ascribed
thereto in our MD&A.
Operation
Quarter ended
March 31,
2019
(unaudited)
March 31,
2018
(unaudited)
%
Variation
Material Processed (tons) 28,239 8,770 322.00
Average Grade (g/t Ag) 219.80 327.52 (32.89)
Mill Recovery (%) 65.28 75.34 (13.35)
Silver Ingots (kg) 3,392.91 2,164.13 56.78
Silver ounces produced (oz) 109,084 69,578 56.78
Sales of silver (oz) 100,544 61,547 63.36
Sales of silver ($) 2,067,397 1,653,263 25.05
Cost of sales (excluding interest) ($) (1,510,863) (2,007,386) (24.73)
Cash flow generated from the activities at the mine
(excluding interest and amortization) (1) 821,069 (354,123) (331.86)
(1) Cash flow generated from the activities at the mine is non-International Financial Reporting Standards (IFRS) performance measures, and may not be compar able
to similar measures presented by other companies. T he Corporation believes that, in addition to conven tional measures prepared in accordance with IFRS, t he
Corporation and certain investors use this informat ion to evaluate the Corporation's performance. Acco rdingly, it is intended to provide additional infor mation and
should not be considered in isolation or as a subst itute for measures of performance prepared in accor dance with IFRS.
The difference in silver production for the three-month period ending on March 31, 2019 compared to th e same
period in 2018 is mainly due to the fact that the C orporation started reporting on a basis of commerci al
production on January 1, 2019. In 2018, the Corpora tion was in the installation process of the mill an d faced
unprecedented amount of snowfall during that period . The region experienced unusual weather including snow
and extreme cold making conditions at the mine extremely challenging.
The decrease in average grade (g/t Ag) is due to th e start of the gravity-flotation process in the thr ee-month
period ended March 31, 2019 which allows the mine t o process material that represent a lower grade
(Preparation works) than it was possible before that date (direct cyanidation).
Management has implemented multiple cost cutting an d productivity improvement measures (such as the
connection to the National power grid, introduction of the floatation cells, and the increase of the d aily tonnage
capacity, etc…) to improve its operational and fina ncial performances and further actions are being pl anned;
and initiated both short and long term actions to reduce costs.
Various
• The Corporation approved and received approval from the Toronto Stock Exchange (TSE) to
implement a normal course issuer bid program to acq uire subject to the TSE conditions for such
programs up to 5,567,799 shares of the Corporation during to 12 month period to April 30, 2020.
• Mr Bruno Dumais ceased to be the Chief Financial Of ficer of the Corporation on April 5, 2019. The
Corporation is in the process of recruiting a new Chief Financial Officer.
• The Corporation is analyzing the potential sale of the floatation silver concentrate directly to refiners to
allow gain in silver recovery and abandon the use of cyanide at Zgounder silver mine.
ABOUT MAYA
Maya Gold & Silver Inc. is a publicly-traded Canadi an company focused on the operation, exploration an d
development of gold and silver deposits in Morocco. Maya is currently operating mining and milling
operations at its Zgounder Mine, an 85%-15% split o wnership between its subsidiary, ZMSM, and the
ONHYM of the Kingdom of Morocco.
Its portfolio also contains the Boumadine polymetal lic deposit located in the Anti-Atlas Mountains of Eastern
Morocco. The property is a joint venture with ONHYM whereby Maya retains an 85% ownership.
Maya’s portfolio also includes the Amizmiz and Azeg our properties, both being 100% owned, with gold,
tungsten, molybdenum and copper deposits covering over 100 square kilometres in a historical mining district.
Forward-looking statements
This news release contains statements about future events or future performance and reflects managemen t’s
current expectations and assumptions. These are “fo rward-looking” because we have used what we know an d
expect today to make a statement about the future. Forward-looking statements usually include words su ch as
may, intend, plan, expect, anticipate, and believe or other similar words. We believe the expectations reflected
in these forward-looking statements are reasonable. However, actual events and results could be substa ntially
different because of the risks and uncertainties as sociated with our business or events that happen af ter the
date of this news release. You should not place und ue reliance on forward-looking statements. As a gen eral
policy, we do not update forward-looking statements except as required by securities laws and regulati ons. All
of the forward-looking statements made in this pres s release are qualified by these cautionary stateme nts and
by those made in the Corporation’s filings with SEDAR.
On behalf of the Board:
Noureddine Mokaddem
Founder, President & CEO
+1 (514) 866-2008
Website: www.mayagoldsilver.com