Majestic GOLD Corp. Reports 201 9 Q1 Results
306–1688 152nd Street, Surrey, BC V4A 4N2 | T: +1 (604) 560-9060 | F: +1 (604) 560-9062 | www.majesticgold.com
MAJESTIC GOLD CORP. REPORTS 201 9 Q1 RESULTS
Vancouver, British Columbia – March 1, 2019 - Majestic Gold Corp. (“Majestic” or the “Company”)
(TSX.V: MJS, FSE: A0BK1D) reports its financial and operationa l results for the first quarter ended
December 31, 2018. This release should be read in conjunction with the Company’s unaudited condensed
consolidated interim financial statements and associated management discussion and analysis (MD&A)
for the same period that are available on SEDAR ( www.sedar.com) and www.majesticgold.com. The
following financial results are expressed in US dollars unless otherwise stated.
FIRST QUARTER HIGHLIGHTS
• Gold production increased by 14% to 8,043 ounces for the first quarter of 2019, compared to 7,050
ounces for the 2018 comparative quarter. Gold production for the first quarter of fiscal 2019, was from
339,835 tonnes milled with an average head grade of 0.74 g/ t and a 96% recovery rate, compared to
381,911 tonnes milled, with an average head grade of 0.61 g/t, and a 95% recovery rate for 2018
comparative quarter. Gold production for the first quarter of 2019, included 1,231 ounces from the
underground development from the 15,202 tonnes milled at an average head grade of 2.52 g/t;
• Gold sales revenue for the first quarter of fiscal 2019 was $7.2 million, from the sale of 5,807 ounces,
at an average realized gold price of $1,238 per ounce, compared to gold sales revenue of $8.7 million
from the sale of 6,722 ounces, at an average realized gold price of $1,299 per ounce, for the 2018
comparative quarter. The 18% decrease in revenue for the current period is primarily due to a 14%
decrease in ounces sold and a lower average realized gold price;
• Total cash costs and all -in sustaining costs (“AISC”) for the first quarter of fiscal 2019 were $549
per ounce and $669 per ounce, compared to $654 per ounce and $756 per ounce for the first quarter of
fiscal 2018. An increase in the average head grade has contributed to an improved total cash cost per
ounce for the first quarter of 2019 over the 2018 comparative period. Refer to pages 13- 15 for the
MD&A for the computation of this Non-IFRS financial measure;
• Adjusted EBITDA was $3,422,012 for the first quarter of 2019, compared to $3,793,538 for the
comparative quarter of fiscal 2018. Refer to pages 13- 15 of the MD&A for the computation of this
Non-IFRS financial measure;
• Net income for the first quarter of 2019 was $ 1,673,376, compared to $2,337,205 for the 2018
comparative quarter. The lower net income is the result of a decrease in income from operations
attributed to a lower volume of gold sales and an average realized gold price, as described above.
.
306–1688 152nd Street, Surrey, BC V4A 4N2 | T: +1 (604) 560-9060 | F: +1 (604) 560-9062 | www.majesticgold.com
FINANCIAL INFORMATION
Three months ended
December 31, 2018
Three months ended
December 31, 2017
Operating data
Gold produced (ozs)
8,043
7,050
Gold realized net of smelting fees (ozs)
7,408
6,497
Gold sold (ozs)
5,807
6,722
Average realized gold price ($/oz sold) $ 1,238 $ 1,299
Total cash costs ($/oz sold) (1)
549
654
Total production costs ($/oz sold) (1) 728 790
All-in sustaining costs per ounce ($/oz sold) (1) 669 756
Financial data
Total revenues $ 7,269,247 $ 8,819,018
Gross profit (2)
3,038,885
3,508,693
Adjusted EBITDA (1) 3,422,012 3,793,538
Net income 1,637,376 2,337,205
Net income attributable to shareholders
1,065,147
1,562,213
Basic and diluted income per share
0.00
0.00
December 31,
2018
September 30,
2018
Balance Sheet
Cash and cash equivalents $ 18,001,751 $ 18,842,863
Total assets
119,596,432
123,643,469
Total current liabilities (3) 24,701,367
29,182,046
(1) See “Additional Non-IFRS Financial Measures” in the Company’s MD&A.
(2) “Gross profit” represents total revenues, net of cost of goods sold.
(3) “Total current liabilities” does not include deferred income
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.
306–1688 152nd Street, Surrey, BC V4A 4N2 | T: +1 (604) 560-9060 | F: +1 (604) 560-9062 | www.majesticgold.com
For further information, please contact:
Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: [email protected]
Website: www.majesticgold.com
Cautionary Notes
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 producti on, 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 forwa rd‐
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 materi ally, 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