Majestic GOLD Corp. Reports 201 9 Q3 Results
MAJESTIC GOLD CORP. REPORTS 201 9 Q3 RESULTS
Vancouver, British Columbia – August 28, 201 9 - Majestic Gold Corp. (“Majestic” or the
“Company”) (TSX.V: MJS, FSE: A0BK1D) reports its financial and operational results for the second
quarter ended June 30, 2019. This release should be read in conjunction with the Company’s unaudited
condensed consolidated interim financ ial 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.
THIRD QUARTER 2019 HIGHLIGHTS
• Gold production was 6,803 ounces for the third quarter of 2019, a decrease of 12% compared to
7,690 ounces produced for the 2018 comparative quarter. The decrease was due primarily to a 14%
decline in tonnes milled for the third quarter of fiscal 2019 - 326,543 tonnes compared to 381,557
tonnes milled in the 2018 comparative quarter. The decrease in tonnage milled is due to the
Company’s current efforts focused on developing the underground area. The Company expects that
mill throughput levels will return to prior period l evels in the first quarter of fiscal 2020. Gold
production for the third quarter of 2019, included 2,073 ounces from the underground development
from the 25,214 tonnes milled at an average head grade of 2.56 g/t;
• Gold sales revenue reached $6.9 million for the third quarter of fiscal 2019, from the sale of 5,299
ounces, at an average realized gold price of $1,293 per ounce, compared to gold sales revenue of
$10.4 million from the sale of 7,729 ounces, at an average realized gold price of $1,349 per ounce,
for the 2018 comparative quarter. The 34% decrease in gold sales revenue for the current quarter is
primarily due to a 31% decrease in ounces sold;
• Total cash costs and all -in sustaining costs (“AISC”) for the third quarter of fiscal 2019 were
$630 per ounce and $771 per ounce, compared to $679 per ounce and $799 per ounce for the 2018
comparative quarter. The cash costs and all -in sustaining costs for the first nine months of fiscal
2019 were $619 per ounce and $728 per ounce, compared to $649 per ounce and $761 per ounce
for the 2018 comparative period. The Company continues to work in maintaining its cash costs and
AISC averages below $675 per ounce and $775 per ounce, respectively. Refer to pages 14 -15 for
the MD&A for the computation of this Non-IFRS financial measure;
• Adjusted EBITDA was $2,842,981 for the third quarter of 2019, compared to $4,450,572 for the
comparative quarter of fiscal 2018. Adjusted EBITDA for the first nine months of 2019 was
$11,026,585, compared to $12,214,080 for the comparative period of fiscal 2018. Refer to pages 14-
15 of the MD&A for the computation of this Non-IFRS financial measure;
• Net income for the third quarter of 2019 was $ 868,964, compared to $2,341,572 for the 2018
comparative quarter. The significant decrease in net income is the result of the decrease in gold
sales.
• The Company’s balance sheet benefitted from the third quarter of 2019’s operating and financial
performance, increasing its cash to $22.8 million at June 30, 2019 from $18.8 million at September
30, 2018. As of June 30, 2019, the Company had working capital of $4.8 million compared to a
working capital deficit of $2.2 million at September 30, 2018.
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
FINANCIAL INFORMATION
Three months ended June 30, Nine months ended June 30,
2019 2018 2019 2018
Operating data
Gold produced (ozs) 6,803 7,690 22,122 23,037
Gold realized net of smelting fees (ozs) 6,195 6,931 20,268 20,916
Gold sold (ozs) 5,299 7,729 19,719 20,482
Average realized gold price ($/oz sold) $ 1,293 $ 1,349 $ 1,272 $ 1,334
Total cash costs ($/oz sold) (1) 630 679 619 649
Total production costs ($/oz sold) (1) 848 821 784 806
All-in sustaining costs ($/oz sold) (1) 771 799 728 761
Financial data
Total revenues $ 6,928,695 $ 10,520,149 $ 25,312,703 $ 27,589,817
Gross profit (2) 2,437,039 4,178,110 9,852,580 11,088,382
Adjusted EBITDA (1) 2,842,981 4,450,572 11,026,585 12,214,080
Net income 868,964 2,341,572 5,170,889 6,307,034
Net income attributable to shareholders 527,681 1,525,403 3,367,311 4,099,366
Basic and diluted gain per share 0.00 0.00 0.00 0.01
June 30, September 30,
2019 2018
Cash $22,747,703 $18,842,863
Total assets 125,410,513 123,643,469
Total current liabilities 26,563,499 29,182,046
(1) See “Additional Non-IFRS Financial Measures” on pages 14-15 in the Company’s MD&A.
(2) “Gross profit” represents total revenues, net of cost of goods sold.
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 avai lable 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
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 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 re source 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 terminol ogy 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 unknow n 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.