Majestic GOLD Corp. Reports 2017 Q1 Results
MAJESTIC GOLD CORP. REPORTS 2017 Q1 RESULTS
Vancouver, British Columbia – February 24, 2017 - Majestic Gold Corp. (“Majestic” or the
“Company”) (TSX.V: MJS, FSE: A0BK1D) reports its financial and operational results for the first quarter ,
ended December 31, 201 6. This release should be read in conjunction with the Company’s unaudited
condensed consolidated interim financial statements and associated management discussion and analysis 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.
OVERVIEW
Gold production from the Songjiagou Gold Mine for the three months ended December 31, 2016, was
5,841 ounces, compared to 7,213 ounces produced for the comparative period. The decrease in gold
production in the current period over the comparative period is primarily attributed to approximately
30,000 tonnes of higher grade fine fraction material that was processed in the comparative period;
Tonnes milled for the three months ended December 31, 2016, were 413,310 tonnes with an average head
grade of 0.48 g/t, compared to 418,550 tonnes milled, with an average head grade of 0.58 g/t, for the
comparative period. The lower average head grade, for the current period over the comparative period, is
due to the processing of approximately 30,000 tonnes of higher grade fine fraction material at the mill in
the comparative period;
Gold sales revenue for the three months ended December 31, 2016 was $4.1 million, from the sale of
3,119 ounces, at an average realized gold price of $1,280 per ounce, compared to gold sales revenue, for
the comparative period, of $4.4 million from the sale of 3,537 ounces, at an average realized gold price of
$1,233 per ounce. The 8% decrease in gold sales revenue for the current period is due to a 12% drop in
the number of ounces and partially offset by a 4% increase in the average realized gold price over the
comparative period;
Cash costs were $854 per ounce and production costs were $1,009 per ounce for the three months ended
December 31, 2016, compared to cash costs of $1,033 per ounce and production costs of $1,284 per
ounce for the comparative period. The decrease in both the cash and production costs for the current
period over the comparative, is due primarily to a lower volume of waste material produced at mine and
thereby reducing waste removal costs;
General and administrative (“G&A”) expenses were $684,746 for three months ended December 31,
2016, compared to $707,370 for the comparative period;
On December 21, 2016, the Company closed a non-brokered private placement financing of 72,500,000
units at CAD$0.135 per unit for total subscription proceeds of CAD$9,787,500. Each unit consisted of
one common share and one common share purchase warrant entitling the holder to purchase an additional
common share at CAD$0.155 for a period of two years after the closing. The 72,500,000 units were
issued in January 2017. Proceeds from the private placement will be used to partially fund construction of
housing for inhabitants of two villages that are being relocated due to their close proximity to the
Songjiagou open pit operation and for general working capital purposes; and
During the current period, the Company began development on the Songjiagou North property.
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
FINANCIAL INFORMATION
Three months ended
December 31, 2016
Three months ended
December 31, 2015
Operating data
Gold produced (ozs) 5,841 7,213
Gold realized net of smelting fees (ozs) 5,408 6,976
Gold sold (ozs) 3,119 3,537
Average realized gold price ($/oz sold) $ 1,280 $ 1,233
Total cash costs ($/oz sold) (1) 854 1,033
Total production costs ($/oz sold) (1) 1,009 1,284
All-in sustaining costs per ounce ($/oz sold) (1) 1,053 1,219
Financial data
Total revenues $ 4,078,820 $ 4,444,460
Gross profit (2) 933,189 (96,178)
Adjusted EBITDA (1) 811,703 165,067
Net profit (loss) 319,700 (662,080)
Net profit (loss) attributable to shareholders 146,491 (548,999)
Basic and diluted loss per share 0.00 (0.00)
December 31,
2016
September 30,
2016
Balance Sheet
Cash and cash equivalents $ 5,274,060 9,037,258
Total assets 97,990,089 93,305,139
Total debt 32,525,305 33,038,286
(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.
PRODUCTION RESULTS
Three months ended
December 31, 2016
Three months ended
December 31, 2015
Production data
Tonnes mined 437,022 540,605
Tonnes milled 413,310 418,550
Head grade (g/t) 0.48 0.58
Mill recovery 89.8% 91.0%
Gold produced (ozs) 5,841 7,213
Gold realized, net of smelting fees (ozs) 5,408 6,976
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 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 in clude
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, inc luding 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