Majestic GOLD Corp. Reports 2017 Q3 Results
MAJESTIC GOLD CORP. REPORTS 2017 Q3 RESULTS
Vancouver, British Columbia – August 2 4, 2017 - Majestic Gold Corp. (“Majestic” or the
“Company”) (TSX.V: MJS, FSE: A0BK1D) reports its financial and operational results for the third
quarter ended June 30, 2017. 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.
OVERVIEW
Gold production for the third quarter of 2017 was 6,977 ounces, a 39% increase over the third quarter
of 2016, bringing total gold production for the nine month period ended June 30, 2017, to 18,630
ounces, a 5% increase over the 17,717 ounces produced in the 2016 comparative nine month period.
Increased gold production can be attributed to the con tinued optimization of mining operations at the
Songjiagou Gold Mine. The 2016 nine month comparative period had a one -time processing of
approximately 30,000 tonnes of higher grade fine fraction material during the first quarter;
Tonnes milled for the third quarter of 2017 were 366,240 tonnes with an average head grade of 0.58 g/t
compared to 340,225 tonnes milled with an average head grade of 0.50 g/t for the 2016 comparative
quarter. Tonnes milled for the nine months ended June 30, 2017, was 1,192,764 t onnes with an
average head grade of 0.54 g/t compared to 1,201,106 tonnes milled with an average head grade of
0.51 g/t for the 2016 nine month comparative period;
Gold sales revenue for third quarter of 2017 was $8.1 million from the sale of 6,430 ounces at an
average realized gold price of $1,261 per ounce compared to gold sales revenue for the third quarter of
2016 of $6.7 million from the sale of 5,305 ounces at an average realized gold price of $1,260 per
ounce. The 21% increase in gold sales revenue is due to the increase in the ounces sold. Total gold
sales revenue for the first nine months of 2017 is $21.6 million compared to the $21.4 million for the
2016 comparative period;
Total cash costs decreased by 29% to $690 per ounce for the third quarter of 2017 compared to cash
costs of $976 per ounce for the third quarter of 2016. Total cash costs for the nine months ended June
30, 2017, were $751, a 25% decrease compared to $1,002 for the 2016 comparative nine month period.
The decrease in cash costs a lso contributed to a 37% decrease of all -in sustaining costs (“AISC”) to
$789 per ounce for the third quarter of 2017 and a 22% decrease in AISC to $863 for the nine month
period ended June 30, 2017. The Company has been able to achieve lower total cash co sts and AISC in
fiscal 2017 through a combination of improved mining operations and renegotiation of its mining and
milling agreement thereby lowering its overall mining and processing fees. See pages 14 -15 of the
Company’s MD&A for calculation of these “Additional Non-IFRS Financial Measures”;
General and administrative (“G&A”) expenses were $629,091 for third quarter of 2017 compared to
$716,261 for the 2016 comparative quarter; and
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
The Company continues its underground development on the Songjiagou Nor th property and has
progressed in developing 1,000 meters of the 2,075 meter ramp. The Company anticipates the
development to be completed at Songjiagou North in late fiscal 2018 or early fiscal 2019.
FINANCIAL INFORMATION
Three months ended June 30, Nine months ended June 30,
2017 2016 2017 2016
Operating data
Gold produced (ozs) 6,977 5,007 18,630 17,717
Gold realized net of smelting fees (ozs) 6,531 4,661 17,302 16,844
Gold sold (ozs) 6,430 5,305 17,265 18,101
Average realized gold price ($/oz sold) $ 1,261 $ 1,260 $ 1,252 $ 1,181
Total cash costs ($/oz sold) (1) 690 976 751 1,002
All-in sustaining costs ($/oz sold) (1) 789 1,245 863 1,104
Financial data
Total revenues $ 8,193,464 $ 6,744,418 $ 21,874,961 $ 21,623,821
Gross profit (2) 2,944,197 914,095 6,583,370 1,293,586
Adjusted EBITDA (1) 3,135,886 954,996 7,019,384 1,636,257
Net profit (loss) 1,477,267 (330,993) 3,182,823 (2,475,919)
Net profit (loss) attributable to
shareholders 955,067 (310,520) 1,988,793 (2,313,552)
Basic and diluted gain (loss) per share 0.00 (0.00) 0.00 (0.00)
June 30, September 30,
2017 2016
Cash and cash equivalents $8,928,130 $9,037,258
Total assets 100,221,243 93,305,139
Total debt 28,003,833 33,038,286
(1) See “Additional Non-IFRS Financial Measures” on pages 14-15 of 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 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
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. Su ch 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 e xpectations, 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 does not intend to update any
forward‐looking statements to conform these statements to actual results.