Majestic GOLD Corp. Reports 2018 Annual Results
MAJESTIC GOLD CORP. REPORTS 2018 ANNUAL RESULTS
Vancouver, British Columbia – January 28, 2019 - Majestic Gold Corp. (“Majestic” or the “Company”)
(TSX.V: MJS, FSE: A0BK1D) announces its financial and operational results for the year ended September
30, 2018. The following financial results are expressed in US dollars unless otherwise stated.
This release should be re ad in conjunction with the Company’s audited consolidated financial statements for
the years ended September 30, 2018, and 2017 and associated Management Discussion and Analysis
(“MD&A”) which are available on SEDAR www.sedar.com and on the Company’s website
www.majesticgold.com.
OVERVIEW
• Gold production for fiscal year 2018 was 29,160 ounces (2017 – 25,363), a 15% increase in production
over the prior 2017 fiscal year;
• Gold produced for the fourth quarter of fiscal 2018, was 6,123 ounces, compared to 6,733 ounces produced
for the 2017 comparative quarter;
• Gross profit for fiscal 2018 was $13,046,333 compared to gross profit of $9,644,581 for fiscal 2017;
• Gold sales revenue was $33.5 million for fiscal 2018, from the sale of 25,584 ounces, at an average realized
gold price of $1,308 per ounce, compared to gold sales revenue of $29.1 million from the sale of 22,973
ounces, at an average realized gold price of $1,269 per ounce, for fiscal 2017;
• Net income for fiscal 2018 was $6,876,418 compared to a net income of $3,677,352 for fiscal 2017;
• Majestic’s adjusted EBITDA was $14,244,144 for fiscal 2018, (2017 – $10,053,576). Refer to pages 17 -
19 of the Company’s MD&A for the computation of this Non-IFRS financial measure;
• For fiscal 2018, cash costs were $651 per ounce (2017 - $723), and all-in sustaining costs (“AISC”) were
$774 per ounce (2017 - $850);
• Tonnes milled for fiscal 2018 were 1,471,565 tonnes with an average head grade of 0.64 g/t and a 96%
recovery rate, compared to 1,578,261 tonnes milled, with an average head grade of 0.55 g/t, and a 93%
recovery rate for fiscal 2017;
• General and administrative (“G&A”) expenses for fiscal 2018 were $3,181,094 for 2018 (2017 –
$3,054,209);
• The Company has completed the majority of the underground development on the Songjiagou North
property, with initial production commencing in the latter part of the first quarter of fiscal 2019;
• On February 14, 2018, the Company raised CAD$9,708,738 (USD$7,729,126) through the issuance of
64,724,919 common shares at CAD$0.15 per common share pursuant to a non-brokered private placement;
and
• During fiscal 2018, the Company received total proceeds of CAD$10,462,500 ($8,011,524) through the
issuance 67,500,000 shares pursuant to the exercise share purchase warrants.
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
FINANCIAL INFORMATION
Year ended
September 30,
2018
Year ended
September 30,
2017
Operating data
Gold produced (ozs)
29,160
25,363
Gold realized net of smelting fees (ozs)
26,645
24,206
Gold sold (ozs)
25,584
22,973
Average realized gold price ($/oz sold) $ 1,308 $ 1,269
Total cash costs ($/oz sold) (1)
651
723
Total production costs ($/oz sold) (1) 811 863
All-in sustaining costs per ounce ($/oz sold) (1) 774 850
Financial data
Total revenues $ 33,804,198 $ 29,478,603
Gross profit (2)
13,046,333
9,664,581
Adjusted EBITDA (1) 14,244,144 10,053,576
Net income 6,876,418 3,677,352
Net income attributable to shareholders
4,397,090
2,225,753
Basic and diluted income per share
0.01
0.00
Balance Sheet
Cash and cash equivalents $ 18,842,863 $ 10,227,054
Total assets
123,643,469
105,726,421
Total current liabilities (3) 29,182,046
29,040,099
(1) See “Additional Financial Measures” in the Company’s MD&A on page 17-19.
(2) “Gross profit” represents total revenues, net of cost of goods sold.
(3) “Total current liabilities” does not include deferred income and deferred revenue.
PRODUCTION RESULTS
Year ended
September 30,
2018
Year ended
September 30,
2017
Production data
Tonnes mined
1,420,620
1,509,566
Tonnes milled
1,471,565
1,578,261
Head grade (g/t)
0.64
0.55
Mill recovery
96%
93%
Gold produced (ozs)
29,160
25,363
Gold realized, net of smelting fees (ozs) 29,645
24,206
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.
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
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 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