Majestic GOLD Corp. Reports 2019 Q4 Results
MAJESTIC GOLD CORP. REPORTS 2019 Q4 RESULTS
Vancouver, British Columbia – November 29, 201 9 - Majestic Gold Corp. (“Majestic” or the
“Company”) (TSX.V: MJS, FSE: A0BK1D) reports its financial and operational results for the fourth
quarter ended September 30, 2019. 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.
FOURTH QUARTER 2019 HIGHLIGHTS
• Gold production was 6,273 ounces for the fourth quarter of 2019, compared to 6,123 ounces
produced for the 2018 comparative quarter;
• Gold sales revenue reached $7.1 million for the fourth quarter of fiscal 2019, from the sale of 5,524
ounces, at an average realized gold price of $1,280 per ounce, compared to gold sales revenue of
$6.1 million from the sale of 5,102 ounces, at an average realized gold price of $1,203 per ounce,
for the 2018 comparative quarter. The 15% increase in gold sales revenue for the current quarter is
primarily due to an 8% increase in ounces sold and 6% increase in average realized price;
• Total cash costs and all -in sustaining costs (“AISC”) for the fourth quarter of fiscal 2019 were
$593 per ounce and $838 per ounce, compared to $658 per ounce and $826 per ounce for the 2018
comparative quarter. The cash costs and all -in sustaining costs for the first twelve months of fiscal
2019 were $613 per ounce and $752 per ounce, compared to $651 per ounce and $774 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 13 -15 for
the MD&A for the computation of this Non-IFRS financial measure;
• Adjusted EBITDA was $3,036,643 for the fourth quarter of 2019, compared to $2,030,064 for the
comparative quarter of fiscal 2018. Adjusted EBITDA for the first twelve months of 2019 was
$14,063,228, compared to $14,244,144 for the comparative period 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 fourth quarter of 2019 was $2,222,525, compared to $569,384 for the 2018
comparative quarter;
• The Company’s balance sheet benefitted from the fourth quarter of 2019’s operating and financial
performance, increasing its cash to $21.8 million at September 30, 2019 from $18.8 million at
September 30, 2018. As of September 30, 2019, the Company had working capital of $6.4 millio n
compared to a working capital deficit of $2.2 million at September 30, 2018; and
• On October 23, 2019, the Company announce d it had entered into three separate non -binding
Memorandums of Understanding (“MOUs”) with three different groups on four gold projects located
in the Muping-Rushan gold belt in eastern Shandong Province, China.
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
FINANCIAL INFORMATION
Three months ended
September 30,
Twelve months ended
September 30,
2019 2018 2019 2018
Operating data
Gold produced (ozs) 6,273 6,123 28,395 29,160
Gold realized net of smelting fees (ozs) 5,870 5,729 26,138 26,645
Gold sold (ozs) 5,524 5,102 25,244 25,584
Average realized gold price ($/oz sold) $ 1,280 $ 1,203 $ 1,274 $ 1,308
Total cash costs ($/oz sold) (1) 593 658 613 651
Total production costs ($/oz sold) (1) 785 834 784 811
All-in sustaining costs ($/oz sold) (1) 838 826 752 774
Financial data
Total revenues $ 7,119,195 $ 6,214,381 $ 32,431,989 $ 33,804,198
Gross profit (2) 2,779,777 1,957,951 12,632,357 13,046,333
Adjusted EBITDA (1) 3,036,643 2,030,064 14,063,228 14,244,144
Net income 2,222,525 569,384 7,393,414 6,876,418
Net income attributable to shareholders 1,680,720 297,724 5,048,031 4,397,090
Basic and diluted gain per share 0.00 0.00 0.01 0.01
September 30, September 30,
2019 2018
Cash $21,814,635 $18,842,863
Total assets 120,077,016 123,643,469
Total current liabilities 23,683,232 29,182,046
(1) See “Additional Non-IFRS Financial Measures” on pages 13-15 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.