Majestic GOLD Corp. Reports 2021 Annual Results
MAJESTIC GOLD CORP. REPORTS 2021 ANNUAL RESULTS
Vancouver, British Columbia – March 25, 2022 - Majestic Gold Corp. (“Majestic” or the “Company”)
(TSX.V: MJS, FSE: MJT ) announces its financial and operational results for the year ended December 31 ,
2021. The following financial results are expressed in US dollars unless otherwise stated.
This release should be read in conjunction with the Company’s audited consolidated financial statements for
the years ended December 31, 2021 and 2020 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.
PERFORMANCE HIGHLIGHTS
Three months ended December 31, 2021
• Gold production decreased by 6% to 8,543 ounces, from 9,089 ounces produced for the FY2020
comparative period;
• Gold revenue was $14 million, a decrease of 6% from $15 million for the FY2020 comparative period;
• Gross profit from mining operations decreased by 2% to $9 mil lion, from $9.2 million for the FY2020
comparative period;
• Net loss was $146,728, compared to a net income of $3.8 million for the same period in FY2020;
• Total cash costs and all-in sustaining costs (“AISC”) were $607 per ounce and $924 per ounce, compared
to $592 per ounce and $744 per ounce for the same period in FY2020; For AISC computation details, refer
to pages 15-17 of the MD&A for this Non-IFRS financial measure;
• Adjusted EBITDA was $6.6 million, com pared to $8.7 million for the same period in FY2020. For
EBITDA computation details, refer to pages 15-17 of the MD&A for this Non-IFRS financial measure.
Year ended December 31, 2021
• Net income was $7.7 million for FY2021, a decline of 49% from $15 million for FY2020. The decrease in
net income is due to the impact of the temporary suspension of all mining operations in the Shandong
Province, including the SJG Project, during 2021, pending the completion of governmental sa fety
inspections throughout the industry. The SJG Open-Pit Mine resumed operations on August 12, 2021;
• Gold production decreased by 42% to 19,955 ounces for FY2021, from 34,236 ounces produced for
FY2020. The decrease in production is due to the temporary suspension of mining operations for the period
during 2021;
• Gold revenue was $38.5 million, a decrease of 27% from $52.4 million for FY2020. The decline in revenue
is primarily due to the decrease in gold available for sale as result of the curtailment of the mining
operations in 2021;
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
• Gross profit from mining operations decreased by 23% to $21.7 million, from $28.2 million for FY2020
due to the curtailment of the mining operations since January 27, 2021;
• Cash flow from operating activities decreased by 58% to $15.5 million, from $36.8 million for FY2020;
• Total cash costs and all -in sustaining costs (“AISC”) for FY2021, were $677 per ounce and $972 per
ounce, compared to $588 per ounce and $716 per ounce for FY2020. For AISC computation details, re fer
to pages 15-17 of the MD&A for this Non-IFRS financial measure;
• Adjusted EBITDA for FY2021, was $17.3 million, compared to $29.8 million for FY2020. For EBITDA
computation details, refer to pages 15-17 of the MD&A for this Non-IFRS financial measure;
• On June 15, 2021, the Company entered into a letter of intent (“LOI”) with Western Explorers PTY Ltd.
(“Western Explorers”), a private Australian corporation, to acquire a 65% interest in four separate
tenements located in Western Australia, an area with d emonstrated potential for the discovery of lithium
oxide mineralization;
• As mining operations have resumed at the SJG Project, t he Company expects gold production levels to
return to those achieved prior to the suspension of its operations, and with the Company resuming its focus
on the expansion of the SJG Open-Pit Mine.
FINANCIAL INFORMATION
Three months ended December 31, Year ended December 31,
2021 2020 2021 2020
Operating data
Gold produced (ozs) 8,543 9,089 19,955
34,236
Gold realized net of smelting fees (ozs) 8,188 8,524 18,549
31,875
Gold sold (ozs) 7,617 8,391 20,753
31,745
Average realized gold price ($/oz sold) $ 1,844 $ 1,783 $ 1,853
$ 1,650
Total cash costs ($/oz sold) (1) 607 592 677
588
Total production costs ($/oz sold) (1) 657 688 806 762
All-in sustaining costs per ounce ($/oz sold) (1) 924 744 972 716
Financial data
Gold revenue $ 14,045,604 $ 14,962,881 $ 38,445,273
$ 52,363,436
Gross profit (2) 9,041,628 9,189,154 21,714,245
28,184,067
Adjusted EBITDA (1) 6,627,166 8,743,230 17,280,458 29,811,456
Net income (146,728) 3,789,196 7,717,662 15,062,301
Net income attributable to shareholders (811,045) 1,884,881 4,508,586
9,430,192
Basic and diluted income per share (0.00) 0.00 0.01
0.01
December 31,
2021
December 31,
2020
Balance Sheet
Cash and cash equivalents
$ 34,867,831
$ 33,774,231
Total assets
128,037,022
126,715,193
Total current liabilities 24,764,929
31,920,104
(1) See “Additional Financial Measures” in the Company’s MD&A on pages 15-17.
(2) “Gross profit” represents total revenues, net of cost of goods sold.
About Majestic Gold
Currently focused 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, with exploration properties
located in Australia , and Canada . 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. 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 resource estimates may also be deemed to b e 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