Majestic GOLD Corp. Reports 2021 Q3 Results
MAJESTIC GOLD CORP. REPORTS 2021 Q3 RESULTS
Vancouver, British Columbia – November 23, 2021 - Majestic Gold Corp. (“Majestic” or the “Company”)
(TSX.V: MJS, FSE: MJT ) reports its financial and operational results for the first nine months ended
September 30, 2021. The following financial results are expressed in US dollars unless otherwise stated.
This release should be read in conjunction with the Company’s unaudited condensed consolidated interim
financial statements for the nine -month period end ed September 30, 2021 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.
OPERATIONAL HIGHLIGHTS
Nine months ended September 30, 2021
• Net income was $7.9 million for the nine months ended September 30, 2021, a decline of 30% from the
FY2020 comparative period. The decrease in net income is due to the impact of the temporary suspension
of all mining operations in the Shandong Province since January 27, 2021, pending the completion of
mandated governmental safety inspections throughout the industry. The Songjiagou Open Pit resumed
operations on August 12, 2021;
• Gold production decreased by 55% to 11,412 ounces, from 25,147 ounces produced for the FY2020
comparative period. The decrease in production is due to the temporary suspension of mining operations
since January 27, 2021;
• Gold revenue was $24.4 million, a decrease of 35% from $37.4 million for the FY2020 comparative period.
The decline in revenue is primarily due to the decrease in gold available for sale as result of the curtailment
of the mining operations since January 27, 2021;
• Gross profit from mining operations decreased by 33% to $12.7 million, from $19 million for the FY2020
comparative period due to the curtailment of the mining operations since January 27, 2021;
• Cash flow from operating activities decreased by 43% to $10.4 million, from $18.1 million for the FY2020
comparative period;
• Total cash costs and all-in sustaining costs (“AISC”) for the first nine months ended September 30, 2021,
were $717 per ounce and $928 per ounce, compared to $587 per ounce and $706 per ounce for the FY2020
comparative period; For AISC computation details, refer to pages 15-17 of the MD&A for this Non-IFRS
financial measure;
• Adjusted EBITDA for the first nine months ended September 30, 2021, was $10.7 million, compared to
$21.1 million for the FY2020 comparative period. For EBITDA computation details, refer to pages 15- 17
of the MD&A for this Non-IFRS financial measure;
• On June 15, 2021, the Company entered into a letter of intent (“LOI”) with Western Explorers PTY Ltd.
(“Western Explorers”), a private Australian corporation, to acquire a 65% interest in four separate
tenements located in Western Australia, an area with demonstrated potential for the discovery of lithium
oxide mineralization.
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
FINANCIAL INFORMATION
Three months ended September 30, Nine months ended September 30,
2021 2020 2021 2020
Operating data
Gold produced (ozs) 4,125 9,235 11,412 25,147
Gold realized net of smelting fees (ozs) 3,611 8,635 10,361 23,351
Gold sold (ozs) 5,206 8,301 13,136 23,354
Average realized gold price ($/oz sold) $ 1,854 $ 1,677 $ 1,857 $ 1,601
Total cash costs ($/oz sold) (1) 693 549 717 587
Total production costs ($/oz sold) (1) 737 741 893 788
All-in sustaining costs ($/oz sold) (1) 872 650 928 706
Financial data
Total revenues $ 9,653,844 $ 13,919,283 $ 24,399,669 $ 37,400,555
Gross profit (2) 5,815,156 7,772,322 12,672,617 18,994,913
Adjusted EBITDA (1) 3,494,801 8,544,158 10,653,292 21,068,226
Net income 1,841,962 4,726,768 7,864,390 11,273,105
Net income attributable to shareholders 1,240,834 3,193,175 5,319,631 7,545,311
Basic and diluted gain per share 0.00 0.01 0.01 0.01
September 30, December 31,
2021 2020
Cash $ 39,068,514 $ 33,774,231
Total assets 134,620,977 126,715,193
Total current liabilities 34,624,983 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, China 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