Monument Reports Second Quarter Fiscal 2018 Results Gross Revenue of $4.98 Million and Cash Cost of US$805/Oz
March 1, 2018 News Release Release #06 - 2018
Monument Reports Second Quarter Fiscal 2018 Results
Gross Revenue of $4.98 Million and Cash Cost of US$805/Oz
Vancouver, B.C ., March 1 , 201 8, Monument Mining Limited (TSX -V: MMY and FSE: D7Q1) “Monument” or the
“Company” today announced its second quarter production and financial results for the three months ended December 31,
2017. All amounts are in United States dollars unless otherwise indicated (refer to www.sedar.com for full financial results).
President and CEO Cathy Zhai commented on second quarter fiscal 2018 financial results: “The Company continued to build
on its development foundation at its Malaysian and Western Australian gold portfolios. At Selinsing, we commenced gold
production at Felda Block 7, announced encouraging results from the drilling program at Peranggih North, and continued the
Front End Engineering Design (“FEED”) study for the Sulphide Project. At Murchison, mine optimization at Burnakura
progressed, as well as the Preliminary Economic Assessment (“PEA”) for the life of mine areas including an underground
mining study.”
Second Quarter Highlights:
3,900oz of gold sold for gross revenue of $4.98 million (Q2 fiscal 2017: 3,841oz of gold sold for gross revenue of $4.64
million);
4,151oz of gold produced (Q2 fiscal 2017: 2,888oz);
Cash cost per ounce (“oz”) of $805/oz (Q2 fiscal 2017: $840/oz);
Commenced Felda Block 7 gold production at Selinsing;
Entered $7.00 million gold forward sale transaction;
Announced results from the close spaced drilling program at Peranggih North, 10km north of Selinsing;
FEED study being carried out on Selinsing to deliver an Implementation Execution Plan for the Sulphide Project; and
PEA being carried out on Burnakura.
Second Quarter Production and Financial Highlights
Three months ended December 31, Six months ended December 31,
2017 2016 2017 2016
Production
Ore mined (tonnes) 85,214 18,205 116,785 80,087
Ore processed (tonnes) 219,548 206,597 441,084 437,596
Average mill feed grade (g/t) 1.00 1.12 0.81 0.83
Processing recovery rate (%) 72% 62% 69% 59%
Gold production(1) (oz) 4,151 2,888 7,535 6,179
Gold sold (oz) 3,900 3,841 7,400 6,191
Financial (in thousands of US dollars) $ $ $ $
Revenue 4,975 4,637 9,477 7,779
Gross margin from mining operations 1,834 1,407 3,018 2,243
Net loss before other items (423) (890) (1,483) (1,714)
Net loss (1,820) (65) (3,326) (1,507)
Cash flows generated from/(used in) operations 922 1,553 2,896 (559)
Working capital 26,492 24,449 26,492 24,449
Loss per share before other items – basic (US$/share) (0.00) (0.00) (0.00) (0.01)
Loss per share – basic (US$/share) (0.01) (0.00) (0.01) (0.00)
Three months ended December 31, Six months ended December 31,
2017 2016 2017 2016
Other US$/oz US$/oz US$/oz US$/oz
Average realized gold price per ounce sold 1,276 1,207 1,281 1,256
Cash cost per ounce (2)
Mining 153 145 165 164
Processing 551 625 623 660
Royalties 97 68 81 67
Operations, net of silver recovery 4 2 4 3
Total cash cost per ounce 805 840 873 894
(1) Defined as good delivery gold bullion according to London Bullion Market Association (“LBMA”), net of gold doŕe in transit and refinery adjustment.
(2) Total cash cost includes production costs such as mining, processing, tailing facility maintenance and camp administration, r oyalties, and operating costs such as storage, temporary mine production
closure, community development cost and property fees, ne t of by -product credits. Cash cost excludes amortization, depletion, accretion expenses, capital costs, exploration costs and corpora te
administration costs.
Production Results
Second quarter fiscal 2018 gold production was 4,151oz, a 44% increase compared to 2,888oz in the corresponding period of
the previous year . Production included stockpiled super low grade oxide ore , old tailing materials , and oxide ore from the
commencement of production at Felda Block 7 during the second quarter. The oxidized ore resulted in an improved processing
recovery rate of 72.0% compared to 62.3% for the same quarter last year. Ore processed was increased by 6% to 219,548t
from 2 06,597t in the same period last year. The increased mill feed was mainly due to reduced plant downtime and the
processing of softer oxide ore materials.
Financial Results and Discussion
For the quarter ended December 31, 2017
Gold sales generated $4.98 million for the quarter compared to $4.64 million in the same period last year. The revenue resulted
from 3,900oz of gold sold at an average realized gold price of $1,2 76 per ounce for the quarter , compared to 3,841oz at an
average realized gold price of $1,207 per ounce in the same quarter last year. The weighted average London Fix PM gold
price was $1,275 per ounce for the quarter compared to $1,203 per ounce for the same period last year. Total production costs
decreased by 3% in the second quarter to $3.14 million, compared to $3.23 million in the same period last year. The decrease
in costs reflected the slightly higher amount of gold sold in the current quarter, offset by lower production costs.
Mining operations generated a gross margin of $1.83 million, an increase of 30% from $1.41 million in the same quarter last
year, before non -cash amortization and depreciation of $1.39 million and $1.37 million , respectively . Mining operations
generated income of $ 0.44 million compared to $0. 04 million in the same period last year and corporate expenses for the
second quarter were $0.8 7 million decreased by $0.0 6 million or 7% compared to $0.93 million in the prior year second
quarter. Net loss for the quarter was $ 1.82 million, or $0.01 per share (basic) compared to net loss of $ 0.07 million or $0.00
per share (basic) in the same period last year. The decrease in earnings was mainly due to foreign currency exchange loss and
higher income tax expense, offset by lower corporate expenses and increased income from mining operations.
For the second quarter, total cash generated was $1.70 million from $0.92 million provided from operations, $2.00 million
provided from financing activities from a gold forward sale transaction and $1.22 million used for investing activities for
exploration at Peranggih, the PEA for Burnakura, tailings storage facility upgrades and the Sulphide Project for Selinsing and
care and maintenance for the Mengapur Project. In comparison, the second quarter last year consumed total cash of $0.63
million from $1.55 million generated from operations, offset by $0.06 million used in financing activities for the on-site SGS
Laboratory at Mengapur and $2.13 million used for investing activities.
For the six months ended December 31, 2017
Gold sales generated $9.48 million for the six months ended December 31, 2017, an increase from $7.78 million for the same
period last year. The revenue resulted from 7,400oz of gold sold at an average realized gold price of $ 1,281 per ounce
compared to 6,191oz at an average realized gold price of $1,256 per ounce for the same period last year. The weighted average
London Fix PM gold price was $ 1,280 per ounce for the six months compared to $1,255 per ounce for the same period last
year. Total production costs increased by 17% in the six months to $6.46 million, compared to $ 5.54 million in the same
period last year. The increase in costs reflected the higher amount of gold produced and sold.
Mining operations generated a gross margin of $ 3.02 million, an increase of 35% from $2.24 million in the same period last
year, before non -cash amortization and depreciation of $ 2.82 million and $2.30 million, respectively . Mining operations
generated income of $0.20 million compared to $0.06 million in the same period last year and corporate expenses for the six
months were $1.68 million, increased by $0.02 million or 2% compared to $1.66 million for the same period last year . Net
loss for the six months was $3.33 million, or $0.01 per share (basic) compared to net loss of $1.51 million or $0.00 per share
(basic) in the same period last year. The decrease in earnings was mainly due to foreign currency exchange loss and higher
income tax expense, offset by increased income from mining operations.
For the six months ended December 31, 2017, total cash generated was $4.31 million from $2.90 million provided from
operations, $5.00 million provided from financing activities from a gold forward sale transaction and $3.59 million used for
investing activities for the acquisition of mining rights over Felda Block 7 PMLs, e xploration at Peranggih, the PEA for
Burnakura, tailings storage facility upgrades and the Sulphide Project for Selinsing and care and maintenance for the
Mengapur Project. In comparison, the six month period last year consumed total cash of $5.56 million from $0.56 million
used in operations, $0.11 million used in financing activities for the on -site SGS Laboratory at Mengapur and $4.89 million
used for investing activities.
Development
Selinsing Gold Mine
In the second quarter, the Company continued to advance the internal Definitive Feasibility Study (“DFS”) for the Sulphide
Project. This study is focused on delivery of a detai led FEED by applying BIOX® processing technology and an execution
plan for construction of additional flotation and BIOX® processing circuits and appropriate upgrade of the existing processing
plant. It includes a basic processing design package, a front end engineering design, a further mine optimization and an
economic analysis at a higher confidence level.
The basic processing design progressed with further laboratory work conducted at the SGS laboratory in Johannesburg under
the management and guidance of the technology owners Outotec (Finland) Oy to test sulphide oxidation level and amenability
of concentrates from representable samples of Selinsing/Buffalo Reef sulphide ore materials to the BIOX® process .
Subsequent to the quarter end, bioleaching testwork results were announced showing that Selinsing/Buffalo sulphide ore are
amenable to BIOX® process: over 90% sulphide oxidation occurred after 9 days, 98% after 15 days and 99% after the full 24
days.
Orway Mineral Consultants Pty Ltd (“Orway”) has been engaged to produce an overall plant design package, expected to be
complete in the third quarter of fiscal 2018 followed by the FEED study. Contromation Energy Services (“CES”) has
commenced preparing the FEED for the new processing plant. A number of specialized contractors were also engaged in the
DFS for expansion of Sulphide Project: Geomapping Technology Sdn Bhd (“GTSB”) for a study on slope stability in the
Selinsing and Buffalo Reef open pits and geotechnical studies on the proposed plant site; SRK Consulting (Australia) Pty Ltd
(“SRK”) for the existing tailings storage facility expansi on; Afrima Consulting Pty Ltd on the power draw study. Internal
studies were initiated to address the additional clean water demand for the BIOX® plant and to gauge the requirements for
expanded site water storage facilities. The FEED and a construction execution plan are scheduled to be completed during the
fourth quarter of fiscal 2018.
Burnakura Project
During the second quarter, the Company progressed mine optimization at Burnakura working towards a Preliminary
Economic Assessment Study on the Burnakura life of mine areas with exploring underground potential. The PEA is planned
for completion in early April 2018. Site preparation and development for ear ly stage production is on -going. PEA progress
during the quarter included review of the proposed scope of work and schedule, the compilation of data for geological sections
and completion of a geotechnical study by Peter O’Bryan and Associates Pty Ltd. Ongoing work on the potential underground
also continued with NOA 7_8 resources re-modelled at a higher cut -off grade, allowing underground assessment works to
continue. The updated resource model will be used for underground mining study in the PEA.
Acquisitions and Financing
During the quarter, the Company closed Block 7 transaction for the exclusive mining right for all Proprietary Mining Leases
(the “PML”) at Block 7, covering a total 39.12 acres adjacent and east of the Buffalo Reef property. The Company has
commenced Felda Block 7 production. Felda Block 7 contains the extension of the BRC oxide ore body which is readily
mined and processed through the exi sting gold processing plant. It also allows the pit shell to be fully developed across the
boundary to access the entire sulphide ore beneath the BRC once the Sulphide Gold Project is in production.
Subsequent to the quarter, the Company announced a $7.00 million gold forward sale transaction by receipt of a $5.00 million
prepayment, with a further $2.00 million to be received by March 31, 2018. The transaction is non -dilutive to shareholders
and the funds will be primarily used for the development of the Burnakura Gold Mine and for general working capital.
Exploration Progress
Malaysia
Peranggih: During the second quarter, the encouraging results from the completed close spaced drilling program at Peranggih
North updated the internal resource model. The drilling program successfully delineated a zone of higher grade gold material,
indicating that the mineralization occurs in the same regional shearing structure hosting Selinsing and Buffalo Reef deposits .
Subsequent to the quarter, further exploration commenced and will be focused on the North Peran ggih high grade area .
Approximately 3,500m of resource definition and extension drilling are planned throughout the four main mineralized zones,
to define Indicated and Inferred resources. The Peranggih Pros pect has been identified as a new Gold Field that has the
potential to host a significant mineralized hydrothermal breccia system . Sampling, assaying and cyanide leach testwork to
date shows that recoveries exceed 80% ranging up to 98%.
Felda: During the second quarter, geo-metallurgical modelling has been completed for Felda Block 7, identifying significant
blocks of leachable material within the existing Felda Block 7 Resource. High grade non -leachable blocks of transition
sulphide ore have been identified, which could be mined and stockpiled for the future sulphide flotation plant.
Western Australia
At Burnakura, the second quarter progressed with further updates to the NOA 7_8 mineral resource estimate. The model was
improved to better reflect underground mining opportunities. The updated model combined with the structural understanding
of the deposit, highlighted the significant potential at depth for further resource extensions. A deep drilling program has been
planned at the NOA7_8 deposit and aims to test the underground potential to 500m.The program has significant potential to
increase the life of mine, in conjunction with the early stage production plan. The program is scheduled to start upon
commencement of the early stage of production or external funding.
At Tuckanarra geological modelling continued to support the proposed open pit operation. The Cable and Bollard deposits
are in the process of being re -modelled for mine optimization studies. A study of the exploration potential was completed,
highlighting there is significant potential for further discoveries along untested prospective strike. At Gabanintha a review of
the geological resources is ongoing. Mine optimization studies have outlined a significant open pit operation, with
underground potential. The review has highlighted that the deposits are open at depth.
About Monument
Monument Mining Limited (TSX-V: MMY, FSE:D7Q1) is an established Canadian gold producer that owns and operates the
Selinsing Gold Mine in Malaysia. Its experienced management team is committed to growth and is advancing several
exploration and development projects including the Mengapur Copper and Iron Project, in Pahang State of Malaysia, and the
Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra in the Murchison area of Western Australia .
The Company employs approximately 190 people in both regions and is committed to the highest standards of environmental
management, social responsibility, and health and safety for its employees and neighboring communities .
Cathy Zhai, President and CEO
Monument Mining Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6
FOR FURTHER INFORMATION visit the company web site at www.monumentmining.com or contact:
Richard Cushing, MMY Vancouver T: +1-604-638-1661 x102 [email protected]
Wolfgang Seybold, Axino GmbH T: +49 711-82 09 7211 [email protected]
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release."
Forward-Looking Statement
This news release includes statements containing forward -looking information about Monument, its business and future plans (“forward -looking
statements”). Forward-looking statements are statements that involve expectations, plans, objectives or future events that are not historical facts and include
the Company’s plans with respect to its mineral projects and the timing and results of proposed programs and events referred to in this news release.
Generally, forward-looking information can be identified by the use of forward -looking terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and
phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The forward-looking
statements in this news release are subject to various risks, uncertainties and other factors that could cause actual results or achievements to differ materially
from those expressed or implied by the forward-looking statements. These risks and certain other factors include, without limitation: risks related to general
business, economic, competitive, geopolitical and social uncertainties; uncertainties regarding the results of current exploration activities; uncertainties in
the progress and timing of development activities; foreign operations risks; other risks inherent in the minin g industry and other risks described in the
management discussion and analysis of the Company and the technical reports on the Company’s projects, all of which are avail able under the profile of
the Company on SEDAR at www.sedar.com. Material factors and assumptions used to develop forward -looking statements in this news release include:
expectations regarding the estimated cash cost per ounce of gold production and the estimated cash flows which may be generat ed from the operations,
general economic factors and other factors that may be beyond the control of Monument; assumptions and expectations regarding the results of exploration
on the Company’s projects; assumptions regarding the future price of gold of other minerals; the timing and amount of estima ted future production; the
expected timing and results of development and exploration activities; costs of future activities; capital and operating expenditures; success of exploration
activities; mining or processing issues; exchange rates; and all of the factors and assumptions described in the management discussion and analysis of the
Company and the technical reports on the Company’s projects, all of which are available under the profile of the Company on S EDAR at www.sedar.com.
Although the Company ha s attempted to identify important factors that could cause actual results to differ materially from those contained in forwar d-
looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in s uch statements. Accordingly,
readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except
in accordance with applicable securities laws.