Monument Reports Second Quarter Fiscal 2019 Results Gross Revenue of $5.66 Million and Cash Cost of US$686/Oz
February 27, 2019 News Release Release #02 - 2019
Monument Reports Second Quarter Fiscal 2019 Results
Gross Revenue of $5.66 Million and Cash Cost of US$686/Oz
Vancouver, B.C ., February 27, 201 9, 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,
2018. 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 2019 financial results: “During the second quarter, w e
have successfully completed a Mineral Resource estimate at Mengapur and a feasibility study at the Selinsing Gold Mine
subsequently. These accomplishments are significant to shareholders and potential investors as they demonstrate to the market
the value being built over the last 10 years in our gold and copper portfolios in Malaysia . This opens our future for potential
sustainable production and business development opportunities. I would like also to congratulate our team for their excellent
performance and technical strengths that have been developed and accumulated over past 10 years.”
Second Quarter Highlights:
4,600oz of gold sold for gross revenue of $5.66 million (Q2 2018: 3,900oz of gold sold for gross revenue of $4.97 million);
4,653oz of gold produced (Q2 2018: 4,151oz);
Cash cost per ounce (“oz”) of $686/oz (Q2 2018: $805/oz);
Gross margin of $2.51 million (Q2 2018: $1.83 million);
A NI43-101 Technical Report completed at Mengapur that included a copper, gold and silver mineral resource estimation;
A NI43-101 Technical Report completed at Selinsing, subsequent to the second quarter, establishing economic viability for a
six-year life of mine.
Second Quarter Production and Financial Highlights
Three months ended
December31,
Six months ended
December 31,
2018 2017 2018 2017
Production
Ore mined (tonnes) 56,734 85,214 87,039 115,908
Ore processed (tonnes) 241,925 219,548 478,730 441,084
Average mill feed grade (g/t) 0.88 1.00 0.85 0.81
Processing recovery rate (%) 72% 72% 68% 69%
Gold production (1) (oz) 4,653 4,151 7,961 7,535
Gold sold (oz) 4,600 3,900 9,150 7,400
Financial (in thousands of US dollars) $ $ $ $
Revenue 5,663 4,975 11,193 9,477
Gross margin from mining operations 2,509 1,834 5,230 3,018
Net income/(loss) before other items 768 (423) 1,873 (1,483)
Net income/(loss) 469 (1,820) 1,531 (3,326)
Cash flows generated from operations 1,078 922 1,844 2,896
Working capital 26,299 26,492 26,299 26,492
Earnings/(Loss) per share before other items – basic (US$/share) 0.00 (0.00) 0.01 (0.00)
Earnings/(Loss) per share – basic (US$/share) 0.00 (0.01) 0.00 (0.01)
Three months ended
December 31,
Six months ended
December 31,
2018 2017 2018 2017
Other US$/oz US$/oz US$/oz US$/oz
Average realized gold price per ounce sold 1,231 1,276 1,223 1,281
Cash cost per ounce (2)
Mining 161 153 150 165
Processing 441 551 414 623
Royalties 82 97 86 81
Operations, net of silver recovery 2 4 2 4
Total cash cost per ounce 686 805 652 873
(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, royalties, and operating costs such as storage, temporary mine production
closure, community development cost and property fees, net of by-product credits. Cash cost excludes amortization, depletion, accretion expenses, capital costs, exploration costs and corpora te
administration costs.
Operation and Financial Results
Second quarter fiscal 2019 gold production was 4,653oz, a 12% increase compared to 4,151oz in the corresponding period of
the previous year . Production included stockpiled super low-grade oxide ore, old tailing materials , and oxide ore from the
production at Felda Block 7, Buffalo Reef, and Selinsing during the second quarter. The processing recovery rate was 72.2%
compared to 70.0% for the same quarter last year. Ore processed was increased by 10% to 241,925t from 219,548t in the same
period last year. The increased mill feed was mainly due an increase in the old tailings reclaim rate, offset by a lower crushing
rate from repairs and heavy rainfall.
Net income for the second quarter was $0.47 million, or $0.00 per share (basic) compared to net loss of $1.82 million or
($0.01) per share (basic) in the same period last year. The increase in net income was mainly due to higher revenue with lower
corporate expenses and foreign currency exchange loss and tax expense. Mining operations generated a gross margin of $2.51
million, an increase of 37% from $1.83 million in the same quarter last year, before non-cash amortization and depreciation.
Net income for the six months ended December 31, 2018 was $1.53 million, or $0.00 per share (basic) compared to net loss
of $3.33 million or ($0.01) per share (basic) in the same period last year. The increase in earnings was mainly due to higher
income from mining operations, lower corporate expenses and decreased in foreign currency exchange loss. Mining operations
generated a gross margin of $5.23 million, an increase of 73% fro m $3.02 million in the same period last year, before non -
cash amortization and depreciation.
For the second quarter, total cash consumed was $0.91 million from $1.08 million generated from operations offset by $1.99
million invested for development at Selinsing including pre-stripping, tailings storage facilities upgrade and the Sulphide
Project feasibility study, for exploration at Buffalo Reef and Peranggih , at Murchison for regional geological study, and at
Mengapur for resource evaluation study and care and maintenance. In comparison, the second quarter last year generated total
cash of $1.70 million from $ 0.92 million generated from operations, $ 2.00 million gold forward from financing activities,
offset by $1.22 million used for investing activities. For the six months ended December 31, 2018, total cash consumed was
$2.18 million from $ 1.84 million provided from operations, offset by $2.29 million used for investing activities on the
Sulphide Project for Selinsing, tailings storage facility upgrades and pre-stripping, exploration at Buffalo Reef and Peranggih,
the regional geology study for Burnakura, and resource study for the Mengapur Project. In comparison, the six-month period
last year generated total cash of $4.31 million from $2.90 million from operations and $5.00 million from financing activities
from a gold forward sale, offset by $2.29 million used for investing activities.
For the second quarter , changes in working capital items reduced cash from operating activities by ($0.92) million. The
working capital reduction was primarily due to increased inventories and decrease in accounts payable and accrued liabilities.
For the three months ended December 31, 2017, the $1.08 million working capital reduction was primarily due to timin g of
accounts receivables, reduction of inventories and decrease in accounts payable and accrued liabilities. For the six months
ended December 31, 2018, changes in working capital items reduced cash from operating activities by ($2.39) million. The
working capital reduction was primarily due to timing of accounts receivables and decrease in accounts payable and accrued
liabilities. For the six months ended December 31, 2017, the $0.72 million working capital increase was primarily due to
reduction of inventories, offset by timing of accounts receivables and prepaid expenses.
Development
Selinsing Gold Mine
During the second quarter, the Feasibility Study was being finalized for the Selinsing Gold Sulphide Project . The Snowden
2019 NI43-101 Report (titled “Selinsing Gold Sulphide Project - NI 43-101 Technical Report”), filed subsequent to the second
quarter, has concluded economic viability of the Selinsing Gold Sulphide Project, covering mineral exploration, development,
and production area of the S elinsing Gold Mine. The Feasibility Study has demonstrated an approximately six -year life of
mine (LOM) with an NPV of $27.56 million based on reported oxide and sulphide ore reserves as of March 2018. Over the
six-year LOM, a total 5.7 million tonnes of ore would be treated at an average grade of 1.45g/t for 223koz at a cost of $863.67
per ounce. At a gold price of $1,300 per ounce, the Selinsing Gold Mine Project would generate net cash flow after tax of
$97.00 million from operations, or $45.00 million n et of capital expenditure. Recommendations have been suggested to
initiate further exploration programs, aimed on conversion of Inferred Mineral Resources to Indicated Mineral Resources.
During the second quarter, flotation and other testwork continued at an independent laboratory in Perth, WA and successfully
achieved gold recoveries in excess of 90%, confirming the results achieved from the in -house laboratory at site. A draft
detailed design of the tailings storage facility (“TSF”) expansion was issued by SRK Consulting . Construction of the new
spring water management system was completed and preparation for the TSF main embankment construction proceeded with
the use of some pre-stripping materials that reduces overburden.
The project team also continued to optimize costs for the sulphide plant upgrade including expected maintenance and reagent
consumptions to lower operating cost estimates and sourcing local equipment to lower capital cost estimates.
Burnakura Project
Following the July 2018 updated mineral resource esti mation at Burnakura , an initial economic assessment was completed
during the second quarter assuming the underground mining potential and larger mill capacity to 500ktpa from 260ktpa by
the management. Based on those assessments, the Company has re -strategized development of the Burnakura Gold Project.
The planned gold production is postponed until completion of the PEA to include underground opportunities that would
potentially allow for a better return on investment and reduction of operation risks. Focus during the second quarter has been
on the update of geological data and identification of geological host structures suitable for target drilling with a view to
increase gold inventories.
Mengapur
At the Mengapur Copper-Iron project geological and resource modelling work resumed in fiscal 2018. A NI43-101 Mineral
Resource Estimation Technical Report was completed by Snowden and SEDAR filed in October 2018. A total of 39.5 Mt @
0.43% Cu and 0.18 g/t Au of Indicated Mineral Resources, along with 50.9 Mt @ 0.44% Cu and 0.11 g/t Au of Inferred
Mineral Resources, was reported above a 0.3% Cu cut -off grade. As copper prices rise, the Company intends to carry out
follow-up work in fiscal 2019 to assess the opportunity for copper production.
Exploration Progress
Malaysia
Exploration activities during the second quarter comprised of regional exploration interpretation , a continuation of the soil
sampling program, and refinements on diamond and RC drilling design. Regional exploration has continued targeting larger
strategic development areas surrounding the Selinsing Gold Mine, aimed to test resource potential. The current target areas
have been prioritized for sampling and assaying including additional sections a t Peranggih and Panau. During the second
quarter 140 primary samples collected at the Panau South . The access road to Panau East was then surveyed, repaired, and
sampling was started at the end of the second quarter with 20 samples collected. The soil sampling results could lead to
identifying further regional drilling targets.
Australia
A geological structural study was completed during the second quarter with updates to reflect new geological information for
regional geology. Regional and localized d rill targets have been identified and priority ranked at Burnakura and entire
Murchison Gold Project for further investigation. Compilation of historical data was also carried out, to check any gaps in
existing data including reports, drillhole database and geochemical data.
The Company has developed exploration milestones and strategy, preparing to commence exploration programs to test
regional targets such as NOA 9, and deep underground potential targets at ANA, NOA 1 and NOA 2, and NOA 7/8 areas.
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 195 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 inc ludes 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 mining 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 availab le 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 estimat ed 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 has attempted to identify important factors that could cause actual results to differ materially from those contained in forward -
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 such statements. According ly,
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.