Monument Reports Second Quarter Fiscal 2023 (“Q2 FY2023”) Results Gross Revenue of US$5.87 Million and Cash Cost of US$1,507/Oz
March 1, 2023 News Release Release #02 - 2023
Monument Reports Second Quarter Fiscal 2023 (“Q2 FY2023”) Results
Gross Revenue of US$5.87 Million and Cash Cost of US$1,507/Oz
Vancouver, B.C ., March 1, 2023, Monument Mining Limited (TSX -V: MMY and FSE: D7Q1) “Monument” or the
“Company” today announced its production and financial results for the second quarter of fiscal 20 23 and the six months
ended December 31, 2022. All amounts are expressed in United States dollars (“US$”) unless otherwise indicated (refer to
www.sedar.com for full financial results).
President and CEO Cathy Zhai commented, “ I am pleased to report during the second quarter our Selinsing Gold Mine has
filtered first gold concentrates with completion of dry/wet flotation plant commissioning. The ramp up period commenced
subsequent to the second quarter yet to bring the project to commercial production.”
Second Quarter Highlights:
• First gold filtered concentrate produced on December 27, 2022; total production was 126 dry tonnes with gold content of
177 oz;
• Dry and wet commissioning completed, and ore commissioning continued into the n ext quarter;
• Selinsing gold bullion production ceased in mid of November 2022 with gold in circuit yet to be cleaned up ;
- 1,498 ounces (“oz”) of gold bullion produced (Q2 FY2022: 1,683oz);
- 3,350 ounces (“oz”) of gold bullion sold for $5.87 million (Q2 FY2022: 2,873oz for $5.05 million);
- Average quarterly gold price realized at $1,753/oz (Q2 FY2022: $1,828/oz);
- Cash cost per ounce sold was $1,507/oz (Q2 FY2022: $1,810/oz);
- Gross margin increased to $0.82 million (Q2 FY2022: negative $0.15 million);
- All-in sustaining cost (“AISC”) decreased to $1,627/oz (Q2 FY2022: $2,146/oz) ( section 15 “Non-IFRS Performance
Measures”).
Second Quarter and Six Months Production and Financial Highlights
Three months ended
December31,
Six months ended
December 31,
2022 2021 2022 2021
Production
Ore mined (t) 108,860 85,209 216,251 160,181
Waste removed (tonnes) 2,108,615 1,770,975 3,708,652 3,713,309
Ore processed (tonnes) 72,391 129,000 204,838 285,611
Average mill feed grade (g/t) 1.14 0.56 1.07 0.55
Processing recovery rate (%) 40% 63% 44% 64%
Gold bullion production (1) (oz) 1,498 1,683 3,563 2,726
Gold bullion sold (oz) 3,350 2,873 3,750 4,296
Gold concentrate production (tonnes) 126 - 126 -
Gold concentrate grade (g/t) 43.81 - 43.81 -
Three months ended
December 31,
Six months ended
December 31,
2022 2021 2022 2021
Financial (expressed in thousands of US$) $ $ $ $
Revenue 5,872 5,047 6,580 7,430
Gross margin from mining operations 823 (152) 883 196
Loss before other items (1,460) (2,124) (2,163) (2,879)
Net loss (3,196) (2,502) (3,485) (3,769)
Cash flows (used in) provided by operations 2,754 (4,023) 2,100 (4,000)
Working capital 18,894 38,605 18,894 38,605
Loss per share – basic and diluted (US$/share) (0.01) (0.01) (0.01) (0.01)
Other US$/oz US$/oz US$/oz US$/oz
Average realized gold price per ounce sold (2) 1,753 1,828 1,755 1,823
Cash cost per ounce sold:
Mining 545 728 554 660
Processing 784 896 782 838
Royalties 174 164 176 165
Operations, net of silver recovery 4 22 7 20
Total cash cost per ounce sold(3) 1,507 1,810 1,519 1,683
By-product silver recovery 1 0 1 1
Operation expenses - 0 0 11
Corporate expenses 2 9 9 7
Accretion of asset retirement obligation 14 13 25 16
Exploration and evaluation expenditures 52 47 47 35
Sustaining capital expenditures 51 267 45 361
Total all-in sustaining costs per ounce sold(4) 1,627 2,146 1,646 2,114
(1) Defined as good delivery gold bullion according to London Bullion Market Association (“LBMA”), net of gold doŕe in transit and refinery adjustment.
(2) Monument realized US$1,753/oz for the three months ended December 31, 2022.
(3) Total cash cost per ounce includes production costs such as mining, processing, tailing facility maintenance and camp adminis tration, 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, idle production costs, capital costs,
exploration costs and corporate administration costs. Readers should refer to section 15 “Non-GAAP Performance Measures” of Q2 MD&A.
(4) All-in sustaining cost per ounce includes total cash costs and adds sustaining capital expenditures, corporate administrative expenses for the Selinsing Gold Mine including share-based compensation,
exploration and evaluation costs, and accretion of asset retirement obligations. Certain other cash expenditures, including t ax payments and acquisition costs, are not included. Readers should refer to
section 15 “Non-GAAP Performance Measures” of Q2 MD&A.
Q2 FY2023 Production Analysis
Gold Bullion Production
• Q2 FY2023 gold bullion production was 1,498oz, a 11% decrease as compared to 1,683oz for Q2 FY2022. The
decrease mainly resulted from lower gold recovery.
• Q2 FY2023 ore processed decreased to 62,817t from 129,000t for Q2 FY2022. The decreased mill feed was mainly
due to a significant reduction of crushed ore and mechanical and electrical problems and the transition from carbon-
in-leach plant to new sulphide flotation plant tie-in.
• Q2 FY2023 cash cost per ounce decreased by 17% to $1,507/oz from $1,810/oz for Q2 FY2022. This decrease was
primarily due to a significant increase in the mill feed grade from 0.56g/t Au to 1.14g/t Au and increase in gold
bullion sale, less mining costs and a slight lower processing costs.
Gold Concentrate Production
• In December, commissioning of sulphide flotation plant commenced, and 9,574 t of flotation feed was milled, 126
dry metric tonnes of gold con centrate was produced with 177 oz gold recovered. There was no sale of gold
concentrate during Q2 FY2023.
Overall, Q2 FY2023 average mill feed grade was 1.14g/t Au as compared to 0.56g/t Au of Q2 FY2022 due to higher grade
ore from Selinsing and Buffalo Reef than Peranggih oxide mineralized materials. Q2 FY2023 processing recovery rate
decreased to 39.9% from 63.2% for Q2 FY2022 . The decrease in processing recovery rate was mainly due to the transition
from carbon-in-leach (CIL) plant to the new sulphide flotation plant tie-in.
Q2 FY2023 Financial Analysis
• Q2 FY2023 gold bullion sales generated revenue was $5.87 million as compared to $5.05 million from Q2 FY2022.
Gold sales revenue was derived from the sale of 3,350oz (Q2 FY2022: 2,150oz) of gold at an average realized gold
price of $1,753 per ounce (Q2 FY2022: $1,828 per ounce) and the delivery of nil oz (Q2 FY2022: 723 oz at $1,545
per ounce gold equivalent) in fulfilling gold prepaid sale obligations.
• Q2 FY2023 total production costs decreased by 3% to $5.05 million as compared to $5.20 million from Q2 FY2022.
Cash cost per ounce decreased by 17% to $ 1,507/oz as compared to $ 1,810/oz of the same period last year. T he
decrease was attributable to an increase in the mill feed grade from 0.56g/t to 1.14g/t, increase in gold bullion sale,
less mining costs and a slight lower processing costs, offset by a decrease in recovery to 39.9% (Q2 FY2022: 63.2%).
• Gross margin for Q2 FY2023 was $0.82 million before operation expenses and non-cash amortization and accretion
as compared to negative $0.15 million from Q2 FY2022. The increase in gross margin was attributable to significant
higher grade ore feed, more gold sold, and decreased cash costs.
• Net loss for Q2 FY2023 was $3.20 million, or ($0.01) per share as compared to net loss of $2.50 million or ($0.01)
per share from Q2 FY2022.
• Cash and cash equivalents balance as at December 31, 2022 was $12.81 million, a decrease of $8.23 million from
the balance at June 30, 2022 of $21.04 million due to $10.31 million development cost in Selinsing including $9.32
million spent in sulphide project development , and $0.62 million spent in Murchison exploration and maintenance
activities, and $0.02 million spent in long -term lease obligations, offset by $2.10 million generated in operation
activities. As at December 31, 2022, the Company had positive working capital of $18.89 million as compared to
that at June 30, 2022 of $30.33 million.
Development
Selinsing Gold Mine
The Selinsing sulphide project development to produce saleable sulphide gold concentrate continued in the quarter . As of
December 31, 2022, 91% of the overall project has been completed with cost incurred of $15.61 million. During the second
quarter of FY2023, flotation plant construction and most ancillary equipment were substantially complete and installed except
for the cabling work. Plant commissioning began in November 2022. Dry and wet commissioning co mpleted on flotation
cells, concentrate and water recovery thickeners, reagents mixing and storage, blowers, compressor, and filter press plant.
Ore commissioning started on December 15, 2022, ongoing improvements to flotation circuit, correcting shortfalls continued.
The ramp up to full production commenced after the end of the second quarter, in January 2023.
Pre-stripping continued in the second quarter for the flotation plant. Mining of transitional and sulphide ore continued during
the quarter to stockpile ore for future production.
During the second quarter of FY2023, metallurgical drilling at Buffalo Reef had commenced and completed with 508m over
12 holes. The drilling target ed representative transition and fresh sulphide samples from each of the BRC2, BRC 3, BRC 4,
and BRN pits. Assay results for all 586 samples were received. The samples with a grade above 0.35g/t were composited
based on oxidation category (transition and fresh) and submitted to the metallurgical laboratory at Selinsing for a series of
locked cycle tests to obtain recovery and grade data for the life of mine optimisation. The overall strategy of the mine plan is
to achieve maximum gold recovery and minimise arsenic and stibnite grade in concentrate.
Murchison Gold Project
No drilling was carried out during the second quarter of fiscal year 2023. The Company focused on updating and further
reviewing of Gabanintha drill targets and slowed down drilling to preserve cash in supporting Selinsing development, while
the costs of drilling in Western Australia are up over 30% and there are shortages in labour and drill rigs. The Company
continued to maintain the plant and other facilities to the extent they are operationally ready for efficient commissioning when
production is restarted. Site accommodation and catering facilities are fully functional to host administrative, exploration and
mining activities.
About Monument
Monument Mining Limited (TSX -V: MMY, FSE: D7Q1) is an established Canadian gold producer that 100% owns and
operates the Selinsing Gold Mine in Malaysia and the Murchison Gold Project in the Murchison area of Western Australia. It
has 20% interest in Tuckanarra Gold Project jointly owned with Odyssey Gold Ltd in the same region. The Company employs
approximately 200 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]
"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 his torical 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 cer tain 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 u ncertainties; 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 available under the profile of the Company on SEDAR at www.sedar.com. Ma terial 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 generated 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 estimated future production; the expected timi ng and results of
development and exploration activities; costs of future activities; capital and operating expenditures; success of exploratio n activities; mining or
processing issues; exchange rates; and all of the factors and assumptions described in the ma nagement 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 SEDAR at www.sedar.com.
Although the Company has attempted to identify important factors th at 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.
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.