Monument Reports Third Quarter Fiscal 2020 Results Gross Revenue of $11.62 Million and Cash Cost of US$892Oz
May 29, 2020 News Release Release #10 - 2020
Monument Reports Third Quarter Fiscal 2020 Results
Gross Revenue of $11.62 Million and Cash Cost of US$892Oz
Vancouver, B.C ., May 29, 2020, Monument Mining Limited (TSX -V: MMY and FSE: D7Q1) “Monument” or the
“Company” today announced its third quarter production and financial results for the three and nine months ended March 31,
2020. 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: “Regardless of the suspension of production at Selinsing Gold Mine starting
March 18, 2020 caused by the Movement Control Order issued by Malaysia government against Covid-19 pandemics, the
third quarter has generated positive cash flow, contributed mainly to high gold price and improved recoveries. Subsequently,
the mining ban has been lifted on April 30th and production has been moved gradually towards full capacity. Working capital
is sufficient to support operations and procurement has been manageable with global dynamic changes in supply chains.”
Ms. Zhai further commented: “ Management is firmly mov ing forward with the Sulphide Project financing with actively
engaged interesting parties. We stay focused on our corporate development strategies to take upside opportunities for future
sustainable production, including entering into the sulphide gold concentrates market using our planned sulphide Biox®
treatment plant.”
Third Quarter Highlights:
7,323oz of gold sold for $11.62 million (Q3 2019: 3,732oz of gold sold for $4.59 million);
Average realized gold price per ounce (“oz”) of 1,602/oz (Q3 2019: $1,295/oz);
Gross margin of $5.08 million (Q3 2019: $1.79 million);
5,369oz of gold produced (Q3 2019: 4,225oz) with cash cost of $892/oz (Q3 2019: $751/oz);
All-in sustaining cost per ounce (“AISC”) of $1,070/oz (Q3 2019: $1,108/oz);
Peranggih trial mining program completed with encouraging average gold recoveries;
The first phase of drilling completed at Murchison followed by the second phase starting subsequently to the end of the
third quarter;
Two weeks production suspension of Selinsing Gold Mine due to Covid-19 Pandemics.
Third Quarter Production and Financial Highlights
Three months ended March 31, Nine months ended March 31,
2020 2019 2020 2019
Production
Ore mined (tonnes) 85,691 34,826 220,743 121,864
Waste removed (tonnes) 780,935 905,402 2,424,213 2,372,531
Ore processed (tonnes) 157,413 226,697 606,747 705,427
Average mill feed grade (g/t) 1.49 0.76 1.12 0.82
Processing recovery rate (%) 76% 69% 71% 69%
Gold production (1) (oz) 5,369 4,225 15,048 12,186
Gold sold (oz) 7,323 3,732 16,119 12,882
Financial (in thousands of US dollars) $ $ $ $
Revenue 11,618 4,590 24,567 15,783
Gross margin from mining operations 5,081 1,788 10,294 7,023
Net income before other items 2,303 269 3,805 2,147
Net income/(loss) 1,866 (914) 998 617
Cash flows generated from operations 5,187 535 5,616 2,379
Working capital 19,491 25,336 19,491 25,336
Income/(Loss) per share before other items – basic (US$/share) 0.01 (0.00) 0.00 0.00
Earnings/(Loss) per share – basic (US$/share) 0.01 (0.00) 0.00 0.00
Three months ended March 31, Nine months ended March 31,
2020 2019 2020 2019
Other US$/oz US$/oz US$/oz US$/oz
Average realized gold price per ounce sold (2) 1,602 1,295 1,535 1,241
Cash cost per ounce (3)
Mining 239 165 220 154
Processing 500 478 518 432
Royalties 142 95 135 88
Operations, net of silver recovery 11 13 13 5
Total cash cost per ounce 892 751 886 679
All-in sustaining costs per ounce (4)
By-product silver recovery 1 2 1 1
Operation expenses 25 - 11 -
Corporate expenses 2 10 5 8
Accretion of asset retirement obligation 6 14 8 12
Exploration and evaluation expenditures 6 44 29 42
Sustaining capital expenditures 138 287 171 231
Total all-in sustaining cost per ounce 1,070
1,108
1,112 973
(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$/oz for the three and nine months ended March 31, 2020 includes gold prepaid delivery of 723oz and 2,169oz respectively at average London Fix PM gold price, for comparison
purpose (Note 13).
(3) Total cash cost includes production costs such as mining, processin g, 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 corporate
administration costs.
(4) All-in sustaining cost per ounce includes total cash costs, operation expenses, 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 tax payments and acquisition costs, are not included.
Q3 2020 Production Analysis
Gold production of 5,369oz, a 27% increase compared to 4,225oz in the corresponding period of the previous year,
this was the result from processing mainly stockpiled super low-grade oxide ore, old tailing materials, oxide material
from Peranggih trial mining, and more leachable sulphide ore from the production at Felda Block 7 and Selinsing
during the third quarter, compared to more super low-grade oxide ore in last year.
Average mill feed grade increased to 1.49g/t from 0.76g/t and ore processed decreased to 157,413t from 226,697 in
the same period last year. The decreased mill feed was mainly due to a decrease in stockpiled super low-grade oxide
ore and less oxide ore being mined.
Cash cost per ounce increased by 19% to $892/oz from $751/oz in the same period last year due to an increase in
leachable sulphide material being processed, increased processing costs as well as mining at an increased rate, and
increasing mining costs.
Q3 2020 Financial Analysis
Gross margin of $5.08 million before non-cash amortization and accretion, an increase of 184% compared to $1.79
million in the same quarter last year. The increase in gross margin reflected a decrease in the amount of gold sold,
but at a higher average realized gold price mainly offset by higher processing costs due to harder material being
processed by the mill.
Net Income for the quarter of $1.87 million, or $0.01 per share compared to Net loss of ($0.91) million or ($nil) per
share in the same period last year. This positive variance was caused by higher grade leachable sulphide ore and also
the oxide material from Peranggih trial mining.
Gold sales generated of $11.62 million for the quarter compared to $4 .60 million in the same period last year. The
revenue resulted from 7,323oz of gold sold (Q3 fiscal 2019: 3,732oz) at an average realized gold price of $1,602 per
ounce (Q3 fiscal 2019: $1,295 per ounce) plus an additional 723oz delivered in fulfilling gold prepaid obligations at
an average London Fix PM gold price of $1,583 per ounce for the quarter.
Average London Fix PM gold price was $1,609 per ounce for the quarter compared to $1,299 per ounce for the same
period last year. Total production costs increased by 133% in the quarter to $6.54 million, compared to $2.80 million
in the same period last year. The increase in production costs reflected more gold being sold in the third fiscal quarter
2020 compared to same period last year.
Cash and cash equivalents balance as at March 31, 2020 of $10.42 million, an increase of $ 1.08 million from the
balance held at June 30, 2019 of $9.34 million. As at March 31, 2020 , the Company had positive working capital
$19.49 million (June 30, 2019: $24.52 million), including restricted cash of $ 0.38 million. The increase in working
capital during the nine months ended March 31, 2020 resulted from a n increase in cash, reduction in accounts
receivable, offset by increases in inventories and a reduction to accounts payable and accrued liabilities.
Cash investment in exploration and evaluation activities totalled $ 0.23 million compared to $ 0.40 million in the
corresponding period last year, cash of $ 0.05 million was used at the Selinsing Gold Portfolio in Malaysia mainly
related to Sulphide Project Development, Peranggih road construc tion completion, $ 0.16 million was used at the
Murchison Gold Portfolio in Australia mainly for care and maintenance and drill program planning ; and $0.02
million on the Mengapur Copper and Iron Project in Malaysia for care and maintenance.
Cash expenditure on property, plant and equipment (“PPE”) of $1.07 million, compared to $1.31 million in the same
period last year. The main PPE expenditures were at Selinsing including $ 0.98 million for the cutback of Selinsing
Pit 4 and Felda Block 7 and capitalized mining waste, various plant equipment and tailing storage facility upgrades
of $0.03 million and $0.05 million on the Selinsing Sulphide Project.
Development
Selinsing Gold Mine
Peranggih Trial Mining:
At the Selinsing Gold Mine, Peranggih trial mining was carried out from February 22 to March 3, 2020, under which the bulk
sample was extracted from the higher mineralized area. The bulk sample material was fed into the existing Selinsing oxide
gold processing plant to confirm the average grade of t he close-spaced drilled area , to quantify the presence of coarse gold
and to test the metallurgical performance at plant scale. 13,047 tonnes of material was processed at a reconciled head grade
of 1.17g/t with actual recovery of 89.8% as compared to average assayed grade gold of 1.22g/t with recovery of 90.2%.
Trial Mining Results:
The trial mining generated a positive cash flow and was reported under the Statements of Comprehensive Income. A new
grade control program is currently in the planning stage to define the extensions of the known mineralization along strike to
the Northeast and Southwest of the Peranggih trial mining area. Mining activities continued at Peranggih for the remaining
mining blocks that were excluded during the trial period, to conti nue supplying materials to the processing plant. After the
trial mining was completed, the mining activities continued at Peranggih for the remaining mining blocks that were excluded
during the trial period, to continue supplying ore to the processing plant. The trial mining results should not be used as
indicator for future Peranggih operations. There are no resources being defined at the Peranggih.
Exploration
Malaysia
During the third quarter, the discovery of th e Mentique Prospect, 1km west of the Peranggih Gold Prospect was announced.
A soil sampling campaign that was conducted in the Peranggih area between December 2018 and March 2019 had delineated
1.8km by 0.8km gold soil anomaly located 1 km west of the Peranggih deposit on a parallel north west - south east trending
structure, with a peak value of 103ppb. This discovery has been named the Mentique Prospect. Infill soil sampling, trenching,
and geological mapping are planned to be carried at Mentique to assist in creating a drill target and to determine the nature of
mineralization in this area.
Australia
During the third quarter, the exploration focus was at the Burnakura and Gabanintha areas to test near mine down -plunge
targets where there are high quality near mine targets that have good potential to be mined underground. Mineralization down
dip from the historically mined Alliance, New Alliance and Yagahong open pits were drill tested. In addition, the NOA 9
regional target was tested with Air-Core Drilling (“AC”), as part of Monument’s regional strategy.
Drilling Program Phase 1: The drill program commenced on February 26, 2020 and the first phase of this drill program was
completed on March 12, 2020. A total of 4 holes for 839m of Reverse Circulation (“RC”) were drilled at Burnakura and 6
holes for 1,265m was drilled at Gabanintha. In addition, 23 holes for 603m of AC were drilled at the NOA 9 regional target.
Geological structures and mineralization were generally intersected where expected for the RC drilling. A total of 611 samples
from Burnakura and 975 samples from Gabanintha including QAQC samples were analysed. Assay results for the first phase
of the drill program were received at the beginning of April and will be released once the second phase drill sample testing is
completed.
Drilling Program Phase 2: The second phase of drilling will include 2 holes at Alliance, several holes at NOA, and a follow
up drill hole at Yagahong which will be completed in Q4.
About Monument
Monument Mining Limited (TSX -V: MMY, FSE: D7Q1) is an established Canadian gold producer that operates the 100%
owned 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 202 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 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 min ing 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 an d 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 esti mated 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 forw ard-
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.