Monument Reports Third Quarter Fiscal 2021 (“Q3 2021”) Results Gross Revenue of $4.40 Million and Cash Cost of US1,315/Oz
May 31, 2021 News Release Release #13 - 2021
Monument Reports Third Quarter Fiscal 2021 (“Q3 2021”) Results
Gross Revenue of $4.40 Million and Cash Cost of US1,315/Oz
Vancouver, B.C ., May 31, 2021, Monument Mining Limited (TSX -V: MMY and FSE: D7Q1) “Monument” or the
“Company” today announced its third quarter production and financial results for the nine months ended March 31, 2021. All
amounts are expressed in United States dollars (“US$”) unless otherwise indicated (refer to www.sedar.com for full financial
results).
President and CEO Cathy Zhai commented: “Q3 sets a milestone with Monument restructuring its asset portfolio to focus on
gold development and production by spinning off the Mengapur base metal project. The proceeds of $30M has been received
to advance gold portfolio. The market has reacted favorably to this move with trading volumes lifted in 2021 and the market
capitalization raised significantly.”
Ms. Zhai continued: “T he flotation construction at Selinsing was accelerated in the Q3 to place the sulphide project into
production. In transition the oxide plant continues to process the leachable gold . It is exposed to the risk of bearing higher
cash cost and AISC from time to time as reported in the current quarter. Peranggih oxide mineralized materials may help to
improve profit margin. However, there is no guarantee to sustain positive cash flow especially when the mine shuts down due
to the Covid-19 Pandemic. At Murchison work continued to optimize regional exploration targets as part of an extensive two-
year exploration program, with the goal to turn Murchison into a cornerstone project for Monument. We will keep the market
updated as practical as we can.”
Third Quarter Highlights:
2,523 ounces (“oz”) of gold sold for $4.40 million (Q3 2020: 7,323oz for $11.62 million);
Average quarterly gold price realized at $1,830/oz (Q3 2020: $1,604/oz);
Cash cost per ounce sold was $1,315/oz (Q3 2020: $892/oz);
Gross margin decreased by 79% to $1.08 million (Q3 2020: $5.08 million);
1,977oz of gold produced (Q3 2020: 5,369oz);
All-in sustaining cost (“AISC”) increased to $1,509/oz (Q3 2020: $1,070/oz);
Two stage Selinsing plant expansion initiated with flotation plant phase;
Restructure assets portfolio spinning off Mengapur base metal project.
Production Analysis
Three months ended Nine months ended
March 31, 2021 March 31, 2021 March 31, 2021 March 31, 2021
Operating Results Unit
Ore mined t 161,805 85,691 355,454 220,743
Waste removed t 930,216 780,935 2,952,235 2,424,213
Stripping ratio 5.75 9.11 8.31 10.98
Ore stockpiled t 122,495 137,442 122,495 137,442
Ore processed t 165,361 157,413 484,629 606,742
Average ore head grade g/t Au 0.72 1.49 0.86 1.12
Process recovery rate % 57.5 76.2 60.2 71.3
Gold recovery oz 2,210 5,746 8,113 15,529
Gold production oz 1,977 5,369 8,444 15,048
Gold sold oz 2,523 7,323 9,377 16,119
Q3 2021 gold production of 1,977oz, a 63% decrease as compared to 5,369oz for Q3 2020. The decrease mainly
resulted from a large quantity of super low -grade ore with lower leachability being fed into the mill and triggered
lower recoveries.
Q3 2021 ore processed increased to 165,361t from 157,413t for Q3 2020. The increased mill feed was mainly due to
increased ore supply from transitional leachable sulphide ore from Selinsing, Peranggih oxide material, and super-
low-grade oxide ore from Selinsing, while the same quarter last year was affected by the Malaysia Movement Control
Order suspension for two weeks from the Covid-19 pandemic.
Average mill feed grade was 0. 72g/t Au as compared to 1.49g/t Au of Q3 2020. Q3 2021 processing recovery rate
decreased to 5 7.5% from 76.2% for Q3 2020. The decrease in processin g recovery rate was mainly due to lower
recoveries obtained from processing low-grade leachable sulphide ore from Selinsing and Peranggih oxide material.
Q3 2021 cash cost per ounce increased by 47% to $1,315/oz from $892/oz for Q3 2020. This increase was primarily
due to a significant reduction in the mill feed grade from 1.49g/t Au to 0.72g/t Au and a decrease in recovery to
57.5% (Q3 2020: 76.2%) as a result of processing significantly more low-grade leachable sulphide ore and low-grade
Peranggih material.
Ore stockpile has reduced mainly due to adverse impact from shortage of explosive suppl y resulting in a lower
mining rate that has yet to be caught up. The covid-19 pandemic has not helped in achieving the target. The Company
has devoted its effort to improve the stockpile balance.
Financial Analysis
Three months ended Nine months ended
March 31, 2021 March 31, 2021 March 31, 2021 March 31, 2021
Financial results Unit
Gold sales US $’000 4,397 11,618 17,151 24,567
Gross margin US $’000 1,079 5,081 6,832 10,294
Weighted average gold price
London Fix PM US $/oz 1,837 1,609 1,885 1,538
Monument realized US $/oz 1,830 1,604 1,884 1,539
Cash costs per ounce sold
Total cash cost per ounce US $/oz 1,315 892 1,100 886
All-in sustaining costs per
ounce
Total all-in sustaining cost
per ounce
US $/oz 1,509 1,070 1,356 1,112
Q3 2021 gold sales generated revenue was $ 4.40 million as compared to $ 11.62 million from Q3 2020. Gold sales
revenue was derived from the sale of 2,523oz (Q3 2020: 7,323oz) of gold at an average realized gold price of $1,830
per ounce ( Q3 2020: $1, 604 per ounce) and the delivery of 723 oz ( Q3 2020: 723oz) in fulfilling gold prepaid
obligations at an average London Fix PM gold price of $1,525 per ounce (Q3 2020: $1,429 per ounce).
Q3 2021 total production costs decreased by 49% to $3.32 million as compared to $6.54 million from Q3 2020. Cash
cost per ounce increased by 47% to $1,315/oz as compared to $892/oz of the same period last year. T he increase
was attributable to a 52% decrease in the mill feed grade from 1.49g/t to 0.72g/t and a decrease in recovery to 57.5%
(Q3 2020: 76.2%) as a result of processing significantly more leachable sulphide o re and other low recovery ores.
Gross margin for Q3 2021 was $ 1.08 million before operation expenses and non -cash amortization and accretion.
That represented a 79% decrease as compared to $ 5.08 million from Q3 2020. The decrease in gross margin was
attributable to lower volume of gold sold and increased cash costs offset by an increase in a higher average realized
gold price.
Net loss for Q3 2021 was $96.10 million, or ($0.30) per share as compared to net gain of $1.87 million or $0.01 per
share from Q3 2020. The net lo ss was mainly caused by the impairment of the Mengapur assets to the value that
will be realized when the sale of the Mengapur project is completed.
Cash and cash equivalents balance as at March 31, 202 1 was $7.98 million, a decrease of $ 2.14 million from the
balance at June 30, 2020 of $10.12 million. As at March 31, 202 1, the Company had positive working capital of
$50.64 million as compared to that at June 30, 2020 of $18.79 million.
Development
Selinsing Gold Mine
During the third quarter, the Selinsing gold mine prioritized flotation plant construction as the first phase of the sulphide gold
production project. Orway Mineral Consultants (WA) Pty Ltd. was engaged to optimize flotation conceptual design based on
the feasibility study work completed in January 2019 in order to produce saleable gold concentrates. On site laboratory
continued testwork at bioleach inoculum adaptation and propagation stage on flotation concentrate. Subsequent to the quarter,
testwork was completed by Orway in May pending final report to be issued. Testwork on external concentrates continued
through the current oxide processing plant.
Murchison Gold Project
Development work at Murchison focused on optimizing regional exploration targets and assessing the opportunity for early
production. The mine plan was completed by management and the independent review conducted by SRK has been received
in May with recommendations. It is under review by management and the board. The scope of the SRK r eview had been
extended to cover geotechnics, hydrology, environmental compliance, as well as resource modelling, mining optimization
and scheduling, and metallurgical recoveries.
Exploration Progress
Malaysia
At Selinsing, an RC drilling program was completed which consisted of 1,128m over 19 holes at Pits 4, 5, and 6. A total of
1,051 samples were collected. The drill program aimed to identify mineralization areas with average grades that can be mined
economically in the short run. Once those areas are defined, materials will be mined to feed into the processing plant.
At Peranggih, d uring the quarter, 19,033m of closed -spaced, 5x5m shallow GC holes with a maximum depth of 10m were
drilled to infill the existing gap and extend the coverage of the surface mineralization along the 540m strike length.
Western Australia
The Company commenced work on a 2-year extensive exploration strategy and budget, aiming to add significant additional
resources to the current resource base. The strategy will involve testing down dip of high -grade mineralization underneath
existing pits as well as test some of the high priority regional targets through greenfield exploration of the land package at
Burnakura and Gabanintha targeting the discovery of shallow stand alone or satellite gold deposits . Field work permitting
activities had commenced with ground preparation activities underway to facilitate deployment of the AC rig to site as it
becomes available.
Mengapur Transaction
During the quarter, on January 8 , 2021, Monument entered into a definiti ve Purchase and Sale Agreement with Fortress
Minerals Limited (“Fortress”) to sell to Fortress 100% of the shares in Monument Mengapur Sdn Bhd (“MMSB”). On the
same date, Monument also entered into a royalty agreement with Fortress and a supplemental escrow agreement with Fortress
and Madison Pacific PTE. Limited. The sale of Mengapur was closed subseq uent to the end of Q3 , and Monument received
US$30.00 million cash consideration, and is also entitled to a royalty of 1.25% of gross revenue on all prod ucts produced at
the Mengapur Project.
Covid-19 Update
Subsequent to the quarter, the mine has been temporarily shut -down for two weeks from May 18 th to May 28 th, 2021, as a
result of positive Covid-19 cases and resumed with no more positive case being tested.
A new movement control order was announced in Malaysia national wide due to rising covid-19 cases to new high, including
constraining manufactory activities to essential services only from June 1 st to June 14 th, 2021, during which Se linsing Gold
Mine will maintain a 10% workforce only at the mine site for essential services. The Company is continuously monitoring
the situation and implementing the Company’s standard operating procedures for the Covid -19 pandemic.
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 also advancing the
Murchison Gold Projects com prising Burnakura, Gabanintha and Tuckanarra JV (20% interest) in the Murchison area of
Western Australia. 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.monum entmining.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 result s 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 available 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 generated from the operations, general economic factors and other factors that may be b eyond 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 timing 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 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. Although the Company has attempted to identify important factors t hat 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.