Majestic Gold Corp. Reports 2020 Q2 Results

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VANCOUVER, BC / ACCESSWIRE / August 31, 2020 / Majestic Gold Corp. ("Majestic" or the "Company") (TSXV:MJS)(FSE:A0BK1D) reports its financial and operational results for the second quarter ended June 30, 2020. This release should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements and associated management discussion and analysis ("MD&A") for the same period that are available on SEDAR (www.sedar.com) and www.majesticgold.com. The following financial results are expressed in US dollars unless otherwise stated.

SECOND QUARTER 2020 HIGHLIGHTS

Gold sales revenue for the second quarter of fiscal 2020 was $13.2 million, from the sale of 8,298 ounces, at an average realized gold price of $1,587 per ounce, compared to gold sales revenue of $7 million from the sale of 5,300 ounces, at an average realized gold price of $1,307 per ounce, for the 2019 comparative period;
Gold production increased by 33% to 9,034 ounces for the second quarter of 2020, compared to 6,803 ounces for the 2019 comparative period. The increase was primarily due to a 24% increase in tonnes of throughput for the quarter at the Songjiagou Gold Mine. The average grade was 0.66 g/t for the current period compared to 0.67 g/t for the comparative period. The Company expects the average grade to improve as higher-grade areas become accessible in the open pit;
Net income for the second quarter of 2020 was $4.4 million, compared to $0.5 million for the 2019 comparative period;
Adjusted EBITDA was $7.7 million for the second quarter of 2020, compared to $2.8 million for the comparative period of fiscal 2019. Refer to pages 14-15 of the MD&A for the computation of this Non-IFRS financial measure; and
Total cash costs and all-in sustaining costs ("AISC") for the second quarter of fiscal 2020 were $537 per ounce and $670 per ounce, compared to $630 per ounce and $771 per ounce for the comparative period of fiscal 2019. Refer to pages 14-15 for the MD&A for the computation of this Non-IFRS financial measure.

FINANCIAL INFORMATION

	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
Operating data
Gold produced (ozs)		9,034		6,803		15,912		14,079
Gold realized net of smelting fees (ozs)		8,356		6,196		14,716		12,860
Gold sold (ozs)		8,298		5,300		15,053		13,912
Average realized gold price ($/oz sold)	$	1,587	$	1,307	$	1,560	$	1,297
Total cash costs ($/oz sold) ⁽¹⁾		537		630		607		648
Total production costs ($/oz sold) ⁽¹⁾		716		919		814		868
All-in sustaining costs ($/oz sold) ⁽¹⁾		670		771		737		752
Financial data
Total revenues	$	13,169,364	$	6,928,695	$	23,481,272	$	18,043,456
Gross profit ⁽²⁾		7,231,897		2,058,112		11,222,591		5,969,520
Adjusted EBITDA ⁽¹⁾		7,739,341		2,842,981		12,524,068		7,604,573
Net income		4,392,775		490,037		6,546,337		2,689,338
Net income attributable to shareholders		2,932,040		243,486		4,352,136		1,669,033
Basic and diluted gain per share		0.00		0.00		0.01		0.00
					June 30,		December 31,
						2020		2019
Cash					$	22,646,580	$	23,918,724
Total assets						112,060,016		98,682,737
Total current liabilities						32,440,136		24,395,468

(1) See "Additional Non-IFRS Financial Measures" on pages 14-15 in the Company's MD&A.
(2) "Gross profit" represents total revenues, net of cost of goods sold.

About Majestic Gold

Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at www.sedar.com and on the Company's website at www.majesticgold.com.

For further information, please contact:

Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: [email protected]
Website: www.majesticgold.com

Cautionary Notes

Certain statements contained herein may constitute forward‐looking statements and are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forward‐looking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management's expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.

In some cases, you can identify forward‐looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward‐looking statements.

While these forward‐looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forward‐looking statements to conform these statements to actual results.

SOURCE: Majestic Gold Corp.

Topic:

Earnings

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