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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 ... Majestic Gold Corp.
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
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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;
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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;
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Net income for the second quarter of 2020 was $4.4 million, compared to $0.5 million for the 2019 comparative period;
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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
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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.