Majestic Gold Corp. Announces Record 2022 Annual Results
April 28, 2023 at 11:57 pm
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(via TheNewswire)
Vancouver, BC-TheNewswire -April 28, 2023 -Majestic Gold Corp.(“Majestic” or the “Company”)(TSX.V:MJS) (FSE:MJT)announces its financial and operational results for the year ended December 31, 2022. The following financial results are expressed in US dollars unless otherwise stated.
FULL YEAR HIGHLIGHTS
Record gold productionof 37,641 ounces for FY2022 (FY2021- 19,955 ounces);
Record revenueof $63.5 million for FY 2022 (FY2021 - $38.5 million);
Record gross profitfrom mining operations of $33.9 million for FY2022 (FY2021 - $21.7 million);
Record net incomeof $17.4 million for FY2022 (FY2021 - $7.7 million)
Recordcash flows from operating activities,excluding changes in non-cash working capitalof $29.2 million for FY2022 (FY2021 - $16.5 million)For computation details, refer to pages 16-18 of the MDA for this Non-IFRS financial measure;
Record Adjusted EBITDAwas $35 million for FY2022 (FY2021 - $17.3 million). For EBITDA computation details, refer to pages 16-18 of the MDA for this Non-IFRS financial measure;
Strong financial positionat December 31, 2022. The Company had cash and short-term investments of $52.7 million (FY2021 - $34.9 million) and working capital of $36.4 million (FY2021 - $14.1 million);
Total cash costs and all-in sustaining costs“AISC”) of $657 per ounce and $751 per ounce for FY2022 (FY2021 - $677 per ounce and $972 per ounce respectively). For AISC computation details, refer to pages 16-18 of the MDA for this Non-IFRS financial measure.
Net incomeof$1 million for Q4 FY2022(Q4 FY2021 - $146,728);
Adjusted EBITDAwas $6.6 million for Q4 FY2022 (Q4 FY2021 - $6.6 million).;
Total cash costs and all-in sustaining costs (“AISC”)of $757 per ounce and $862 per ounce for Q4 FY2022 (Q4 FY2021 - $607 per ounce and $924 per ounce respectively);
FINANCIAL INFORMATION
Three months ended December 31,
Year ended December 31,
2022
2021
2022
2021
Operating data
Gold produced (ozs)
7,924
8,543
37,641
19,955
Gold realized net of smelting fees (ozs)
7,251
8,188
34,481
18,549
Gold sold (ozs)
7,589
7,617
34,880
20,753
Average realized gold price ($/oz sold)
$1,856
$ 1,844
$ 1,775
$ 1,853
Total cash costs ($/oz sold)(1)
757
607
657
677
Total production costs ($/oz sold)(1)
966
657
848
806
All-in sustaining costs ($/oz sold)(1)
862
924
751
972
Financial data
Gold revenue
$12,972,456
$ 14,045,604
$ 63,474,357
$ 38,445,273
Gross profit(2)
5,643,433
9,041,628
33,881,688
21,714,245
Adjusted EBITDA(1)
6,580,158
6,627,166
34,909,463
17,280,458
Net income
1,024,694
(146,728)
17,422,560
7,717,662
Net income attributable to shareholders
181,940
(811,045)
11,078,664
4,508,586
Basic and diluted income per share
0.00
(0.00)
0.01
0.01
December 31, 2022
December 31, 2021
Balance Sheet
Cash
$45,362,546
$ 34,867,831
Total assets
139,605,949
128,037,022
Total current liabilities
21,059,237
24,764,929
(1)See “Additional Financial Measures” in the Company’s MDA on pages 16-18.
(2)“Gross profit” represents total revenues, net of cost of goods sold.
This release should be read in conjunction with the Company’s audited consolidated financial statements for the years ended December 31, 2022 and 2021 and associated Management Discussion and Analysis (“MD&A”) which are available on SEDARwww.sedar.comand on the Company’s websitewww.majesticgold.com.
About Majestic Gold
Currently focused 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, with exploration properties located in Australia, and Canada. Additional information on the Company and its projects is available atwww.sedar.com and on the Company’s website atwww.majesticgold.com.
For further information, please contact:
Stephen Kenwood, P.Geo.,President and CEO
Telephone: (604) 560-9060
Email:info@majesticgold.com
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
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Majestic Gold Corp. is a Canada-based mining company. The Company is engaged in mineral resource exploration, development and extraction. The Companyâs Songjiagou Gold Mine covers approximately 75.04 square kilometers in Muping, Yantai, Shandong Province, China. It has four separate tenements, including E36/918, E37/1334, E63/2110 (Kumarl) Tenement and E77/2817 (Moorine) Tenement. These tenements are located in Western Australia, an area with demonstrated potential for the discovery of lithium oxide mineralization. E36/918 tenement has been granted and consists of two blocks located 150 kilometers (km) North of Leonora, about 50 km north of Leinster, along the east side of the Kathleen Valley. E37/1334 tenement has been granted and consists of six blocks located west of Leonora township, 200 km North of Kalgoorlie and 700 km northeast of Perth, in the Goldfields region. E63/2110 (Kumarl) tenement has been granted and is comprised of 10 blocks located 250 km south of Kalgoorlie.