Maya Gold & Silver Inc. (“Maya” or the “Company”) (TSX:
MYA) is pleased to announce the interim financial results
for the first quarter ended March 31, 2020. All amounts are in US
dollars unless otherwise stated.
Three-Months Ended March 31, 2020 –
Financial Highlights:
- Silver ingot production was 67,005 oz in Q1/2020, compared with
109,084 oz in Q1/2019. The reduction in silver production was due
to the flotation plant being shut down for the month of January and
poor recovery at the cyanidation plant.
- Silver sales were 21,110 oz in Q1/2020, compared with 100,544
oz in Q1/2019. There were no sales of silver concentrate in the
quarter.
- Ore processed was 20,976 t in Q1/2020, compared with 28,239 in
Q1/2019.
- Feed ore grade to the mill was 223.1 g/t in Q1/2020, compared
with 219.8 g/t in Q1/2019.
- Cost of sales was $552,585 in Q1/2020, compared with $1,557,275
in Q1/2019.
- The average silver price realized was $17.15/oz in Q1/2020,
compared with $15.66/oz in Q1/2019. The average selling price
compares to a quarterly average price of $17.60/oz.
|
Three-month period ended March 31, |
Key Performance Metrics |
Q1-2020 |
Q1-2019 |
% Variation |
Operational |
|
|
|
Ore Processed (tons) |
20,976 |
28,239 |
(26%) |
Average
Grade (g/t Ag) |
223.1 |
219.8 |
2% |
Mill
Recovery (%) |
45.6 |
65.3 |
(30%) |
Silver
Ounces Produced (oz) |
67,005 |
109,084 |
(39%) |
Silver
Ounces Sold (oz) |
21,110 |
100,544 |
(79%) |
Average
Realized Silver Price per Ounce ($/Oz) |
17.15 |
15.66 |
10% |
|
|
|
|
Financial |
|
|
|
Revenues |
525,062 |
2,067,397 |
(75%) |
Operating
(Loss) |
(275,743) |
304,274 |
(191%) |
Net
(Loss) Earnings |
(435,733) |
304,745 |
(243%) |
Operating
Cash Flows |
93,531 |
2,652,083 |
(96%) |
Cash and
Cash Equivalents |
14,831,283 |
16,621,291 |
(11%) |
Change in
Working Capital |
680,621 |
2,112,905 |
(68%) |
|
|
|
|
Shareholders |
|
|
|
(Loss)
Earnings per Share (“EPS”) – basic & diluted |
(0.005) |
0.004 |
(241%) |
Financial Highlights:
“In the first quarter of 2020, Maya saw
significant operational challenges at its flagship Zgounder Silver
Mine. With new management arriving in Q2, a review of the Company’s
assets is ongoing. A turnaround plan to optimize operations and an
aggressive drill program at the Zgounder Silver Mine over the next
24 months is being implemented. We believe that Zgounder holds
tremendous potential, but we continue to manage operational
challenges including the COVID-19 pandemic,” said President and CEO
Mr. Benoit La Salle.
The following includes some of the financial
highlights for the quarter:
- Revenue from silver sales totaled $525,062 in Q1/2020 including
an adjustment of silver concentrate sales, compared with $2,067,397
in Q1/2019. Revenue was down as a result of logistical issues
ancillary and related to the COVID-19 pandemic. An additional
14,884 oz were stolen and could have otherwise contributed $254,574
to revenue.
- Net loss of $435,733 in Q1/2020, compared to a net gain of
$304,745 in Q1/2019. Net loss for the quarter was attributable to
reduced gross margin and an increase in management and
administration expenses.
- Operations generated a negative gross margin of $49,946 in
Q1/2020, compared to $556,534 in Q1/2019.
- Comprehensive loss of $3,727,902 in Q1/2020, compared to a net
gain of $1,061,225 in Q1/2019. The majority of this loss or
$3,292,169 in Q1/2020 was attributable to a foreign currency
translation loss compared to a foreign currency translation
adjustment gain of 756,480 in Q1/2019.
- Cash flows from operating activities of $93,531 in Q1/2020,
compared to $2,652,083 in Q1/2019.
- Cash position of $14,831,283 as at March 31, 2020 compared to
$16,621,291 at March 31,2019.
Exploration Highlights:
- A total of 1,3076.6 m of DDH and 378 m of RC drilling was done
at the Zgounder property for exploration purposes.
- A total of 899 m of DDH was done at the Boumadine property, all
in the North pit starting at surface. Analyses are pending.
Zgounder Silver Mine:
The Company several issues at its Zgounder
Silver Mine, which affected the production and sale of silver. The
flotation plant was shutdown for the entire month of January
because of an issue at the Company’s old tailings facility. The new
tailings facility was only commissioned in March, which allowed the
Company to return to normal production after commissioning. Given
the flotation plant was temporarily shut down, all ore was treated
at the cyanidation plant. Given the Company intended to produce
mainly silver concentrate, maintenance at the cyanidation plant had
been significantly reduced. This caused silver recovery to be 45.6%
in Q1/2020 compared to 65.3% for Q1/2019. As maintenance was
re-initiated, recovery subsequently improved. Silver grade fed to
the mill was 223.1 g/t Ag in Q1/2020 compared to 219.8 g/t Ag in
Q1/2019.
On January 20th, 14,884 ounces of silver ingots
were stolen at the mine site. Local authorities were notified, a
full report was conducted, and suspects were identified. The
Company is currently in discussions with insurers to recover the
value of the stolen goods. Discussions with the insurer have been
slow due to COVID-19 related restrictions in Morocco. Authorities
have since increased security at the mine site and management
estimates a low probability of reoccurrence. No employees or
contractors were seriously injured as a result of the robbery.
Silver sales in Q1/2020 were impacted by the
COVID-19 pandemic. Ground transportation and customs were
significantly slowed during the quarter and as such only 21,110
ounces of silver ingots were sold.
Exploration at the Zgounder Silver Mine
continued in Q2/2020, but slowed toward the end of the quarter
because of COVID-19 restrictions. Exploration restart is planned
for Q3/2020.
The ongoing exploration and drilling program at
the Zgounder Silver Mine has three main objectives including: i) to
continue to define the eastern portion of the deposit, ii) to
determine the existence of a mineralized extension to the east of
the deposit and iii) to determine mineralization at depth of the
current mining areas. Both RC and DDH drilling are being used. In
Q1/2020, 378 m of RC were drilled in the far eastern part of the
deposit – including three holes totaling 850 m of DDH drilling from
surface in the eastern part of the deposit, and four holes totaling
456.6 m of depth from DDH drilling. Two additional holes were
drilled in the eastern zone resulting in high grade intervals with
ZG-19-07 intercepting 3.5 m at 614 g/t and ZG-19-08 intercepting 5
m at 592 g/t.
“We are transitioning to the next phase of
development and growth and continue to review our operations and
implement a plan to optimize operations and maximize value at both
the Zgounder Silver Mine and the Boumadine Polymetallic Project”
said Benoit La Salle. “We are integrating internal policies and
have added a highly experienced team to improve performance and
deliver value for our shareholders.”
Maya's Management's Discussion and Analysis,
Consolidated Financial Statements and related financial materials
are available on SEDAR at www.sedar.com and on Maya’s website at
www.mayagoldsilver.com.
Qualified Persons
The technical content of this news release has
been reviewed by Merouane Rachidi, P.Geo., Ph.D. and Claude
Duplessis Eng., from GoldMinds Geoservices Inc., independent
Qualified Persons under NI 43-101 standards, based on the
information received from the Maya Gold & Silver technical
team.
About Maya Gold & Silver
Inc.
Maya Gold & Silver Inc. is a publicly traded
Canadian company focused on the operation, exploration, acquisition
and development of silver and gold deposits. Maya is currently
operating mining and milling facilities at its Zgounder Silver
Mine, an 85%-15% joint venture between its subsidiary, ZMSM, and
the Office National des Hydrocarbures et des Mines
(“ONHYM”) of the Kingdom of Morocco.
Its mining portfolio also includes the Boumadine
Polymetallic Deposit located in the Anti-Atlas Mountains of Eastern
Morocco, which is also a joint venture with ONHYM wherein Maya
retains an 85% ownership. Additionally, the Company’s portfolio
includes the Amizmiz and Azegour properties, with gold, tungsten,
molybdenum and copper occurrences covering over 100 square
kilometres in a historical mining district of Morocco.
For additional information, please visit Maya’s
website at www.mayagoldsilver.com
Or contact:
Benoit La Salle, FCPA FCA |
Alex Ball |
President & CEO |
VP, Corporate Development & IR |
Tel: +1 (514) 951-4411 |
Tel: +1 (647) 919-2227 |
blasalle@mayagoldsilver.com |
aball@mayagoldsilver.com |
|
|
Maya Gold & Silver Inc. |
|
1320 Graham, Suite 132 |
|
Ville Mont-Royal, Québec |
|
H3P 3C8 |
|
Forward-Looking Statements
This press release contains forward-looking
statements. All statements other than statements of present or
historical facts are forward-looking. Forward-looking statements
involve known and unknown risks, uncertainties and assumptions and
accordingly, actual results and future events could differ
materially from those expressed or implied in such statements. You
are hence cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements include words or expressions
such as “strong”, “improving”, “looking forward’, “steady”,
“emerging”, “transition”, “stabilize”, “optimize”, “advance”,
“maximize”, “improve”, “deliver”, and other similar words or
expressions. Factors that could cause future results or events to
differ materially from current expectations expressed or implied by
the forward-looking statements include the ability to (i) maintain
a steady production for the year 2020, (ii) the capacity to put in
place effective controls, procedures and methods necessary for a
rigorous operation as well as transparent and effective reporting,
and (iii) the capacity to implement a plan to stabilize, optimize,
advance, and maximize value at both the Zgounder Silver Mine and
the Boumadine Polymetallic Project, as well as the ability to
increase reserves and resources, the ability to execute on our
strategic focus, fluctuation in the price of currencies, silver or
operating costs, mining industry risks, uncertainty as to
calculation of mineral reserves and resources, delays, political
and social stability in Africa and Morocco in particular,
(including our ability to maintain or renew licenses and permits),
the security of our operations and other risks described in Maya’s
documents filed with Canadian securities regulatory authorities.
You can find further information with respect to these and other
risks in Maya’s 2019 Annual MD&A and other filings made with
Canadian securities regulatory authorities and available at
www.sedar.com. These documents are also available on our website at
www.mayagoldsilver.com. Maya disclaims any obligation to update or
revise these forward-looking statements, except as required by
applicable law.