Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) “Monument” or
the “Company” today announced its annual financial results for the
year ended June 30, 2020. All amounts are in United States dollars
unless otherwise indicated (refer to www.sedar.com for full
financial results).
President and CEO Cathy Zhai commented: “Despite
the eight week’s suspension of production at Selinsing Gold Mine
starting March 18th 2020 in compliance with the Movement Control
Order (“MCO”) issued by Malaysia Government against the Covid-19
pandemic, fiscal 2020 has generated positive cash flow, contributed
mainly to record high gold price and improved recoveries. Working
capital is sufficient to support the same level of operations
capacity and procurement has been manageable with global dynamic
changes in supply chains.”
Ms. Zhai further commented: “Management is
firmly moving forward with the Sulphide Project financing and
actively engaging interested parties. We stay focused on our
corporate development strategies to take upside opportunities for
future sustainable production, including entering into the sulphide
gold concentrates market using our planned sulphide Biox® treatment
plant.”
Fiscal 2020 Highlights:
- 19,401oz of gold sold for $29.97
million (2019: 16,505oz of gold sold for $20.99 million);
- Average realized gold price per
ounce (“oz”) of 1,563/oz (2019: $1,260/oz);
- Cash cost per ounce of $878/oz
(2019: $713/oz);
- All-in sustaining cost per ounce
(“AISC”) of $1,136/oz (2019: $1,040/oz);
- 17,360oz of gold produced (2019:
15,763oz);
- Gross margin of $12.94 million
(2019: $9.23 million);
- Peranggih trial mining program
completed with encouraging average gold recoveries;
- Mentique Prospect discovered at
west of Peranggih mineralization.
- Drill program at Murchison
confirmed targeted mineralization identified by geological
structure study;
- Full production capacity maintained
during Selinsing production suspension caused by COVID-19
pandemic.
Fourth Quarter and Fiscal 2020
Production and Financial Highlights
|
Three months ended June 30, |
Year ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Production |
|
|
|
|
Ore mined (tonnes) |
42,331 |
|
45,076 |
|
263,074 |
|
166,940 |
|
Waste removed (tonnes) |
463,228 |
|
829,286 |
|
2,887,441 |
|
3,201,817 |
|
Ore processed (tonnes) |
68,961 |
|
229,416 |
|
675,708 |
|
934,843 |
|
Average mill feed grade
(g/t) |
1.06 |
|
0.75 |
|
1.11 |
|
0.80 |
|
Processing recovery rate
(%) |
67% |
|
72% |
|
71% |
|
69% |
|
Gold production (1) (oz) |
2,311 |
|
3,577 |
|
17,360 |
|
15,763 |
|
Gold sold (oz) |
3,282 |
|
3,623 |
|
19,401 |
|
16,505 |
|
|
|
|
|
|
Financial (in thousands of US
dollars) |
$ |
|
$ |
|
$ |
|
$ |
|
Revenue |
5,404 |
|
5,210 |
|
29,971 |
|
20,993 |
|
Gross margin from mining
operations |
2,653 |
|
2,204 |
|
12,944 |
|
9,227 |
|
Net income before other
items |
704 |
|
759 |
|
4,509 |
|
2,907 |
|
Net loss |
(1,273) |
|
(1,115) |
|
(275) |
|
(499) |
|
Cash flows generated from
operations |
657 |
|
(242) |
|
6,273 |
|
2,139 |
|
Working capital |
18,786 |
|
24,519 |
|
18,786 |
|
24,519 |
|
|
|
|
|
|
Loss per share before other
items – basic (US$/share) |
0.00 |
|
0.00 |
|
0.00 |
|
0.00 |
|
Loss per share – basic
(US$/share) |
(0.00) |
|
(0.00) |
|
(0.00) |
|
(0.00) |
|
|
|
|
|
|
|
Three months ended June 30, |
Year ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Other |
US$/oz |
|
US$/oz |
|
US$/oz |
|
US$/oz |
|
Average realized gold price
per ounce sold (2) |
1,684 |
|
1,337 |
|
1,563 |
|
1,260 |
|
|
|
|
|
|
|
|
|
Cash cost per ounce (3) |
|
|
|
|
|
|
|
Mining |
233 |
|
174 |
|
223 |
|
159 |
|
Processing |
454 |
|
539 |
|
507 |
|
456 |
|
Royalties |
143 |
|
106 |
|
136 |
|
92 |
|
Operations, net of
silver recovery |
8 |
|
11 |
|
12 |
|
6 |
|
Total cash cost per
ounce |
838 |
|
830 |
|
878 |
|
713 |
|
All-in sustaining costs per
ounce (4) |
|
|
|
|
|
|
|
By-product silver
recovery |
1 |
|
1 |
|
1 |
|
1 |
|
Operation expenses |
179 |
|
- |
|
40 |
|
- |
|
Corporate expenses |
6 |
|
(1) |
|
6 |
|
6 |
|
Accretion of asset
retirement obligation |
12 |
|
14 |
|
9 |
|
12 |
|
Exploration and
evaluation expenditures |
45 |
|
47 |
|
32 |
|
43 |
|
Sustaining capital
expenditures |
174 |
|
383 |
|
170 |
|
265 |
|
Total all-in sustaining cost per ounce |
1,255 |
|
1,274 |
|
1,136 |
|
1,040 |
|
(1) Defined as good delivery gold bullion
according to London Bullion Market Association (“LBMA”), net of
gold doŕe in transit and refinery adjustment.(2) Exclude
gold prepaid delivery for comparison purposes.(3) Total
cash cost includes production costs such as mining, processing,
tailing facility maintenance and camp administration, royalties,
and operating costs such as storage, temporary mine production
closure, community development cost and property fees, net of
by-product credits. Cash cost excludes amortization, depletion,
accretion expenses, capital costs, exploration costs and corporate
administration costs.(4) All-in sustaining cost per
ounce includes total cash costs, operation expenses, and adds
sustaining capital expenditures, corporate administrative expenses
for the Selinsing Gold Mine including share-based compensation,
exploration and evaluation costs, and accretion of asset retirement
obligations. Certain other cash expenditures, including tax
payments and acquisition costs, are not included.
Fiscal 2020 Production Analysis
- Gold production of 17,360oz, a 10%
increase as compared to 15,763oz of the previous year. The increase
mainly resulted from higher mining rates and contained gold in old
tailing materials and leachable sulphide ore, and less super
low-grade oxide ore as compared to last year, which off set by
lower mill feed.
- Ore processed decreased to 675,708t
from 934,843t last year. The decreased mill feed was mainly due to
a decrease in stockpiled super low-grade oxide ore, less oxide ore
being mined and the production suspension caused by COVID-19. The
negative impact was offset by average mill feed grade that was
increased to 1.11g/t from 0.80g/t, brought the annum average
processing recovery rate up to 71%, comparable to 69% of the
previous year, despite the lower recoveries generally obtained from
the transition ore materials.
- Cash cost per ounce increased by
23% to $878/oz from $713/oz of last year. The increase was
mainly due to additional reagents, processing time and energy
required in leaching sulphide materials.
- Ore stockpile has significantly
reduced mainly due to adverse impact from lower mining rate in
previous year that has yet be caught up. Significant mining
facilities were used in fiscal 2019 to deliver material borrowed
from mining waste for tailing development. COVID-19 pandemic
has not helped in achieving the target. The Company has devoted its
effort to improve the stockpile balance.
Fiscal 2020 Financial Analysis
- Gold sales generated revenue of
$29.97 million for the year as compared to $20.99 million from last
year. Gold sales revenue was derived from the sale of
16,750oz (2019: 15,300oz) of gold at an average realized gold price
of $1,563 per ounce (2019: $1,260 per ounce) and the delivery of
2,651oz (2019: 1,205oz) in fulfilling gold prepaid obligations at
an average London Fix PM gold price of $1,429 per ounce (2019:
$1,429 per ounce).
- Total production costs increased by
45% to $17.03 million as compared to $11.77 million from last year.
The increase in production costs reflected timing difference of
gold sold and higher mining and processing costs as compared to
last year.
- Gross margin for the year was
$12.94 million before operation expenses and non-cash amortization
and accretion. That represented a 40% increase as compared to
$9.23 million from last year. The increase in gross margin was
attributable to an increase in gold sold and a higher average
realized gold price but offset by higher mining and processing
costs.
- Net loss for the year was $0.28
million, or $nil per share as compared to net loss of $0.50 million
or $nil per share from last year. The positive variance was caused
by higher income from mining operations, offset by higher
depreciation and amortization and higher tax expenses.
- Cash and cash equivalents balance
as at June 30, 2020 was $10.13 million, an increase of $0.78
million from the balance at June 30, 2019 of $9.34 million. As at
June 30, 2020, the Company had positive working capital $18.79
million (June 30, 2019: $24.52 million). The decrease in working
capital resulted from the drawdown of stockpiled ore by $5.29
million.
- Cash used in investing activities
for the year was $5.47 million (2019: $7.81 million), which was
represented by $4.06 million invested in Selinsing for sulphide
project development and tailings storage facility upgrades (2019:
$5.86 million), $1.26 million and $0.15 million invested in
Murchison exploration and evaluation projects and Mengapur
exploration and evaluation projects, respectively (2019: $1.64
million and $0.31 million, respectively)..
Development
Selinsing Gold Mine
During the year ended June 30, 2020, development
initiatives focused on projects at the Selinsing Gold Mine, namely
the optimization of the sulphide gold project, the tailing storage
facility (“TSF”) construction and mine development for gold
production.
The sulphide plant upgrade construction is
anticipated to take 18 months inclusive of commissioning
activities. Metallurgical drilling was undertaken at the Selinsing
and Buffalo Reef pits for investigating the leachability of
transitional sulphide ore through the current CIL circuit by adding
lead nitrate and blending with super low-grade ore.
Following the completion of construction of the
TSF main embankment to 533.3m RL at the Selinsing Gold Mine, which
has increased the TSF capacity for fiscal 2020 production, a plan
for the second stage TSF lift to 535.5m RL was finalized to meet
fiscal 2021 production requirements through the current oxide
processing plant. Construction planning was initiated during the
year, but its completion was postponed due to operation suspension
caused by COVID-19. The construction is on-going and has
reached about 68.9% of the total TSF construction to 535.5m
RL. Preliminary planning for the final stage TSF lift to 540m
RL commenced during the year, aimed to meet sulphide gold
production capacity, which was withheld until completion of
funding.
Haul truck road construction was primarily
completed during the second quarter which included 14 new culvert
crossings along a 10km length from the Selinsing Northern tenement
boundary to the south of the Peranggih tenement. Trial pit
for bulk mining started in January 2020, completed in February 2020
then continued with extension mining of the trial pit in March
2020. Grade control drilling recommenced in Peranggih in May
2020.
Exploration
Malaysia
During the year ended June 30, 2020, a soil
sampling campaign that was conducted at the Peranggih area between
December 2018 and March 2019 had delineated 1.8km by 0.8km gold
soil anomaly located 1km west of the Peranggih deposit on a
parallel north west- south east trending structure, with a peak
value of 103ppb. This discovery has been named the Mentique
Prospect. Infill soil sampling, trenching, and geological mapping
are planned to be carried at Mentique to assist in creating a drill
target and to determine the nature of mineralization in this
area.
Australia
At Murchison, exploration was focused on the
completion of a 3D structural targeting study and then the
execution of a drill program. The drill program tested near mine
down-plunge targets that have been historically mined at NOA 1 and
NOA 2, Alliance, New Alliance and Yagahong open pits as well as to
test the regional NOA 9 target.
A 3D structural study was completed that
identified down plunge targets at Gabanintha and Burnakura. The
study was finalized and confirmed near mine down-plunge potential
and highlighted regional prospectivity. This study was used to
refine drill targets in the subsequently completed drill program at
Burnakura and Gabanintha.
The drill program commenced on February 26, 2020
and the first phase of this drill program was completed on March
12, 2020. During the first phase of drilling, a total of 4 holes
for 839m of RC were drilled at Burnakura and 6 holes for 1,265m was
drilled at the Gabanintha Project. In addition, 23 holes for 603m
of AC were drilled at the NOA 9 regional target. Due to high
volumes of water at Burnakura, several of the deeper planned RC
holes at Alliance and NOA 1 and 2 were postponed and completed in a
second phase of drilling. The second phase of drilling commenced on
the April 23, 2020 and was completed on May 8, 2020 using an RC rig
for precollars and a diamond rig for tails. A total of 4
holes that included 738m of RC and 397m of DD tails were drilled in
the second phase. Holes were widely spaced with a view to find
significant new resources rather than smaller step outs from
existing drilling. Geological structures and mineralization were
generally intersected where expected.
About Monument
Monument Mining Limited (TSX-V: MMY, FSE: D7Q1)
is an established Canadian gold producer that operates the 100%
owned Selinsing Gold Mine in Malaysia. Its experienced management
team is committed to growth and is advancing several exploration
and development projects including the Mengapur Copper and Iron
Project, in Pahang State of Malaysia, and the Murchison Gold
Projects comprising Burnakura, Gabanintha and Tuckanarra 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 CEOMonument Mining
LimitedSuite 1580 -1100 Melville StreetVancouver, BC V6E 4A6
FOR FURTHER INFORMATION visit the company web
site at www.monumentmining.com or contact:
Richard Cushing, MMY Vancouver
T: +1-604-638-1661 x102
rcushing@monumentmining.com
"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 results 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 beyond 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 exploration
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 that 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.
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