$11M Net Profit
at $0.04 per Share with Cash Cost of
$587/Oz
VANCOUVER, Sept. 29, 2015 /CNW/ - 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, 2015. All amounts are in
thousands of United States dollars
unless otherwise indicated (refer to www.sedar.com for full annual
financial results).
President and CEO Robert Baldock
commented on fiscal 2015 annual production and financial results:
"Monument reports a net profit of $11.4
million and earnings per share of 4
cents. Through efficient utilization of resources the
operations have increased productivity and gold recoveries. Our
balance sheet remains strong and our development programs use
innovation to build and develop the project pipeline to increase
resources in gold and other base metals for all stakeholders."
Fiscal 2015 Highlights:
- Net profit increased by $14.01
million to $11.38 million at
$0.04 per share (2014: net loss
$2.63 million, or ($0.01) per share);
- Cash cost per ounce decreased by 4% to US$587 per ounce ("oz") (2014: US$613/oz);
- Gold recovery increased by 12% to 36,567oz (2014:
32,568oz);
- Processing recovery rate of gold increased by 9% to 82.4%
(2014: 75.9%);
- Average ore head grade increased by 11% to 1.45g/t Au (2014:
1.31g/t Au);
- Profit margin generated from gold production of $15.89 million (2014: $16.28 million);
- 36,500oz of gold sold for gross revenue of $44.84 million (2014: 37,670oz sold for
$48.58 million);
- Interim Intec License secured to exploit sulphide gold and
copper recovery technology ;
- Gold resource confirmed for Alliance/New Alliance ("ANA")
deposits at Murchison with a NI 43-101 Report SEDAR filed.
Fourth Quarter and
Fiscal 2015 Production and Financial Highlights
|
|
Three months ended
June 30
|
Year ended June
30
|
|
2015
|
2014
|
2015
|
2014
|
Production
|
|
|
|
|
Gold
production(1) (ounces)
|
7,432
|
7,754
|
36,473
|
35,983
|
Gold sold(1)
(ounces)
|
8,600
|
9,400
|
36,500
|
37,670
|
|
|
|
|
|
Financial
|
$'000
|
$'000
|
$'000
|
$'000
|
Revenue
|
10,370
|
12,147
|
44,838
|
48,583
|
Net income before other
items
|
3,667
|
2,094
|
11,661
|
6,881
|
Net
income/(loss)
|
3,178
|
(4,857)
|
11,383
|
(2,631)
|
Cash flow from
operations
|
3,522
|
4,874
|
23,684
|
16,503
|
Working
capital
|
39,721
|
37,048
|
39,721
|
37,048
|
|
|
|
|
|
EPS before other items
– basic
|
$0.01
|
$0.01
|
$0.04
|
$0.02
|
EPS – basic
|
$0.01
|
($0.02)
|
$0.04
|
($0.01)
|
|
|
|
|
|
Other
|
$/oz
|
$/oz
|
$/oz
|
$/oz
|
Average realized gold
price per ounce sold
|
1,206
|
1,292
|
1,228
|
1,290
|
Cash cost per
ounce(2)
|
|
|
|
|
|
Mining
|
157
|
262
|
214
|
219
|
|
Processing
|
318
|
357
|
313
|
326
|
|
Royalties
|
64
|
65
|
63
|
66
|
|
Operations, net of
silver recovery
|
(15)
|
3
|
(3)
|
2
|
Total cash cost per
ounce
|
$524
|
$687
|
$587
|
$613
|
(1)
|
Defined as good
delivery gold bullion according to London Bullion Market
Association ("LBMA"), net of gold doŕe in transit and refinery
adjustment
|
(2)
|
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.
|
Production Results
Gold recovery increased by 12% for the year to 36,567oz (2014:
32,568oz), average ore head grade increased by 16% to 1.45/t Au
(2014: 1.31g/t Au) and process recovery rate increased by 9% to
82.4% compared to 75.9% in fiscal 2014. Gold production was
36,473oz, an increase compared to 35,983oz in fiscal 2014. Tons of
ore processed decreased by 6% to 954,165t in fiscal 2015 (2014:
1,018,972t) primarily due to heavy rain during the monsoon season
and power outages that caused down time at the plant. As a result,
ball mill availability decreased to 92.6% in fiscal 2015 from 94.7%
in fiscal 2014. This was offset by improvements made through
optimization of plant performance, as shown by increased process
recovery in fiscal 2015.
Financial Results and Discussion
The Company sold a total of 36,500oz of gold (2014: 37,670oz) at
an average realized price of $1,228
per ounce (2014: $1,290 per ounce)
during the fiscal year 2015. Gold sales generated $44.84 million for the year compared to
$48.58 million in the prior fiscal
year. The average London Fix PM gold price for the year was
$1,224 per ounce (2014: $1,296 per ounce) and the Company's average
realized gold price was higher at $1,228 per ounce (2014: $1,290 per ounce).
Total income from mining operations remained positive in 2015
for $15.89 million in line with 2014
for $16.28 million. Higher gold
production of 36,473 oz (2014: 35,983 oz) and lower cost of per
ounces of gold produced at $587 per
ounce (2014: $613/oz) were key
factors in the success of the 2015 operational results, in spite of
the reduction in total gold sales in 2015 reduced due to a timing
difference, at lower average realized gold price in 2015. The
production team at the Selinsing Mine has made significant
improvements to boost productivity and improve the bottom line
during 2015 by increasing the gold recovery rate to 82.4% from
75.9% in 2014. The cost of overall production was also reduced by
optimization of the workforce and process operations.
Total production cost decreased by $3.35
million in fiscal 2015 to $28.95
million, compared to $32.30
million in fiscal 2014. The cash cost per ounce of gold sold
decreased by 4% in fiscal 2015 to $587 per ounce, compared to $613 per ounce for fiscal 2014. The decrease
resulted primarily from lower mining and processing costs, a higher
gold recovery rate and a weaker Malaysia Ringgit compared to the US
dollar.
Income before other items was $11.66
million for fiscal 2015 compared to $6.88 million in fiscal 2014. The increase in
income before other items is mainly attributable to a 55% reduction
of corporate expenses in the current fiscal year. In fourth quarter
fiscal 2015 income before other items was $3.67 million compared to $2.09 million in fourth quarter fiscal 2014. The
increase in income before other items is mainly attributable to an
increase of 44% income from mining operations and a 20% reduction
of corporate expenses in the current fiscal quarter.
Net income for fiscal 2015 was $11.83
million ($0.04 per share -
basic) compared to a loss of $2.63
million ($0.01 per share -
basic) for fiscal 2014. The increase in fiscal 2015 was mainly
caused by lower loss from other items and a reduction to corporate
expenses. Net income for fourth quarter fiscal 2015 was
$3.18 million ($0.04 per share - basic) compared to a loss of
$4.86 million ($0.02 per share - basic) for fourth quarter
fiscal 2014.
Cash provided from operating activities was $23.68 million in fiscal 2015 compared to
$16.50 million in fiscal 2014. In
fourth quarter fiscal 2015 cash provided from operations was
$3.52 million compared to
$4.87 million in fourth quarter 2014.
Working capital was $39.72 million at
June 30, 2015, an increase of
$2.22 million compared to
$37.05 million at June 30, 2014.
Acquisitions
Tuckanarra Gold Project
In November 2014 the Company
acquired a 100% interest in the Tuckanarra Gold Project consisting
of two exploration licenses, six prospecting licenses, and a mining
lease covering a total of 416km2 in the Murchison Mining
District in Western Australia
containing historical Indicated and Inferred Joint Ore Reserves
Committee ("JORC") compliant resources. As a result of this
accretive transaction, Monument has strengthened the exploration
potential in the Murchison region of Western Australia.
Intec Technology
In February 2015, the Company
acquired an interim license ("Interim License") from Intec
International Projects Pty Ltd ("Intec"), under which Monument has
the right to exploit and test the Intec Technology in respect of
both copper and gold processes, and to use the Selinsing Gold Plant
as an alpha site for a potential economic solution to sulphide gold
recovery. The Intec Technology is under several registered patents
and is a hydrometallurgical process using a mixed halide lixiviant
for the extraction of pure copper, precious metals and associated
metals from sulphide concentrates.
Development and Exploration
Malaysia
At the Selinsing Gold Mine, the Intec laboratory test work was
completed as planned in fiscal 2015 and has successfully
demonstrated the technical ability of Intec to recover gold from
the sulphide material on a bench scale. Based on these
results, the pilot plant was commissioned subsequent to the year in
September 2015 and test
work will commence in October 2015 to
duplicate the bench scale batch test work results in a continuous
flow process; to further demonstrate scale-up capability. The pilot
plant test work is anticipated to be complete by the end of
December 2015. The commercialization
trial testing program is scheduled to be completed by the end of
the third quarter of fiscal 2016 and if successful, the sulphide
ore will be concentrated and treated through an Intec circuit to be
added to the Selinsing Gold Plant which the Company is targeting
for the third quarter of fiscal 2017. Together with remaining oxide
material, Monument is expecting to maintain sustainable gold
production at the Selinsing Gold Mine through fiscal 2020 for an
additional 5 years of potential production.
Exploration for fiscal 2015 in the Malaysia region was focused on replacement of
oxide ore and discovery of new gold deposits at Selinsing and
Buffalo Reef areas to extend the life-of-mine at Selinsing. The
Company also implemented a geo-metallurgical test work program to
obtain understanding of the non-refractory sulphide ore in
transition zones, aimed to further improve the recovery of gold
from sulphide materials. The fiscal 2016 drilling and geological
program will be focusing on exploration drilling of new targets and
completing geological study to update reserves and resources,
anticipated in the third quarter of fiscal 2016.
At the Mengapur Project a preliminary economic assessment study
("PEA" study) was initiated during the prior fiscal year and was
placed on hold in fiscal 2015. The PEA completion is subject to and
pending approval and issue of the mining lease(s) from Pahang State
to Star Destiny Sdn. Bhd., a 100% owned subsidiary of Monument.
Management continues its dialogue with the Pahang State authority
to advance this process. In early fiscal 2015, the Company made
considerable progress in refurbishing and upgrading its 1,000 tpd
beneficiation copper flotation and iron magnetite recovery pilot
plant. The plant is to demonstrate economics of in-house
copper metal production with potential iron and other metal
by-products. However, due to the recent dramatic and sustained
decline in iron ore price and volatility in copper price, the plant
development and production was placed on hold in the third quarter
fiscal 2015. The Company intends to initiate the Intec copper
sulphides test work to demonstrate the copper metal can be produced
at the production site at low costs when its Intec trial test work
on gold sulphides is completed.
Western Australia
In Western Australia the
Burnakura Gold Project at Murchison progressed aggressively during
fiscal 2015. Following confirmation drilling success over
Alliance/New Alliance deposits, open pit mine optimization,
metallurgical test work for heap leach processing, crushing plant
engineering design, tailing storage facilities study and
environment studies, the project moved forward in parallel with
continuing exploration to demonstrate the economics of early
production. Subsequent to fiscal 2015, Como Engineers has been
engaged to assess and to assist with the first phase of heap leach
production development including capital and operating cost
estimates, construction and commissioning a heap leach plant and a
heap leach pad, targeting commencement of gold production by the
end June 2016.
In fiscal 2015 exploration at Murchison was focused on resource
definition and evaluation on Alliance and New Alliance and Federal
City deposits at Burnakura. During fiscal 2015, an Inferred and
Indicated mineral resource estimate for ANA deposits were announced
in February 2015 and followed by a
"NI 43-101 Technical Report on the Alliance and New Alliance
Gold Deposits, Burnakura, Western
Australia" (Lead Principle QP: Darryl Mapleson (MAIG, FAusIMM) of BM Geological
Services), Sedar filed on April 2,
2015 and amended August 7,
2015. In addition, drill results on the Federal City deposit
showed some impressive high grade intersections. The fiscal 2016
exploration program will focus on increasing mineral gold inventory
to extend the economically recoverable life of mine to support
sustainable production. Recent drilling at ANA have indicated a
further mineralized zone exists to the East and North of the ANA
pits and this area is the subject of a further 2016 exploration
program.
Roger Stangler, Chief Managing
Geologist of the Company, MEng, MAusIMM, MAIG has reviewed,
supervised the preparation and approved the scientific and
technical disclosure in the news release as a Qualified Person
under NI43-101 standards.
About Monument
Monument Mining Limited (TSX-V:MMY, FSE:D7Q1) is an established
Canadian gold producer that owns and operates the Selinsing Gold
Mine in Malaysia. Its experienced
management team is committed to growth and is advancing several
exploration and development projects including the Mengapur
Polymetallic 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 300 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.
Robert F. Baldock,
President and CEO
Monument Mining Limited
Suite 1580 -1100 Melville Street
Vancouver, BC V6E 4A6
"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.
SOURCE Monument Mining Limited