In the news release, Monarch Gold Announces Its Second Quarter
Results, issued 14-Feb-2019 by
Corporation Aurifère Monarques over CNW, we are advised by the
company that both the sub headline and second bullet under the
Highlights section should read "earnings" rather than "income".
Also, in the table titled "Summary of financial results", "Net
loss" and "loss" should instead read "Net earnings and
comprehensive income" and "Net earnings". Both were originally
issued inadvertently. The complete, corrected release follows:
Monarch Gold Announces Its Second Quarter Results
Strong performance with net earnings of
$2.2 million
MONTREAL, Feb. 14, 2019 /CNW/ - MONARCH GOLD
CORPORATION ("Monarch" or the "Corporation") (TSXV: MQR)
(OTCMKTS: MRQRF) (FRANKFURT: MR7) reported its
results today for the second quarter ended December 31, 2018. Amounts are in Canadian
dollars unless otherwise indicated.
Highlights
- Second quarter revenues of $11.4
million from the sale of 5,169 ounces of gold combined with
revenue from custom milling, which were up 2% from the first
quarter of the year and 71% from last year.
- Net earnings of $2.2 million or
$0.009 per share, diluted, compared
to $0.7 million or $0.003 per share, diluted, last year.
- Strong financial position, with $9.3
million in cash.
- Production activities at the Beaufor Mine are extended to
April 2019, to be carried out in
accessible stopes using a smaller workforce.
- Final results for the 2018 drilling program on Croinor Gold are
received and show a larger deposit that remains open in all
directions (see news release).
- The Corporation successfully completed a positive feasibility
study on its Wasamac gold deposit (see feasibility study), which
can be summarized as follows:
-
- Forecast average production of 142,000 ounces of gold per year
for 11 years.
- Pre-tax NPV of $522 million.
- Pre-tax IRR of 23.6%.
- Cash production cost of US$550
per ounce.
- Ongoing discussions with several parties to explore financing,
partnership and other opportunities to advance the Wasamac
project.
"These better-than-expected results are the result of good
operational planning and the stellar work of our employees at the
Beaufor Mine and Camflo Mill," said Jean-Marc Lacoste, President and Chief Executive
Officer of Monarch. "We also expect strong results for the current
quarter provided gold prices hold at current levels."
"Needless to say, the future of the Wasamac deposit is currently
our highest priority, as the results of the feasibility study show
that Wasamac has the potential to become a major low-cost gold
mine. Discussions are ongoing with several parties for financing or
a joint venture. In addition, Mathieu Séguin, who has just joined
Monarch, will apply his expertise in corporate financing and
mergers and acquisitions to helping us structure the best possible
transaction to realize Wasamac's full value for our shareholders,"
added Mr. Lacoste.
Summary of financial results
(dollars, except
per share data)
|
Quarter
ended
December
31
|
Six months
ended
December
31
|
|
2018
|
2017
|
2018
|
2017
|
Revenues
|
11,411,996
|
10,297,924
|
19,189,360
|
10,297,924
|
Gross
margin
|
2,895,749
|
1,456,487
|
2,389,936
|
1,456,487
|
Net earnings and
comprehensive income
|
2,175,702
|
665,591
|
325,157
|
166,837
|
Net earnings per
share, basic and diluted
|
0,009
|
0,003
|
0.001
|
0.001
|
Cash flow used in
operating activities
|
2,319,106
|
2,507,554
|
(2,965,322)
|
1,594,751
|
EBITDA(1)
|
3,500,614
|
466,541
|
2,669,746
|
137,585
|
(1)
|
Non-IFRS measure.
See under "Non-IFRS measures" at the end of this press release, and
in the Corporation's financial statements and management discussion
and analysis for the reconciliation of this non-IFRS
measure.
|
(dollars)
|
December
31, 2018
|
June 30,
2018
|
Cash and cash
equivalents
|
9,272,840
|
15,046,248
|
Total
assets
|
72,548,922
|
73,665,169
|
Key operating statistics
|
Quarter
ended
December
31
|
Six months
ended
December
31
|
|
2018
|
2017
|
2018
|
2017
|
Ounces of gold
sold
|
5,169
|
5,444
|
8,441
|
5,444
|
Ounces of gold
produced
|
4,417
|
5,444
|
8,325
|
5,444
|
Grade
|
5.4
|
4.9
|
4.8
|
4.9
|
Recovery
|
98.5%
|
98.7%
|
98.3%
|
98.7%
|
|
|
|
|
|
Key data per ounce
of gold (CA $)
|
|
|
|
|
Average market
price
|
1,621
|
1,629
|
1,603
|
1,629
|
Average selling
price(1)
|
1,656
|
1,583
|
1,605
|
1,583
|
Production cash cost
(Beaufor/Camflo)(2)
|
1,150
|
1,338
|
,1,383
|
1,338
|
All-in sustaining
cost (Beaufor/Camflo)
|
1,266
|
1,705
|
1,499
|
1,705
|
|
|
|
|
|
Average exchange rate
(CA $/US $)
|
1.32
|
1.27
|
131
|
1.27
|
|
|
|
|
|
Key data per ounce
of gold (US $)
|
|
|
|
|
Average market
price
|
1,228
|
1,275
|
1,220
|
1,275
|
Average selling
price(1)
|
1,254
|
1,245
|
1,222
|
1,245
|
Production cash cost
(Beaufor/Camflo)(2)
|
878
|
1,052
|
1,053
|
1,052
|
All-in sustaining
cost (Beaufor/Camflo)
|
966
|
1,341
|
1,141
|
1,341
|
(1)
|
The average
selling prices for the six-month period ended December 31, 2018,
would be $16 higher ($23 higher for the same period ended December
31, 2017) if gold deliveries (861 ounces for the quarter) to
Auramet International LLC in connection with deferred revenues for
the periods had been recognized at market price on the date the
agreement was entered into on October 2, 2017, instead of at the
recorded price, representing the amounts received from future gold
production divided by the ounces to be delivered.
|
|
|
(2)
|
Production cash
cost is a non-IFRS measure of financial performance without a
standard meaning under IFRS. It may therefore not be comparable to
a similar measure presented by another company. See "Non-IFRS
measures" in the Corporation's management discussion and analysis
for the quarter ended December 31, 2018.
|
The technical and scientific content of this press release has
been reviewed and approved by Marc-André Lavergne, P.Eng., the
Corporation's qualified person under National Instrument
43‑101.
ABOUT MONARCH GOLD CORPORATION
Monarch Gold Corporation (TSX: MQR) is an emerging gold mining
company focused on pursuing growth through its large portfolio of
high-quality projects in the Abitibi mining camp in Quebec, Canada. The Corporation currently owns
close to 300 km² of gold properties (see map), including the
Wasamac deposit (measured and indicated resource of 2.6 million
ounces of gold), the Beaufor Mine, the Croinor Gold (see video),
McKenzie Break and Swanson
advanced projects and the Camflo and Beacon mills, as well as other
promising exploration projects. It also offers custom milling
services out of its 1,600 tonne-per-day Camflo mill.
Forward-Looking Statements
The forward-looking statements in this press release involve
known and unknown risks, uncertainties and other factors that may
cause Monarch's actual results, performance and achievements to be
materially different from the results, performance or achievements
expressed or implied therein. Neither TSX nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX accepts responsibility for the adequacy or accuracy of this
press release.
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SOURCE Monarch Gold Corporation