Gross Revenue of $12.46
Million, Net Profit of $3.62
Million and Cash Cost of US$560/Oz
VANCOUVER, May 28, 2015 /CNW/ - Monument Mining Limited
(TSX-V: MMY and FSE: D7Q1) "Monument" or the "Company" today
announced its third quarter production and financial results for
the three and nine months ended March 31,
2015. All amounts are in United
States dollars unless otherwise indicated (refer to
www.sedar.com for full financial results).
Third Quarter Highlights:
- Gross revenue of $12.46 million
on 10,200 ounces ("oz") gold sold, a $0.37
million increase from $12.09
million on 9,550oz gold sold in Q3 fiscal 2014;
- Net profit of $3.62 million, a
$4.59 million increase from a net
loss of ($0.97) million in Q3
fiscal 2014;
- Cash cost per ounce of US$560/oz,
a 14% decrease compared to US$654/oz from Q3 fiscal 2014;
- Gold production of 9,346 ounces, a 25% increase compared to
7,487oz produced in Q3 fiscal 2014;
- Profit margin from gold production of $4.76 million, a $1.47
million increase from $3.29
million in Q3 fiscal 2014;
- Average ore head grade of 1.44g/t Au, a 13% increase compared
to 1.28g/t Au in Q3, fiscal 2014;
- Processing recovery rate of 82.16%, an 8% increase from 75.76%
in Q3 fiscal 2014;
- Filed National Instrument 43-101 ("NI 43-101") with 15%
increase in total contained gold ounces compared to the historical
estimate for Alliance/New Alliance areas of the Murchison Gold
Project.
Third Quarter Production and Financial Highlights
|
|
|
|
Three months ended
March 31,
|
Nine months ended
March 31,
|
|
2015
|
2014
|
2015
|
2014
|
Production
|
|
|
|
|
Ore mined
(tonnes)
|
96,761
|
101,955
|
260,812
|
405,347
|
Ore processed
(tonnes)
|
225,644
|
263,990
|
712,957
|
765,613
|
Average mill feed
grade (g/t)
|
1.44
|
1.28
|
1.52
|
1.31
|
Mill utilization
(%)
|
93.9%
|
96.1%
|
92.2%
|
94.7%
|
Processing recovery
rate (%)
|
82.2%
|
75.8%
|
83.8%
|
75.8%
|
Gold
production(1) (oz)
|
9,346
|
7,487
|
29,041
|
26,590
|
Gold sold
(oz)
|
10,200
|
9,550
|
27,900
|
28,270
|
|
|
|
|
|
Financial (in
thousands of US dollars)
|
$
|
$
|
$
|
$
|
Revenue
|
12,459
|
12,094
|
34,468
|
36,436
|
Net income before
other items
|
3,692
|
1,231
|
8,089
|
4,786
|
Net income
|
3,622
|
(967)
|
8,205
|
2,226
|
Cash flows from
operations
|
8,914
|
4,275
|
20,181
|
11,629
|
Working capital
including restricted cash
|
34,627
|
43,143
|
34,627
|
43,143
|
|
|
|
|
|
EPS before other
items – basic (US$/share)
|
0.01
|
0.00)
|
0.03
|
0.01
|
EPS – basic
(US$/share)
|
0.01
|
(0.00)
|
0.03
|
0.01
|
|
|
|
|
|
Other
|
US$/oz
|
US$/oz
|
US$/oz
|
US$/oz
|
Average realized gold
price per ounce sold
|
1,221
|
1,266
|
1,235
|
1,289
|
|
|
|
|
|
Cash cost per ounce
(2)
|
|
|
|
|
Mining
|
211
|
240
|
231
|
204
|
Processing
|
282
|
358
|
311
|
315
|
Royalties
|
65
|
53
|
63
|
67
|
Operations, net of
silver recovery
|
2
|
3
|
2
|
2
|
Total cash cost per
ounce
|
560
|
654
|
607
|
588
|
(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 production, net of gold doré in transit and refinery
adjustment, was 9,346oz (defined as good delivery gold bullion
according to the London Bullion Market Association), a 25% increase
compared to 7,487oz in the corresponding period last year mainly
due to higher average ore head grade in the current period. Ore
processed decreased by 15% to 225,644t for the quarter (Q3 fiscal
2014: 263,990t) primarily due to blockage of crushing plant causing
down time. Gold recovery increased by 4% for the quarter to 8,596oz
(Q3 fiscal 2014: 8,248oz), average ore head grade increased by 13%
to 1.44/t Au (Q3 fiscal 2014: 1.28g/t Au) and process recovery rate
increased by 8% to 82.16% (Q3 fiscal 2014: 75.76%) compared to the
corresponding period last year reflecting improved performance of
the plant. For the nine months ended March
31, 2015 gold production was 29,042oz (Nine months ended
March 31, 2014: 26,590oz) from plant
throughput ore of 712,957t (Nine months ended March 31, 2014: 765,613t) at an average head
grade of 1.52g/t Au (Nine months ended March
31, 2014: 1.31g/t Au) and gold recovery rate of 83.78% (Nine
months ended March 31, 2014:
75.77%).
Financial Results and Discussion
For the third quarter of fiscal 2015, net income was
$3.62 million, or $0.01 per share (basic) compared with the
corresponding period last year loss of $0.97
million or $0.00 loss per
share (basic). The increase in earnings quarter over quarter is
primarily due to an increase of income from mining operations and
47% reduction in corporate costs to $1.10
million in third quarter fiscal 2015 (Q3 fiscal 2014:
$2.06 million). For the nine months
ended March 31, 2015, net income was
$8.21 million or $0.03 per share (basic) compared with the
corresponding period last year of $2.23
million or $0.01 per share
(basic). The increase in earnings for the nine month period ended
March 31, 2015 is primarily due to
reductions in corporate cost and losses from other items.
Gold sales generated $12.46
million for the quarter compared to $12.09 million in the corresponding period last
year. The revenue comprised of 10,200oz of gold sold (Q3 fiscal
2014: 9,550oz) for the quarter. The increase in revenue was mainly
due to higher gold sales resulted from timing, partially offset by
the lower average realized gold price of $1,221 per ounce (Average London Fix PM:
$1,218 per ounce) for the third
quarter of fiscal 2015 compared to $1,266 per ounce from the same period of fiscal
2014 (Average London Fix PM: $1,293
per ounce). For the nine months ended March
31, 2014, revenue from gold sales was $34.47 million compared to $36.44 million for the same period last year. The
decrease in revenue was due to the decrease in ounces sold
(27,900oz vs. 28,270oz) and lower average realized gold price
($1,235 per ounce vs. $1,289 per ounce).
The cash cost per ounce decreased to $560/oz for the quarter from $654/oz for the corresponding period of fiscal
2014, reflected mainly in lower mining and processing cash
costs per ounce, due to higher recovery of gold and a stronger US
dollar compared to local currency Malaysia Ringgit. Lower mining
cash costs per ounce reflected the shorter hauling distance from
mining at Buffalo Reef South during the quarter. For the nine
months ended March 31, 2015 cash cost
per ounce was $607/oz, slightly
higher compared to $588/oz in the
same period of the prior fiscal year, reflecting the increased
mining and processing costs having been partially offset by
increased head grades and recovery rates of gold.
For the three and nine months ended March
31, 2015, cash in the amount of $8.91
million and $20.18 million was
generated from operations, respectively (Q3 fiscal 2014:
$4.28 million, Nine months ended
March 31, 2015: $11.63 million). As at March 31, 2015, the Company had positive working
capital of $34.44 million compared to
$37.05 million as at June 30, 2014. The decrease of $2.61 million was mainly the result of investing
activities carried out by the Company to expand the mineral base
and project pipeline.
Intec Technology and Commercialization Test Work
A bioleach plant was recommended by the May 2013 NI 43-101 report to treat sulphide
materials at Selinsing Gold properties that could achieve
satisfactory recoveries. Due to a high upfront investment, the
Company is pursuing other better treatment alternatives targeting
lower capital investment.
Monument received the "Conceptual Study: Use of the Intec
Process as Pre-Treatment Step to Conventional Cyanidation of
Buffalo Reef Concentrate" submitted by DCS Technology in
February 2014. Based on this study,
Management of Monument is of the view that the Intec Technology,
among other alternatives, might provide an economic solution to
treat sulphide materials through Monument's Selinsing Gold Plant
and for other gold projects. 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.
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 Selinsing Gold Process
Plant as an alpha site. Subject to success of the trial
commercialization test work and certain conditions, Monument will
obtain the license rights (the "Intec License") to exploit the
Intec Technology in respect to an agreed territory which covers
most of South East Asia, including
Malaysia, Australia and China.
Exploration Progress
Malaysia
Exploration for fiscal 2015 in the Malaysia region is focused on replacement of
oxide ore and discovery of new gold deposits at Selinsing and
Buffalo Reef areas. Further studies of regional geological
structures were continued to effectively define new targets. The
Company also implemented a geo-metallurgical test work program to
obtain understanding of the leachability of sulphide ore in
transition zones, aimed to further improve the recovery of gold
from sulphide materials. The geological modeling work was commenced
subsequent to the end of the third quarter, to update the
Selinsing/Buffalo Reef resources.
During third quarter of fiscal 2015 two Desco drill rigs
continued metallurgical drilling at Buffalo Reef Central and North,
and initiated the exploration resource definition drilling back at
Buffalo Reef Central at the beginning of March 2015. A total of 24 holes were drilled,
consisting of 15 metallurgical (1,352m) at Buffalo Reef South,
Central & North, and 9 exploration holes (1,219m) at Buffalo
Reef Central and Selinsing Pit 5. A total of 324m of PQ-core
samples were submitted to the Selinsing laboratory for further
metallurgical tests. As a part of regional exploration works within
the Company´s tenements, 767 rock and channel samples from Buffalo
Reef North and Bukit Ribu and 2,596 core samples were submitted to
SGS Mengapur and Selinsing laboratories. Assay results for all
the 21 holes drilled in the second quarter of fiscal 2015 at the
Peranggih prospect, along trend from Buffalo Reef North, were
received in January 2015. The results
showed some mineralization trends that will guide the next surface
mapping program in July 2015, which
will be focused on determining future drilling program design.
Western Australia
Exploration for fiscal 2015 in the Western Australia region is focused on
resource definition and evaluation on Alliance and New Alliance and
Federal City deposits at Burnakura. Based on which the studies
continue on to further assess economics of Alliance/New Alliance
and Federal City deposits through the open pit optimization and
fast track mine development including upgrading the crushing
circuit, advancing tailings disposal planning and commencement of
heap leach engineering design, aiming to start up initial gold
production. In the long run, the Company intends to strategize a
deep drilling exploration program to further discover gold systems
at the Murchison region.
During the third quarter ended March 31,
2015, an Inferred and Indicated mineral resource estimate
for the Alliance/New Alliance deposits was received from
Independent Resource Consultants, Cube Consulting Pty Ltd, after
incorporating the results from the first 102 holes drilled.
The results were announced in February 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 subsequent to the
quarter; representing a 90% increase in the Indicated gold ounces
as compared to the historical estimate inventory, as a result of
improved confidence in the grade continuity of the infill and
extensional drilling completed by Monument. The total
contained gold ounces have increased by 15% as compared to the
historical resource for the project.
The drill results on the Federal City deposit were also released
early in the third quarter, showing some impressive high grade
intersections. Some of the high grade zones are outside of
the current mineralization, and could be hosted in sub-vertical
cross-cutting E-W structures. The structure in the area is
geologically complex and the Company is now undertaking a PQ
diamond drilling program to twin these high grade holes to assist
with the interpretation.
Subsequent to the third quarter, the Company started further
infill and extension drilling of 4,800m on Alliance/New Alliance,
the results of which will be consolidated with the balance of 49
previous holes results and Federal City drill assays results, which
will be used altogether to build an upgraded geological model
targeting completion by June
2015.
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