- Fourth-quarter revenues of $10.0
million, with a 31% quarter-over-quarter increase in custom
milling revenues.
- The Wasamac feasibility study is ongoing, with the
Corporation expecting to release the results in early December.
- The Corporation has created a confidential virtual data room
to provide access for parties that have expressed an interest in
reviewing the data for the Wasamac project.
- Production results for the first quarter of fiscal 2019 can
be found at the end of this release.
MONTREAL, Oct. 29, 2018 /CNW/ - MONARQUES GOLD
CORPORATION ("Monarques" or the "Corporation") (TSXV: MQR)
(OTCMKTS: MRQRF) (FRANKFURT: MR7) is pleased to report its
results for the fourth quarter and fiscal year ended June 30, 2018. Amounts are in Canadian dollars
unless otherwise indicated.
Highlights of the quarter
Beaufor Mine
- Production of 4,695 ounces in the fourth quarter, down 5% from
4,932 ounces in the previous quarter.
- Average selling price of $1,617
(US $1,273) per ounce ($1,610 or US $1,268
since the acquisition on October 2,
2017).
- Production cash cost of $1,609
(US $1,267) per ounce sold
($1,532 or US $1,206 since the acquisition on October 2, 2017).
- All-in sustaining cost of $2,005
(US $1,579) per ounce sold
($1,770 or US $1,394 since the acquisition on October 2, 2017).
Financial results
- Revenues of $10.0 million in the
fourth quarter from the sale of 4,589 ounces of gold combined with
revenue from custom milling, which was up 31%
quarter-over-quarter.
- Net loss of $2.8 million or
$0.014 per share, diluted, compared
to a net loss of $0.6 million or
$0.004 per share, diluted, last
year.
- Strong financial position, with $15.0
million in cash.
"Strong growth in our custom milling operations in the fourth
quarter partially offset the decline in production at the Beaufor
Mine, which will be temporarily shut down starting in December,"
said Jean-Marc Lacoste, President
and Chief Executive Officer of Monarques. "Our short-term goal for
Beaufor is to minimize the impact of the shut-down on our
results."
"In recent months, we have begun promoting the Wasamac project
within the mining and financial communities. We recently created a
confidential virtual data room to provide access for parties that
have expressed an interest in reviewing data and participating in
project development. With the pending release of the feasibility
study results in early December, we see the Wasamac project
starting to generate interest. We are confident that the parameters
we have set for the feasibility study, including the use of the
proven Rail-Veyor material haulage technology, will create the
conditions needed to put the project into production."
"We are also continuing to move forward with our other advanced
projects, including Croinor Gold and McKenzie Break, for which
drill results will be released in the coming weeks. Croinor Gold
continues to impress us with multiple high-grade results and
continuity of the mineralization along strike and at depth," Mr.
Lacoste concluded.
Summary of financial results
|
(dollars, except
per share data)
|
Quarter
ended
June
30
|
Year
ended
June
30
|
|
2018
|
2017
|
2018
|
2017
|
Revenues
|
10,007,386
|
-
|
30,125,421
|
-
|
Gross
margin
|
170,849
|
-
|
1 440,787
|
-
|
Net loss
|
(2,782,100)
|
(571,284)
|
(4,776,851)
|
(2,281,190)
|
Loss per share, basic
and diluted
|
(0.014)
|
(0.004)
|
(0.024)
|
(0.017)
|
Cash flow used in
operating activities
|
(534,542)
|
(560,596)
|
(2,310,413)
|
(2,163,498)
|
EBITDA(1)
|
(1,084,003)
|
(158,117)
|
(2,533,882)
|
(1,522,426)
|
(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)
|
June
30
2018
|
June 30
2017
|
Cash and cash
equivalents
|
15,046,248
|
7,356,155
|
Total
assets
|
73,665,169
|
26,657,724
|
Key operating statistics
|
|
Quarter
ended
June
30
|
Year
ended
June
30
|
|
2018
|
2017
|
2018
|
2017
|
Ounces of gold
sold
|
4,589
|
–
|
14,856
|
–
|
Ounces of gold
produced
|
4,695
|
–
|
15,071
|
–
|
Grade
|
4.95
|
–
|
4.82
|
–
|
Recovery
|
98.68
|
–
|
98.76
|
–
|
|
|
|
|
|
Key data per ounce
of gold (CA $)
|
|
|
|
|
Average market
price
|
1,659
|
–
|
1,665
|
–
|
Average selling
price(1)
|
1,617
|
–
|
1,610
|
–
|
Production cash
cost(2)
|
1,609
|
–
|
1,532
|
–
|
All-in sustaining
cost (Beaufor/Camflo)
|
2,005
|
–
|
1,770
|
–
|
|
|
|
|
|
Average exchange rate
(CA $/US $)
|
1.27
|
–
|
1.27
|
–
|
|
|
|
|
|
Key data per ounce
of gold (US $)
|
|
|
|
|
Average market
price
|
1,306
|
–
|
1,311
|
–
|
Average selling
price(1)
|
1,273
|
–
|
1,268
|
–
|
Production cash
cost(2)
|
1,267
|
–
|
1,206
|
–
|
All-in sustaining
cost (Beaufor/Camflo)
|
1,579
|
–
|
1,394
|
–
|
(1)
|
The average
selling prices for the 2018 three- and twelve-month periods would
be $32 and $28 higher, respectively, if gold deliveries (861
ounces for the quarter and 2,583 ounces for the 12-month period) to
Auramet 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 June 30, 2018.
|
Corporate highlights
- On May 31, 2018, the Corporation
announced that it has retained BBA to conduct a feasibility study
for its Wasamac gold project (see press release).
- On July 19, 2018, the Corporation
announced that it has filed a National Instrument 43-101 technical
report for its McKenzie Break gold project on SEDAR (see press
release).
- On August 3, 2018, the
Corporation announced that it has filed a National Instrument
43-101 technical report for its Swanson gold project on SEDAR (see press
release).
- On August 30, 2018, the
Corporation announced that production activities at the Beaufor
Mine will be temporarily suspended as of December 2018, and the mine will be placed on
care and maintenance (see press release).
- On September 10, 2018, the
Corporation sold its 30% interest in the Chimo property to Chalice
Gold Mines Limited ("Chalice") in consideration of 3 million
fully-paid ordinary Chalice shares (see press release).
- On October 5, 2018, the
Corporation announced that it has acquired a 2% net smelter royalty
("NSR") on the Chimo-Boyd claims in exchange for the issuance of
170,000 common shares of Monarques at a price of $0.28 per share and a cash payment of
$8,400 (see press release).
- On October 9, 2018, the
Corporation announced that it has received conditional approval
from the Toronto Stock Exchange to list the Corporation's common
shares, subject to compliance with all exchange requirements by
December 30, 2018 (see press
release).
Production statistics (first quarter ended September 30, 2018)
- Monarques produced 3,604 ounces of gold in the first quarter,
down 23% from 4,695 ounces the previous quarter.
- The Corporation recorded revenues of $7.8 million in the first quarter, based on an
average gold price of $1,520 per
ounce (US $1,162) and the sale of
3,272 ounces, combined with revenues from custom milling
operations, which increased by more than 8% during the
quarter.
Beaufor
Mine
|
Quarter
ended
September 30,
2018
|
Ore processed
(tonnes)
|
29,375
|
Gold recovery
(%)
|
97.99
|
Ounces
produced
|
3,604
|
Ounces
sold
|
3,272
|
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 MONARQUES GOLD CORPORATION
Monarques Gold Corporation (TSXV: 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 Monarques' actual results, performance and achievements to be
materially different from the results, performance or achievements
expressed or implied therein. 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 press release.
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SOURCE Monarques Gold Corporation