Majestic Gold Corp. Reports 2020 Q2 Results

VANCOUVER, BC / ACCESSWIRE / August 31, 2020 / Majestic Gold Corp. (“Majestic” or the “Company”) (TSXV:MJS)(FSE:A0BK1D) reports its financial and operational results for the second quarter ended June 30, 2020. This release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements and associated management discussion and analysis (“MD&A”) for the same period that are available on SEDAR ( and The following financial results are expressed in US dollars unless otherwise stated.


  • Gold sales revenue for the second quarter of fiscal 2020 was $13.2 million, from the sale of 8,298 ounces, at an average realized gold price of $1,587 per ounce, compared to gold sales revenue of $7 million from the sale of 5,300 ounces, at an average realized gold price of $1,307 per ounce, for the 2019 comparative period;

  • Gold production increased by 33% to 9,034 ounces for the second quarter of 2020, compared to 6,803 ounces for the 2019 comparative period. The increase was primarily due to a 24% increase in tonnes of throughput for the quarter at the Songjiagou Gold Mine. The average grade was 0.66 g/t for the current period compared to 0.67 g/t for the comparative period. The Company expects the average grade to improve as higher-grade areas become accessible in the open pit;

  • Net income for the second quarter of 2020 was $4.4 million, compared to $0.5 million for the 2019 comparative period;

  • Adjusted EBITDA was $7.7 million for the second quarter of 2020, compared to $2.8 million for the comparative period of fiscal 2019. Refer to pages 14-15 of the MD&A for the computation of this Non-IFRS financial measure; and

  • Total cash costs and all-in sustaining costs (“AISC”) for the second quarter of fiscal 2020 were $537 per ounce and $670 per ounce, compared to $630 per ounce and $771 per ounce for the comparative period of fiscal 2019. Refer to pages 14-15 for the MD&A for the computation of this Non-IFRS financial measure.


  Three months ended June 30,     Six months ended June 30,  
  2020     2019     2020     2019  
Operating data
Gold produced (ozs)
    9,034       6,803       15,912       14,079  
Gold realized net of smelting fees (ozs)
    8,356       6,196       14,716       12,860  
Gold sold (ozs)
    8,298       5,300       15,053       13,912  
Average realized gold price ($/oz sold)
  $ 1,587     $ 1,307     $ 1,560     $ 1,297  
Total cash costs ($/oz sold) (1)
    537       630       607       648  
Total production costs ($/oz sold) (1)
    716       919       814       868  
All-in sustaining costs ($/oz sold) (1)
    670       771       737       752  
Financial data
Total revenues
  $ 13,169,364     $ 6,928,695     $ 23,481,272     $ 18,043,456  
Gross profit (2)
    7,231,897       2,058,112       11,222,591       5,969,520  
Adjusted EBITDA (1)
    7,739,341       2,842,981       12,524,068       7,604,573  
Net income
    4,392,775       490,037       6,546,337       2,689,338  
Net income attributable to shareholders
    2,932,040       243,486       4,352,136       1,669,033  
Basic and diluted gain per share
    0.00       0.00       0.01       0.00  
                  June 30,     December 31,  
                    2020       2019  
                  $ 22,646,580     $ 23,918,724  
Total assets
                    112,060,016       98,682,737  
Total current liabilities
                    32,440,136       24,395,468  

(1) See “Additional Non-IFRS Financial Measures” on pages 14-15 in the Company’s MD&A.
(2) “Gross profit” represents total revenues, net of cost of goods sold.

About Majestic Gold

Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China. Additional information on the Company and its projects is available at and on the Company’s website at

For further information, please contact:

Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: [email protected]

Cautionary Notes

Certain statements contained herein may constitute forwardlooking statements and are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. Forwardlooking statements are statements which relate to future events. Such statements include estimates, forecasts and statements as to management’s expectations with respect to, among other things, business and financial prospects, financial multiples and accretion estimates, future trends, plans, strategies, objectives and expectations, including with respect to production, exploration drilling, reserves and resources, exploitation activities and events or future operations. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is actually developed.

In some cases, you can identify forwardlooking statements by terminology such as “may”, “should”, “expects”, “plans, “anticipates”, believes”, “estimates”, “predicts”, “potential”, or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forwardlooking statements.

While these forwardlooking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update any forwardlooking statements to conform these statements to actual results.

SOURCE: Majestic Gold Corp.

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