Monarch Gold Reports Its 2019 Fourth Quarter and Year-End Results

MONTREAL, QUEBEC / ACCESSWIRE / September 27, 2019 / MONARCH GOLD CORPORATION (“Monarch” or the “Corporation”) (TSX:MQR)(OTC PINK:MRQRF)(FRANKFURT:MR7) reported its results today for the fourth quarter and fiscal year ended June 30, 2019. Amounts are in Canadian dollars unless otherwise indicated.

Highlights

  • Fourth quarter revenues of $7.3 million from the sale of 2,666 ounces of gold combined with revenue from custom milling.
  • Fourth quarter net income of $0.9 million or $0.005 per share, diluted, compared to a net loss of $2.8 million or $0.014 per share, diluted, last year.
  • Cash and cash equivalents of $6.4 million and investments with a fair value of $2.3 million as at June 30, 2019.
  • Production activities temporarily suspended at the Beaufor mine on June 27, 2019, and at the Camflo mill on July 10, 2019.
  • Ongoing discussions with potential partners for the Wasamac gold project and implementation of a strategy to develop the Corporation’s other advanced gold projects, including Beaufor, Croinor Gold, Fayolle and McKenzie Break.
  • Monarch now has a combined Measured and Indicated resource of 3.3 million ounces of gold and an Inferred resource of 1.1 million ounces (see table at the end of the press release).

“The favourable gold price environment and a smaller workforce enabled us to have a solid quarter on the operations front,” said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. “We believe that this favourable gold price environment should also have a positive impact on Monarch’s valuation given our strong gold mining assets, namely eight projects with a combined NI 43-101 compliant resource of more than 4 million ounces of gold and two mills with a total capacity of 2,350 tonnes per day, as well as a significant portfolio of exploration projects and mining companies’ securities. In addition, our main Wasamac project generated considerable interest from potential strategic partners in the last quarter, and again at the Beaver Creek mining conference in Colorado in September, where we met with over 70 mining and finance companies.”

“Although our production activities at the Beaufor mine and Camflo mill are temporarily suspended, the favourable gold price environment could change our plans in the short and medium term. We have implemented a strategy for developing our other advanced gold projects, namely Beaufor, Croinor Gold, Fayolle and McKenzie Break, which could eventually provide feed for our Camflo and Beacon mills. In line with this, we recently started a new drilling program on McKenzie Break, which we consider one of the most advanced of the group given its high-grade near-surface resources. We are confident that our current and future efforts will bring us closer to our ultimate goal of becoming a 100,000 to 200,000 ounce-per-year gold producer,” concluded Mr. Lacoste.

Summary of financial results

(dollars, except per share data)
Three months ended
June 30
 
Year ended
June 30
 
 
2019   2018   2019   2018  
Revenues
7,349,262   10,007,386   31,652,869   30,125,421  
Gross margin
1,940,340   170,849   4,350,348   1,440,787  
Net earnings (net loss)
926,602   (2,782,100 ) 485,905   (4,776,851 )
Earnings (loss) per share, basic and diluted
0.005   (0.014 ) 0.001   (0.024 )
Cash flow used in operating activities
990,724   (534,542 ) (5,764,786)   (2,310,413 )
EBITDA(1)
1,237,876   (1,084,003 ) 3,965,710   (2,533,882 )

(1) Non-IFRS measure. See under “Non-IFRS measures” at the end of this press release, and in the Corporation’s management discussion and analysis for the reconciliation of this non-IFRS measure.

(dollars)
June 30
2019
June 30
2018
Cash and cash equivalents
6,381,307 15,046,248
Total assets
72,577,395 73,665,169

Key operating statistics

 
Three months ended
June 30
Year ended
June 30
 
2019 2018 2019 2018
Ounces of gold sold
2,666 4,589 12,534 14,856
Ounces of gold produced
3,572 4,695 12,231 15,071
Grade (g/t)
4.09 4.95 4.03 4.82
Recovery (%)
98.24 98.68 98.17 98.76
 
       
Key data per ounce of gold (CA $)
       
Average market price
1,755 1,659 1,668 1,665
Average selling price(1)
1,763 1,617 1,652 1,610
Production cash cost (Beaufor/Camflo)(2)
1,192 1,609 1,401 1,532
All-in sustaining cost (Beaufor/Camflo)(2)
1,213 2,005 1,474 1,770
 
       
Average exchange rate (CA $/US $)
1.34 1.27 1.32 1.27
 
       
Key data per ounce of gold (US $)
       
Average market price
1,310 1,306 1,264 1,311
Average selling price(1)
1,315 1,273 1,252 1,268
Production cash cost (Beaufor/Camflo)(2)
890 1,267 1,061 1,206
All-in sustaining cost (Beaufor/Camflo)
905 1,579 1,117 1,394

(1) The average selling prices for the year would be $14 higher ($28 higher in fiscal 2018) if gold deliveries (861 ounces in fiscal 2019 and 2,583 ounces in fiscal 2018) to Auramet International LLC in connection with deferred revenues for the year 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 year ended June 30, 2019.

The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, 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 over 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, Croinor Gold (see video), Fayolle, 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.

FOR MORE INFORMATION:

Jean-Marc Lacoste 1-888-994-4465
President and Chief Executive Officer jm.lacoste@monarquesgold.com
Mathieu Séguin 1-888-994-4465
Vice President, Corporate Development m.seguin@monarquesgold.com
Elisabeth Tremblay 1-888-994-4465
Senior Geologist – Communications Specialist e.tremblay@monarquesgold.com

www.monarquesgold.com

Table 1 – Monarch combined gold resources

 

Tonnes

(metric)

Grade
(g/t Au)

Ounces

Wasamac property1

     

Measured Resources

3.99 M

2.52

323,300

Indicated Resources

25.87 M

2.72

2,264,500

Total Measured and Indicated

29.86 M

2.70

2,587,900

Total Inferred

4.16 M

2.20

293,900

Croinor Gold mine2

     

Measured Resources

80,100

8.44

21,700

Indicated Resources

724,500

9.20

214,300

Total Measured and Indicated

804,600

9.12

236,000

Total Inferred

160,800

7.42

38,400

Fayolle property3

     

Indicated Resources (pit constrained)

405,600

5.42

70,630

Indicated Resources (underground)

300,800

4.17

40,380

Total Indicated

706,400

4.89

111,010

McKenzie Break property4

     

Indicated Resources (pit constrained)

939,860

1.59

48,133

Indicated Resources (underground)

281,739

5.90

53,448

Total Indicated

1,221,599

2.58

101,581

Total Inferred

574,780

3.46

64,027

Swanson property5

     

Indicated Resources (pit constrained)

1,694,000

1.80

98,100

Indicated Resources (underground)

58,100

3.17

5,900

Total Indicated

1,752,100

1.85

104,100

Total Inferred

74,000

2.96

7,100

Beaufor Mine6

     

Measured Resources

74,400

6.71

16,100

Indicated Resources

271,700

7.93

69,300

Total Measured and Indicated

346,200

7.67

85,400

Total Inferred

46,100

8.34

12,400

Simkar Gold property7

     

Measured Resources

33,570

4.71

5,079

Indicated Resources

208,470

5.66

37,905

Total Measured and Indicated

242,040

5.52

42,984

Total Inferred

98,320

6.36

20,103

Monique property8,9

     

Total Inferred

9,126,500

2.25

661,400

TOTAL COMBINED10

Measured and Indicated Resources

Inferred Resources

   

3,268,975

1,097,330

 

1 Source: Technical Report on the Wasamac Project, Rouyn-Noranda, Québec, Canada, Tudorel Ciuculescu, M.Sc., P.Geo., October 25, 2017, Roscoe Postle Associates Inc.

2 Source: Monarques prefeasibility study (January 19, 2018) and resource estimate (January 8, 2016)

3 Source: NI 43-101 Mineral Resource estimate of the Fayolle Project, August 30, 2019, Alain Carrier, P.Geo., M.Sc., of InnovExplo Inc.

4 Source: NI 43‐101 Technical Report on the McKenzie Break Project, April 17, 2018, Alain-Jean Beauregard, P.Geo., and Daniel Gaudreault, Eng., of Geologica Groupe-Conseil Inc. and Christian D’Amours, P.Geo., of GeoPointCom Inc.

5 Source: NI 43‐101 Technical Report on the Swanson Project, June 20, 2018, Christine Beausoleil, P.Geo., and Alain Carrier, P.Geo., M.Sc., of InnovExplo Inc.

6 Source: NI 43-101 Technical Report on the Mineral Resource and Mineral Reserve Estimates of the Beaufor Mine as at September 30, 2017, Val-d’Or, Québec, Canada, Carl Pelletier, P. Geo. and Laurent Roy, Eng.

7 Source: MRB et Associés (January 2015)

8 Source: NI 43-101 Mineral Resource estimate of the Monique Project as at August 28, 2019, Merouane Rachidi, Ph.D., P.Geo., and Claude Duplessis, Eng. of GoldMinds Geoservices.

9 Probe Metals Inc. may earn a 60% interest in the Monique property by spending an aggregate of $2,000,000 on exploration before January 2021.

10 Numbers may not add due to rounding.

 

SOURCE: Monarch Gold Corp.

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