Gross Revenue of $13.8
Million, Net Profit of $3.1
Million and Cash Cost of US$597/Oz
VANCOUVER, Feb. 27, 2015 /CNW/ - Monument Mining
Limited (TSX-V: MMY and FSE: D7Q1) "Monument" or the "Company"
today announced its second quarter production and financial results
for the three and six months ended December
31, 2014. All amounts are in United States dollars unless otherwise
indicated (refer to www.sedar.com for full financial results).
Second Quarter Highlights:
- Gold production of 9,950 ounces ("oz") (Q2 fiscal 2014:
8,588oz);
- Cash cost per ounce of US$597/oz
(Q2 fiscal 2014: US$650/oz);
- Gross revenue from gold sales of $13.83
million on 11,400oz sold (Q2 fiscal 2014: $8.34 million on 6,482oz sold);
- Net profit of $3.1 million (Q2
fiscal 2014: $1.5 million);
- Profit from gold production of $4.54
million (Q2 fiscal 2014: $2.53
million);
- Average ore head grade of 1.46g/t Au (Q2 fiscal 2014: 1.13g/t
Au);
- Processing recovery rate of 84.59% (Q2 fiscal 2014:
70.98%);
- Completed acquisition of the Tuckanarra Gold Project in
Western Australia; and
- Initiated the Stage 1 laboratory test work of the Intec
Commercialization Trial at Selinsing Mine.
Second Quarter Production and Financial Highlights
|
Three months
ended
December 31,
|
Six months ended
December 31,
|
|
2014
|
2013
|
2014
|
2013
|
Production
|
|
|
|
|
Ore mined
(tonnes)
|
89,667
|
153,207
|
164,051
|
303,392
|
Ore processed
(tonnes)
|
233,799
|
265,814
|
487,313
|
501,623
|
Average mill feed
grade (g/t)
|
1.46
|
1.13
|
1.56
|
1.33
|
Mill utilization
(%)
|
90.30%
|
96.75%
|
91.40%
|
94.02%
|
Processing recovery
rate (%)
|
84.59%
|
70.98%
|
84.48%
|
75.77%
|
Gold poured
(recovered) (oz)
|
9,272
|
8,120
|
20,596
|
17,752
|
Gold
production(1) (oz)
|
9,950
|
8,588
|
19,696
|
19,103
|
Gold sold
(oz)
|
11,400
|
6,482
|
17,700
|
18,720
|
|
|
|
|
|
Financial (in
thousands of US dollars)
|
$
|
$
|
$
|
$
|
Revenue
|
13,830
|
8,340
|
22,009
|
24,342
|
Net income before
other items
|
3,128
|
899
|
4,329
|
3,558
|
Net income
|
3,058
|
1,452
|
4,583
|
3,194
|
Cash flows from
operations
|
9,621
|
2,899
|
11,269
|
7,354
|
Working capital
excluding derivative liabilities
|
35,493
|
61,352
|
35,493
|
61,352
|
|
|
|
|
|
EPS before other
items – basic (US$/share)
|
0.01
|
0.00
|
0.02
|
0.01
|
EPS – basic
(US$/share)
|
0.01
|
0.01
|
0.02
|
0.01
|
|
|
|
|
|
Other
|
US$/oz
|
US$/oz
|
US$/oz
|
US$/oz
|
Average realized gold
price per ounce sold
|
1,213
|
1,287
|
1,243
|
1,300
|
|
|
|
|
|
Cash cost per ounce
(2)
|
|
|
|
|
Mining
|
230
|
221
|
243
|
185
|
Processing
|
305
|
337
|
328
|
294
|
Royalties
|
61
|
90
|
62
|
74
|
Operations, net of
silver recovery
|
1
|
2
|
1
|
1
|
Total cash cost per
ounce
|
597
|
650
|
634
|
554
|
(1)
|
Defined as good
delivery gold bullion according to London Bullion Market
Association ("LBMA"), net of gold doré 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 for the quarter, net of gold doré in transit and
refinery adjustment, was 9,950oz (defined as good delivery gold
bullion according to the London Bullion Market Association), a 16%
increase compared to 8,588oz in the corresponding period last year
mainly due to higher average ore head grade in the current period.
Plant throughput from the Selinsing gold processing plant decreased
by 12% to 233,799t for the quarter compared to 265,814t for the
same period last year, primarily due to downtime from heavy
rainfall during the monsoon season. Gold recovery increased by 36%
for the current quarter to 9,272oz (Q2 fiscal 2014: 6,825oz),
average ore head grade increased by 29% to 1.46g/t Au (Q2 fiscal
2014: 1.13g/t Au) and process recovery rate increased by 19% to
84.59% (Q2 fiscal 2014: 70.98%) compared to the corresponding
period last year reflecting improved performance of the plant. For
the six months ended December 31,
2014 gold production was 19,696oz from plant throughput ore
of 487,313t at an average head grade of 1.56g/t Au compared to gold
production of 19,103oz from plant throughput ore of 501,623t at an
average head grade 1.33g/t Au for the six months ended December 31, 2013.
Financial Results and Discussion
For the second quarter of fiscal 2015, net income was
$3.06 million, or $0.01 per share (basic) compared with the
corresponding period last year of $1.45
million or $0.01 per share
(basic). The increase in earnings quarter over quarter is primarily
due to an increase of gold sold and 14% reduction in corporate
costs to $1.41 million in Q2 fiscal
2015 (Q2 fiscal 2014: $1.63 million).
For the six months ended December 31,
2014, net income was $4.58
million or $0.02 per share
(basic) compared with the corresponding period last year of
$3.19 million or $0.01 per share (basic). The increase in earnings
for the six month period ended December 31,
2014 is primarily due to a reduction in corporate cost,
offset by lower gross margin from mining operations.
Gold sales generated $13.83
million for the quarter compared to $8.34 million in the corresponding period last
year. The revenue comprised of 11,400oz of gold sold (Q2 fiscal
2014: 6,482oz) 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 $1,213 per ounce (Average London Fix PM:
$1,201 per ounce) for the second
quarter of fiscal 2015 compared to $1,287 per ounce from the same period of fiscal
2014 (Average London Fix PM: $1,276
per ounce), and timing of gold sales and outturn. The price of gold
is a significant factor affecting the Company's profitability and
operating cash flows. For the six months ended December 31, 2014 revenue from gold sales was
$22.01 million compared to
$24.34 million for the same period
last year. The decrease in revenue was due to the decrease in
ounces sold (17,700oz vs. 18,720oz) and lower average realized gold
price ($1,243 per ounce vs.
$1,300 per ounce).
The cash cost per ounce of gold sold in the second quarter of
fiscal 2015 was $597 per ounce,
compared to $650 per ounce for the
corresponding period last year. The decrease resulted primarily
from lower processing costs and royalties on a per ounce basis,
offset by higher mining costs. On a per tonne basis mining costs
were higher due to longer distances now required for hauling. In
addition, drill and blast costs were also higher due to mining at
Buffalo Reef and harder sulphide ore and deeper drilling at
Selinsing. The decrease in processing costs per ounce was mainly
due to higher grade mill feed from stockpiled materials that were
previously discharged from the mill in the early stage of
production. For the six months ended December 31, 2014 cash cost per ounce was
$634/oz compared to $554/oz in the same period of the prior fiscal
year.
For the three and six months ended December 31, 2014, cash in the amount of
$9.62 million and $11.27 million was generated from operations,
respectively (Q2 fiscal 2014: $2.90
million, Six months ended December
31, 2013: $7.35 million). As
at December 31, 2014, the Company had
positive working capital of $35.49
million compared to $37.05
million as at June 30, 2014.
The decrease of $1.56 million was
mainly the result of investing activities carried out by the
Company to expand the mineral base and project pipeline.
Research and Development
Treatment of Selinsing and Buffalo Reef Sulphide Ore
As mining enters the oxide/sulphide transition zone, the
Selinsing gold processing plant is no longer treating high grade
high recovery oxide ores, but lower grade leachable sulphide ores.
Refractory sulphide mineralization will require different treatment
to sustain gold production. The Company has engaged highly
experienced senior metallurgists and is carrying out parallel
studies for several alternatives including a flotation approach to
produce gold or gold concentrate, plus a halide leaching and
bio-heap leaching approach without flotation. A bioleach plant was
recommended by the May 2013 NI 43-101
report to treat sulfide materials that could achieve satisfactory
recoveries. Due to a high upfront investment, the R&D program
is pursuing other better treatment alternatives targeting lower
capital investment.
Subsequent to the quarter, on February 2,
2015, the Company announced it has been granted an interim
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 to exploit the Intec Technology in
respect to an agreed territory which covers most of South East Asia, including Malaysia, Australia and China. 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. 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.
Development at the Mengapur Project
The Mengapur Project continues to represent a very significant
opportunity for a long term mining asset owned by the Company with
downstream commodity products. During the six months ended
December 31, 2014 the Company
completed resource definition drilling for oxide iron materials in
the overburden of Area C of the Mengapur Project, studied the
production alternatives including copper and made considerable
progress in refurbishing and upgrading its 1,000 tpd beneficiary
iron and copper flotation pilot plant. However, due to the recent
dramatic decline in iron ore price and volatility in copper price,
the plant development and production has been placed on
hold.
Acquisitions
Tuckanarra Gold Project
On August 28, 2014, the Company
entered into the Tenement Purchase Agreement with Phosphate
Australia Limited ("POZ") to acquire a 100% interest in the
Tuckanarra Gold Project consisting of two exploration licenses, six
prospecting licenses, and a mining lease covering a total of
416km2 in the Murchison Mining District in Western Australia and containing historical
Indicated and Inferred Joint Ore Reserves Committee ("JORC")
compliant resources. The transaction was closed on November 13, 2014. In consideration for
Tuckanarra, the Company paid a total AUD$2.0 million in cash and
10,000,000 fully paid common shares at a deemed issue price of
CAD$0.25 per share. The Company is
now reviewing the exploration program for confirmation, infill and
step out drilling to confirm, extend and consolidate gold resources
to its inventory for production using its Burnakura process
facility.
Gascoyne JV Acquisition and Private Placement (the "Proposed
Transaction")
The Proposed Transaction was announced on September 4, 2014 pursuant to the Heads of
Agreement entered in to by Monument and Gascoyne Resource Limited
("Gascoyne"). On December 23, 2014,
Monument and Gascoyne mutually agreed to terminate the Heads of
Agreement for the previously announced Proposed Transaction between
the two companies due to the fact that certain conditions precedent
to the completion of the transaction had not been met. As a result
of the termination, Monument will not be obligated to participate
in any further placements of Gascoyne shares but remain with the
previously purchased four million Gascoyne ordinary shares.
Gascoyne retains control of its mineral properties including the
Glenburgh, Dalgaranga and Mt. Egerton in Gascoyne and Murchison regions,
Western Australia.
Exploration Progress
Several favourable drilling results were announced during or
subsequent to the second quarter, confirming historical resources
at Alliance and New Alliance areas, and the mineral resource
estimates were announced in February
2015, subsequent to the quarter ended December 31,2014, indicating that the total
contained gold ounces have been increased by 15% as compared to the
historical estimate inventory. A NI 43-101 compliant Technical
Resource Report is expected to be released within 45 days.
Exploration activities at Murchison during the quarter included
the completion of the initial drill program designed to validate
the historical resource, increase the grade and geological
continuity of the mineralization through infill drilling, test for
resource extensions and define further exploration targets. The
initial program consisted of 102 RC drill holes for 9,340m at
Alliance and New Alliance and 50 RC drill holes for 3,833m were
completed during the quarter. A program of 6 PQ diamond drill holes
was also planned across varying grades within the deposit to test
metallurgical recoveries and aid in process flow designs for the
Burnakura CIL/CIP plant for more efficient outcomes. During the
second quarter of fiscal 2015, the Company also continued drilling
on the Federal City program and completed 58 RC drill holes for a
total 3,609m; Favourable assay results were announced subsequent to
the quarter.
Exploration for fiscal 2015 in the Malaysia region is focused on replacement of
oxide ore and further studies of regional geological structures to
effectively define new targets. During second quarter of
fiscal 2015 two Desco drill rigs continued exploration drilling at
the Perangih prospect and West Panau area along trend from Buffalo
Reef North and 4 drill holes were drilled for 175m and 921 samples
related to exploration activities were dispatched to the SGS
laboratory situated at Mengapur. Among 15 drill holes for 1,299m
metallurgy drilling completed during the quarter, 4 drill holes
totaling 287m and 261 samples were directly related to Intec
sampling for Stage 1 laboratory test work.
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 over
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