Majestic Gold Corp. Reports 2019 Q3 Results

VANCOUVER, August 28, 2019 - Majestic Gold Corp. (“Majestic” or the “Company”) (TSXV:MJS)(FSE:A0BK1D) reports its financial and operational results for the second quarter ended June 30, 2019. 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 (www.sedar.com) and www.majesticgold.com. The following financial results are expressed in US dollars unless otherwise stated.

THIRD QUARTER 2019 HIGHLIGHTS

• Gold production was 6,803 ounces for the third quarter of 2019, a decrease of 12% compared to 7,690 ounces produced for the 2018 comparative quarter. The decrease was due primarily to a 14% decline in tonnes milled for the third quarter of fiscal 2019 - 326,543 tonnes compared to 381,557 tonnes milled in the 2018 comparative quarter. The decrease in tonnage milled is due to the Company’s current efforts focused on developing the underground area. The Company expects that mill throughput levels will return to prior period levels in the first quarter of fiscal 2020. Gold production for the third quarter of 2019, included 2,073 ounces from the underground development from the 25,214 tonnes milled at an average head grade of 2.56 g/t;
• Gold sales revenue reached $6.9 million for the third quarter of fiscal 2019, from the sale of 5,299 ounces, at an average realized gold price of $1,293 per ounce, compared to gold sales revenue of $10.4 million from the sale of 7,729 ounces, at an average realized gold price of $1,349 per ounce, for the 2018 comparative quarter. The 34% decrease in gold sales revenue for the current quarter is primarily due to a 31% decrease in ounces sold;
• Total cash costs and all-in sustaining costs (“AISC”) for the third quarter of fiscal 2019 were $630 per ounce and $771 per ounce, compared to $679 per ounce and $799 per ounce for the 2018 comparative quarter. The cash costs and all-in sustaining costs for the first nine months of fiscal 2019 were $619 per ounce and $728 per ounce, compared to $649 per ounce and $761 per ounce for the 2018 comparative period. The Company continues to work in maintaining its cash costs and AISC averages below $675 per ounce and $775 per ounce, respectively. Refer to pages 14-15 for the MD&A for the computation of this Non-IFRS financial measure;
• Adjusted EBITDA was $2,842,981 for the third quarter of 2019, compared to $4,450,572 for the comparative quarter of fiscal 2018. Adjusted EBITDA for the first nine months of 2019 was $11,026,585, compared to $12,214,080 for the comparative period of fiscal 2018. Refer to pages 14-15 of the MD&A for the computation of this Non-IFRS financial measure;
• Net income for the third quarter of 2019 was $868,964, compared to $2,341,572 for the 2018 comparative quarter. The significant decrease in net income is the result of the decrease in gold sales.
• The Company’s balance sheet benefitted from the third quarter of 2019’s operating and financial performance, increasing its cash to $22.8 million at June 30, 2019 from $18.8 million at September 30, 2018. As of June 30, 2019, the Company had working capital of $4.8 million compared to a working capital deficit of $2.2 million at September 30, 2018.

FINANCIAL INFORMATION

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 www.sedar.com and on the Company’s website at www.majesticgold.com.

For further information, please contact:

Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: info@majesticgold.com
Website: www.majesticgold.com

Cautionary Notes

Certain statements contained herein may constitute forward?looking 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. Forward?looking 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 forward?looking 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 forward?looking statements.

While these forward?looking 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 forward?looking statements to conform these statements to actual results.

SOURCE: Majestic Gold Corp.