Sulpher Sales will add $3+ million in RecenueIn late March of 2022, Majestic reached agreement with its Smelter to monetize its Sulpher by product from Smelting of gold.
Approx $1.6 million US in Sulpher sales which, excluding $200,000 in Q4 when grades were low and production substantially reduced, was about $700,000 per quarter
As grades and production return to normal levels of 40000 and 0.60 gms, , Sulpher sales should add close to $3 million US which will reduce cash costs and TPC, essentially, as free cash flow directly to the bottom line.
If, as the HKEX states, 2023 will see 2.5 m tons mined at an average grade of 0.65 gms per ton.....50,000 ounces per year or so, ...over $4.5 million CAD will be added to our cash position from Sulpher sales alone in 2023.
If, as some hope, we mix the high grade...2.5 gms ..sulphides just below the current pit floor...which, alone at constant production of 40,000 Oz would add about $15 million cad to free cash flow per year....including doubling production to 85,000 ounces per yesr would boost Sulpher revenues above
$30 million CAD per year.
This was a very significant monetization move in 2023 which will pay off in spades going forward as production doubles and as the deeper high grade sulphides begin to add their substantial financial heft to our production and cash flow profile.
Management have and are doing a superb job of making our SJ mines one of if not..in my opinion..the best gold mines in China