Monument Mining Ltd. V.MMY

Mounument Mining - MD&A

[romara]

Here is the latest MD&A for the last reported quarter .....   Richard

MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
1 | P a g e
This Management’s Discussion and Analysis (“MD&A”) of Monument Mining Limited (“Monument” or the “Company”) as of February 25,
2023 should be read in conjunction with the unaudited condensed interim consolidated financial statements of the Company for the three
and six months ended December 31, 2022 and the notes related thereto, which have been prepared in accordance with International
Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), as well as the annual audited
financial statements for the year ended June 30, 2022.
This MD&A contains “forward-looking statements” and should be read in conjunction with the Cautionary Statement on Forward-Looking
Statements at the end of this MD&A. Non-IFRS performance measures referred under the section “Non-IFRS Performance Measures” in
the MD&A are subject to risk factors set out in a cautionary note contained herein. All amounts are in United States dollars unless
otherwise noted. References to “C$” or “CAD” are to Canadian dollars, “RM” are to Malaysian Ringgits and “AUD” are to Australian dollars.
Additional information relating to the Company’s activities may be found on the Company’s website at www.monumentmining.com and
at www.sedar.com.
1. EXECUTIVE SUMMARY
1.1 Second Quarter of Fiscal Year 2023 Highlights
• First gold filtered concentrate produced on December 27, 2022; total production was 126 dry tonnes with gold content of 177 oz;
• Dry and wet commissioning completed, and ore commissioning continued into the next quarter;
• Selinsing gold bullion production ceased in mid of November 2022 with gold in circuit yet to be cleaned up:
- 1,498 ounces (“oz”) of gold bullion produced (Q2 FY2022: 1,683oz);
- 3,350 ounces (“oz”) of gold bullion sold for $5.87 million (Q2 FY2022: 2,873oz for $5.05 million);
- Average quarterly gold price realized at $1,753/oz (Q2 FY2022: $1,828/oz);
- Cash cost per ounce sold was $1,507/oz (Q2 FY2022: $1,810/oz);
- Gross margin increased to $0.82 million (Q2 FY2022: negative $0.15 million);
- All-in sustaining cost (“AISC”) decreased to $1,627/oz (Q2 FY2022: $2,146/oz) (section 15 “Non-IFRS Performance Measures”).
1.2 Company Overview
Monument Mining Limited (TSX-V: MMY, FSE: D7Q1) is an established Canadian gold producer and mining asset developer. The Company
owns a 100% interest in the Selinsing Gold Mine and the Murchison Gold Project portfolios, and a 20% interest in the Tuckanarra project
Joint Venture (JV) as of December 31, 2022. The Selinsing Gold Mine is located in Pahang State, within the Central Gold Belt of Western
Malaysia, and comprises the Selinsing, Buffalo Reef, Felda Land, Peranggih and Famehub projects. Murchison, comprised of the Burnakura
and Gabanintha projects, and the Tuckanarra JV, is located in the Murchison region, Western Australia (“WA”), Australia.
Monument’s primary business activities include gold mining production and exploration. The business strategy consists of four
perspectives. The shareholder perspective is to provide a satisfactory return to shareholders. The growth perspective is to increase its
mineral resource inventory to achieve long-term sustainable production. The operational perspective is to maximize production
performance and efficiency and to enhance exploration success. The financial perspective is to have effective budgetary and cost control,
maintain efficient operational excellence and improve the quality of assets by advancing exploration and evaluation projects to production.
The Company’s long-term goal is to become a sustainable dividend paying gold producer.
Monument has an experienced management team with the demonstrated ability to advance projects from exploration to production, and
effectively and profitably operates producing mines. The Company employs approximately 200 people and is committed to the highest
standards of environmental management, social responsibility, and health and safety for its employees as well as for its neighboring
communities. Monument’s Head Office is located in Vancouver, British Columbia, Canada. It operates through its subsidiaries in Pahang
State, Malaysia and Western Australia, Australia.
1.3 Review of Operations
Corporate Strategies
As a junior gold producer, Monument’s overall strategy is to build incremental gold resources and reserves through exploration,
production expansion and disciplined acquisitions, as well as to build up market awareness in order for the market to reflect the Company’s
value thus transforming the Company’s upside potential to benefit its shareholders. The Company grows its value by developing gold
assets and building up gold reserves that provide sustainable cash flow therefore creating value for shareholders that can be reflected in
the market capitalization. Our strategy is to focus on these three areas through exploration, expansion, and disciplined acquisitions.
The Company’s near-term goals are summarized as follows:
Convert the current oxide plant to a sulphide plant in a two-phase construction plan (flotation plant followed by BIOX® plant);
Continue to establish the Murchison Gold Project as a cornerstone gold development project; and
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
2 | P a g e
Proceed with a disciplined acquisition to increase the Company’s gold production profile.
The achievement of the above goals relies on available financial resources and other conditions. For more than a decade the Company’s
development has primarily depended on cash generated by oxide production at the Selinsing Gold Mine. As oxide materials are being
depleted, it is critical for the Company to launch the Selinsing Sulphide Flotation Project in order to return to its historical production levels
through the new life of mine. It is also critical for the Company to develop its Murchison Gold Project into a cornerstone producing asset
that will reduce its reliance on a single cash generating operation: success in exploration for new gold discoveries is the most economical
way to increase shareholder value. In management’s opinion the Murchison Project is highly prospective.
The current Selinsing sulphide project is fully funded. However, there are no guarantees that the Company can be successful due to
uncontrollable risk factors, including change of market conditions such as the Russia-Ukraine war that caused power shortages and rising
gas and fuel prices, the geopolitical conflicts between China and other countries that may cause changes of commodities market shares,
the worldwide inflation that triggers the volatility of gold prices, the operation risks such as delaying of commercial production due to
worldwide supply chain crisis, the uncertainty of length of the ramp up period moving to commercial production, and changes in
regulatory restrictions in relation to arsenic level contained in gold concentrate, etc. During the fiscal year 2023, the Company closely
evaluated and monitored impact from the volatile global economic environment to mitigate those unpredictable, sometimes
uncontrollable risks with other risks that might slow down the completion of Selinsing flotation construction/commissioning and
commencement of ramp up to full production.
General Operations
The Company continues to advance its strategy to prioritize an appropriate allocation of capital and resources between the current
Selinsing sulphide project and development at Murchison. The six-month ended December 31, 2022 saw the continuing focus on flotation
plant construction at the Selinsing Gold Mine to achieve gold concentrate production to regenerate cash flow. The Murchison exploration
was slowed down to preserve cash position in transition to commercial production at Selinsing. The exploration kept to Gabanintha data
update that might improve drill targets identified, and drilling shall be resumed after the cash inflow being established.
As at December 31, 2022 overall Selinsing Sulphide Project Development completed 91% except partial of commissioning, weighbridge
and the concentrate storage shed. It includes project management, engineering design, procurement, construction, and dry/wet
commissioning, first fill and mine development. The completion of flotation plant construction was originally targeted in June 2022 and
was delayed due to Shanghai COVID-19 lockdown.
Oxide production was terminated in the mid of November, followed by dry and wet plant commissioning. Flotation plant started running
with the first fill on December 15, 2022, resulted first filtered gold concentrate produced at 126 dry metric tonnes (“DMT”) with gold
content of 177oz, which has been recorded under inventory. Ore commissioning continued into the third quarter of fiscal 2023. As of
December 31, 2022, total cash consumed for plant construction including mine development were $15.61 million in line with the budget.
Gross margin for the three months ended December 31, 2022 was $0.82 million compared to negative of 0.15 million for the same period
last year. Selinsing gold bullion production was slowly winding down with the oxide plant ceased in mid of November. For the three
months ended December 31, 2022, the operation generated positive cash flow of $2.75 million, compared to the cash consumption of
$4.02 million for the same period of last fiscal year. For the six months ended December 31, 2022, the operation managed to generate
positive cash flow of $2.10 million, compared to cash consumption of $4.0 million for the same period last year.
Total cash drawn for investment activities for Q2 FY2023 totaled $6.08 million including $0.07million for exploration, $5.75 million for
mine development and flotation construction, $0.26 million for sustaining production and site maintenance. Financing activities of $0.01
million spent during Q2 FY2023 was for lease payment, the same as for the same period of last fiscal year. The cash balance was down to
$12.81 million as of December 31, 2022 from $21.04 million as of June 30, 2022.
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
3 | P a g e
1.3.1 Project Development
Project development is focused on Selinsing sulphide project at the Selinsing Gold Mine in Malaysia is aimed to produce saleable sulphide
gold concentrate. The flotation plant construction includes project management, project validation, flotation design and engineering,
procurement, construction and commissioning. Mine development includes upgrading of tailing storage facilities, pit push backs, river
diversion, and pre-stripping, which is estimated to cost up to $20 million. As of December 31, 2022, 91% of the overall project has been
completed with cost incurred of $15.61 million.
Total cash spent on project development for the second quarter was $6.08 million (Q2 FY2022: $3.74 million) of which $0.04 million (Q2
FY2022: $0.59 million) was at Selinsing to sustain production, $5.60 million (Q2FY2022: $2.19 million) for Phase I of the Sulphide Project
development, $0.15 million for property fees at Buffalo Reef and sampling and geology mainly at Selinsing (Q2 FY2022: $0.14 million), and
$0.29 million (Q2 FY2022: $0.82 million) at Murchison, including $0.22 million for care and maintenance, $0.07 million for exploration.
Total cash spent on project development for the six months ended December 31, 2022 was $10.31 million (Q2 FY2022: $6.81 million) of
which $0.05 million (Q2 FY2022: $0.28 million) was at Selinsing to sustain production, $9.32 million (Q2 FY2022: $5.07 million) for Phase
1 of Sulphide Project development, $0.32 million for property fee at Buffalo Reef and sampling and geology mainly at Selinsing (Q2 FY2022:
$0.15 million) and $0.62 million (Q2 FY2022: $1.31 million) at Murchison exploration, including $0.45 million for care and maintenance,
$0.16 million for exploration.
Flotation Plant Construction
During the second quarter ended December 31, 2022, flotation plant construction and most ancillary equipment were substantially
complete and installed except for the cabling work. Plant commissioning began in November 2022. Dry and wet commissioning of the
flotation plant completed on flotation cells, concentrate and water recovery thickeners, reagents mixing and storage, blowers,
compressor, and filter press plant. Ore commissioning started on December 15, 2022, ongoing improvements to flotation circuit,
correcting shortfalls continued. The ramp up to full production commenced in January 2023 subsequent to the second quarter.
Pre-stripping
Pre-stripping for the sulphide gold production commenced in July 2022 at Buffalo Reef. As of the second quarter ended December 31,
2022, total stripping cost in the amount of $3.19 million were incurred and were recorded under mineral properties relocated against
Exploration and Evaluation account.
Tailing Storage Facility (TSF) Upgrade:
The TSF level needs to be raised to 540m RL level to accommodate flotation plant operation for about 3 years. The TSF upgrade, which
started in February 2021, continued with 92.3% completion to 537m RL in FY2022. The work had been completed to meet the current
tailing storage requirement. Further construction will recommence when necessary.
Murchison Project Development
No drilling was carried out during the second quarter of fiscal year 2023. The Company focused on updating and further reviewing of
Gabanintha drill targets and slowed down the drilling to preserve the cash in supporting Selinsing development, while the costs of drilling
in Western Australia raised over 30% and have shortage of labour and drill rigs. The Company continued to maintain the plant and other
facilities to the extent they are operationally ready for efficient commissioning when production is restarted. Site accommodation and
catering facilities are fully functional to host administrative, exploration and mining activities.
1.3.2 Production
Mining
Mining during the three months ending December 31, 2022 continued with pre-stripping and sulphide ore extraction. at Buffalo Reef,
Felda Block 7 and Selinsing Pit for non-leachable and leachable sulphide ore for flotation plant production. The leachable ore partially fed
into the oxide plant.
During the three months ended December 31, 2022, mining rates were improved to 2,217,475 tonnes compared to 1,856,184 tonnes in
the same period of last year, of which ore mined were 108,860 tonnes, compared to 85,209 tonnes; operating waste mined for the three
months ended December 31, 2022 was 128,351t, as compared to 980,338t of operating waste same period last year.
Gold Bullion Production
Selinsing oxide plant production for gold bullion completed in the mid of November 2022. During the three months ending December 31,
mill feed decreased by 51% to 62,817 tonnes (Q2 FY2022: 129,000 tonnes) but the average head grade was much higher at 1.14g/t (Q2
FY2022: 0.56g/t) with lower recovery of 39.89% (Q2 FY2022: 63.2%). Gold bullion recovered from production was 879oz (Q2 FY2022:
1,481oz) and gold bullion production was 1,498oz (Q2 FY2022: 1,683oz).
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
4 | P a g e
During the three months ended December 31, 2022, a total of 3,350oz of gold bullion were sold for gross revenue of $5.87 million (Q2
FY2022: 2,873oz for $5.05 million), of which 3,350oz sold at an average realized price of $1,753 per ounce from production (Q2 FY2022:
2,150oz at $1,828 per ounce), nil from gold prepaid delivery (Q2 FY2022: 723oz at $1,545 per ounce from gold prepaid delivery).
Gross margin from mining operations for the second quarter was $0.82 million (Q2 FY2022: -$0.15 million) before operating expenses,
non-cash depreciation and accretion expenses of $1.82 million (Q2 FY2022: $1.62 million). The loss from mining operations was $1.0
million (Q2 FY2022: $1.78 million) and the net loss was $3.20 million (Q2 FY2022: $2.50 million).
During the six months ended December 31, 2022, gross margin from mining operations was $0.88 million (Q2 FY2022: $0.20 million) before
operating expenses, non-cash deprecation and accretion expenses of $2.13 million (Q2 FY2022: $2.24 million). The loss from mining
operations was $1.24 million (Q2 FY2022: $2.10 million and the net loss was $3.49 million (Q2 FY2022: $3.77 million). A total of 3,750 oz
of gold bullion were sold for gross revenue of $6.58 million (Q2 FY2022: 4,296 oz for $7.43 million), of which 3,750oz sold at an average
realized price of $1,755 per ounce from production (Q2 FY2022: 2,850 oz at $1,823 per ounce), nil from gold prepaid delivery (Q2
FY2022:1,446 oz at $1,545 per ounce from gold prepaid delivery).
Cash cost per ounce sold decreased by 17% to $1,507 per ounce for the three months ended December 31, 2022 from $1,810 per ounce
in the same period of last year, due to increase in sale of gold bullion and higher mill feed grade, lower mining and processing costs, despite
lower recovery to 39.9% from 63.2% in the same period of last year.
Cash cost per ounce sold decreased by 10% to $1,519 per ounce for the six months ended December 31, 2022 from $1,683 per ounce in
the same period of last year, due to higher mill feed grade, less tonnes processes despite lower recovery to 43.8% from 64.2% in the same
period of last year.
Gold Concentrate Production
Mining in the second quarter has been focused on sulphide ore mining for flotation plant production. In December 2022, with the
commissioning of sulphide flotation plant commenced which started with running the first fill, 9,574 tonnes were milled and fed into
flotation plant, 126 dry tonnes of gold concentrate were produced with 177 oz gold recovered. There was no sale of gold concentrate
during the period.
During the three months ended December 31, 2022, a total 108,860 tonnes of ore were mined for flotation production (Q2 FY2022: 85,209
tonnes for oxide production), with 28,541 tonnes from Selinsing (Q2 FY2022: 41,208 tonnes), 49,945 tonnes from Buffalo Reef (Q2 FY2022:
4,205 tonnes), 30,374 tonnes from Felda Block 7 (Q2 FY2022: nil tonnes), and nil tonnes of oxide mineralized materials from Peranggih
(Q2 FY2022: 39,796 tonnes). Waste mined for the three months ended December 31, 2022 included 1,980,265t of waste cutback at Felda
7 and Damar and nil waste removed for the TSF upgrade (276,430t of cutback waste and 514,207t of TSF waste for the same period last
year).
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
5 | P a g e
Production and financial results for the three and six months ended December 31, 2022, are summarized in Figure 1 below:
Figure 1: Operating and Financial Results
(1) Waste removed of 2,108,615t for the three months ended December 31, 2022 includes 128,351 t operating waste, nil for TSF construction fill
and 1,980,265t used for cutback (For the three months ended December 31, 2021, waste removed of 1,770,975t included 980,338t operating
waste, 276,430t for cutback and 514,207t for TSF construction fill).
(2) Gold Recovery for the quarter ended December 31, 2022 included 879oz Gold bullion (Q2 FY2022: 1,481oz), and Gold Concentrate 177oz (Q2
FY2022: nil).
(3) Monument realized a weighted average gold price of $1,753/oz for the three months ended December 31, 2022. For comparison purposes,
Monument realized a weighted average gold price of $1,828/oz for the three months ended December 31, 2021, excluding 723oz gold prepaid
delivery during the period. Readers should refer to section 15 “Non-IFRS Performance Measures”.
(4) Total cash cost per ounce sold includes production costs such as mining, processing, TSF maintenance, camp administration, royalties, storage,
temporary mine production closure, community development cost and property fees, net of by-product credits. Cash cost excludes amortization,
depletion, accretion expenses, idle production costs, capital costs, exploration costs and corporate administration costs. Readers should refer
to section 15 “Non-IFRS Performance Measures”.
(5) All-in sustaining cost per ounce includes total cash costs, operation expenses, sustaining capital expenditures, corporate administrative expenses
for the Selinsing Gold Mine including share-based compensation, exploration and evaluation costs, and accretion of asset retirement obligations.
Certain other cash expenditures, including tax payments and acquisition costs, are not included. Readers refer to section 15 “Non-IFRS
Performance Measures” for detailed descriptions of each calculation.
(6) Average gold price realized, cash cost per ounce sold and all-in sustaining cost are non-GAAP measures; for a reconciliation from this measure
to the most directly comparable measure specified, defined, or determined under IFRS and presented in our financial statements. Readers should
refer to section 15 “Non-IFRS Performance Measures”.Selinsing, Felda Block 7, Buffalo Reef
December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
Operating results Unit
Ore mined t 108,860 85,209 216,251 160,181
Was te removed (1) t 2,108,615 1,770,975 3,708,652 3,713,309
Stripping ra tio 19.37 20.78 17.15 23.18
Ore s tockpiled t 151,830 83,401 151,830 83,401
Ore proces s ed t 72,391 129,000 204,838 285,611
Avera ge ore hea d gra de g/t Au 1.14 0.56 1.07 0.55
Proces s recovery ra te % 39.9 63.2 43.8 64.2
Gold Recovery (2) oz 1,056 1,481 3,087 3,258
Gold (bullion) production oz 1,498 1,683 3,563 2,726
Gold concentrate produced t 126 - 126 -
Gold concentrate gra de g/t Au 43.81 - 43.81 -
Gold recovered in gold concentra te oz 177 - 177 -
Gold s old oz 3,350 2,873 3,750 4,296
Financial results
Gold s a les US$’000 5,872 5,046 6,580 7,429
Gros s ma rgin US$’000 823 (153) 883 195
Weighted average gold price
London Fix PM US$/oz 1,749 1,827 1,751 1,823
Monument realized (3)(6) US$/oz 1,753 1,828 1,755 1,823
Cash costs per ounce sold (4)(6)
Total cas h cos t per ounce US$/oz 1,507 1,810 1,519 1,683
All-in sustaining costs per ounce (5)(6)
Total all-in s us taining cos t per ounce US$/oz 1,627 2,146 1,646 2,114
Three months ended Six months ended
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
6 | P a g e
Figure 2: Gold bullion production and cash costs per ounce Figure 3: Quarterly Average Gold Price
1.3.3 Exploration
Malaysia
During the first quarter of FY2023, in order to sustain the continuity of the oxide plant production, a total of 270m RC drilling over six holes
was drilled at the Selinsing Pit 4 and Pit 6. A total of 10 batches of RC samples comprising 317 samples including QAQC control samples
was dispatched to assay laboratory. All samples received the assay results. The drilling results at Selinsing Pit 6 had confirmed the
continuation of the mineralization to the down dip direction and the drilling results at Pit 4 confirmed that the high-grade zone is extended
to the south direction. Carbon-in-Leach (“CIL”) recoveries were generally low, but the laboratory flotation response was highly satisfactory
with over 90% recovery reported. The additional ore mined at Selinsing Pit 4 and Pit 6 will be processed in the flotation plant that is
planned for commissioning.
Also, a total of 37 channel samples was collected at Buffalo Reef C3 pit and a total of 134 channel samples was collected at the south wall
of Buffalo Reef C2 pit to explore the near surface oxide mineralisation during the first quarter. Assay results for all the samples were
received and no significant result were reported. Furthermore, a total of 20 grab samples of the alluvial material was collected at a
diverted Buffalo Reef C3 creek, near the known high-grade mineralisation. Assay results were received. The highest Au value reported
was 0.89g/t. 12 samples were reported with Au above 0.20g/t with an average grade of 0.45g/t Au.
The areas where the materials were considered economically mineable through the above drilling were considered in the mining plan.
There was no drilling exploration activity at Selinsing during Q2 FY2023 and Peranggih during the first half of FY2023.
Western Australia
Following the two-year exploration program to test the potential for additional gold recovery that was completed in FY2022, the Company
received and announced the diamond drilling results of Phase 2 during the first quarter of fiscal 2023, that confirmed the extension of
gold mineralization, including high grades of up to 17.8g/t gold, for more than 150m vertical depth below the current Mineral Resource
at the North of Alliance (“NOA”) group of deposits. Phase 2 drilling program since then has been completed. Despite there was no
exploration drilling activity undertaken during the first half of FY2023, the Company focused on further reviewing historical maps and
reports for Gabanintha project.
1.4 FY2023 Activity Highlights
• On September 23, 2022, the Company announced the diamond drilling results of Phase 2 that confirmed the extension of gold
mineralization, including high grades of up to 17.8g/t gold, for more than 150m vertical depth below the current Mineral Resource
at the NOA group of deposits. Phase 2 drilling program has been completed.
• On September 30, 2022, the Company announced that it has begun earning royalties from Fortress Minerals Limited (“Fortress”) on
the Mengapur Project. Pursuant to the terms of the Royalty Agreement entered January 2021 with Fortress, the Company earned
the first royalty of 1.25% against $1.2 million declared by Fortress.
• On October 12, 2022, the Company reported that flotation construction work progress at the Selinsing Gold Mine in Malaysia has
reached 85% completion in line with the budget. The commissioning targets late November/or early December 2022, thereafter
three months ramp up period for commercial production in January 2023.0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
500
1,000
1,500
2,000
2,500
3,000
Q3 Fiscal
2021
Q4 Fiscal
2021
Q1 Fiscal
2022
Q2 Fiscal
2022
Q3 Fiscal
2022
Q4 Fiscal
2022
Q1 Fiscal
2023
Q2 Fiscal
2023
Total Cash Costs (US$/oz)
Gold Production (Ounces)
Gold production Total cash cost per ounce1,500
1,600
1,700
1,800
1,900
2,000
Q3 Fiscal
2021
Q4 Fiscal
2021
Q1 Fiscal
2022
Q2 Fiscal
2022
Q3 Fiscal
2022
Q4 Fiscal
2022
Q1 Fiscal
2023
Q2 Fiscal
2023
US$/oz
London Fix PM Monument realized
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
7 | P a g e
• On November 22, 2022, the Company announced the results from its Annual General and Special Meeting of shareholders.
Resolutions tabled at the AGM as proposed in the Information Circular dated on October 18, 2022. Each resolution and each nominee
of the board of directors had been approved by a more than 90% of the shares voted.
• On February 27, 2023, the Company announced the completion of the flotation plant construction at Selinsing Gold Mine, the
sulphide treatment plant has been placed into commissioning after oxide plant production ceased in mid-November 2022. The first
gold concentrate was filtered on December 27, 2022. The ramp up period has been commenced in January 2023.
2. PROJECT UPDATE
2.1 Selinsing Gold Portfolio
The Selinsing Gold Portfolio is located in Pahang State, Malaysia. It includes the Selinsing Gold property (“Selinsing”), the Buffalo Reef
property (“Buffalo Reef”), the Felda Land (“Felda”) and the Famehub properties (“Famehub”). Buffalo Reef lies continuously and
contiguously along the gold trend upon which the Selinsing Gold Property is located. Both Felda and Famehub are located east and north
of the Selinsing and Buffalo Reef properties. The 1.0 million tonnes per annum gold processing plant is situated at the Selinsing site, which
provides easy access to all the Company’s gold properties.
Among those properties, Selinsing and Buffalo Reef are primary gold properties acquired on June 25, 2007 and are at the development
and production stage while others are at the exploration and evaluation stage except Felda Block 7.
The Company acquired exclusive irrevocable exploration licenses over 896 acres of Felda through its subsidiary Able Return Sdn Bhd from
the Settlers, with consent from the Federal Land Development Authority. Pursuant to these agreements with the Settlers, and subject to
regulatory approval, certain portions of Felda can be converted to mining leases upon exploration success at the Company’s discretion.
The exclusive mining permits are automatically assigned for mining to the Company in the event of approval of the mining leases obtained
by those Settlers. In October 2017, a portion of Felda (“Felda Block 7”) was converted into proprietary mining leases.
Famehub was acquired in September 2010 and covers an area of approximately 32,000 acres of prospective exploration land to the north
of Buffalo Reef and east of the Selinsing Gold Mine. Snowden completed a NI 43-101 Technical Report on Famehub dated August 2010.
The Company targets the consolidation of Selinsing, Buffalo Reef and Famehub, which are all situated around the Selinsing Gold Mine, as
a long-term strategic exploration portfolio in order to extend the life of the mine.
2.1.1 Resources and Reserves and Results of the Feasibility Study
According to the Snowden NI 43-101 Report dated January 31, 2019, the Company has Proven and Probable Mineral Reserves of 5.7
million tonnes at the Selinsing Gold Mine, including the Selinsing and the adjacent Buffalo Reef and Felda Block 7 deposits in Pahang State,
Malaysia. All Mineral Reserves and Mineral Resources were updated by Snowden as Independent Qualified Person defined under NI43-
101 standards.
The tables below summarize the estimated Mineral Reserves and Mineral Resources reported by classification and ore type, all expressed
in metric tonnes and troy ounces (1 ounce = 31.1035 g). The updated Mineral Reserves are estimated using an average gold price of $1,300
per ounce.
*Proven Reserve is entirely stockpile material;
**Probable Oxide Reserve comprises oxide ore in Selinsing, Buffalo Reef, Felda deposits, and in Selinsing old tailings; Probable Transition and
Sulphide Reserves comprise ore in Selinsing, Buffalo Reef and Felda deposits.Category
kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz)
Proven* 1,265 0.47 19 - - - 45 1.53 2 1,310 0.51 21
Probable** 991 0.91 29 757 1.72 41.9 2,680 2.03 175.1 4,428 1.73 246
P+P 2,256 0.67 48 757 1.72 42 2,725 2.02 177 5,738 1.45 267
Selinsing-Buffalo Reef/Felda Reserves as of March 31, 2018 (Snowden)
OXIDE (above approx. 0.4 g/t Au
cut-off)
TRANSITION (above approx. 0.75
g/t Au cut-off)
SULPHIDE (above approx. 0.75
g/t Au cut-off) OXIDE + TRANSITION + SULPHIDE
Mineral Reserves (based on a US$1,300/oz gold price)
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
8 | P a g e
*Measured Resource is entirely stockpile material;
**Indicated Oxide Resource is a combination of oxide mineralization occurring in Selinsing, Buffalo Reef and Felda deposits plus Selinsing old
tailings material; Indicated Transition and Sulphide Resources comprise mineralization occurring in Selinsing, Buffalo Reef and Felda deposits;
***Inferred Resource comprises mineralization occurring in Selinsing, Buffalo Reef and Felda deposits.
Based on these Reserves, the 2019 Feasibility Study has demonstrated an approximately six-year life of mine (LOM) with a net present
value (NPV) of $27.56 million based on reported oxide and sulphide ore Reserves as of March 2018. Over the six-year LOM, a total of 5.7
million tonnes of ore would be treated at an average grade of 1.45g/t Au for 223koz at a cost of $863.67 per ounce. At a gold price of
$1,300 per ounce, the Selinsing Gold Mine Project would generate net cash flow after tax of $97.00 million from operations, or $45.00
million net of capital expenditure.
The opportunity to consider Inferred Resources was discussed in the Feasibility Study. The Inferred Mineral Resource inside the Reserve
open pit designs potentially contains an additional 20koz of gold. The Inferred Mineral Resource external to the open pit design contains
130koz of gold. Recommendations have been made to initiate further exploration programs aimed at the conversion of Inferred Mineral
Resources into Indicated Mineral Resources. Should those conversions be successful, the Mineral Reserves could potentially be
significantly increased. The Selinsing Gold Mine has a proven record in converting oxide Inferred Mineral Resources to recovered ounces,
even though historical records should not be used as an indicator of future performance.
2.1.2 Production
Mining:
During the second quarter of FY2023, mining activities have been focused on leachable and non-leachable sulphide ore mining for flotation
plant production. Mining was carried out at Selinsing Pit 6 east, Buffalo Reef and Felda. Oxide ore production was from transitional
leachable sulphide ore at Selinsing pits, blended with oxide ore from Buffalo Reef and Felda Block 7 and old tailings. Lower stripping ratio
for the second quarter was attributed to the slight increase in ore tonnes mined.
In December, sulphide ore commissioning commenced and non-leachable sulphide ore at Buffalo Reef, Felda Block 7 and Selinsing were
processed in the flotation sulphide plant.
Total materials mined for the second quarter increased by 19% to 2,217,475 tonnes from 1,856,184 tonnes in the same period of last year
largely due to cut back at Buffalo Reef and Felda while in Q2 FY2022 mining focused in Peranggih. The stripping ratio decreased by 7% to
19.37 from 20.78 in the same period of last year. Ore mined increased by 28% to 108,860 tonnes from 85,209 tonnes.
The Company continues to implement grade control drilling practices to manage mining cost increases during the ramp up of mining to
access additional ore and replenish stockpile levels in preparation for flotation production. In addition, the mining contractor is actively
upgrading their mining fleet to achieve the Company’s mining and development plan.
Ore stockpiles went up to 151,830 tonnes as of December 31, 2022 compared to 83,401 tonnes for the same period of last year mainly
due to improved mining rate, higher tonnage of leachable sulphide ore supplemented by better grade from Buffalo Reef during the second
quarter of FY2023. Given that stockpile levels were low due to the impact of the COVID-19 pandemic in previous years, restoring them to
a more appropriate level is a priority for the Company.
Processing:
Referring to Figure 1 Operating and Financial Results, processing throughput tonnage was 51% lower in Q2 FY2023 compared to the same
period of last year at 62,817 tonnes which were fed into CIL plant (Q2 FY2022: 129,000 tonnes); also 9,574 tonnes (Q2FY2022: nil) were
fed into newly commissioned flotation plant. This was caused by a significant reduction of crushed ore and mechanical and electrical
problems and the transition from CIL plant to new sulphide flotation plant tie-in during the quarter. Overall mill availability, utilization and
efficiency were 94.9%, 29.9% and 28.4% respectively in this quarter compared to 87.4%, 68.5% and 59.9% in the same period of last year.
Total ore feed in Q2 FY2023 had an average head grade of 1.14 g/t Au as compared to 0.56 g/t Au in the same period of last year due to
higher grade ore from Selinsing and Buffalo Reef than Peranggih mineralized materials. Gold recovered was lower at 1,056oz of which
879oz was gold bullion and 117 oz gold concentrate, as compared to 1,481oz of gold bullion in the same period of last year due to lowerCategory
kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz)
Measured* 1,265 0.47 19 - - - 45 1.53 2 1,310 0.51 21
Indicated** 1,533 0.85 42 1,086 1.49 52 8,052 1.60 415 10,671 1.48 509
M+I 2,798 0.68 61 1,086 1.49 52 8,097 1.60 417 11,981 1.38 530
Inferred*** 349 1.05 11.8 485 1.22 19 5,563 1.79 319 6,397 1.70 350
Mineral Resources, reported inclusive of Reserves (based on a potential US$2,400/oz gold price)
Selinsing-Buffalo Reef/Felda Resources as of March 31, 2018 (Snowden)
OXIDE (above 0.3 g/t Au cut-off) TRANSITION (above 0.5 g/t Au
cut-off)
SULPHIDE (above 0.5 g/t Au cut-
off) OXIDE + TRANSITION + SULPHIDE
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
9 | P a g e
recovery rate. In December 2022, commissioning of sulphide flotation plant commenced, and flotation feed was milled, 126 dry metric
tonnes of gold concentrate was produced with 177 oz gold recovered.
Total processing costs were $2.63 million in the second quarter as compared to $2.58 million in the same period of last year despite lower
mill feed and cost per tonne processed decreased 42% lower than the same period previous year. The process recovery rate of 39.9% for
the second quarter was lower than 63.2% in the same period of last year. The unit cost was lower than last year due to crushed ore
shortage and stoppage of CIL plant to proceed with new sulphide flotation plant during the quarter.
Figures 4 and 5 illustrate production results on a consolidated basis including Selinsing, Buffalo Reef, Felda Block 7 and Peranggih.
Figure 4: Gold bullion production and cash costs per ounce Figure 5: Selinsing Gold Mine: Operating Metrics
2.1.3 Development
Project development work at Selinsing includes the Sulphide flotation plant construction, pre-stripping work and flotation test work on
samples of stockpiled transition ore.
Selinsing sulphide project development
As of December 31, 2022, total expenditures of $15.61 million have been incurred for the Selinsing Sulphide Project Development at
Selinsing Gold Mine, including project management, project validation, flotation design and engineering, procurement, construction and
commissioning and mine development.
Engineering Design: 100% of the flotation plant detail engineering design work has been completed by Mincore Pte Ltd and shop detailing
design of earthing and lightning conductor work for power supply upgrade is underway.
Procurement of all major and long lead equipment was completed. The Company has been actively managing the shipping and logistics
risks associated with the global logistics shortage, and equipment delivery delays.
R&D Work: Flotation tests were carried out on samples of old stockpiles of transition ore that will be processed during commissioning and
early ramp-up. Rougher recoveries of 75-85% were achieved with cleaner recoveries of typically 50-60%. The flotation tailings of transition
ore will be stored for future CIL processing. Several flotation pilot test runs were conducted during Q1 FY2023 which further support the
previous observation and test result; mill feed flotation test was carried out during the first quarter which indicated the good flotation
performance of above 90% of rougher recoveries.
During the second quarter of FY2023, metallurgical drilling at Buffalo Reef had commenced and completed with 508m over 12 holes. The
drilling targeted representative transition and fresh sulphide samples from each of the BRC2, BRC 3, BRC 4, and BRN pits. Assay results for
all 586 samples were received. The samples with a grade above 0.35g/t Au were composited based on oxidation category (transition and
fresh) and submitted to the metallurgical laboratory at Selinsing for a series of locked cycle tests to obtain recovery and grade data for
the life of mine optimisation. The overall strategy of the mine plan is to achieve maximum gold recovery and minimise arsenic and stibnite
grade in concentrate.
Flotation construction includes earthworks, civil engineering, structural engineering, mechanical and electrical installation and other
associated plant upgrades.
An application to add the sulphide processing circuit to the existing CIL processing plant operation and an amended EIA was approved by
the Department of Environment (“DOE”) on September 29, 2021. A revised environmental management plan that includes the sulphide
processing was submitted to the DOE in FY2022 and it was approved on September 23, 2022.
As of December 31, 2022, the plant construction work has been largely completed with completion of foundation work at flotation area,
reagents area, concentrate thickener area and pipe rack. Other foundation work at filter press building, water recovery thickener and0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
500
1,000
1,500
2,000
2,500
3,000
Q3 Fiscal
2021
Q4 Fiscal
2021
Q1 Fiscal
2022
Q2 Fiscal
2022
Q3 Fiscal
2022
Q4 Fiscal
2022
Q1 Fiscal
2023
Q2 Fiscal
2023
Total Cash Costs (US$/oz)
Gold Production (Ounces)
Gold production Total cash cost per ounce0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Q3
Fiscal
2021
Q4
Fiscal
2021
Q1
Fiscal
2022
Q2
Fiscal
2022
Q3
Fiscal
2022
Q4
Fiscal
2022
Q1
Fiscal
2023
Q2
Fiscal
2023
Tonnes
Ore mined Ore processed
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
10 | P a g e
flocculants plant area were completed in Q1 FY2023. There was a delay in the delivery of concentrate filter press which arrived in mid-
November 2022. Assembly work progressed immediately after the arrival of filter press. Cabling and piping work and mechanical
equipment installation are in progress during the quarter. In addition to the flotation plant construction, most ancillary buildings have
been completed except for the permanent concentrate shed. Mechanical installation has been completed except for weighbridge which
is on-going.
Plant commissioning started with dry and wet commissioning activities begun in November and completed on flotation cells, concentrate
and water recovery thickeners, reagents mixing and storage, blowers, compressor, and filter press plant. Ore commissioning started on
December 15, 2022 with assistance from various consulting engineers. Ongoing improvements to flotation circuit, correcting shortfalls
identified during ore commissioning continued. The ramp up of concentrate production commenced in January 2023.
Mine development: Total TSF expansion progressed 92.3%, reaching the 537m RL, providing adequate capacity until May 2023. The
remaining work to complete for 540m RL level will continue after commencement of production. Pre-stripping commenced in July at
Buffalo Reef in preparation for the completion of flotation plant, the start of commissioning, and continued during the second quarter for
ramp up production in January 2023. Mining of transitional and sulphide ore continued this quarter to stockpile ore for future production.
2.1.4 Exploration
Total exploration expenditures, aimed to identify additional mill feed materials and excluding development activities at the Selinsing Gold
Portfolio for the three and six months ended December 31, 2022 were nil and $0.18 million respectively. There was no drilling exploration
activity in Q2 FY2023.
During the first quarter of FY2023, the Company also focused on sustaining the continuity of the oxide plant production before sulphide
production commenced: a total of 270m RC drilling over six holes was drilled at the Selinsing Pit 4 and Pit 6. A total of 10 batches of RC
samples comprising 317 samples including QAQC control samples was dispatched to the assay laboratory. All samples received the assay
results during first quarter of FY2023. The drilling results at Selinsing Pit 6 confirmed the continuation of the mineralization to the down
dip direction and the drilling results at Pit 4 confirmed that the high-grade zone is extended to the south direction. CIL recoveries were
generally low, but the laboratory flotation response was highly satisfactory with over 90% recovery reported. The additional ore mined
at Selinsing Pit 4 and Pit 6 will be processed in the flotation plant that is planned for commissioning.
A total of 37 channel samples was collected at Buffalo Reef C3 pit and a total of 134 channel samples was collected at the south wall of
Buffalo Reef C2 pit to explore the near surface oxide mineralisation during first quarter of FY 2023. Assay results for all the samples were
received and no significant result were reported. Furthermore, a total of 20 grab samples of the alluvial material was collected at a
diverted Buffalo Reef C3 creek, near the known high-grade mineralisation. Assay results were received. The highest Au value reported
was 0.89g/t. 12 samples were reported with Au above 0.20g/t with an average grade of 0.45g/t Au.
The Company has established the Peranggih deposit as a highly prospective oxide exploration target. It has also provided oxide mill feed
to the oxide processing plant. There was no exploration activity at Peranggih during the first half of FY2023.
2.1.5 Environment, Safety and Health
The Company is committed to comply with Malaysia’s environmental laws within the mandates of government authorities:
• The Department of Minerals and Geosciences (“JMG”) for mining and processing activities including environmental jurisdiction
inside the Company’s project tenements;
• The Department of the Environment, whose jurisdiction lies outside of the Company’s tenements, regarding quality of air and
water discharge; and
• The Department of Safety and Health (“DOSH”), primarily concerned with occupational safety and health, lifting equipment,
pressurized vessels, storage, and handling of hazardous chemicals.
During the second quarter of FY2023, no lost time injury was recorded but there were seventeen accidents/incidents recorded and 11
positive COVID-19 cases at the Selinsing operation. All reported incidents were shared among staff at safety toolbox meetings. Routine
safety inspections were carried out at mining, plant, laboratory and warehouse by the HSE department. Third party consultants carried
out environmental monitoring throughout the year.
2.2 Murchison Gold Portfolio
Western Australia
The Murchison Gold Portfolio was acquired in 2014 and consists of the 100% owned Burnakura and Gabanintha projects as well as the
Tuckanarra gold property in which Monument has a 20% free carried interest. The portfolio is located in the Murchison Gold Field, a highly
prospective historical gold province within the Murchison District of Western Australia. Burnakura and Gabanintha are located 40km
southeast of Meekatharra, and 765km northeast of Perth. Tuckanarra is located approximately 40km southwest of Burnakura. The
Murchison Gold Portfolio includes a number of mining and exploration tenements and lease applications covering approximately 230
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
11 | P a g e
square kilometres (including the whole area of Tuckanarra which Monument has a 20% free carried interest) prospective for resource
extension, a fully operational gold processing plant at the Burnakura site, a newly developed camp site and necessary infrastructure.
Underground mining was carried out by the previous owner of the Burnakura gold processing plant for several months and shortly
thereafter it was placed into administration.
2.2.1 Mineral Resources
The Murchison Gold Project consisted of a historical Indicated Mineral Resource of 300koz Au, and a historical Inferred Mineral Resource
of 344koz Au reported to a 1.0g/t Au lower cut-off, at the time of the acquisition in 2014, within a number of previously operated open
pits and an underground mine. The Tuckanarra JV contains a total of 81koz of this historical resource. The Company believes that the
quality of the data supporting the Mineral Resources meets industry standards and considers this historical resource estimate to be
relevant to its ongoing review of the Murchison Gold Project.
The current updated Mineral Resource estimation at Burnakura reported in the SRK NI 43-101 Report dated July 2018, comprised of an
Indicated Mineral Resource of 4.043Mt @ 2.3g/t Au for 293koz and an Inferred Mineral Resource of 1.551Mt @ 1.8g/t Au for 88koz at a
0.5g/t Au grade cut-off for open pit and 3.0 g/t Au grade cut-off for underground (Figure 6). The Company has continued to improve its
internal mining studies which will contribute towards the preparation of a Preliminary Economic Assessment, in respect of the Burnakura
deposits.
Figure 6: 2018 Mineral Resource estimate breakdown for Burnakura Project
Notes:
(1) Small discrepancies may occur due to rounding.
(2) All Mineral Resources have been reported on a dry tonnage basis.
(3) SRK is unaware of any issues that materially affect the Mineral Resources in a detrimental sense.
(4) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
(5) Mineral Resources estimated by David Slater (Principal Consultant, SRK), QP.
(6) *Open pit Resources (NOA1-6, ANA, Authaal, Federal City) are constrained in a Lerchs Grossman pit shell.
**Underground Resources (NOA7-8) are constrained to >3g/t Au and 200m vertical depth.
2.2.2 Development
Development work at Murchison is aimed at identifying and testing both regional exploration targets away from known mineralization,
and also extensions to existing resources, while continuing to assess early production opportunities.
A mine plan was completed by management and an independent review conducted by SRK during FY2021, with the recommendations
received by the board in May 2021. The scope of the SRK review had been extended to cover geotechnics, hydrology, environmental
compliance, in addition to resource modelling, pit optimization, mine scheduling, and metallurgical recoveries study. From this, the
decision was made to identify further exploration targets and extend exploration program.Deposit Category Lower cut-off
(Au g/t)
Tonnes
(Kt)
Au
(g/t)
Gold
(Koz)
Indicated 0.5 1,030 2.1 68
Inferred 0.5 609 2.3 44
Indicated 0.5 2,141 1.6 107
Inferred 0.5 92 1.5 4
Indicated 0.5 - - -
Inferred 0.5 556 1.4 25
Indicated 0.5 96 1.3 4
Inferred 0.5 259 1.3 11
TOTAL* Indicated 0.5 3,267 1.7 179
Inferred 0.5 1,516 1.8 84
Indicated 3.0 776 4.6 114
Inferred 3.0 35 3.9 4
Indicated 4,043 2.3 293
Inferred 1,551 1.8 88
GRAND-TOTAL
NOA7-8**
ANA
Updated Mineral Resources, Burnakura Gold Project (SRK, July 2018)
NOA1-6
Authaal
Federa l City
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
12 | P a g e
The Company continues to ensure that the plant and other facilities are operationally ready through its care and maintenance program to
ensure efficient commissioning in the future. Site accommodations and catering are fully functional in readiness for the Company’s
personnel and mining contractors when a restart is approved.
2.2.3 Exploration
Monument’s wholly-owned Burnakura and Gabanintha projects together cover approximately 160 km2 of highly prospective gold-bearing
Archean Greenstone terrane, and a significant standalone greenfield discovery would materially change the scope of the Murchison Gold
Project. Alternatively, a number of smaller, shallow, satellite deposits within trucking distance of the Burnakura plant could also provide
meaningful additions to the Company’s existing Mineral Resource base.
The Company has carried out two-year’s extensive exploration at Murchison for new gold since fiscal 2022 in order to potentially establish
Murchison as a corner stone gold project for the Company. The first quarter of FY 2023 was focused on wrapping up fiscal 2022 drilling
results while moving exploration to Gabanintha area.
Burnakura
As part of two-year drilling program initiated in fiscal 2022, two phases of exploration commenced and completed at Burnakura to explore
for potentially significant new resources to add to the current resource base. Resulted from two Burnakura drilling program phases, the
Company has tested greenfield targets and extensions to known mineralized structures, and successfully achieved initial objectives with
the Phase 1 Junction target discovery and the Phase 2 drilling confirmation of gold mineralization extensions at depth at the NOA group
of deposits highlighting the opportunity to grow the Murchison Project organically.
During the first quarter of Fiscal 2023, all Phase 2 drilling results were received and analyzed; and drill core samples were continuing being
stacked in the core yard. The Company announced the diamond drilling results of Phase 2 that confirmed the extension of gold
mineralization, including high grades of up to 17.8g/t gold, for more than 150m vertical depth below the current Mineral Resource at the
NOA group of deposits. Phase 2 drilling program since then has been completed. No new drilling program is planned at Burnakura in the
early of fiscal 2023.
Gabanintha
Fiscal 2023 started with focus on updating Gabanintha historical data that might improve drill targets identified. A full review of all
historical maps with reports is ongoing for the Gabanintha project. An initial review was carried out during the first quarter that indicated
there is a substantial amount of information that needs to be collated before regional exploration programs can be designed. Additional
pit mapping and a structural interpretation of the main Gabanintha pit area will also be completed to assist in drill hole targeting
underneath the existing pits.
Tuckanarra
Odyssey Gold Ltd (“ODY”) and Monument are joint venture partners for the Tuckanarra Project development. ODY has control over
exploration by 80% and Monument has 20% free carried interest.
3. OVERVIEW OF FINANCIAL PEFORMANCE
3.1 SUMMARY
During the six months ended December 31, 2022, mill operations included processing mainly Selinsing leachable sulphide ore, Damar
Buffalo Reef, Felda Block 7, and old tailings through the Selinsing Gold Plant. Processing transitioned from oxide ore production to sulphide
ore production during Q2 FY2023, and during this period the operational gross margin is expected to vary due to the transition from oxide
production to sulphide production, ore grade, recovery rates and volatile gold prices.
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
13 | P a g e
Figure 8: Financial Highlights
The quarterly financial results of the Company are outlined for the past eight quarters in Figure 8 above. The overall financial results of
the Company reflect its income from gold mining operations, ongoing corporate business development, administrative costs and other
income or expenses such as foreign currency exchange gains or losses.
For the six months ended December 31, 2022, net loss was $3.49 million, or ($0.01) loss per share (basic) compared to net loss of $3.77
million or ($0.01) loss per share (basic) of in the same period of last year.
The decrease in net loss was attributable to the following factors:
• Higher head grade and realized gold price
• An increase in interest income and decrease in interest expenses;
• A decrease in loss from mining operations due to less materials mined and ore processed;
• A decrease in depreciation and amortization expenses due to less stripping costs from lower stripping ratio; and
Partially offset by:
• A lower recovery;
• An increase in foreign exchange loss; and
• An increase in corporate expenses.
3.2 Operating Results: Sales and Production Costs
Three months ended December 31, 2022
For the three months ended December 31, 2022, mining operations
before non-cash amortization and depreciation generated a gross
margin of $0.82 million, an increase from negative $0.15 million in the
same period of last year. Referring to Figure 9 for gross margin. After
deducting non-cash depletion and accretion of $1.82 million (three
months ended December 31, 2021: $1.63 million) and nil operation
expenses (three months ended December 31, 2021: $nil), loss from
mining operations was $1.00 million as compared to a loss of $1.78
million in the same period last year.
Gold recovery decreased by 29% for the three months ended
December 31, 2022 to 1,056oz including 879 oz of gold bullion and
177oz of gold concentrate (three months ended December 31, 2021:
1,481oz for gold bullion and nil gold concentrate) due to decrease in
ore processed of 72,391 for the three months ended December 31,
2022 as compared to 129,000t for the three months ended December
31, 2021 and a lower recovery of 39.9% (three months ended
Figure 9: Gross marginQ3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
$ $ $ $ $ $ $ $
Revenues (000’s ) 4,397 6,085 2,383 5,046 6,160 851 709 5,872
Weighted avera ge gold price
London Fix PM (per ounce) 1,837 1,811 1,811 1,827 1,911 1,873 1,767 1,749
Monument rea lized (per ounce) 1,830 1,812 1,829 1,828 1,911 1,890 1,772 1,753
Net ea rnings (los s ) before other items and tax
(000’s ) (396) (1,009) (755) (2,124) (1,957) (342) (703) (1,460)
Ea rnings per s ha re before other items and tax
Ba s ic (0.00) (0.00) (0.00) (0.01) (0.01) (0.00) (0.00) (0.00)
Diluted (0.00) (0.00) (0.00) (0.01) (0.01) (0.00) (0.00) (0.00)
Net ea rnings (los s ) a fter other items a nd tax
(000’s ) (96,104) (2,702) (1,267) (2,502) (2,840) 112 (289) (3,196)
Ea rnings (los s ) per s ha re:
Ba s ic (0.30) (0.01) (0.00) (0.01) (0.01) 0.00 (0.00) (0.01)
Diluted (0.30) (0.01) (0.00) (0.01) (0.01) 0.00 (0.00) (0.01)
Fis ca l 2023Fis ca l 2022Fis ca l 2021-2,000
-1,500
-1,000
-500
0
500
1,000
1,500
2,000
Q3
Fiscal
2021
Q4
Fiscal
2021
Q1
Fiscal
2022
Q2
Fiscal
2022
Q3
Fiscal
2022
Q4
Fiscal
2022
Q1
Fiscal
2023
Q2
Fiscal
2023
US$/Ounce
Total cash cost per ounce Monument realized Margin
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
14 | P a g e
December 31, 2021: 63.2%), partially offset by higher feed grade of
1.14 g/t Au (three months ended December 31, 2022: 0.56 g/t Au).
Total cash cost per ounce sold decreased to $1,507/oz for the three
months ended December 31, 2022 from $1,810/oz of the same period
last year due to increase in gold bullion sale, less mining costs and a
slight lower processing costs.
Sales
Gold bullion sales generated revenue of $5.87million for the three
months ended December 31, 2022 as compared to $5.05 million in
the same period last year. Gold sales revenue was derived from the
sale of 3,350oz (three months ended December 31, 2021: 2,873oz) of
gold at an average realized gold price of $1,753 per ounce (three
months ended December 31, 2021: $1,828per ounce). There was nil
gold prepaid delivery for the three months ended December 31, 2022
(three months ended December 31, 2021: 723oz at $1,545 per
ounce). There was no sale of gold concentrate during the quarter.
Referring to Figure 10 for revenue by quarter.
Figure 10: Selinsing Gold Mine: Revenue
Production Costs
Total production costs for the three months ended December 31,
2022 were $5.05 million as compared to $5.20 million of the same
period last year. The decrease was due to less material moved and
less ore processed.
Cash cost per ounce decreased by 17% to $1,507/oz during the three
months ended December 31, 2022 as compared to $1,810/oz in the
same period last year. The decrease was attributable to a decrease
mining and processing cost per unit, more oxide ore, and increase in
gold sale. Referring to Figure 11 for cash production costs by quarter.
Mill feed head grade was 1.14g/t Au for the three months ended
December 31, 2022 was as compared to 0.56g/t Au in the same
period last year.
Figure 11: Cash production costs by quarter
Figure 12: Production costs
Mining
Mining activities continued to focus on the Selinsing Pit 6 East, Buffalo Reef and Felda Block 7. During the three months ended December
31, 2022, several open pits supplied ore to the Selinsing Plant from Selinsing Pit 4/5/6 , Buffalo Reef and Felda Block 7.
For the three months ended December 31, 2022, mining cash cost per ounce of mining operations decreased by 25% to $545/oz from
$728/oz of last year. Mining production included 108,860t of ore (three months ended December 31, 2021: 85,209t) and 2,108,615t of
waste (three months ended December 31, 2021: 1,770,975t). Waste mined for the three months ended December 31, 2022 included
128,351t of operating waste, as compared to 980,338t of operating waste, 1,980,265t of waste cutback at Selinsing and Damar and nil
waste removed for the TSF upgrade (276,430t of cutback waste and 514,207t of TSF waste for the same period last year). Based on the0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Q3
Fiscal
2021
Q4
Fiscal
2021
Q1
Fiscal
2022
Q2
Fiscal
2022
Q3
Fiscal
2022
Q4
Fiscal
2022
Q1
Fiscal
2023
Q2
Fiscal
2023
Revenue (US$'000)0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2,000
Q3 Fiscal
2021
Q4 Fiscal
2021
Q1 Fiscal
2022
Q2 Fiscal
2022
Q3 Fiscal
2022
Q4 Fiscal
2022
Q1 Fiscal
2023
Q2 Fiscal
2023
Cash Cost (US$/oz)
Mining Processing Royalties Operations, net of silver recoveryDecember 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
Production cost breakdown ('000s) $ $ $ $
Mining 1,824 2,091 2,077 2,834
Proces s ing 2,625 2,577 2,933 3,601
Royalties 588 470 661 709
Operations , net of s ilver recovery 11 61 26 90
Total production costs 5,048 5,199 5,697 7,234
Three months ended Six months ended
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
15 | P a g e
second quarter’s mining sequence, the stripping ratio decreased to 19.37 for the three months ended December 31, 2022 as compared
to 20.78 of the same period last year. The cost of waste fill related to cutback and TSF upgrade is capital in nature and is not included in
mining operating costs. Cost per tonne mined decreased by 56% to $0.62/t from $1.40/t.
Processing
For the three months ended December 31, 2022 total processing cash costs were $2.63 million as compared to $2.58 million in the same
period last year. Processing cost per tonne was $7.72/t for the three months ended December 31, 2022 mainly for processing more
leachable sulphide ore; a 46% decrease from $14.28/t in the same period last year. Total ore processed decreased by 44% to 72,391t from
129,000t in the same period last year. Mill feed for the three months ended December 31, 2022 comprised of 27,251t oxide, 14,276t old
tailings, 21,290t leachable sulphide for oxide production, and 9,574 non leachable sulphide ore for flotation production as compared to
the following in the same period last year: 50,250t oxide, 33,745t old tailings and 45,005t leachable sulphide ore for oxide production. CIL
circuit was stopped in November while CIL tanks cleaning and carbon stripping continued. Commissioning of sulphide treatment plant
began during this quarter.
Royalties
For the three months ended December 31, 2022 total royalties increased by 25% to $0.59 million as compared to $0.47 million in the same
period of last year, due to more gold sales despite a slight decrease in average gold price and production of gold. Royalties paid are affected
by average gold spot prices and the amount of gold produced and sold in the period.
Operation expenses
For the three-month period ended December 31, 2022, no cost of maintaining idle capacity was expensed against the operations account
(three months ended December 31, 2021: nil).
Non-cash Costs
For the three months ended December 31, 2022, non-cash production expenses amounted to $1.82 million (three months ended
December 31, 2021: $1.63 million). Included therein are depreciation and amortization of $1.77 million (three months ended December
31, 2021: $1.59 million) and accretion of asset retirement obligations of $0.05 million (three months ended December 31, 2021: $0.04
million).
Six months ended December 31, 2022
For the six months ended December 31, 2022, mining operations before non-cash amortization and depreciation generated a gross margin
of $0.88 million, an increase from $0.20 million in the same period of last year. After deducting non-cash depletion and accretion of $2.13
million (six months ended December 31, 2021: $2.25 million) and operation expenses of $nil (six months ended December 31, 2021: $0.05
million), loss from mining operations was $1.24 million as compared $2.11 million in the same period last year.
Gold recovery decreased by 5% for the six months ended December 31, 2022 to 3,087oz of which 2,910oz was gold bullion and 177 oz
was gold concentrate (six months ended December 31, 2021: 3,258oz) due to a reduction in ore processed of 204,838t for the six months
ended December 31, 2022 as compared to 285,611t for the six months ended December 31, 2021 and a lower recovery of 43.8% (six
months ended December 31, 2021: 64.2%), partially offset by higher feed grade of 1.07g/t Au (six months ended December 31, 2021:
0.55g/t Au). Total cash cost per ounce sold decreased to $1,519/oz for the six months ended December 31, 2022 from $1,683/oz of the
same period last year due to decreases in mining and processing costs caused by more oxide ore while harder, low-grade leachable
sulphide material and additional Peranggih haulage costs incurred same period last year.
Sales
Gold bullion sales generated revenue of $6.58 million for the six months ended December 31, 2022 as compared to $7.43 million in the
same period last year. Gold sales revenue was derived from the sale of 3,750oz (six months ended December 31, 2021: 4,296oz) of gold
at an average realized gold price of $1,755 per ounce (six months ended December 31, 2021: $1,823 per ounce). There was nil gold prepaid
delivery for the six months ended December 31, 2022 (six months ended December 31, 2021: 1,446oz at $1,545 per ounce). There was
no sale of gold concentrate during the six months ended December 31, 2022.
Production Costs
Total production costs for the six months ended December 31, 2022 were $5.70 million as compared to $7.23 million of the same period
last year. The decrease was due to lower mining costs related to less operating waste mined and processing costs related to decrease in
ore processed.
Cash cost per ounce decreased by 10% to $1,519/oz during the six months ended December 31, 2022 as compared to $1,683/oz in the
same period last year. The decrease was attributable to the reduction in mining and processing costs due to the additional costs incurred
from Peranggih pit last year. Mill feed head grade was 1.07g/t Au for the six months ended December 31, 2022 as compared to 0.55g/t
Au in the same period last year.
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
16 | P a g e
Mining
Mining activities continued to focus on Buffalo Reef, Felda Block 7 as well as the Selinsing Pit 4 south west cutback and Pit 6 east. During
the six months ended December 31, 2022, several open pits supplied ore to the Selinsing Plant – Selinsing Pit 4/5/6, Buffalo Reef and Felda
Block 7.
For the six months ended December 31, 2022, mining cash cost per ounce of mining operations decreased by 16% to $554/oz from $660/oz
of last year, mainly due to decreased tonnage of operating waste mined this year. Mining production included 216,251t of ore (six months
ended December 31, 2021: 160,181t) and 3,708,652t of waste (six months ended December 31, 2021: 3,713,309t). Waste mined for the
six months ended December 31, 2022 included 370,502t of operating waste, 3,338,150t of waste cutback at Felda Block 7 and Buffalo
Reef, as compared to 1,849,124t of operating waste, 550,603t of waste cutback at Selinsing and 1,313,582t of waste removed for the TSF
upgrade for the same period last year. Based on the current fiscal year’s mining sequence, the stripping ratio decreased to 17.15 for the
six months ended December 31, 2022 as compared to 23.18 of the same period last year. The cost of waste fill related to cutback and TSF
upgrade is capital in nature and is not included in mining operating costs. Cost per tonne mined decreased by 27% from $1.41/t to $1.03/t.
Processing
For the six months ended December 31, 2022 total processing cash costs were $2.93 million as compared to $3.60 million in the same
period last year. Processing cost per tonne was $11.40/t for the six months ended December 31, 2022; a 11% decrease from $12.75/t in
the same period last year. Total ore processed decreased by 28% to 204,838t from 285,611t in the same period last year. Mill feed for the
six months ended December 31, 2022 comprised 39,012t oxide, 48,737t old tailings, 107,515t leachable sulphide for oxide production,
and 9,574 non leachable sulphide for flotation production as compared to the following in the same period last year: 106,755t oxide,
80,523t old tailings and 98,333t leachable sulphide for oxide production. CIL circuit was stopped in November while CIL tanks cleaning and
carbon stripping continued. Commissioning of sulphide treatment plant began during this quarter.
Royalties
For the six months ended December 31, 2022 total royalties decreased by 7% to $0.66 million as compared to $0.71 million in the same
period of last year, due to decreased of gold sale and partially offset by a higher average gold price. Royalties paid are affected by average
gold spot prices and the amount of gold produced and sold in the period.
Operation expenses
For the six-month period ended December 31, 2022, there was no idle cost incurred (six months ended December 31, 2021: 0.05 million).
Non-cash Costs
For the six months ended December 31, 2022, non-cash production expenses amounted to $2.13 million (six months ended December 31,
2021: $2.25 million). Included therein are depreciation and amortization of $2.03 million (six months ended December 31, 2021: $2.19
million) and accretion of asset retirement obligations of $0.09 million (six months ended December 31, 2021: $0.07 million).
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
17 | P a g e
3.3 Corporate General and Administrative
Figure 13: Corporate Costs (000’s)
Corporate expenses for the three months ended December 31, 2022 were $0.46 million (three months ended December 31, 2021: $0.35
million), $0.12 million higher than last year, mainly attributable to an increase in salaries and regulatory fees.
Corporate expenses for the six months ended December 31, 2022 were $0.92 million (six months ended December 31, 2021: $0.77million),
$0.15 million higher than last year, mainly attributable to an increase in salaries, travel and professional fees.
3.4 Other (Loss) Income
For the three months ended December 31, 2022, interest income was $0.09 million as compared to $0.02 million same period last year.
Interest expense was $0.06 million less than the interest expense in the same period of last year primarily because there was no gold
prepaid sale this year. The Company accrued $0.01 million of gross revenue royalty income for Q2 FY2023 (three months ended December
31, 2021: $nil).
Foreign currency exchange loss was $1.9 million as compared to $0.50 million in the same period of last year.
For the six months ended December 31, 2022, interest income was $0.16 million as compared to $0.03 million in the same period last year.
Interest expense was $0.19 million less than the interest expense in the same period of last year primarily because there was no gold
prepaid sale this year. The Company accrued $0.03 million of gross revenue royalty income (six months ended December 31, 2021: $nil).
Foreign currency exchange loss was $1.46 million as compared to $0.67million in the same period of last year.
3.5 Income Taxes
Income tax recovery for the three months ended December 31, 2022 was $0.07 million (three months ended December 31, 2021: $0.19
million) comprising of current tax expense of $nil (three months ended December 31, 2021: $0.27 million current tax expenses) and
deferred tax recovery of $0.07 million (three months ended December 31, 2021: $0.46 million).
Income tax expenses for the six months ended December 31, 2022 was $0.05 million (six months ended December 31, 2021: income tax
expenses of $0.03 million) comprising of current tax expense of $0.01 (six months ended December 31, 2021: $0.28 million current tax
expenses) and deferred tax expenses of $0.04 million (six months ended December 31, 2021: deferred tax recovery of $0.25 million).
4. LIQUIDITY AND FINANCIAL CONDITION
The Company’s principal cash requirements are working capital used for business development, general administration, property
maintenance and development, construction of gold treatment plant expansions, production operations at Selinsing and exploration. The
Company’s cash and cash equivalents as of December 31, 2022 was $12.81 million a decrease of $8.23 million from June 30, 2022. The
Company’s cash and cash equivalents primarily comprised of cash held with reputable financial institutions and are invested in cash
accounts. The funds are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet
its obligations. The Company’s restricted cash of $0.30 million (June 30, 2022: $0.30 million) represented issued letters of credit and fixed
deposits as guarantees for utilities, custom duties, and certain equipment.December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
$ $ $ $
Genera l and a dminis tration 265 174 558 433
Stock-bas ed compens a tion 2 5 4 10
Legal, a ccounting a nd a udit 79 58 144 115
Cons ulting fees 23 57 41 87
Shareholder communica tions 22 32 39 61
Tra vel 17 1 62 1
Regulatory complia nce a nd filing 41 8 46 43
Amortization 13 12 26 23
Total Corporate Costs 462 346 920 773
Three months ended Six months ended
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
18 | P a g e
Cash (used in) generated by operating activities
For the three months ended December 31, 2022, the Selinsing Gold Mine generated net cash in operating activities of $2.75 million, a cash
increase of $6.78 million as compared to a cash used of $4.02 million in the same period of previous year.
For the six months ended December 31, 2022, the Selinsing Gold Mine generated net cash in operating activities of $2.10 million, a cash
increase of $6.10 million as compared to a cash used of $4.00 million in the same period of previous year.
Cash (used in) generated by investing activities
For the three months ended December 31, 2022, cash used in investing activities of $6.08 million (Q2 FY2022: $3.74 million) represented
$ 5.75 million invested in Selinsing for sulphide project development, including the Flotation Plant construction, tailings storage facility
upgrades and cutbacks, river diversion, and stripping activities, while $0.29 million (Q2 FY2022: $0.82 million) was invested in Murchison
exploration and evaluation projects.
For the six months ended December 31, 2022, cash used in investing activities of $10.31 million (Q2 FY2022: $6.81 million) represented
$9.32 million invested in Selinsing for sulphide project development, including the Flotation Plant construction, tailings storage facility
upgrades and cutbacks, river diversion, and stripping activities, while $0.62 million (Q2 FY2022: $1.30 million) was invested in Murchison
exploration and evaluation projects.
Liquidity
Currents assets on December 31, 2022 were $24.58 million (June 30, 2022: $35.60 million). The decrease of $11.02 million was primarily
due to a decrease in cash and cash equivalents of $8.23 million, and $2.84 million lower in inventory.
Total assets on December 31, 2022 were $131.98 million (June 30, 2022: $134.03 million). The decrease of 2.05 million was due to a
decrease in the current assets described above, offset by an increase of $8.97 million in the property, plant and equipment primarily
related to the Selinsing flotation plant and mine development at Selinsing and exploration and evaluation expenditure at Murchison
project.
Current liabilities on December 31, 2022 were $5.69 million (June 30, 2022: $5.27 million). The increase of $0.41 million was primarily due
to an increase in accounts payable and accrued liabilities during the six months.
Total liabilities on December 31, 2022 were $15.01 million (June 30, 2022: $13.59 million). The increase of 1.42 million was primarily due
to an increase in accounts payable from flotation project and increase in assets retirement obligations from disturbance by flotation plant.
On December 31, 2022, current assets exceeded current liabilities by $18.89 million (June 30, 2022: $30.33 million) demonstrating a strong
net working capital position. The Company believes that this is sufficient to provide funding for shorter term items such as general
administration, property care and maintenance, planned exploration, and day-to-day production at Selinsing as well as funding the Phase
1 of the Sulphide project that is almost complete.
With respect to longer term capital expenditure funding requirements to ensure the Company’s long-term growth, the Company considers
the cash flow generated from its operations as its primary source, complimented by the equity market when necessary as a source of
funding for major capital projects. Another possible source of capital could be proceeds from the sale of non-core assets. These capital
sources will enable the Company to maintain an appropriate overall liquidity position.
5. CAPITAL RESOURCES
Capital Resources
The Company's objectives when managing capital are to safeguard its ability to continue as a going concern in order to develop and
operate its current projects and pursue strategic growth initiatives; and maintain a flexible capital structure which lowers its cost of capital.
The Company’s capital resources as of December 31, 2022 included cash and cash equivalents. The Company’s primary sources of funding
are cash flow generated from the sale of gold, gold concentrate, debt and equity financing as well as other financial arrangements that
can be reasonably considered and available to provide financial resources to the Company.
The Company continues to assess the viability of a re-start of production at Burnakura, which could potentially provide the Company with
a second source of cash flow from the Australian operations.
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
19 | P a g e
Figure 14: Commitments and Contingencies (000’s)
Lease commitments relate to future contractually obligated payments of a long-term office lease. Mineral property obligations include
exploration expenditures and levies mandated by relevant government authorities to keep tenements in good standing. Purchase
commitments are mainly related to flotation plant construction and operations carried out in Malaysia and exploration expenditure in
Western Australia.
6. OFF BALANCE SHEET ARRANGEMENTS
None.
7. TRANSACTIONS WITH RELATED PARTIES
The Company’s related parties include key management, who have authority and responsibility for planning, directing, and controlling the
activities of the Company, directly or indirectly. Members of key management include five directors (executive and non-executive), the
Chief Executive Officer (“CEO”), the Chief Financial Officer and the Vice President of Business Development who report directly to the CEO.
The remuneration of the key management of the Company, including salaries, director fees and share-based payments is as follows:
Figure 15: Key management compensation (000’s)
Amount due to related parties as at December 31, 2022 was $0.03 million (December 31, 2021: nil) relating to director fees. Directors’
fees are paid on a quarterly basis. Any unpaid amounts due to directors are recorded in accrued liabilities and are unsecured and bear no
interest.
8. SUBSEQUENT EVENTS
None
9. PROPOSED TRANSACTIONS
None
10. CRITICAL ACCOUNTING ESTIMATES
Refer to Note 3 of the unaudited condensed interim consolidated financial statements as of December 31, 2022. Estimates and judgments
are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The Company makes estimates and assumptions that affect amounts reported.
Significant estimates and areas where judgment is applied include: accounting for gold prepaid sale arrangements, purchase price
allocation and valuation of deferred exploration assets, ore reserve and mineral resource estimates, determination of useful lives for
property, plant and equipment, inventory valuation, exploration and evaluation expenditures, impairment of non-current assets, provision2023 2024 2025 2026 2027 Total
$ $ $ $ $ $
Leas e commitments 34 63 64 56 53 270
Mineral property obligations 298 594 644 661 594 2,791
Purchas e commitments
Mine Operations 1,948 48 48 40 38 2,122
Flotation Cons truction 246 - - - - 246
Total 2,526 705 756 757 685 5,429December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
$ $ $ $
Salaries 134 144 273 318
Directors ’ fees 31 34 62 67
Total compensation 165 178 335 385
Three months ended Six months ended
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
20 | P a g e
for reclamation and remediation obligations, deferred taxes, share-based payments, derivative assets and liabilities, determination of
commencement of commercial production, title to mineral properties, realization of assets, functional currency, business combinations
and own use contracts. Actual results could differ from the Company’s use of estimates and judgements.
11. CHANGES IN ACCOUNTING POLICY INCLUDING INITIAL ADOPTION
Adoption of new standards
The Company adopted Amendments to IAS 16 – Property, Plant and Equipment - Proceeds before Intended Use during the fiscal year
2023.
In 2020, the IASB issued amendments to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use, which applies to annual
periods beginning on or after January 1, 2022. These IAS 16 amendments prohibit the deduction of any net proceeds received from the
sale of products produced during the commissioning and ramp-up production period against underlying mineral property, plant and
equipment. The Company recognizes the proceeds from the sale of such products, and the cost of producing those products, in profit or
loss.
12. FINANCIAL INSTRUMENTS – RISK EXPOSURE AND OTHER INSTRUMENTS
The Company’s financial instruments are classified and subsequently measured at amortized cost and include cash and cash equivalents,
restricted cash, trade and other receivables, and accounts payable and accrued liabilities. Refer to the unaudited condensed interim
consolidated financial statements as of December 31, 2022 for the details of the financial statement classification and amounts of income,
expenses, gains, and losses associated with the relevant instruments. Details provided include a discussion of the significant assumptions
made in determining the fair value of financial instruments. The Company’s financial instruments are exposed to certain financial risks,
including market risk, credit risk, and liquidity risk as outlined below.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk is comprised of three types of risk: foreign currency risk, price risk and interest rate risk. The Company mitigates market risk
by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.
Foreign Currency risk
The Company is exposed to foreign currency risk to the extent financial instruments held by the Company are not denominated in US
dollars. The Company operates in Canada, Australia, and Malaysia whereby operations sell commodities and incur costs in different
currencies. This creates exposure at the operational level, which may affect the Company’s profitability as exchange rates fluctuate. The
Company has not hedged its exposure to currency fluctuations but is actively monitoring and managing its foreign currency risk including
hedging its exposure when necessary.
Exposure to the Canadian dollar is through corporate administration costs. The Company has exposure to the Australian dollar through
the Company’s Australian operations. The Company has exposure to the Malaysian Ringgit through the Company’s Malaysian operations.
Based on the above net exposures as at December 31, 2022 and assuming that all other variables remain constant, a 5% depreciation or
appreciation of the RM against the US dollar would result in an increase/decrease of approximately $0.24 million (December 31, 2021:
$0.10 million) in the Company’s net income, a 5% depreciation or appreciation of the CAD against US dollar would result in an
increase/decrease of approximately $0.02 million (December 31, 2021: increase/decrease $0.01 million) in net income and a 5%
depreciation or appreciation of the AUD against the US dollar would result in an increase/decrease of approximately $0.01 million
(December 31, 2021: increase/decrease $0.02 million) in net income.
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
21 | P a g e
Figure 16: Monthly USD to CAD Exchange Rates Figure 17: Monthly USD to RM Exchange Rates
Commodity price risk
The Company’s revenues and cash flows were impacted by the fluctuation of gold prices. For the six months ended December 31, 2022,
gold prices fluctuated within the range of $1,629 to $1,824 per ounce (six months ended December 31, 2021: $1,723 to $1,865 per ounce)
based on London Fix PM prices. The Company has not hedged its exposure to commodity price fluctuations.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest
rates. Generally, the Company’s interest income will be reduced during sustained periods of lower interest rates as higher yielding cash
equivalents and short-term investments mature and the proceeds are reinvested at lower interest rates. The converse situation will have
a positive impact on interest income.
To limit interest rate risk, the Company uses a restrictive investment policy. The fair value of investments of financial instruments included
in cash and cash equivalents is relatively unaffected by changes in short-term interest rates. Investments are generally held to maturity
and changes in short-term interest rates do not have a material effect on the Company’s operations.
Credit risk
The Company’s credit risk on trade receivables is negligible.
The Company is exposed to concentration of credit risk with respect to cash, cash equivalents and cash held for sale of assets. The
maximum exposure to credit risk is the carrying amounts as of December 31, 2022. An amount of $0.56 million (June 30, 2022: $0.60
million) is held with a Malaysian financial institution, $0.20 million (June 30, 2022: $0.18 million) with an Australian financial institution
and $12.05 million (June 30, 2022: $20.26 million) is held with Canadian financial institutions. To mitigate exposure to credit risk, the
Company has established policies to limit the concentration of credit risk to ensure counterparties demonstrate minimum acceptable
credit worthiness and to ensure liquidity of available funds.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity
risk through effective management of its capital structure together with budgeting and forecasting cash flows to ensure it has sufficient
cash to meet its short-term requirements for operations, business development and other contractual obligations. The Company’s cash
and cash equivalents are highly liquid and immediately available on demand for the Company’s use.1.20
1.30
1.40
Canadian dollar (CAD)
USD to CAD3.50
3.75
4.00
4.25
4.50
4.75
5.00
Malyasian Ringit (RM)
USD to RM
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
22 | P a g e
13. OUTSTANDING SHARE DATA
The following details the share capital structure as of February 25, 2023.
Figure 18: Share capital structure
(1) Of the 13.7 million RSUs granted under the RSU Plan and outstanding, 11.4 million units for $0.69 million were vested, redeemable until
February 10, 2024; 1.5 million units for $0.17 million were vested, redeemable until April 8, 2024; the remaining 0.7 million units for
$0.07 million shall be vested equally over a two-year period from February 10, 2022.
14. RISKS AND UNCERTAINTIES
Monument Mining Limited is a mineral exploration, development, and gold production company. The exploration for and development of
mineral deposits involves significant risks which even with a combination of careful evaluation, experience and knowledge may not be
eliminated. While the discovery of a mineral deposit may result in substantial rewards, few properties which are explored are ultimately
developed into production. Significant expenses may be required after initial acquisition investment to establish ore reserves, to develop
metallurgical processes and to construct mining and processing facilities at a particular site. It is impossible to ensure that the current
exploration programs planned by the Company will result in the discovery of mineral resources or a profitable commercial mining
operation, and, on an industry statistical basis, it is unlikely that an economic operation will be developed.
Whether a mineral deposit, if ever discovered, will be commercially viable depends on a number of factors, some of which are the
particular attributes of the deposit, such as size, grade, and proximity to infrastructure together with the impact on mineability and
recoverability as well as metal prices which are highly cyclical. Government regulations are a significant factor to consider, including
regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection.
The exact effect of these factors cannot be accurately predicted but the combination of these factors may result in the Company not
receiving an adequate return on invested capital.
The Company has gold production at its Selinsing gold mine. The profitability of production is dependent on various factors that may not
be controllable by the Company.
Some major risks associated with the business are, but not limited to, the following:
Title to mineral property interests
Although the Company has taken steps to verify the title to its mineral property interests in accordance with industry standards for the
current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to
administrative delays common in Malaysia, unregistered prior agreements or transfers and title may be affected by undetected defect or
litigation.
To the Company’s best knowledge, title to its mineral properties is in good standing.
Realization of assets
Mineral property interests comprise a significant portion of the Company’s assets. Realization of the Company’s investment in these assets
is dependent upon the establishment of legal ownership, obtaining permits, compliance with governmental requirements, potential
aboriginal claims as well as achieving profitable production from the properties or from the proceeds of their disposal.
Reserves and resource estimates
There is a degree of uncertainty attributable to the estimation of mineral reserves and mineral resources and the corresponding grades.
Mineral reserve and resource estimates are dependent partially on statistical information drawn from drilling, sampling, and other data.
Reserve and resource figures set forth by the Company are estimates and there is no certainty that the mineral deposits would yield the
production of metals indicated by reserve and resource estimates. Declines in the market price for metals may adversely affect the
economics of a mineral deposit and may require the Company to reduce its estimates. Changes in gold recovery rates during milling and
especially the impact of flotation and BIOX® Technology on treatment of gold sulphides may also adversely affect the viability of reserves
and resources.Common shares Quantity
Is s ued and outs tanding 326,838,233
Restricted share units (1) Quantity
13,656,796
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
23 | P a g e
Profitability from production
The profitability of mining companies depends in part, on the actual costs of developing and operating mines, which may differ significantly
from estimates determined at the time a relevant mining project was approved or ongoing projections. The development of mining
projects may also be subject to unexpected problems and delays that could increase the cost of development as well as the ultimate
operating cost of relevant projects. Monument’s decision to acquire, develop a mineral property and operate for production is based on
estimates made as to the expected or anticipated project economic returns. These estimates are based on assumptions regarding:
• future gold prices;
• anticipated tonnage, grades, and metallurgical characteristics of the ore to be mined and processed;
• anticipated recovery rates of gold extracted from the ore;
• anticipated material and spares cost associated with production, and
• anticipated capital expenditure and cash operating costs.
Actual cash operating costs, production and economic returns may differ significantly from those anticipated by such estimates.
Environmental
Environmental legislation is becoming increasingly stringent, and costs and expenses of regulatory compliance are increasing. The impact
of new and future environmental legislation that are relevant to the Company’s operations may cause additional expenses and restrictions.
If the restrictions adversely affect the scope of exploration and development on mineral properties, potential for a commercially viable
production may diminish or be negated.
The Company is subject to the laws and regulations relating to environmental matters in all jurisdictions in which it operates, including
provisions relating to property reclamation, discharge of hazardous material and other matters. The Company may also be held liable
should environmental problems be discovered that were caused by former owners and operators of its properties. Environmental liability
may still exist for properties that the Company had a prior ownership or participating interest. The Company conducts its mineral
exploration activities in compliance with applicable environmental protection legislation. The Company is not aware of any existing
environmental problems related to any of its current properties.
Additional funding for mineral property pipelines
The Company will continue to assess targets to increase its mineral resource base. Additional capital may be required from time to time
to provide funding for acquisitions and development in order to carry out its business strategy. The additional capital may come from
public markets, debt financing and cash flows generated from current production, which are largely influenced by global and regional
economies which are out of the Company’s control. Management has successfully mitigated those risks in the past through exercise of
due care, experience, and knowledge; however, those factors do not guarantee such risks will be successfully mitigated in the future.
Operation disruption caused by global pandemics
The Company’s operations involve many risks including global pandemics which are inherent to the nature of the business, global
economic trends and economic, environmental and social conditions in the geographical areas of operation. As a result, the Company is
subject to a number of risks and uncertainties, each of which could disrupt or have an adverse effect on its operating results, business
prospects or financial position. The Company continuously assesses and evaluates these risks, seeking to minimize them by implementing
high operating and health standards and processes to identify, assess, report and monitor risk across the organization.
Foreign operations
The Company's properties are located in Malaysia and Western Australia. The Company has historically received strong support from the
local, state, and federal governments for its gold mine development and operation. However, the political and country risk is considered
external and not within the control of the Company.
The Company's mineral exploration and mining activities may be affected in varying degrees by risks associated with foreign ownership
including inflation, political instability, political conditions, and government regulations. Any changes in regulations or shifts in political
conditions are beyond the Company's control and may adversely affect the Company's business. Operations may be affected by
government regulations with respect to restrictions on foreign exchange and repatriation, price controls, export controls, restriction of
earnings distribution, taxation laws, expropriation of property, environmental legislation, water use, mine safety and renegotiation or
nullification of existing concessions, licenses, permits, and contracts.
The regulations the Company shall comply with in Malaysia include, but not limited to, the Mineral Enactment Act 2001, Mineral
Development Act 2004, Environmental Quality Regulations 1978, The Planning Guideline for Environmental Noise Limit and Controls,
Factories and Machinery Act 1967, Occupational Safety and Health Act 1994, Income Tax Act 1967, Finance Act 2017, the Goods and
Services Tax Act 2014 and Employment Act 1955.
The regulations the Company shall comply with in Western Australia include, but not limited to, Mines Safety and Inspection Act 1994,
Dangerous Goods Safety Act 2004, Environmental Protection Act 1986, Corporations Act – Corporations (Western Australia) Acts 1961
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
24 | P a g e
and 1981, Income Tax – Income Tax Act 1962, Fringe Benefit Tax Assessment Act 1986, Payroll Tax Assessment 2002, Goods & Services
Act 1999, and Fair Work Act 2009.
Failure to comply with applicable laws, regulations and local practices relating to mineral rights applications and tenure could result in
loss, reduction or expropriation of entitlements, or closure of operations. The occurrence of these various factors and uncertainties cannot
be accurately predicted and could have an adverse effect on the Company's operations or profitability.
15. NON-IFRS PERFORMANCE MEASURES
This Management’s Discussion and Analysis refers to cash costs per ounce sold, weighted average gold price, all-in sustaining costs per
ounce sold (“AISC”), sustaining capital expenditures and exploration and evaluation expenditures included in AISC calculations. These are
measures with no standardized meaning under International Financial Reporting Standards (“IFRS”), i.e. they are non-IFRS measures and
may not be comparable to similar measures presented by other companies. Their measurement and presentation are intended to provide
additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS.
Cash cost per ounce sold
The Company has included the non-IFRS performance measure “cash cost per ounce sold”. This non-IFRS performance measure does not
have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other
companies. This measure is used by management to identify profitability trends and to assess cash generating capability from the sale of
gold on a consolidated basis in each reporting period, expressed on a per unit basis. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance. Accordingly,
unit cash cost per ounce of gold sold is intended to provide additional information and should not be considered in isolation or as a
substitute for performance measures prepared in accordance with IFRS. More specifically, management believes that these figures are a
useful indicator to investors and management of a mine's performance as they provide: (i) a measure of the mine's cash margin per ounce,
by comparison of the cash operating costs per ounce to the price of gold, (ii) the trend in costs as the mine matures and, (iii) an internal
performance benchmark to allow for comparison against other mines. Total cash cost includes mine site operating costs such as mining,
processing, administration, and royalties, offset by sales of silver by-product, and excludes amortization, depletion, reclamation, idle
production costs, capital costs, exploration costs and corporate administration costs.
The following table provides a reconciliation for the cash cost per ounce sold for the three and six months ended December 31, 2022 and
December 31, 2021:
Weighted average gold price
The Company reports realized weighted average gold price and also London Fix PM weighted average gold price on a gold ounce sold
basis. These non-IFRS performance measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be
comparable to similar measures presented by other companies. Realized weighted average gold price is computed gross revenue divided
by ounces of gold sold. London Fix PM weighted average gold price is calculated weighted average London Fix PM gold price on gold sales.
The Company believes that realized weighted average gold price provides additional information of gross revenue on a gold ounce sold
basis, which is compared to London Fix PM weighted average gold price as market benchmark.
All-in sustaining cost per ounce
The Company reports all-in sustaining costs (“AISC”) on a gold ounce sold basis. This performance measure has no standardized meaning
and may not be comparable to similar measures presented by other issuers or used as a substitute for performance measures prepared
in accordance with IFRS. The Company follows the guidance announced by the World Gold Council (“WGC”) in September 2013 and
updated in November 2018. The WGC is a non-profit association of the world’s leading gold mining companies established in 1987 to
promote the use of gold to industry, consumers, and investors. The WGC is not a regulatory body and does not have the authority to
develop accounting standards or disclosure requirements. The WGC has worked with its member companies to develop a measure that
expands on IFRS measures such as operating expenses and non-IFRS measures to provide visibility into the economics of a gold mining
company. All-in sustaining costs are calculated by taking total cash costs and adding sustaining capital expenditures, corporate
administrative expenses at the Selinsing Gold Mine including share-based compensation, exploration and evaluation costs, and accretion
of asset retirement obligations. Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce
production at the Selinsing Gold Mine and exclude all expenditures for major growth or infrastructure projects and non-producing projects.(In thousands of US dollars, except where noted) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021
Production costs 5,048 5,199 5,697 7,234
Divided by ounces of gold s old (oz) 3,350 2,873 3,750 4,296
Total cash cost (US$/oz) 1,507 1,810 1,519 1,683
Three months ended Six months ended
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
25 | P a g e
Certain other cash expenditures, including tax payments and acquisition costs, are also excluded. The Company believes that this measure
represents the total costs of producing gold from current operations and provides the Company and other stakeholders of the Company
with additional information of the Company’s operational performance and ability to generate cash flows.
The following table provides reconciliation for AISC of production at the Selinsing Gold Mine for the three and six months ended December
31, 2022 and December 31, 2021:
16. DISCLOSURE CONTROLS AND INTERNAL CONTROLS OVER FINANCIAL REPORTING
Disclosure controls and procedures
Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported
to senior management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”) on a timely basis so that
appropriate decisions can be made regarding public disclosure.(In thous ands of US dolla rs , except where noted) December 31, 2022 December 31, 2021 December 31,
2022 December 31, 2021
Production cos ts 5,048 5,199 5,697 7,234
By-product s ilver recovery 2 1 4 2
Opera tion expens es 0 - 0 48
Corporate expens es 6 25 32 30
Accretion of a s s et retirement obliga tion 46 37 92 69
Explora tion a nd eva luation expenditures 177 135 177 150
Sus taining capital expenditures 171 769 171 1,553
All-in sustaining costs 5,450 6,166 6,173 9,086
Divided by ounces of gold s old (oz) 3,350 2,873 3,750 4,296
All-in sustaining costs per gold ounce sold (US$/oz) 1,627 2,146 1,646 2,114
Three months ended Six months ended
MANAGEMENT’S DISCUSSION & ANALYSIS
For the three and six months ended December 31, 2022
(in United States dollars, except where noted)
26 | P a g e
CAUTION ON FORWARD LOOKING STATMENTS
All statements, other than statements of historical fact, contained or incorporated by reference in this Management’s Discussion and
Analysis, but not limited to, any information as to the future financial or operating performance of Monument, constitute ‘‘forward-looking
information’’ within the meaning of Canadian securities legislation and ‘‘forward-looking statements’’ within the meaning of the United
States Private Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). These statements are based
on expectations, estimates and projections as of the date of this Management’s Discussion and Analysis. Forward-looking statements
include, without limitation, statements with respect to: possible events; estimates of construction, commissioning and production of the
gold treatment plant at Selinsing Gold Mine Project; exploration results and budgets; mineral reserve and resource estimates; capital
expenditures; strategic plans; proposed financing transactions; the timing and amount of estimated future production; costs of production;
mine life; success of exploration, development and mining activities; permitting timelines; estimates of fair value of financial instruments;
currency fluctuations; requirements for additional capital; government regulation and permitting of mining operations and development
projects; environmental risks; unanticipated reclamation expenses; litigation, title disputes or other claims; and limitations on insurance
coverage. The words ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘is expected’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’,
‘‘guidance’’, ‘‘targets’’, ‘‘models’’, ‘‘intends’’, ‘‘anticipates’’, or ‘‘does not anticipate’’, or ‘‘believes’’, or variations of such words and phrases
or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘should’’, ‘‘might’’, or ‘‘will be taken’’, ‘‘occur’’ or ‘‘be
achieved’’ and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by Monument as of the date of such statements, are inherently subject to
significant business, political, economic, and competitive uncertainties and contingencies. The estimates and assumptions of Monument
contained or incorporated by reference in this Management’s Discussion and Analysis, which may prove to be incorrect, include, but not
limited to, the various assumptions set forth herein, or as otherwise expressly incorporated herein by reference as well as: (1) there being
no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to
equipment or otherwise; (2) permitting, development, operations, expansion and acquisitions at Malaysia (including, without limitation,
land acquisitions for and permitting and construction of new tailings facilities) being consistent with our current expectations; (3)
development of the Phase IV plant expansion on a basis consistent with Monument’s current expectations; (4) political developments in
Malaysian jurisdiction in which the Company operates being consistent with its current expectations; (5) the exchange rate between the
Canadian dollar, Malaysian ringgit, Australian dollar and the U.S. dollar being approximately consistent with current levels; (6) certain price
assumptions for gold; (7) prices for natural gas, fuel oil, electricity and other key supplies being approximately consistent with current
levels; (8) production and cost of sales forecasts for Selinsing operations meeting expectations; (9) the accuracy of current mineral reserve
and mineral resource estimates for the Company and any entity in which it now or hereafter directly or indirectly holds an interest; (10)
labour and materials costs increasing on a basis consistent with Monument’s current expectations; (11) outcomes and costs of ongoing
litigation. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking
statements. Such factors include, but not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold
or certain other commodities (such as diesel fuel and electricity); changes in interest rates that could impact the mark-to-market value of
outstanding derivative instruments; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-
market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments
in Canada, Malaysia, Australia or other countries in which the Company conducts business or may carry on business in the future; business
opportunities that may be presented to, or pursued by, the Company; the Company’s ability to successfully integrate acquisitions; operating
or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration
and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse
changes in our credit rating; and expected costs, developments and outcomes of ongoing litigation and other contests over title to
properties,. In addition, there are risks and hazards associated with the business of gold exploration, development, and mining, including
environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding, and gold bullion losses (and
the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies
can affect, and could cause, Monument’s actual results to differ materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, Monument. There can be no assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided
for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking
statements made in this Management’s Discussion and Analysis are qualified by these cautionary statements and those made in our other
filings with the securities regulators of Canada including, but not limited to, the cautionary statements made in the ‘‘Risk Factors’’ section.
These factors are not intended to represent a complete list of the factors that could affect Monument. Monument disclaims any intention
or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent occurrence of
events and such forward-looking statements, except to the extent required by applicable law.
Other information
Where we say ‘‘we’’, ‘‘us’’, ‘‘our’’, the ‘‘Company’’, or ‘‘Monument’’ in this Management’s Discussion and Analysis, we mean Monument
Mining Limited and/or one or more or all of its subsidiaries, as may be applicable.

[romara]

Sorry my error. tried to send latest MD&A... but failed .....   Richard