Majestic Gold Corp. V.MJS

technical report SRK for fundamentals

[richard45161]

https://majesticgold.com/projects/mining/technical-report/
https://majesticgold.com/site/assets/files/4515/srk-report-on-songjiagou-gold-project-to-majestic-gold.pdf
.Pdf page 144 - 146

I highly recommend to look on the SRK report to view the highlighted sections and or other provieded info there.



Table 20-3: Cash Flow Calculation for SJG Open-Pit Mine (million RMB) //.pdf page 145


sales revenue - Gold price RMB g/t= 310 long-term forecasts
2024 - 347 (47,73 USD)
2025 - 628 (86,39 USD)
2026 - 1,271  (174,84 USD)

sales revenue - Gold price RMB g/t= 570 current price*
2024 - 613 (84,33 USD)
2025 - 1,271 (152,56 USD)
2026 - 2,245  (308,83 USD)

Gold sales revenue is spposed to be doubled in 2025 and doubled again in 2026 from previous year

 

Table 20-7: Summary of Overall Economic Analysis // .pdf page 146

Payable gold kg= 23,981

Gold price RMB g/t= 310 long-term forecasts

Sales revenue million RMB= 7,956 (incl. suphur sales)
Sales revenue million USD ~ 1,09 


WITH CURRENT GOLD PRICE*

Payable gold kg= 23,981  = 23981000g

Gold price RMB g/t= 570 current price*

Sales revenue RMB= 13.669.170.000 (only gold)
Sales revenue USD ~ 1.880.396.637,22 

*https://www.kitco.com/price/fixes/shanghai-benchmark

Gold sales revenue over the LOM (Life of the Mine) 2023-2031 is 1.090.000.000 USD (RMB g/t= 310) to 1.880.396.637,22 (RMB g/t= 570)

Gold sale revenue is projected to be between 1.09 Billion USD (RMB g/t= 310) to 1.88 Billions USD (RMB g/t= 570) from 2023 to 2031.

[richard45161]

corporate presentation page 11 https://majesticgold.com/site/assets/files/4092/20240524-mjs-corporate-presentation.pdf SRK report pdf. page 89 https://majesticgold.com/site/assets/files/4515/srk-report-on-songjiagou-gold-project-to-majestic-gold.pdf The gold grade is much lower, which explains the lower production compared to the SRK report. A lot of waste rock is still being processed. The

[auburn2]

Grade mined in the report is way above what the presentation and MD&A says. "Phase 2 of the SJG Open-Pit Mine expansion program is in progress with the completion of benches at levels +117m ASL, +105m ASL, +93m ASL and +81m ASL and with current expansion work focused on the completion of the benches at +69m ASL and +57m ASL in FY2024, followed by the completion of the +45m ASL bench in

[auburn2]

NPV-10 in the report, using 1.17 g/t Au is about US$400 million, which will come down dramatically if computed with the ~0.5 g/t Au grade they are actually forecasting.

[richard45161]

From what we know, the gold grade is there. The explanation why the gold grade is diluted is "During both years, ore through-put will be blended with lower grade material recovered during the expansion work." As soon as this stops, gold grade will recover/raise to the stated levels from SRK report Mine expansion was originally planned to reach 80k ozs by 2024. SRK report from 06.23

[auburn2]

You don't think they should have devised their mine plan with the expertise of SRK? Can you name another situation where management decided to diverge so dramatically from the technical report? When are they intending to be adhering to the report and producing an average grade of 1.17 g/t Au? Certainly the cash flow figures you cited and boasted about are not going to be realized for while

[auburn2]

"During both years, ore through-put will be blended with lower grade material recovered during the expansion work." Exactly, so why are you boasting of revenue doubling in 2025 when you know full well most of the grade is projected to be around 0.5 g/t Au still in 2025? Latest MD&A says: "Gold production was 7,942 ounces for the first quarter of FY2024, from 493,548 tonnes of

[richard45161]

"During both years, ore through-put will be blended with lower grade material recovered during the expansion work." Exactly, so why are you boasting of revenue doubling in 2025 when you know full well most of the grade is projected to be around 0.5 g/t Au still in 2025? Latest MD&A says" Easy tiger, dont forget that iam not responsible for the MGM or the company! I am

[Freddy1989Germa]

I find this very interesting, but why is high-grade ore being mixed with the “overburden” from the expansions in 2024 and 2025 - is there a particular reason for this?   Or is it a way to extend the life of the mine and hold back the good ore?