Gross Revenue of $91.3 M with Cash Cost of $400/Oz and EPS of $0.14
VANCOUVER, Oct. 1, 2013 /CNW/ - Monument Mining Limited (TSX-V: MMY and
FSE: D7Q1) "Monument" or the "Company" today announced its annual
financial results for the year ended June 30, 2013. All amounts are in
thousands of United States dollars unless otherwise indicated (refer to
www.sedar.com for full annual financial results).
Fiscal 2013 Highlights:
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Record gold production of 52,982 oz (19% increase) produced at an
average cash cost of $400/oz;
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Gross revenue increased by 48% to $91.28 million(3), generated from gold sales of 57,905 ounces ("oz");
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Net income attributable to shareholders of $32.84 million or $0.14
earnings per share ("EPS");
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Eliminated debt by retiring outstanding convertible notes;
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Acquired rights to 3,920 acres of FELDA exploration property adjacent to
existing resources at Selinsing and Buffalo Reef;
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Acquired the outstanding 30% of Mengapur Polymetallic Project
("Mengapur") resulting in 100% ownership; and
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Drilled 374 holes (36,917 metres) on Selinsing area properties and 147
holes (33,458 metres) at Mengapur.
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Fourth Quarter and Fiscal 2013 Production and Financial Highlights
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Three months ended June 30
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Year ended June 30
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2013
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2012
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2013
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2012
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Production
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Gold production(1) (ounces)
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12,919
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10,327
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52,982
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44,585
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Gold sold(3) (ounces)
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21,500
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8,500
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57,905
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36,938
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Financial
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$'000
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$'000
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$'000
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$'000
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Revenue
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30,507
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13,801
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91,276
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61,709
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Net income before other items attributable to shareholders
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14,937
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7,394
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48,385
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40,530
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Net income attributable to shareholders
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15,060
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13,560
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32,838
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59,561
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Cash flow from operations
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27,369
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7,710
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54,754
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43,268
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Working capital excluding derivative liabilities
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62,366
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31,131
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62,366
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31,131
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EPS before other items - basic
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$0.05
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$0.04
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$0.21
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$0.22
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EPS - basic
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$0.05
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$0.08
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$0.14
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$0.33
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Other
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$/oz
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$/oz
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$/oz
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$/oz
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Average realized gold price per ounce sold
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1,419
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1,624
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1,576
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1,671
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Cash cost per ounce⁽2⁾
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Mining
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125
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61
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112
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54
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Processing
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224
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149
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207
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140
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Royalties
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49
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97
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78
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107
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Operations, net of silver recovery
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1
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9
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3
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5
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Total cash cost per ounce
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$399
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$316
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$400
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$306
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(1)
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Defined as good delivery gold bullion according to London Bullion Market
Association ("LBMA"), net of gold doŕe in transit and refinery
adjustment
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(2)
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Total cash cost includes production costs such as mining, processing,
tailing facility maintenance and camp administration, royalties, and
operating costs such as storage, temporary mine production closure,
community development cost and property fees, net of by-product
credits. Cash cost excludes amortization, depletion, accretion
expenses, capital costs, exploration costs and corporate administration
costs.
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(3)
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Gold sales in the fourth quarter of fiscal 2013 included $11 million
(7,228 oz) of gold released from the restricted metal account.
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Production Results
Gold production for fiscal 2013 was 52,982 oz of gold, an increase of
19% compared to 44,585 oz in 2012. Gold production for the fourth
quarter was 12,919 oz of gold, an increase of 25% compared to 10,327 oz
for the same period of fiscal 2012. These increases are a result of
increased plant throughput upon completion of the Phase III gold plant
expansion in the first quarter of fiscal 2013.
For fiscal 2013 Monument sold 57,905 oz of gold at an average realized
price of $1,576/oz (Fiscal 2012 - $1,671/oz), of which 50,677 oz was
from current year production (Fiscal 2012 - 36,938 oz). The balance of
gold sales in the fourth quarter of fiscal 2013 was 7,228 oz,
representing gold released from the restricted metal account upon
conversion of the convertible notes. During the fourth quarter Monument
sold 21,500 oz of gold (Q4, 2012 - 8,500 oz) at an average realized
price of $1,419/oz (Q4 2012 - $1,624/oz), of which 14,272 oz was from
the current quarter's production, net of change in gold inventory.
Financial Results and Discussion
Revenue of $91.28 million for fiscal 2013 was 48% higher than $61.71
million for 2012. The increase was primarily due to increased gold
sales (57,905 oz versus 36,938 oz), partially offset by a lower average
realized gold price year over year ($1,576/oz versus $1,671/oz).
Revenue for the fourth quarter was $30.51 million, 121% higher compared
to $13.80 million in 2012.
Cash costs per ounce sold for fiscal 2013 and the fourth quarter were
$400 and $399 respectively, compared to $306 and $316 for the
corresponding periods last year. The increased cash cost per ounce is
mainly due to a combination of lower head grades and rising costs on a
per ounce basis. The mining contract was renewed this fiscal year for
another two years with an increased rate of approximately 25% compared
to the prior contract. Processing costs per ounce were also higher due
to the anticipated lower feed grades and recoveries. Ore processed in
fiscal 2013 included the blending of sulfide ores with oxide ore, in
contrast to previous periods where the Company had only processed oxide
ore.
Income before other items was $48.39 million for fiscal 2013 compared to
$40.53 million in 2012. The increase in income before other items is
attributable to the higher gross margin generated from the Selinsing
gold mine, partially offset by an increase in corporate expenditure.
Net income attributable to common shareholders for fiscal 2013 was
$32.84 million ($0.14 per share - basic) compared to $59.56 million
($0.33 per share - basic) for 2012. The decrease in 2013 was caused by
an adverse movement in other income/loss compared to 2012 due to a
number of one-off items, including the early retirement of convertible
notes, buyout of the gold inducement options, impairment losses and a
legal settlement.
Cash provided from operating activities was $54.75 million compared to
$43.27 million for the previous year. The difference was mainly due to
higher production in 2013 and the timing of gold sales. Working
capital as at June 30, 2013 was $62.37 million (2012: $31.13 million).
The increase of working capital, excluding derivative liabilities, was
mainly attributable to cash proceeds generated from operations and the
private placements completed during the year, offset by investment and
exploration in mineral properties.
Acquisitions
In December 2012 the Company acquired the remaining 30% of the shares of
Monument Mengapur Sdn. Bhd. ("MMSB") from Malaco Mining Corporation
("Malaco"), the previous vendor of Mengapur for consideration of $23.46
million, comprised of $16 million in cash and $7.46 million allocated
to the acquisition from legal settlement. As a result of this
acquisition, Monument now holds 100% of Mengapur.
In April 2013 Monument finalized an agreement to explore and develop 14
blocks totaling 3,920 acres owned by the Federal Land Development
Authority ("FELDA") of Malaysia. These FELDA lands are generally located east and south of the existing Selinsing tenements and will
allow additional exploration, infill drilling and development of the
Buffalo Reef Central, Buffalo Reef South, and Selinsing resources.
This agreement allows Monument a chance to grow the resources at the
site utilizing the existing facilities to sustain the mining and
processing operations well into the future. Exploration drilling began
on the FELDA lands during the fourth quarter of fiscal 2013.
Exploration Progress
In May 2013, Monument announced an updated NI 43-101 resource estimate
for its Selinsing and Buffalo Reef properties. Estimated at August 31,
2012, the proven and probable reserves are 222.9 thousand ounces
("koz") of gold from 4,890 kilotonnes (kt) of material at a grade of
1.4 grams of gold per tonne (g/t). These reserves are within a newly
estimated measured and indicated resource of 289.4 koz of gold from
6,307 kt of material at a grade of 1.4 g/t. The inferred resource at
Selinsing and Buffalo Reef is an additional 48.0 koz of gold from 1,070
kt of material at a grade of 1.4 g/t. ("Selinsing Gold Mine and Buffalo
Reef Project Expansion", Mark Odell, P.E., Practical Mining LLC, May
23, 2013).
During fiscal 2013 a total of 374 holes totaling 36,917 metres of
drilling was completed at the Selinsing area properties. Drilling was
completed north, south and beneath the Selinsing pit and on Buffalo
Reef resource areas. Drilling focused on defining mineralization at
depth below the existing pits, within gap zones in between the known
resources that contain little drill hole information, and to convert
inferred materials to indicated and/or measured materials. These drill
results will be incorporated into future resource updates. Exploration
will continue at the Selinsing area properties during fiscal 2014.
During fiscal 2013 Monument drilled 33,458 metres in 147 holes at the
Mengapur project. The completed drill holes tested most of the sulfide
mineralized zone included in the historical resource and included the
overlying oxide and transitional (enrichment) zones. The Mengapur
drilling program was completed to support an updated NI 43-101
Preliminary Economic Assessment ("PEA") compliant resource report,
targeted for completion by December 2013. The drilling was also
carried out to assist with the design of the sulfide mining plan and
for collection of representative samples for metallurgical testing that
will be utilized to assess the requirements of the proposed processing
facilities.
Corporate Financing
On February 15, 2013, the $7.65 million (CAD$8.00 million) convertible
notes were fully converted to 20,000,000 common shares and 20,000,000
warrants of the Company under an early retirement of debt arrangement.
During fiscal 2013, a brokered private placement was closed for gross
proceeds of C$22.25 million by issuing 44,500,000 common shares at
CAD$0.50 per share. The placement was priced at a 20% premium to
market. The proceeds of the placement will be applied to fund
development of Mengapur and general working capital.
On September 30, 2013, Veris paid $0.45 million of the outstanding loan
and accrued interest amounts, and agreed to register security before
October 15, 2013, for the net unpaid amount. The security to be
provided is a first priority claim against Veris' Ketza River property
located in Yukon, Canada. Veris has further undertaken to pay all
remaining balances on or before December 31, 2013.
Outlook
"We have one of the lowest cost gold mines in the world, a large
polymetallic project in development and a highly prospective
exploration portfolio for future growth" remarked President and CEO
Robert Baldock. "Our goal for the year ahead is cautious steady growth
in line with the economic envelope within which we operate".
About Monument
Monument Mining Limited (TSX-V:MMY, FSE:D7Q1) is an established Canadian
gold producer that owns and operates the Selinsing Gold Mine in
Malaysia, with production cash costs among the lowest in the world. Its
experienced management team is committed to growth and is advancing
several exploration and development projects in Malaysia, including the
development stage, Mengapur Polymetallic Project. The Company employs
330 people in Malaysia and is committed to the highest standards of
environmental management, social responsibility, and health and safety
for its employees and neighboring communities.
Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 910- 688 West Hastings Street
Vancouver B.C. Canada V6B 1P1
"Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
Forward-Looking Statement
This news release contains forward-looking statements about Monument
Mining Limited ("Monument"), its business and future plans.
Forward-looking statements are statements that are not historical facts
and include the timing of the proposed programs and events. The
forward-looking statements in this news release are subject to various
risks, uncertainties and other factors that could cause actual results
or achievements to differ materially from those expressed or implied by
the forward-looking statements. These risks and certain other factors
include, without limitation, the estimated cash cost per ounce of gold
production and the estimated cash flows which may be generated from the
operations, general economic factors and other factors that may be
beyond the control of Monument; statements regarding the future price
of gold; the estimation of mineral resources; conclusions of economic
evaluation (including scoping studies); the realization of mineral
resource estimates; the timing and amount of estimated future
production, development and exploration; costs of future activities;
capital and operating expenditures; success of exploration activities;
mining or processing issues; currency exchange rates; government
regulation of mining operations; and environmental risks. Generally,
forward-looking information can be identified by the use of forward-
looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
general business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration activities;
foreign operations risks; other risks inherent in the mining industry
and other risks described in the annual information form of the
Company, which is available under the profile of the Company on SEDAR
at www.sedar.com. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward- looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
SOURCE Monument Mining Limited
