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Monument's
2011 First Quarter Results
Gross
Revenue of $10 M from 8,860 Oz Gold Sales at Cash Cost $202/Oz
Vancouver, B.C. Monument Mining Limited (TSX-V:
MMY and FSE: D7Q1) "Monument" or the "Company" today
announces its first quarter financial results for the period ended
September 30, 2010. All amounts are in United States dollars unless
otherwise indicated (refer to http://www.sedar.com/ for Q1 results).
First Quarter Highlights include:
� Gross Revenue of $10.9 million generated from
gold sales of 8,650 ounces at an average price of $1,265 per ounce;
� Gold production of 9,050 ounces produced at
average cash cost
of $202 per ounce; of which 4,183 was attributed to
September 2010 when commercial production was achieved;
� A positive net working capital of $25.7 million
resulted from gold sales and the close of the $12.6 million financing
(CAD13 million);
� Extended land position of 32,000 acres from Famehub acquisition; and
� $3.3 million drilling programs initiated across
the Company's Malaysian properties targeting progressive increase in gold
resources.
The Company's Chief Financial Officer, Ms. Cathy
Zhai stated: "We are proud of our first
quarter commercial production that has produced significant income and a
strong positive cash flow. Production also shows very low costs compared
to industry. At current gold prices, we believe the Company will have
sufficient cash resources from operations to finance its capital
intensive programs, which are underway."
Production
Statistics
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June 30, 2010
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July - August 2010
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September 30, 2010
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Total
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Ore Mined (tons)
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662,330
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116,612
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86,539
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865,481
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Ore Processed (tons)
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272,120
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60,865
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28,969
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361,954
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Ore Stockpiled (tons)
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387,545
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443,331
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499,588
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499,588
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June 30, 2010
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July - August 2010
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September 30, 2010
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Total
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Gold produced (oz)
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13,793
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4,867
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4,183
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22,843
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Gold Sold (oz)
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13,793
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3,500
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5,150
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22,443
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Revenue (in 000's)
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16,316
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4,337
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6,611
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27,264
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Cash Cost/oz
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226
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186
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212
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217
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Financial
Discussion
September 2010 operation, the first month of commercial production
in Q1, 2011, generated an income of $4,515,822, offset mainly by changes
in fair value of derivative liabilities of $3,428,021 estimated using
Black Schole financial model, which together with
foreign exchange loss of $306,405 resulted in a net income of $710,295
for the first quarter of fiscal 2011.
Gold
sales for the first quarter of fiscal 2011 amounted to $10,948,140. The
Company produced 9,050 ounces of gold and sold 8,650 ounces of gold at an
average realized price of $1,265 for the quarter ended September 30,
2010. Gold sales for July and August of $4,336,646 were capitalized
against the Selinsing Gold Property. As at
September 1, 2010, the Company completed the commissioning of the CIL
circuit and commenced full commercial production. Reported gold sales for
the month of September were $6,611,494 from 5,150 ounces sold.
Cash
cost of goods sold for the first quarter of fiscal 2011 amounted to
$1,743,308 or $202/oz and for the month of September 2010 it was
$1,090,945 or $212/oz. September's costs comprised primarily of direct
production costs of $755,012, royalties of $324,889 and $13,362 related
to environment costs and property fees. This was offset by silver
by-product sales of $2,318. Production costs have been relatively stable
with an overall average cash cost per ounce of $210.
Other operating expenses included amortization,
depletion and accretion of $82,682 for the month of September. Depletion
began in September 2010, in conjunction with the commencement of
commercial production.
Financing
Activities
The financing of total $12,6
million (CAD$13 million) closed on August 11, 2010, with an overallotment
of CAD$1 million totaling CAD$13 million comprised of the private
placement of $7,774,400 (CAD$8,000,000) in convertible notes (the
"Notes") and a $4,859,000 (CAD$5,000,000) forward sale of gold
(the "Forward Sale").
The funds are to be used for the planned exploration programs;
closing acquisition of a prospective exploration property adjacent to the
Selinsing gold project where the Company's gold
treatment plant is located; and for the gold treatment plant extension
with a second mill. With the additional funding, the Company expects
to be able to increase gold resources and enhance gold production through
increased plant throughput. Up to the reporting date as of September
30, 2010, the Company has spent $1,457,700 (CAD1,500,000)
on Famehub acquisition and commenced $3.3
million exploration programs funded through this financing.
Monument Mining
Limited
Canadian based
Monument Mining Limited has two wholly-owned principal properties: Selinsing Gold Mine Project ("Selinsing");
and Damar Buffalo Reef Prospect ("Buffalo Reef");
which are located in Pahang State in the Central Gold Belt District of
Malaysia. In addition, the Company recently acquired the Famehub properties comprising 32,000 acres of highly
prospective exploration land.
In conjuction with
extensive exploration programs at Selinsing,
Buffalo Reef and the Famehub properties, the Selinsing Gold Mine is scheduled to produce
approximately 40,000 ounces of gold in its first year at an estimated
average operating cash cost of approximately $317 per ounce with an
initial five year mine life. The gold treatment plant has a current
capacity of 400,000 tpa with a proposed
capacity expansion through the addition of an additional milling circuit
to the existing plant.
Please visit our website at http://www.monumentmining.com/ for more information.
Robert F. Baldock,
President and CEO
Monument Mining Limited
Suite 490- 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 different 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 activi ty, 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, rea ders 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.
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