Monument
Reports First Quarter of Fiscal 2013 Results
Gross Revenue of
$20.8M with Cash Cost $333/Oz and EPS $0.05
Monument Mining
Limited (TSX-V: MMY and FSE: D7Q1) �Monument� or the �Company� today announces
its first quarter financial and operating results for the three months ending
September 30, 2012 and provides an update of activities. All amounts are in
United States dollars unless otherwise indicated (refer to www.sedar.com for Q1 full financial
results).
First Quarter Highlights include:
-
Gross revenue of $20.8 million generated from gold sales of 12,552 ounces
at an average price of $1,658 per ounce, 44% increase in gross revenue
from the corresponding quarter of fiscal 2012;
- Gold
production of 10,906 ounces produced at an average cash cost of $333 per
ounce;
-
Net profit before other items and before taxes of $13.2 million, 33% higher
than in Q1 2012;
- Net
income attributable to shareholders of $10.8 million or $0.05 per share;
and
- Completed
Selinsing gold treatment facility expansion,
increased gold treatment capacity to 1,000,000 tonnes
per annum (�tpa�) from 400,000 tpa.
- Fast
track in exploration programs at Selinsing and Mengapur projects.
First Quarter 2013 Operating Results
|
Three months ended
September 30
|
|
2012
|
2011
|
Ore mined (tonnes)
|
101,654
|
124,736
|
Ore processed (tonnes)
|
224,643
|
86,343
|
Average mill feed
grade (g/t)
|
1.98
|
4.53
|
Processing recovery rate
|
85.6%
|
95.1%
|
Gold recovery (oz)
|
12,240
|
11,959
|
Gold produced (oz)
|
10,906
|
11,846
|
Gold sold (oz)
|
12,552
|
8,372
|
|
|
|
Gold recovery from the Selinsing gold processing
plant for the first quarter ended September 30, 2012 was 12,240 ounces, a 2.3%
increase compared to 11,959 ounces for the same period of fiscal 2012 mainly
due to increased through put by adding primary ball
mill which is running at designed capacity with a 95.6% availability rate. This
was partially offset by processing low grade materials at lower recovery rate
of 85.6% compared to 95.1% in the same period of fiscal 2012 as ore mined has
reached a transition zone from oxide to sulfide materials. Gold production
(defined as good delivery gold bullion according to London Bullion Market
Association (�LBMA�)), net of gold dore in transit
and refinery adjustment, was 10,906 ounces of gold, compared to 11,846 ounces
for the same period of fiscal 2012.
First Quarter 2013
Financial Results and Discussion
|
|
Three months ended
September 30
|
|
|
2012
|
2011
|
|
Revenue (in 000's)
|
$20,805
|
$14,430
|
|
Income before other
items attributable to shareholders (in 000�s)
|
$13,228
|
$9,925
|
|
Earnings per Share
(Basic) before other income
|
$0.06
|
$0.06
|
|
Net income
attributable to shareholders (in 000�s)
|
$10,834
|
$11,176
|
|
Earnings per Share (Basic)
|
$0.05
|
$0.06
|
|
Cash flow from
operations (in 000�s)
|
$8,938
|
$9,995
|
|
Working capital
excluding derivative liabilities (in 000�s)
|
$54,354
|
$74,972
|
Cash cost (US$/oz.)
���1���
|
|
|
Mining
|
85
|
54
|
Processing
|
178
|
152
|
Royalties
|
72
|
86
|
Operations, net of silver recovery
|
(2)
|
5
|
Total cash cost
(US$/oz)
|
333
|
297
|
|
|
|
|
(1)
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.
Revenue for Q1 2013 was 44% higher than that in Q1 2012 as a result of higher
volume of gold sales due to timing of sales partially offset by lower realized
average gold price ($1,658 per ounce vs. $1,724 per ounce). The increase
in cash cost per ounce from $297 per ounce to $333 per ounce was mainly due to
higher mining and processing costs partially offset by lower royalty
costs. Mining costs increased in Q1 2013 as the mining contract was
renewed with the same mining contractor during the quarter with a 25% increase
reflecting market adjustment. Furthermore, hauling costs were also higher
this quarter, due to the reclamation of about 200,000 tonnes
of low grade ore. Processing costs were higher during Q1 2013 mainly as a
result of increased volume of sulphidic ore processed
during the quarter, leading to lower recovery and thus increased processing
cost per ounce of gold produced. Decrease in royalty cost per ounce in Q1 2013
was mainly due to the average gold spot price of $1,652 applied in calculating
royalty payment which was lower than the average sale price of $1,724 applied
in calculating the royalty payment in the same quarter of fiscal 2012.
For the period ended September 30, 2012, the net income attributable to
shareholders was $10,833,682, or $0.05 per share (basic) compared to
$11,176,073, or $0.06 per share (basic) in the corresponding quarter for fiscal
2012. The decrease of $0.01 in earnings per share in the first quarter of
fiscal 2013 is mainly due to derivative losses under other income (loss) as a
result of change of fair value of derivative liabilities estimated based on selected
financial models and assumptions associated to related commodity price or share
price at the market as required by IFRS, the applicable accounting standards.
The net income before other income (loss) and before taxes attributable to
shareholders was $13,228,091, or $0.06 per share for the first quarter of
fiscal 2013; and $9,925,103, or $0.06 per share for the corresponding quarter
of fiscal 2012.
Cash provided from operating activities before change in working capital items
was $15,651,797 compared to $11,127,871 from the same period in fiscal
2012. Strong cash flow during the first quarter was generated from gold
production offset by increase in accounts receivables due to timing of
collection of payment from gold sales at the end of the reporting period.
The decrease of working capital excluding derivative liabilities was mainly
resulted from using cash on hand to complete the acquisition of the Mengapur project in Q3 of fiscal 2012.
Exploration and Mine
Development
The drilling and assay program at adjacent areas to
the existing Selinsing pit is ongoing with positive
results released in a November 21, 2012 press release. The fiscal 2013
exploration programs focus on finding additional oxide and sulfide ores
adjacent to the existing pit development areas; extending known mineralization
north and south of the Selinsing open pit along
strike, as well as testing the down dip mineralization extensions adjacent to
the resource pit shells. Three exploration drills are currently operating at Selinsing and Buffalo Reef. At Selinsing
and Buffalo Reef during Q1 of fiscal 2013, 122 drill holes totaling 9,485 drill
meters were completed consisting of 32 diamond drill holes for 5,018 meters and
90 RC holes for 4,467 meters. An updated NI43-101 resource estimation is being
calculated and is pending.
Permits to mine over several mining leases at Buffalo Reef were extended during
the first quarter for duration of two years commencing May 2012. The permits
cover the Buffalo Reef ore bodies, tailing storage facilities and the waste
dump for Selinsing and Buffalo Reef operations. The
site clearance and pre-stripping were undertaken for preparation of first open
pit at the Buffalo Reef. During the three months ended September 30, 2012 mine
development incurred costs of $200,757 including site clearing and waste
removal in preparation for mining activities. Mining activities commenced in
November 2012 and processing of Buffalo Reef oxide ore is on track to commence
in January 2013.
At Mengapur construction of the new core shed is
almost complete and the preparation laboratory upgrading is underway. Q1 of
fiscal 2013 drilling was focused on the Star Destiny lease with 25 drill holes
totaling 5,993 meters completed. Subsequent to the quarter end the operating
mining scheme (�OMS�) for the Mengapur mine site was
renewed. Drilling designed to define the copper and sulfur oxide and sulfide
resources as well as the enrichment zone at Mengapur
Zone A is planned to start in November and will provide data for a future NI
43-101 report.
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 feasibility stage, Mengapur Polymetalic Project. The Company employs 260 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.