08:38:49 EDT Fri 29 Mar 2024
Enter Symbol
or Name
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CA



Monarques Gold Corp
Symbol MQR
Shares Issued 233,342,967
Close 2018-10-29 C$ 0.225
Market Cap C$ 52,502,168
Recent Sedar Documents

Monarques Gold loses $4.77-million in fiscal 2018

2018-10-29 09:50 ET - News Release

Mr. Jean-Marc Lacoste reports

MONARQUES GOLD ANNOUNCES ITS 2018 FOURTH QUARTER AND YEAR-END RESULTS

Monarques Gold Corp. has released its results for the fourth quarter and fiscal year ended June 30, 2018.

Fourth quarter highlights

Beaufor mine:

  • Production of 4,695 ounces in the fourth quarter, down 5 per cent from 4,932 ounces in the previous quarter;
  • Average selling price of $1,617 (Canadian) ($1,273 (U.S.)) per ounce sold ($1,610 (Canadian) ($1,268 (U.S.)) since the acquisition on Oct. 2, 2017);
  • Production cash cost of $1,609 (Canadian) ($1,267 (U.S.)) per ounce sold ($1,532 (Canadian) ($1,206 (U.S.)) since the acquisition on Oct. 2, 2017);
  • All-in sustaining cost of $2,005 (Canadian) ($1,579 (U.S.)) per ounce sold ($1,770 (Canadian) ($1,394 (U.S.)) since the acquisition on Oct. 2, 2017).

Financial results:

  • Revenues of $10-million in the fourth quarter from the sale of 4,589 ounces of gold combined with revenue from custom milling, which was up 31 per cent quarter over quarter;
  • Net loss of $2.8-million, or 1.4 cents per share (diluted), compared with a net loss of $600,000, or 0.4 cent per share (diluted), last year;
  • Strong financial position, with $15-million in cash.

"Strong growth in our custom milling operations in the fourth quarter partially offset the decline in production at the Beaufor mine, which will be temporarily shut down starting in December," commented Jean-Marc Lacoste, president and chief executive officer of Monarques. "Our short-term goal for Beaufor is to minimize the impact of the shutdown on our results.

"In recent months, we have begun promoting the Wasamac project within the mining and financial communities. We recently created a confidential virtual data room to provide access for parties that have expressed an interest in reviewing data and participating in project development. With the pending release of the feasibility study results in early December, we see the Wasamac project starting to generate interest. We are confident that the parameters we have set for the feasibility study, including the use of the proven Rail-Veyor material haulage technology, will create the conditions needed to put the project into production.

"We are also continuing to move forward with our other advanced projects, including [the] Croinor gold [project] and McKenzie Break, for which drill results will be released in the coming weeks. [The] Croinor gold [project] continues to impress us with multiple high-grade results and continuity of the mineralization along strike and at depth."

                              SUMMARY OF FINANCIAL RESULTS  
  
                                          Quarter ended June 30,        Year ended June 30,  
                                                2018       2017          2018         2017  
     
Revenues                                  10,007,386          -    30,125,421            -          
Gross margin                                 170,849          -     1,440,787            -          
Net (loss)                                (2,782,100)  (571,284)   (4,776,851)  (2,281,190)
(Loss) per share, basic and diluted           (0.014)    (0.004)       (0.024)      (0.017)    
Cash flow used in operating activities      (534,542)  (560,596)   (2,310,413)  (2,163,498)
EBITDA                                    (1,084,003)  (158,117)   (2,533,882)  (1,522,426) 

                               KEY OPERATING STATISTICS 
  
                                             Quarter ended June 30,   Year ended June 30,
                                                 2018         2017       2018       2017   
  
Ounces of gold sold                             4,589            -     14,856          -        
Ounces of gold produced                         4,695            -     15,071          -        
Grade                                            4.95            -       4.82          -        
Recovery                                        98.68            -      98.76          -   
Key data per ounce of gold                                                   
Average market price                           $1,659            -     $1,665          -        
Average selling price                           1,617            -      1,610          -        
Production cash cost                            1,609            -      1,532          -        
All-in sustaining cost (Beaufor/Camflo)         2,005            -      1,770          -     
Average exchange rate (Canadian $/U.S. $)        1.27            -       1.27          -  
Key data per ounce of gold (U.S. $)                                                  
Average market price                            1,306            -      1,311          -        
Average selling price                           1,273            -      1,268          -        
Production cash cost                            1,267            -      1,206          -        
All-in sustaining cost (Beaufor/Camflo)         1,579            -      1,394          -         

Corporate highlights:

  • On May 31, 2018, the corporation retained BBA to conduct a feasibility study for its Wasamac gold project.
  • On July 19, 2018, the corporation filed a National Instrument 43-101 technical report for its McKenzie Break gold project on SEDAR.
  • On Aug. 3, 2018, the corporation filed an NI 43-101 technical report for its Swanson gold project on SEDAR.
  • On Aug. 30, 2018, the corporation confirmed that production activities at the Beaufor mine will be temporarily suspended as of December, 2018, and the mine will be placed on care and maintenance.
  • On Sept. 10, 2018, the corporation sold its 30-per-cent interest in the Chimo property to Chalice Gold Mines Ltd. in consideration of three million fully paid ordinary Chalice shares.
  • On Oct. 5, 2018, the corporation acquired a 2-per-cent net smelter return royalty on the Chimo-Boyd claims in exchange for the issuance of 170,000 common shares of Monarques at a price of 28 cents per share and a cash payment of $8,400.
  • On Oct. 9, 2018, the corporation received conditional approval from the Toronto Stock Exchange to list the corporation's common shares, subject to compliance with all exchange requirements, by Dec. 30, 2018.

Production statistics (first quarter ended Sept. 30, 2018):

  • Monarques produced 3,604 ounces of gold in the first quarter, down 23 per cent from 4,695 ounces the previous quarter.
  • The corporation recorded revenues of $7.8-million in the first quarter, based on an average gold price of $1,520 (Canadian) ($1,162 (U.S.)) per ounce and the sale of 3,272 ounces, combined with revenues from custom milling operations, which increased by more than 8 per cent during the quarter.

Beaufor mine              Quarter ended Sept. 30, 2018

Ore processed (tonnes)                          29,375                            
Gold recovery (%)                                97.99                             
Ounces produced                                  3,604                             
Ounces sold                                      3,272                              

The technical and scientific content of this press release has been reviewed and approved by Marc-Andre Lavergne, PEng, the corporation's qualified person under NI 43-101.

About Monarques Gold Corp.

Monarques Gold is an emerging gold mining company focused on pursuing growth through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada. The corporation currently owns close to 300 square kilometres of gold properties, including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Beaufor mine, the Croinor gold, McKenzie Break and Swanson advanced projects, and the Camflo and Beacon mills, as well as five promising exploration projects. It also offers custom milling services out of its 1,600-tonne-per-day Camflo mill.

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