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Gold Mountain Mining Corp
Symbol	GMTN
Shares Issued	87,893,421
Close 2023-09-14	C$ 0.085
Market Cap	C$ 7,470,941
Recent Sedar+ Documents

Gold Mountain loses $977,547 in Q2

2023-09-14 18:54 ET - News Release

Subject: RE: Gold Mountain Word Document File: '\\swfile\EmailIn\20230914 153829 Attachment PR - Q2 Financial Results - Filing copy.docx' Gold Mountain Reports its Q2 2024 Financial and Operating Results Vancouver, Canada - September 14, 2023 - Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSX: GMTN) (OTCQB: GMTNF) (FRA: 5XFA) is pleased to report its financial and operating results for the three months and six months ended July 31, 2023 ("Q1 2024"). The Company's Financial Statements, Management's Discussion and Analysis ("MD&A"), are available for download on SEDAR and the Company's website. All amounts are expressed in Canadian dollars ("$") unless otherwise noted. Q2 2024 Highlights Gold sales of 965 oz from 8,597 tonnes delivered grading at an average of 4.01g/t Quarterly revenue of $2,202,855 at an average realized gold price1 of $2,246 per ounce of gold sold Mine operating loss of $297,566 Net loss of $977,547, or $0.01 loss per share (basic) for Q2 2024 compared to a loss of $2,557,986, or $0.03 per share (basic) for Q2 2023 Negative adjusted EBITDA1 of $709,513 Total Cash Costs1 per ounce sold of $2,358 Operational Update The Company experienced operational challenges during the second quarter which ultimately resulted in less than anticipated production from the Elk Gold Project. Delays were largely due to one off matters including a longer than anticipated regulatory approval timeline for the Company's pit pumping plan and drill and blasting operational issues. In August 2023, the Company saw a return to production rates that are consistent with the performance in the first quarter. Having addressed the its operational challenges, the Company's mandate over the next four (4) months is to transition into a steady state of production. The Company is continuing to improve the accuracy of grade forecasting, generate a greater understanding of the ore body through improved data collection/analysis, drilling and blasting designs, and sampling techniques. The Company is also evaluating approaches to mine with greater efficiently and more selectivity with geological and operations personnel working together to optimize vein exposure and reduce excess dilution to achieve to higher overall average grades mined. The Company anticipates continuing to see incremental improvements in accuracy of grade forecasting and increased consistency in mining operations production rates. Gold Mountain was encouraged by the results of its metallurgical test work program completed in calendar 2022, which indicated the potential for including a gravity concentration process into the production assaying procedure. Following the initial test work, the Company has completed a 6-week trial program whereby production assays samples from the Elk Mine were assayed by the gravity concentration process in parallel to the existing production assay procedure to better understand the variances between the two methods and confirm if the newly proposed method more accurately represent in-situ gold grade. The results of the 6-week test period continue to positively demonstrate that the gravity assay process improves the accuracy of the assay procedure, and the Company is currently working on the next steps with the goal of revising the sampling methodologies and assaying standard operating procedures to optimize production sample assay results. In addition to the above mine optimization programs, the Company continues to work with the respective governing bodies to obtain the necessary permits for the expansion of mining operations from the current 70,000 tonnes permitted to 324,000 tonnes per year, as contemplated in the 2021 PEA (further discussed in the Company's Management Discussion and Analysis for the Quarter Ended July 31, 2023, a copy of which is available at www.sedar.com). A majority of the proposed expansion of the Elk Mine involves transitioning to underground mining in the future. To do so, the Company must rehabilitate the historic underground decline that was developed by previous owners and is currently flooded. The Company has begun early engagement with surrounding Indigenous Communities to proactively address any community concerns respecting the future mining plans. The Company is aware of and acknowledges each respective Indigenous Nation's decision-making process that will continue independently from the federal and provincial regulatory regimes. Timing and analysis of the underground development is currently ongoing. The Company continues to evaluate all current and historic geological information, which will contribute to the Company's updated resource estimate and preliminary economic assessment anticipated to be completed prior to the end of calendar 2023. The Company will look to initiate technical and economic studies required for the permit expansion from 70,000 tonnes to 324,000 tonnes per year starting in the next calendar year. The Company is also announcing that Alex Bayer will be stepping down as Head of Indigenous Engagement, General Counsel and Corporate Secretary of the Company effective September 21, 2023. Mr. Bayer will remain with the Company to provide consulting services as needed. Qualified Person The foregoing technical information was approved by Ron Woo, P.Eng., a Qualified Person, as defined under National Instrument 43-101 and the Chief Executive Officer for the Company. About Gold Mountain Gold Mountain is a British Columbia based gold and silver production, exploration and development company focused on the development of the Elk Gold Mine, a producing mine located 57 kilometers from Merritt in South Central British Columbia. Additional information is available at www.sedar.com or on the Company's new website at www.gold-mountain.ca. For more information, please contact: Ron Woo, P. Eng, MBA Chief Executive Officer Gold Mountain Mining Corp. Phone: 778.262.0933 Email: IR@gold-mountain.ca Website: www.gold-mountain.ca Twitter: www.twitter.com/goldmtnmine_ Forward-Looking Statements This news release includes certain "forward-looking statements" under applicable securities laws. Forward-looking statements include statements that are based on assumptions as of the date of this news release and are not purely historical including any information relating to statements regarding beliefs, plans, expectations or intentions regarding the future and often, but not always, use words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this press release include but may not be limited to transitioning to steady state production, achieving incremental improvements to the accuracy of grade forecasting and increased consistency in mining operations production rates, the implementation or impact of any revision to the standard operating procedures for the production sample assays, the timing and results of any potential expansion of mining operations and the timing to initiate technical and economic studies required for the permit expansion. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: expectations regarding the Company's production at the Property; expectations regarding future Silver and other metals and mineral prices, assumptions regarding the business prospects of the Company and the Lender, including the ability of the Lender to render the remaining $500,000 under the Loan; stock market volatility and market conditions; changes in global and regional demand for the Company's products; general business, economic, competitive, political and social uncertainties including permit uncertainties inflationary pressures and trade uncertainties as a result of, among other things, the COVID-19 pandemic, the Russian-Ukrainian war, and changes in tariffs and international trade; foreign exchange risks; the availability of credit on reasonable terms; legal and regulatory risks (including changes in law or regulation); costs of inputs; delay or failure to receive board, shareholder or regulatory approvals; and the results of current and future exploration as well as the risk factors set out in the Company's continuous disclosure filings, including the Company's Annual Information Form for the year ended January 31, 2023 a copy of which was filed on April 28, 2023 and is available under the Company's profile on SEDAR. The foregoing list of factors is not exhaustive. Many of these issues can affect the Company's actual results and could cause its actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. There can be no assurance that the Company (or the Lender) will remain compliant in the future with all of its covenants under the Loan, including with respect to the share pledge. In the event that the Company is not able to meet its obligations under the Loan when due, the Lender may exercise its rights under the share pledge, which may result in the Company losing all or substantially all of its interest in the Elk Gold Project. There can be no assurance that such statements 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 statements. Gold Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 1) The Company has included certain non-IFRS measures in this document, as discussed below. Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") is a non-IFRS financial performance measure. For a full definition and reconciliation of this non-IFRS financial performance measure, refer to the Company's MD&A for the three months ended April 30, 2023, a copy of which is available on the Company's profile at www.sedar.com. Total Cash Cost per ounce sold is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. The Company reports total cash costs on a sales basis. For a full definition and reconciliation of this non-IFRS financial performance measure, refer to the Company's MD&A for the three months ended April 30, 2023, a copy of which is available on the Company's profile at www.sedar.com. Average realized price per ounce of gold sold is used by management to better understand the price realized in each reporting period for gold sales. This metric is intended to provide additional information only and does not have any standardized definition under IFRS. For a full definition and reconciliation of this non-IFRS financial performance measure, refer to the Company's MD&A for the three months ended April 30, 2023, a copy of which is available on the Company's profile at www.sedar.com.