Gross Revenue of $57 M from 40,438 Oz Gold Sales at Cash Cost $242/Oz
VANCOUVER, Sept. 29, 2011 /CNW/ - Monument Mining Limited (TSX-V: MMY
and FSE: D7Q1) "Monument" or the "Company" today announces its annual
financial results for the year ended June 30, 2011. All amounts are in
United States dollars unless otherwise indicated (refer to www.sedar.com for full annual financial results).
Annual Highlights:
-
Gross revenue of $57 million generated from gold sales of 40,438 ounces
at an average price of $1,400 per ounce;
-
Gold production of 44,438 ounces produced at average cash cost of $242
per ounce, 10% over projection;
-
A positive net working capital of $63.1 million resulted from gold sales
and the $13.4 million financing (CAD13 million);
-
The Phase III gold processing plant extension commenced for a budgeted
$8.1 million to more than double production capacity from 400,000 tpa
to 1,000,000 tpa. All major equipment was secured.
-
A NI43-101 technical report prepared by Snowden Perth Pty and SEDAR
filed on May 27, 2011, converting historical estimates to CIM compliant
resources with 20% increase in gold content at Buffalo Reef Prospect.
-
During the fiscal year, following the announcement of an exploration
budget of $3.4 M, a total of 3,012 meters of diamond drilling from 15
drill holes have been completed at the Selinsing property. Drill
results were released subsequent to the year end in July 2011
indicating that the high grade shoots extended below the existing pit
and mineralization is still open at depth.
-
Mineral resource pipeline developed in Malaysia. Famehub properties were
acquired and Memorandum of Understanding was signed to acquire 70% of
interest in Mengapur Polymetalic Project during the year. Subsequent to
the end of fiscal 2011, 49% of Mersing Gold Project was acquired
through an earn-in-agreement.
President and CEO Robert Baldock stated "In fiscal 2011 the Company has
achieved its major milestone of commercial production with a 10%
increase of gold production. Management is now focusing on its next
move aimed to increase its resource pipelines and take the Company to a
new era of business development towards a mid tier producer. We will
continue to increase exploration activities, improve drilling programs
and seek new targets in the South East Asia region."
Production Statistics
| Jun. 30, 2010 |
Three months,
Sep.30, 2010
|
Three months, Dec. 31, 2010 |
Three months, Mar. 31, 2011 |
Three months, Jun. 30, 2011 |
Year ended, Jun. 30, 2011 |
Mining |
|
|
|
|
|
|
Ore mined (tonnes)
|
662,330
|
203,150
|
159,681
|
140,736
|
237,342
|
740,909
|
Waste moved (tonnes)
|
2,326,502
|
615,937
|
649,584
|
741,109
|
700,968
|
2,707,598
|
Stripping ratio
|
3.51
|
3.03
|
4.07
|
5.27
|
2.95
|
3.65
|
Ore stockpiled (tonnes)
|
387,545
|
499,589
|
570,719
|
623,130
|
773,432
|
773,432
|
Process |
|
|
|
|
|
|
Crushed ore (tonnes)
|
274,786
|
91,106
|
88,552
|
88,325
|
87,038
|
355,021
|
Ore processed (tonnes)
|
272,120
|
89,834
|
87,845
|
87,780
|
86,540
|
351,999
|
Average mill feed grade (g/t)
|
3.08
|
4.08
|
4.41
|
4.18
|
4.58
|
4.31
|
Processing recovery rate
|
58.7%
|
90.0%
|
93.7%
|
93.7%
|
94.1%
|
92.9%
|
| | | | | | |
| Jun. 30, 2010 |
Three months,
Sep.30, 2010
|
Three months, Dec. 31, 2010 |
Three months, Mar. 31, 2011 |
Three months, Jun. 30, 2011 |
Year ended, Jun. 30, 2011 |
Gold produced (oz)
|
13,793
|
9,050
|
11,348
|
11,904
|
12,136
|
44,438
|
Gold sold (oz)
|
13,793
|
8,650
|
10,148
|
10,704
|
10,936
|
40,438
|
Revenue (in 000's)(1) |
16,316
|
10,863
|
14,115
|
15,031
|
16,618
|
56,627
|
|
|
|
|
|
|
|
Cash cost (US$/oz)
|
|
|
|
|
|
|
Mining
|
64
|
49
|
52
|
56
|
53
|
53
|
Processing
|
90
|
89
|
140
|
107
|
138
|
120
|
Royalties
|
62
|
61
|
68
|
69
|
76
|
69
|
Operations
|
-
|
-
|
2
|
5
|
(5)
|
-
|
Total cash cost (US$/oz)
|
216
|
199
|
262
|
237
|
262
|
242
|
-
Prior to achieving commercial production in September 2010, gold sales
of $20,563,292 and related production costs were capitalized against
the Selinsing Gold Property.
Financial Results and Discussion
For the year ended June 30, 2011, the Company recorded gold sales of
$52,379,851, produced 44,438 ounces of gold and sold 40,438 ounces of
gold at an average realized price of $1,400 from its Selinsing Gold
Mine. Gold sales for July and August of $4,247,500 and related
production costs were capitalized against the Selinsing Gold Property.
The operation generated an income of $35,374,349 net of operating and
corporate expenses, or $0.21 per share. This was reduced to a net
income of $31,252,160, or $0.19 per share after other losses and taxes
compared to a net loss of $3,034,838, or ($0.02) per share reported for
the corresponding period in fiscal 2010. The other losses were mainly
due to $5,905,306 caused by changes in fair value on derivative
liabilities and accretion expense related to convertible debt, offset
partially by interest income.
Financing Activities
On August 11, 2010, a financing totaling CAD 13 million was closed and
comprised of the private placement of $7,653,600 (CAD 8,000,000) in
convertible notes (the "Notes") and a $4,753,500 (CAD 5,000,000)
forward sale of gold (the "Forward Sale").
The funds are for the planned exploration programs; closing the
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.
About 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 prospective exploration land adjacent and nearby the Selinsing
and Buffalo Reef properties; and 49% interest in the Mersing Gold
Project, approximately 300 km from the Selinsing gold mine.
In conjunction with extensive exploration programs at Selinsing, Buffalo
Reef and the Famehub properties, the Company recently announced it
exceeded its 2011 financial gold production target of 40,000 ounces by
10%. The Selinsing Gold Mine is scheduled to increase its annual
production rate to approximately 55,000 ounces of gold inside its first
full year of commercial production with an estimated average operating
cash cost of approximately $317 per ounce. The phase III capacity
expansion of the 400,000 tpa gold treatment plant to 1,000,000 tpa
through the addition of an additional milling circuit is targeting
completion in May 2012. The Company has recently announced that
construction has commenced on the processing plant expansion and the
expansion of the tailings storage facility to enable throughput of
approximately 1,000,000 tpa for 10 years.
The Company has also signed a binding MOU to acquire a 70% interest in
the Mengapur Polymetalic Project in Malaysia subject to due diligence,
and a variety of conditions including regulatory approval. Details of
the project are available on the website.
Please visit our website at 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 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.
<p> </p> <table border="0"> <tr> <td align="left" valign="top"> <b>Monument Mining Limited: </b><br/> <br/> </td> <td> <b>Richard Cushing, Investor Relations</b><br/> T: + 1 604 638 1661 x 102<br/> E: <a href="http://rcushing@monumentmining.com">rcush</a><a href="mailto:rcushing@monumentmining.com">ing@monumentmining.com</a> </td> </tr> <tr> <td align="left" valign="top"> <b>CHF Investor Relations: </b><br/> <br/> </td> <td> <b>Robin Cook, Senior Account Manager</b><br/> T: + 1 416 868 1079 x 228<br/> E: <a href="mailto:robin@chfir.com">robin@chfir.com</a> </td> </tr> <tr> <td align="left" valign="top"> <b>Axino AG - Europe: </b><br/> <br/> </td> <td> <b>Wolfgang Seybold, President and CEO</b><br/> T: + 49 711 25 35 92 40<br/> E: <a href="http://wolfgang.seybold@axino.de">wolfgan</a><a href="mailto:wolfgang.seybold@axino.de">g.seybold@axino.de</a> </td> </tr> </table> <p> </p>