September 29, 2011
Monument’s 2011 Annual Results Gross Revenue of $57 M from 40,438 Oz Gold Sales at Cash Cost $242/Oz
Release #14 - 2011
Vancouver, B.C. 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, Sept.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, Sept.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 (1) 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. |