Monarch Gold Reports Its Fourth Quarter Results for Fiscal 2020
Monarch Gold Corporation (TSX: MQR, OTCQX: MRQRF) reported its financial results for the fourth quarter ending June 30, 2020. Revenues were $0, compared to $7.35 million in Q4 2019. Despite not generating revenue, the company recorded a net income of $8.47 million, substantially higher than $0.93 million in the same quarter last year. With $11.27 million in cash and over $35 million in total cash equivalents, Monarch is positioned for growth, particularly focusing on its Wasamac project, which is undergoing pre-production permitting and potential partnerships for value enhancement.
- Net income increased to $8.47 million from $0.93 million YoY.
- Strong cash position with over $35 million in cash and cash equivalents.
- Initiated pre-production permitting for the Wasamac project, expected to enhance project value.
- Reported revenues of $0 compared to $7.35 million in Q4 2019.
MONTREAL, QUEBEC / ACCESSWIRE / September 24, 2020 / MONARCH GOLD CORPORATION ("Monarch" or the "Corporation") (TSX:MQR)(OTCQX:MRQRF)(FRA:MR7) reported its results today for the fourth quarter ended June 30, 2020. Amounts are in Canadian dollars unless otherwise indicated.
Summary of financial results
(In dollars, except per share data) | Three months ended June 30 | Fiscal Years ended June 30 | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues | - | 7,349,262 | 6,680,690 | 31,652,869 | ||||||||||||
Gross margin | - | 1,940,340 | 4,127,325 | 4,350,348 | ||||||||||||
Gain on disposal of non-financial assets | 8,635,771 | 350,000 | 11,398,621 | 1,714,832 | ||||||||||||
Net earnings | 8,474,270 | 926,602 | 9,532,934 | 485,905 | ||||||||||||
Earnings per share, basic and diluted | 0.032 | 0.005 | 0.036 | 0.001 | ||||||||||||
(In dollars) | June 30, 2020 | June 30, 2019 | ||||||
Cash and cash equivalents | 11,274,470 | 6,381,307 | ||||||
Investments | 14,939,261 | 2,326,036 | ||||||
Total assets | 92,987,397 | 72,577,395 | ||||||
"Fiscal 2020 was a milestone year for Monarch, as we made progress on our Wasamac, McKenzie Break and Beaufor projects, sold our Fayolle, Monique, Simkar, Regcourt and Louvem non-core projects and strengthened our Board of Directors," said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. "Our strategy of acquiring gold properties that we consider undervalued has paid off for Monarch. With the recovery of the gold market, our assets have substantially increased in value, allowing us to sell certain non-core assets at a good profit margin and to access financing on more attractive terms, so that we now have over
"Given our strong financial position, we can now focus on the development of our flagship Wasamac project, which is at the stage of pre-production permitting, an 18 to 24-month process that we initiated on November 2, 2019. Meanwhile, we are working to enhance Wasamac's value by assessing the option of using an existing mill for production, such as Glencore's Kidd concentrator, which could significantly reduce our project construction cost. We also recently initiated a study to assess the silver content of the Wasamac deposit, which was not part of the 2018 feasibility study. These initiatives are aimed at enhancing the project's economics and making it even more attractive to potential partners."
"We are currently very active on our Beaufor and McKenzie Break projects, where we are carrying out major drilling programs. We also announced the start of an internal assessment of Camflo, Barrick Gold's old mine, which we believe has strong exploration potential. In addition, Croinor Gold is once again attracting interest from potential partners, and our two mills are poised to restart once demand for custom milling services picks up. In short, thanks to these initiatives and the favourable gold market, we believe that we are looking at an eventful year ahead, with plenty of news to come," concluded Mr. Lacoste.
The technical and scientific content of this press release has been reviewed and approved by Marc-André Lavergne, P.Eng., the Corporation's qualified person under National Instrument 43‑101.
ABOUT MONARCH GOLD CORPORATION
Monarch Gold Corporation (TSX: MQR) is an emerging gold mining company focused on becoming a 100,000 to 200,000 ounce per year gold producer through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada. The Corporation currently owns over 315 km² of gold properties (see map), including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold, which includes proven and probable reserves of 1.8 million ounces of gold), the Beaufor, Croinor Gold (see video), and McKenzie Break advanced projects, the Camflo and Swanson exploration projects, and the Camflo and Beacon mills. It also offers custom milling services out of its 1,600 tonne-per-day Camflo mill.
Forward-Looking Statements
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch's actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.
FOR MORE INFORMATION:
Jean-Marc Lacoste 1-888-994-4465
President and Chief Executive Officer jm.lacoste@monarquesgold.com
Mathieu Séguin 1-888-994-4465
Vice President, Corporate Development m.seguin@monarquesgold.com
Elisabeth Tremblay 1-888-994-4465
Senior Geologist - Communications Specialist e.tremblay@monarquesgold.com
SOURCE: Monarch Gold Corp.
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https://www.accesswire.com/607767/Monarch-Gold-Reports-Its-Fourth-Quarter-Results-for-Fiscal-2020
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