MONTREAL, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Maya Gold & Silver Inc. (“Maya” or the “Corporation”) (TSX: MYA) released its financial results for the three-month and nine-month periods ended September 30, 2019. The MD&A and the unaudited consolidated financial statements can be found at www.sedar.com and www.mayagoldsilver.com. Unless specified otherwise, all amounts in this press release are in United States dollars and all capitalized terms have the meaning ascribed thereto in our MD&A. Highlights are summarized below:
NINE MONTHS ENDED SEPTEMBER 2019 - FINANCIAL HIGHLIGHTS
NINE MONTHS ENDED SEPTEMBER 2019 – OPERATIONAL HIGHLIGHTS – ZGOUNDER
|Zgounder Operating Data and Information|
|Three-month period ended|
|Nine-month period ended|
|Material Processed (tons)||31,386||10,945||186.8||91,719||32,489||182.3|
|Average Grade (g/t Ag)||207||265.9||(22.2||)||220||291.3||(24.5||)|
|Mill Recovery (%)||91.56||70.3||30.2||70.35||74.5||(5.6||)|
|Silver Ingots produced (kg)||748.42||2,020.60||(63.0||)||6,596||7,672.20||(14.0||)|
|Silver Ingots produced (oz)||24,062||65,483||(63.3||)||212,080||246,668||(14.0||)|
|Silver stocked in flotation concentrate (kg)||4,784||-||-||4,784||-||-|
|Silver stocked in flotation concentrate (oz)||153,790||-||-||153,790||-||-|
|Total produced (kg)||5,532||2,020.60||173.8||11,380||7,672.20||48.3|
|Total produced (oz)||177,839||65,483||171.6||365,870||246,668||48.3|
|Sales of silver (oz)||107,557||64,965||65.6||268,062||242,665||10.5|
|Sales of silver ($)||1,533,754||658,155||133.0||4,094,931||3,807,358||7.6|
|Cost of sales ($)||(1,215,027||)||(2,361,431||)||(48.5||)||(2,334,606||)||(6,751,879||)||(65.4||)|
|Cash flows provided by (used in) operating activities||26,309||(1,536,965||)||(101.7||)||2,468,607||(2,502,125||)||(198.7||)|
The total production of the mine flotation plant and cyanide mill, for the three-month period ended September 30, 2019, was 5,531.41 kg (177,839 ounces) compared to 2,020.60 kg (65,483 ounces) in the second quarter of 2018, representing an increase of 173.7% in the kg produced.
The difference in silver production for the nine-month period ended on September 30, 2019 compared to the same period in 2018 is mainly due to the fact that the Corporation adopted a reporting on a basis of commercial production on January 1, 2019. In 2018, the Corporation was in the installation process of the mill and faced unprecedented amount of snowfall during that period. The region experienced unusual weather conditions including snow and extreme cold making mine operations particularly challenging.
The decrease in average grade (g/t Ag) is due to the start of the gravity-flotation process in the nine-month period ended September 30, 2019 which allows the mine to process material that represent a lower grade (Preparation works) than it was possible before that date (direct cyanidation).
Global Financial Market Conditions
The market price of silver closed at $17.09 per ounce at the end of the third quarter 2019. This represented an appreciation of approximately 12% since the beginning of the quarter. During the third quarter 2019, silver rallied above $17 per ounce for the first time in two years. Global demand for silver has continued to increase and supply is reducing which contributed to a higher silver price. The price of silver is a key driver of the Company’s profitability.
|Three-month period ended|
|Nine-month period ended|
|Average market silver price ($/oz)||16.98||15.02||15.83||16.10|
|Average realized silver price 1 ($/oz)||14.26||10.13||15.27||15.69|
|Closing market silver price ($/oz)||17.09||16.76||17.09||16.76|
1 This is a non-GAAP measure. The average realized silver price is calculated by dividing the total sales per total ounces sold during the same period
The average realized silver price decrease during the third quarter because the Corporation started selling silver concentrate during the nine-month period ended September 30, 2019, which is sold at a lower price per ounce than ingots.
Maya Gold & Silver Inc. is a publicly-traded Canadian company focused on the operation, exploration and development of gold and silver deposits in Morocco. Maya is currently operating mining and milling operations at its Zgounder Mine, an 85%-15% split ownership between its subsidiary, ZMSM, and the ONHYM of the Kingdom of Morocco.
Maya’s portfolio also contains the Boumadine polymetallic deposit located in the Anti-Atlas Mountains of Eastern Morocco. The property is a joint venture with ONHYM whereby Maya retains an 85% ownership. Its portfolio also includes the 100% owned Amizmiz and Azegour properties, with gold, tungsten, molybdenum and copper deposits covering over 100 square kilometres in a historical mining district.
This news release contains statements about future events or future performance and reflects management’s current expectations and assumptions. These are “forward-looking” because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, and believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in the Corporation’s filings with SEDAR.
On behalf of the Board: