TMAC Resources Inc. (TSX: TMR) ('TMAC' or the 'Company') reports its financial results for the fourth quarter and full year 2019.
All amounts are in Canadian dollars unless otherwise indicated.
Jason Neal, President and Chief Executive Officer of TMAC, stated, 'During the fourth quarter TMAC generated revenues of $48.0 million from sales of 24,650 ounces of gold at a cash cost of US$1,172 per ounce and an all-in sustaining cost of US$1,700 per ounce. These costs were higher than the previous quarter due to significantly lower production and sales volumes. TMAC recorded a non-cash impairment adjustment of $620.6 million, which does not affect our cash balances, liquidity or operating cash flows. The fair value used for the impairment adjustment is consistent with the value implicit in the Shandong Gold Mining transaction announced on May 8, 2020. We are, therefore, reporting a net loss of $5.46 per share on a basic and fully diluted basis. Without the impairment, we recorded a loss of 7 cents per share in the fourth quarter and a profit of 8 cents per share for the full year 2019. Even though our quarterly production had been lower, we were able to realize higher gold sales per ounce at a historically high average gold price of US$1,481 per ounce sold.'
Jason Neal added, 'In the fourth quarter the processing plant processed 132,100 tonnes of ore with an average grade of 7.1 grams per tonne at a rate of 1,440 tonnes per day. Gold recovery was 82% for the quarter and had increased to 85% for the month of December.'
ABOUT TMAC RESOURCES INC.
TMAC operates the Hope Bay property located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years. In that time, more than $1.5 billion of expenditures have been spent in exploration and evaluation, surface infrastructure, and mine and process plant development. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris processing plant which originally had nameplate capacity of 1,000 tpd and expanded to 2,000 tpd midway through 2018. There is potential to grow TMAC's established deposits considerably at depth, and then grow resources further through the prioritized exploration of the more than 90 other identified regional targets. TMAC is now permitted to produce from both Madrid and Boston.
FORWARD-LOOKING INFORMATION
This release contains 'forward-looking information' within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. 'Forward-looking information' includes statements that use forward-looking terminology such as 'may', 'will', 'expect', 'anticipate', 'believe', 'continue', 'potential' or the negative thereof or other variations or comparable terminology.
'Forward-looking information' is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. Furthermore, such 'forward-looking information' involves a variety of known and unknown risks, uncertainties and other factors, which may cause the actual plans, intentions, activities, results, performance or achievements expressed or implied.
Contact:
Jason Neal
Tel: 647-480-3111
TMAC RESOURCES INC. 