Marathon Gold Corporation (TSX: MOZ) announces its financial results for the fourth quarter and year ending December 31, 2022, and provides an update on the Company’s activities at the Valentine Gold Project in the central region of Newfoundland and Labrador.
Fourth Quarter and Full-Year Financial Results (all figures are in Canadian dollars unless otherwise noted):
Full-Year 2022 Highlights
Project KPIs (at February 28, 2023)
Matt Manson, President, and CEO commented: “2022 was a year of milestones for Marathon and the Valentine Gold Project. First and foremost, we successfully completed full federal and provincial Environmental Assessments and received our project development authorisations, a significant achievement for a new greenfield mining project like Valentine. This was achieved on a foundation of strong support for the Project within the Province of Newfoundland and Labrador, and in particular amongst the communities of central Newfoundland. In July we published our largest and best quality Mineral Resource Estimate to date. This was followed by an updated Feasibility Study by year-end, which presented what is now a three-pit mine plan with higher gold production and a longer mine life. We arranged significant debt and equity financings, which allowed our construction to commence in October with financial certainty and on schedule. All of this was achieved in the face of a challenging economic and capital markets environment, with inflationary and labour pressures continuing to impact the global mining industry. Nevertheless, we ended the year with a strong balance sheet and our construction activities well advanced. Valentine is on track to be the largest gold project in one of the world’s best mining jurisdictions, and a company-making asset for Marathon and its shareholders.”
1 Denotes a “specified financial measure” within the meaning of National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators (“NI 52-112”). See note on “Non-IFRS Financial Measures”.
The results of operations for the three and twelve months ended December 31, 2022 are summarized below (all figures are in Canadian dollars unless otherwise noted):
|(Stated in thousands of Canadian dollars)||Three Months Ended
|For the Years Ended
|General and administrative expense||$||3,184||$||2,921||8,365||$||9,703|
|Finance (income)/expense, net||(815||)||(148||)||585||(250||)|
|Other income, net||(55||)||(55||)||(177||)||(177||)|
|Loss before tax||$||2,314||$||2,718||$||8,773||$||9,276|
|Deferred income tax recovery||(171||)||(347||)||(104||)||(2,210||)|
Factors affecting financial results for the three months ended December 31, 2022:
Factors affecting financial results for the twelve months ended December 31, 2022:
Disclosure of a scientific or technical nature in this news release has been approved by Mr. Tim Williams, FAusIMM, Chief Operating Officer of Marathon, Mr. Paolo Toscano, P.Eng. (Ont.), Vice President, Projects for Marathon, Mr. James Powell, P.Eng. (NL), Vice President, Regulatory and Government Affairs for Marathon and Mr. David Ross, P.Geo. (NL), Vice President of Geology and Exploration for Marathon. Mr. Williams, Mr. Toscano, Mr. Powell and Mr. Ross are qualified persons under National Instrument (“NI”) 43-101. Mr. Roy Eccles, P.Geo. (NL), of APEX Geoscience Ltd. is a Qualified Person for purposes of NI 43-101, is independent of Marathon and the Valentine Gold Project, and has reviewed and takes responsibility for the updated 2022 MRE prepared by John T. Boyd Company.
Non-IFRS Financial Measures
The Company has included certain references in this document that constitute “specified financial measures” within the meaning of National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure of the Canadian Securities Administrators, such as, for example, All-In Sustaining Cost (“AISC”). None of such specified measures is a standardized financial measure under International Financial Reporting Standards (“IFRS”) and such measures might not be comparable to similar financial measures disclosed by other issuers. Such specified measures are intended to provide additional information to the reader and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Certain non-IFRS financial measures used in this news release and common to the gold mining industry are defined below.
AISC is reflective of all of the expenditures that are required to produce an ounce of gold from operations. AISC reported in the Updated Feasibility Study includes total cash costs, sustaining capital, expansion capital and closure costs, but excludes corporate general and administrative costs and salvage. AISC per ounce is calculated as AISC divided by payable gold ounces.
Marathon is a Toronto based gold company advancing its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. The Project comprises a series of five mineralized deposits along a 32-kilometre system. A December 2022 Updated Feasibility Study outlined an open pit mining and conventional milling operation producing 195,000 ounces of gold a year for 12 years within a 14.3-year mine life. The Project was released from federal and provincial environmental assessment in 2022 and construction commenced in October 2022. The Project has estimated Proven Mineral Reserves of 1.43 Moz (23.36 Mt at 1.89 g/t) and Probable Mineral Reserves of 1.27 Moz (28.22 Mt at 1.40 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 2.06 Moz (29.23 Mt at 2.19 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.90 Moz (35.40 Mt at 1.67 g/t). Additional Inferred Mineral Resources are 1.10 Moz (20.75 Mt at 1.65 g/t Au). Please see the NI 43-101 Technical Report “Valentine Gold Project, NI 43-101 Technical Report and Feasibility Study” effective November 30, 2022, Marathon’s Annual Information Form for the year ended December 31, 2022 and other filings made with Canadian securities regulatory authorities available at www.sedar.com for further details and assumptions relating to the Valentine Gold Project.
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