April 9, 2021
Toronto, Ontario – April 09, 2021 – Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) (“Magna” or the “Company”) is pleased to announce its financial results for the nine months ended December 31, 2020 and year ended March 31, 2020. Unless otherwise stated, all values are stated in US dollars.
Mr. Arturo Bonillas, President & CEO of Magna Gold commented, “Magna made significant strides in 2020 and transitioned to a precious metal producer and cash flow generator with the re-commencement of operations at San Francisco, which we acquired in mid-2020. Over the balance of 2020, we deployed capital to refurbish the processing plant, optimize the mine plan, and conduct an accelerated program of waste removal to set up for many successful years ahead. Our team has worked tirelessly to bring the mine to its current stable state and we are delighted to be able to provide our shareholders with production guidance for 2021. We are proud of our strong and loyal Mexican presence. As we ensure the safety of our employees and those that live in the communities that we operate in, Magna will continue to seek opportunities in-country while continuing to optimize and advance its vast portfolio of gold and silver assets.”
Selected operational and financial information for the nine months ended December 31, 2020 and year ended March 31, 2020, in thousands of US dollars unless otherwise stated:
|Nine monthsendedDecember 31,2020||YearendedMarch 31,2020||Change|
|Gold sales (ounces)||20,235||–||20,235|
|Silver sales (ounces)||9,188||–||9,188|
|Production costs excluding change in inventories||$||29,828||$||–||$||29,828|
|Net cash provided by (used in) operations||$||9,372||$||(1,590)||$||10,962|
|Net cash used in investing activities||$||(12,160)||$||(1,457)||$||(10,703)|
|Net cash provided by financing activities||$||9,428||$||2,017||$||7,411|
|Cash, end of period||$||7,056||$||164||$||6,892|
|Total current assets||$||27,263||$||903||$||26,360|
|Total current liabilities||$||29,816||$||150||$||29,666|
|Share price, end of period (CAD per share)||$||1.04||$||0.40||$||0.64|
|Number of common shares||89,432,813||39,204,791||50,228,022|
|Mining concessions owned (hectares)||47,707||629||47,078|
|Mining concessions optioned (hectares)||5,113||3,161||1,952|
|Relevant exploration projects||7||2||5|
This press release should be read in conjunction with the Company’s consolidated financial statements and MD&A for the nine months ended December 31, 2020 and year ended March 31, 2020 available at www.sedar.com.
The Company is setting guidance expectations for gold production during 2021 of between 55,000 to 65,000 ounces. The Company expects to have the San Francisco Mine fully commissioned before the end of Q2 2021.
We are also pleased to announce the appointment of Mr. Miguel Bonilla as Chief Operating Officer, effective immediately. Mr. Bonilla held executive positions in Timmins Gold as Vice President Finance and Administration Mexico and in Alio Gold as Country Manager; Mr. Bonilla has been with the mine since inception in 2007.