Brookmount Explorations, Inc. Experiences No Impact to Primary Operations Due to COVID-19
Los Angeles, California--(Newsfile Corp. - August 20, 2020) - Brookmount Explorations, Inc. (OTC PINK: BMXI) ("Brookmount"), a Nevada incorporated company is pleased to provide this update to shareholders on recent developments, particularly with respect to the impact of COVID-19 on the Company's operations. Management are delighted to confirm that operational results for the 2020 year will not be affected by the global COVID-19 crisis. Our primary operations at Talawaan are performing strongly as a number of exceptionally high grade areas are being extracted and processed. The strong financial results produced in the quarter ending May 31 are continuing in the current period and should bolster a record performance for the year, both for revenue and profitability.
The temporary cessation of our recently completed heap leaching operations due to COVID related lockdowns has not impacted our financial performance. The initial 12kg of pure gold produced from the three operating cycles completed before March 25, 2020 was allocated to inventory and will sold before year end. The net revenue (net of development expenses and costs) resulting from sales of this interim production will be reflected in the Company's annual result to be announced in February 2021. Currently, we expect to resume heap leaching operations during October, given gradual lifting of travel and border restrictions in Indonesia over the next 2 months. Resumption of heap leaching operations will commence with processing of 16,000 tonnes of ore which was loaded onto the recently completed 2nd leach pad prior to suspension of operations. Clearing of processed ore from the primary (26,000 tonne) pad will commence simultaneously and result in a continuous processing cycle operating contiguously between the 2 pads. This should generate a production result every six weeks. Internal estimates based on the 12kg result in March, project average monthly revenue from heap leaching operations of $700,000, leading to in excess of $8 million in annual revenue.
The Company can now also confirm that the audit of the 2018/19 financial years, together with a "stub period" for 2020, which had been delayed by the lockdown restrictions of the COVID-19 global pandemic, is now close to completion. All financial diligence records for the period are uploaded to the Xero accounting system and compilation of consolidated financial statements now underway. Our auditor has now confirmed that the final audit step of an onsite visit can now be performed remotely via Zoom or similar technology. This will greatly shorten the remaining time involved in the audit process and we are now targeting completion by early October.
Brookmount currently conducts its gold mining and processing operations through its Indonesian subsidiary incorporated in Sulawesi Province, Republic of Indonesia, one of Asia most dynamic and rapidly expanding economies with extensive reserves of natural resources and minerals including timber, coal, gold and hydrocarbons. The Company has also established an office in Melbourne, Australia and is actively seeking opportunities in what is one of the worlds leading gold producers.
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Except for the historical information contained herein, certain of the matters discussed in this communication constitute "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "could," "anticipate," "estimate," "expect," "predict," "project," "future," "potential," "intend," "seek to," "plan," "assume," "believe," "target," "forecast," "goal," "objective," "continue" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding benefits of the proposed license, expected synergies, anticipated future financial and operating performance and results, including estimates of growth. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. For example, the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstance that could give rise to the termination of the negotiations, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Brookmount's common stock. All such factors are difficult to predict and are beyond our control. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulations.
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