Brookmount Explorations, Inc. Reports Record 3rd Quarter Earnings
Los Angeles, California--(Newsfile Corp. - October 20, 2020) - Brookmount Explorations, Inc. (OTC PINK: BMXI) ("Brookmount"), a Nevada incorporated company is pleased to provide this update to shareholders on its financial results for the 3rd quarter and an update on operations
The Company has filed its financial results for the quarter ended 8/31/2020. Highlights included:
- The Company recorded exceptional operating results for the 3rd quarter with net profit of $1.8 million, compared with $481k for the comparable period in the prior year, an increase of 374%. Revenue for the quarter was $3.1 million, up by 50% over the corresponding period in 2019. This sharp increase in net earnings reflected a continuation of extracting and processing ore from the very high-grade seam, at our Talawaan operation, which was first identified in mid last year. This high-grade seam, ("hot spot") is still displaying ore grades of 10-12g/tonne, compared with an average grade on the property of 1-3g/tonne. This exceptionally high-grade ore has resulted in unexpectedly high extraction (ie gold production) rates per kilo of excavated ore against effectively unchanged operating costs, thus increasing the Company's net margin for the quarter to to 58% from 32% in the same quarter of 2019.
- Total Assets increased to $12,590,000 from $8,604,000 during the same quarter in 2019, in partial reflection of the acquisition of an additional 10 hectares of land adjacent to the Company's existing property during the quarter, and the net positive effect of the recent expansion and upgrade of the Company's processing facilities at Talawaan. This upgrade included rebuilding and expanding floatation tank capacity and increasing the number of ball mills (crushers) onsite at a cost of around $350,000.
- Total Liabilities decreased slightly to $1,429,000 from $1,661,000 for Q3 2019.Net equity of the company increased to $11,845,000 from $7,673,000 as at the Company's prior balance date of 11/30/2019. This increase has been largely driven by increases in retained earnings and additions to both capital value and the value of gold reserve property carried in the company's balance sheet.
- During the quarter, the Company secured a $500,000, fixed price convertible line of credit from Leonite Capital LLC, a New York based investment group. Primary purpose of the facility is to provide financing for exploration and drill costs arising from the proposed acquisition of an Australian corporation with significant interests in gold mining tenements in the state of Victoria, which has one of Australia's most significant gold mining reserves and, like California in the US, the center of the "gold rush" of the late eighteenth century. A further update to shareholders on this development will be made shortly.
"We are extremely happy with our 3rd quarter results, particularly as they were achieved against the background of difficult operating conditions globally as a result of the Covid19 pandemic," commented Brett Morley, CEO. "We are fortunate that our operations at Talawaan, were not only unaffected by lockdown and other restrictions, but in fact, have been operating at record levels as a result both of high gold prices and our continued exploitation of an extremely high grade ore seam which appears to run across the entire northern perimeter of our property." Mr. Morley continued: "We are conducting a comprehensive program of drill tests at Talawaan, down to 20 meters along the seam and our diggers are following what appears to be a sustained trajectory of asymmetrically high grades which should continue to produce abnormally high yields, at least for the remainder of the year."
Mr. Morley concluded, "Whilst our heap leaching operations have been suspended since the end of March, due to Covid19 restrictions, and scheduled restarting plans were deferred from a planned restarting date last month, we believe that we can resume heap leaching operations, having already plumbed and loaded our second (16,000 tonne) leach pad, some time before the end of the year. Positive financial impact of this restart would be reflected in our Q1, 2021 results."
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.
Safe Harbor Statements:
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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Brookmount Explorations, Inc.
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