Los Angeles, California--(Newsfile Corp. - July 16, 2020) - Brookmount Explorations, Inc. (OTC PINK: BMXI) ("Brookmount"), is pleased to provide this update to shareholders on its operational and financial progress for the quarter ending May 31, 2020.
The Company has filed its 2nd quarter financial results which included record quarterly revenue and earnings. Financial Highlights for the quarter ending May 31, 2020 include:
- Total Assets increased 89.9% to $10,842,000 from $5,708,000 during the quarter ending May 31, 2019. This is primarily due to an increase in inventory, property plant and equipment and receivables.
- Total Liabilities increased 65.6% from $942,000 in the quarter ending May 31, 2019 to $1,559,000. This increase is largely the result of an increased income taxes payable of $520,000.
- Revenues increased 256.7% to $2,622,000 from $735,000 during the comparable quarter in 2019. The Company's performance has benefitted from consistently strong throughput at its Talawaan facility, in addition to the continuation of a strong gold price evident over the last 6 months.
- Gross profit increased 269.7% to $1,782,000 from $482,000 in same quarter of 2019.
- Gross profit margin strengthened from 65.6% to 68.0% in the last year.
- Operating expenses grew slightly from $100,000 for the quarter ending May 31, 2019 to $195,000.
- Operating margins increased from 52.0% to 60.5% during the last year.
- Net income increased 313.2% to $1,529,000 or $.0051 earnings per share compared to $370,000 or $.0017 earnings per share during the same timeframe in 2019.
- Net margins increased to 58.3% from 50.3% during the comparable quarter of 2019.
The Company invested most of the generated cash flow into recently complete upgrades and expansion of its onsite processing facilities including five state-of-the-art, large capacity, floatation tanks, fifteen additional ball mills and new, state of the art, fully lined tailing ponds. Completion of this upgrade has significantly increased the Company's processing capacity at Talawaan.
"We continue to be inspired by our financial results and other achieved milestones during the most recently completed quarter. The significant increase in both our revenue and earnings reflected sharply higher performance at our Talawaan facility, as a recently identified "hot spot" of materially higher ore grades was worked during the last 2 months of the quarter, together with continuing strength in gold prices. We are also close to securing a purchase of additional gold assets in Australia and overall, we expect full year results to be significantly improved when compared to the previous year," stated Brett Morley, CEO.
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 world's 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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