Majestic Gold Corp. Announces 2025 Annual Results

• Majestic Gold Corp. reported FY2025 annual results on April 17, 2026.
• Revenue increased 25.8% year-over-year to $89.3 million.
• Net income decreased 10.8% to $18.3 million despite revenue growth.
• Gold production fell 6.7% to 29,804 ounces compared to FY2024.
• All-in sustaining costs (AISC) rose significantly from $1,061/oz in FY2024 to $1,584/oz in FY2025.
• Cash and cash equivalents increased to $167.1 million.
• Company acquired a 52% interest in Yantai Mujin and Muping Gold Project for CAD$15.8 million.
• Subsidiary Persistence completed a HK$472 million private placement earlier in the year.
• Operations resumed at Songjiagou and Mujin projects following regulatory suspensions in early 2026.

• The revenue increase is positive but masks underlying operational inefficiencies.
• Net income decline despite revenue growth indicates severe margin compression driven by cost inflation.
• AISC increase of approximately 50% ($1,061 to $1,584 per ounce) is a material negative indicator for long-term profitability and valuation multiples.
• Production volume decrease contradicts the narrative of expansion, suggesting operational constraints or grade issues.
• Strong cash position ($167M) mitigates immediate solvency risk but does not offset margin erosion concerns.
• The acquisition cost (CAD$15.8M) is small relative to cash reserves and unlikely to drive significant near-term value creation compared to the cost overruns.
• Operational resumption news in March 2026 was routine positive, but the annual results confirm that production volumes remain below prior year levels despite restarts.

• Majestic Gold Corp. operates primarily in Shandong Province, China.
• Flagship projects include the Songjiagou Underground Mine (SJG) and Mujin Gold Project.
• The company has a history of operational interruptions due to safety accidents and regulatory permit renewals (e.g., September 2025 suspension, February 2026 suspension).
• Operations resumed in March 2026 following the suspensions, but production volumes have not yet recovered to FY2024 levels.