Mako Mining posts gold production, financials for Q4 2022, shares up

Mako Mining Corp. [MKO-TSXV; MAKOF-OTCQWX] reported financial results for the three months ended December 31, 2022, which is the sixth full quarter of financial results since declaring commercial production on July 1, 2021, at its San Albino gold mine in northern Nicaragua. All dollar amounts referred to herein are expressed in U.S. dollars unless otherwise stated.

Q4 2022 Highlights: $16.1 million in Revenue; $7.8 million in Adjusted EBITDA; $8.8 million in Mine Operating Cash Flow (Mine OCF); $0.8 million in Net Loss after $3.2 million of depreciation, depletion and amortization and $3.1 million in exploration expenses; $715 Cash Costs ($/oz sold); $733 Total Cash Costs ($/oz sold); and $1,062 All-In Sustaining Costs (AISC) ($/oz sold).

Three monthly repayment installments totaling $1.1 million were made on the Sailfish Loan during Q4 2022

Growth: $3.1 million in exploration and evaluation expenses ($1.1 million in areas surrounding San Albino and $1.9 million at Las Conchitas)

Subsequent to December 31st, 2022: Three monthly repayment installments totaling $1.1 million were made on the Company’s loan with Sailfish Royalty Corp.

On March 1, 2023, the company signed a binding letter of intent with Sailfish for an initial 24-month silver stream for $6 million silver stream to repay outstanding principal owing under the Company’s loan from lenders controlled by Wexford Capital LP.

Akiba Leisman, CEO, stated that “Q4 2022 was the sixth full quarter of financial results since declaring commercial production at San Albino. Record gold sales of 9,956 ounces along with AISC approximately $300 lower from Q3 helped drive Mine OCF and Adjusted EBITDA to approximately $8.8 and $7.8 million for the quarter respectively. Year to date, Mako has generated $28.8 million in Mine OCF, which allowed the Company to invest $11.5 million in growth exploration and repay $8.5 million of debt without the need for external financing. Throughput is now consistently above 600tpd (120% of nameplate capacity), which was achieved with no additional capex and minimal recovery losses. In Q1 2023, the incremental mill feed to support a 600tpd operation has been coming from the Central Pit, the new SW Pit, and lower grade stockpiles, as the Company transitioned from Phase 2 to Phase 3 mining at the primary San Albino West Pit. Mining of high-grade material from the Phase 3 West Pit, and permits to begin mining Las Conchitas are expected later this month, at which point the Company expects that new record production numbers should be achieved.”

Mako Mining is a publicly listed gold mining, development and exploration company. The company operates the high-grade San Albino gold mine in Nueva Segovia, Nicaragua, which ranks as one of the highest-grade open pit gold mines globally.

In early trading, shares of Mako Mining gained $0.10 to $2.25.

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