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Saturday, Dec 2, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Mako Mining reports sub-optimal results in Q3 due to contract delay, expects record performance in Q4

Due to the delay, over 2,200 ounces of gold recovered in Q3 were not sold until the latter half of October

Mako Mining reports sub-optimal revenue in Q3 due to contract delay
Nicaragua. Photo via Mako Mining

The Canadian miner Mako Mining Corp. (TSX-V: MKO) (OTCQX: MAKOF) reported sub-optimal performance in this year’s third quarter due to a delay in a third-party refining contract resulting in over 2,200 ounces of gold not being sold until the first month of Q4.

On Monday, the Nicaragua-focused company released its financial results for the quarter ending Sept. 30. Mako says it will have far superior financial results at the end of the fourth quarter this year.

The company generated US$10.7 million in revenue during Q3, a 21.4 per cent drop year-over-year (YoY). Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totalled about US$3 million, a 25 per cent drop from approximately US$4 million generated in the third quarter of 2022.

Total cash costs per ounce of gold sold totalled US$1,102 with all-in-sustaining costs of US$1,367 per ounce sold.

The company spent US$1.2 million on development of the area surrounding its flagship San Albino gold mine in Nueva Segovia and the neighbouring Las Conchitas deposit located 2.5 kilometres from the San Albino mill. Mako had a cash balance of US$660,000 at the end of the quarter.

Mako’s comprehensive losses decreased immensely YoY during the quarter by over 80 per cent to US$1.46 million.

Mako Mining reports sub-optimal revenue in Q3 due to contract delay

Operating and financial data via Mako Mining

“October marked the second month in a row of record gold ounces recovered, and 5,587 ounces of gold sold, which included the sales of finished gold held in inventory at quarter end due to a third-party refinery issue,” said Mako’s CEO Akiba Leisman.

“This issue led to higher reported costs and lower reported Adjusted EBITDA and mine operating cash flow, but this effect will completely reverse in Q4.”

Leisman says Q4 will be a record-setting quarter for the company for gold recovered, gold sold and the balance sheet overall. He says the cash flow coming from San Albino is enabling the company to rapidly pay off its debts while Mako “aggressively” repurchases its own shares through a normal-course issuer bid recently approved by the TSX Venture Exchange.

Read more: Calibre Mining secures largest undeveloped gold resource in Atlantic Canada through $345M Marathon Gold merger

Read more: Calibre Mining reports record year-to-date earnings in Q3 financials

Nicaragua is a prime gold mining jurisdiction

Other Canadian gold mining companies like Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) have established successful operations in the country as well. The company just had its fourth consecutive quarter of record gold sales in Q3 this year, selling 73,241 ounces.

The vast majority of those gold ounces, 63,756, were produced in Nicaragua during the quarter.

Financial analysts from PI Financial concluded that Calibre’s operations in Nicaragua would continue to fuel the company’s growth on all fronts in an October report. Other reports from Canaccord Genuity, Raymond James and VIII Eight Capital earlier this year all concluded that the mining infrastructure Calibre had established in the country has positioned the company for continued success in the future.

Additional gold operators actively working in Nicaragua include Condor Gold (TSX: COG), Royal Road Minerals (TSX-V: RYR) and Mineros (TSX: MSA).


Calibre Mining is a sponsor of Mugglehead news coverage


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