Mako Mining Provides Q1 2022 Financial Results
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595 Burrard Street, Suite 2833
Vancouver, BC V7X 1K8
Tel: (604) 646-1580
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
Suite 700 - 838 West Hastings St.
Vancouver, BC - V6C 0A6
IR: (647) 203-8793
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
May 31st, 2022
TSX-V: MKO; OTCQX: MAKOF
Mako Mining Provides Q1 2022 Financial Results
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “ Company”) is pleased to provide
financial results for the three months ended March 31, 2022 (“Q1 2022”), which is the third full quarter of
financial results since declaring commercial production on July 1, 2021 at its San Albino gold mine (“ San
Albino”) in northern Nicaragua. For detailed Q1 2022 operating results, please see the press release dated
April 27, 2022. All dollar amounts referred to herein are expressed in United States dollars unless otherwise
stated.
Q1 2022 Highlights
Financial
• $17.3 million in Revenue
• $8.3 million in Adjusted EBITDA(1)
• $8.7 million in Mine Operating Cash Flow (“Mine OCF”) (1) (3)
• $1.0 million in Net Loss
• $797 Cash Costs ($/oz sold) (1) (2)
• $862 Total Cash Costs ($/oz sold) (1) (2)
• $1,104 All-In Sustaining Costs (“AISC”) ($/oz sold) (1) (2)
• $4.6 million of principal repayments during Q1 2022
(1) Refers to a Non-GAAP financial measure within the meaning of National Instrument 52 -112 – Non-GAAP and Other Financial Measures Disclosure (“ NI
52-112”). Refer to information under the heading “Non-GAAP Measures” as well as the reconciliations later in this press release.
(2) Refers to a Non-GAAP ratio within the meaning of NI-52-112. Refer to information under the heading “Non-GAAP Measures” later in this press release.
(3) Refer to “Chart 1 – Q1 2022 - Mine OCF Calculation and Cash Reconciliation (in $ millions)” for a reconciliation of the beginning and ending cash position
of the Company, including OCF.
Growth
• $1.9 million in exploration and evaluation expenses ($1.4 million at San Albino and $0.4 million at
Las Conchitas)
• $2.1 million of surface rights for regional expansion added this quarter
Subsequent to March 31, 2022
• 401,500 shares purchased under the normal course issuer bid for total consideration of $94,340
(C$121,770)
• Two monthly repayment installments totaling $0.8 million were made on the Sailfish Loan
• Principal repayments of $0.5 million were made on the Wexford Loan
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• Total principal repayment of approximately $9.0 million since the beginning of Q4 2021 to
Wexford and Sailfish
Akiba Leisman, Chief Executive Officer, states that, “Q1 2022 was the third full quarter of financial results
since declaring commercial production at San Albino at our initial 500 tonnes per day mine and processing
plant, where 9,580 ounces were sold at $797/oz Cash Costs and $1,104/oz AISC. Costs are higher than
Q4 due to an increase in diesel and other key reagents as well as an increase in waste development
tonnage. The processing plant was operating at 596 tonnes per day at 87% availability (104% of nameplate
capacity), as the plant has now been fully debottlenecked . The Company generated $ 8.3 million in
Adjusted EBITDA, which excludes $1.9 million in exploration expenditures incurred in the quarter. As a
result, approximately $9 million of principal has been repaid since the beginning of Q4 2021, including $4.6
million repaid in Q1 2022, and $1.3 million repaid on outstanding loans subsequent to quarter end. In
addition, the $17.2 million exploration program announced in March 2022 is being funded out of cash flow,
with the focus on discovering new veins and min eralization elsewhere on our property . The first results
from this program are expected to be announced later this week. These extraordinary cash flows from our
relatively small scale mine are expected to allow us to fund our growth with the ultimate objective of
doubling capacity to 1,000 tonnes per day by next year.”
Table 1 – Revenue
(1) Realized price before deductions from Sailfish streaming agreement
Table 2 – Operating and Financial Data
(1) Refers to a Non -GAAP financial measure within the meaning of NI 52 -112). Refer to information under the heading “Non -GAAP Measures” as well as the
reconciliations later in this press release.
(2) Refers to a Non-GAAP ratio within the meaning of NI-52-112. Refer to information under the heading “Non-GAAP Measures” later in this press release
(3) Realized price before deductions from Sailfish streaming agreement
(in $000s) 3 months ended
Mar 31, 2022
Revenue 17,279
Gold sold (oz) 9,580
Average realized gold price ($/oz) (1) 1,870
Tonnes mined 1,566,290
Tonnes milled 46,869
Availability 87%
Avg. tonnes per day 596
Gold sold (oz) 9,580
Avg. realized gold price ($/oz sold)(3) $1,870
Cash Costs ($/oz sold) (1)(2) $797
Total Cash Costs ($/oz sold) (1)(2) $862
AISC ($/oz sold) (1)(2) $1,104
Revenues (in $000's) $17,279
EBITDA (in $000's) (1) $6,307
Adjusted EBITDA (in $000's) (1) $8,330
Q1 2022
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Table 3 – EBITDA Reconciliation
(1) Refers to a Non-GAAP financial measure within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”).
Refer to information under the heading “Non-GAAP Measures” later in this press release. Please refer to the MD&A for detailed calculations.
Chart 1
Q1 2022 - Mine OCF Calculation and Cash Reconciliation (in $ millions)
(1) Refers to a Non -GAAP financial measure within the meaning of NI 52-112. Refer to information under the heading “Non -GAAP Measures” later in this press
release.
(2) Includes all expenses incurred to sustain operations. Excludes Nicaraguan Taxes and Royalties, changes in Non-cash Working Capital, and Exploration expenses
(in $000's) 3 months ended
Mar 31, 2022
EBITDA (1) $6,307
Gain on disposal of subsidiaries -
Share-based compensation (recovery) expense 135
Exploration activities 1,862
Change in provision for reclamation and rehabilitation 26
Adjusted EBITDA (1) $8,330
Mine OCF Calculation
Cash from Operating Activities 6.7
Substract
Change in Non-cash WC 1.0
Net cash from Operating Activities 5.7
Add back
Exploration Expense 1.9
Nicaraguan Taxes & Royalties 1.1
Mine Operating Cash Flow (Mine OCF) 8.7
(1)
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For complete details, please refer to the Consolidated Financial Statements and the associated
Management Discussion and Analysis for the three months ended March 31, 2022, available on SEDAR
(www.sedar.com) or on the Company’s website (www.makominingcorp.com).
Non-GAAP Measures
The Company has included certain non-GAAP financial measures and non -GAAP ratios in this press
release such as EBITDA, Adjusted EBITDA, Mine Operating Cash Flow cash cost per ounce sold, total
cash cost per ounce sold, AISC per ounce sold. These non -GAAP measures are intended to provide
additional information and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. In the gold mining industry, th ese are commonly used
performance measures and ratios, but do not have any standardized meaning prescribed under IFRS and
therefore may not be comparable to other issuers. The Company believes that, in addition to conventional
measures prepared in accordance with IFRS, certain investors use this information to evaluate the
Company’s underlying performance of its core operations and its ability to generate cash flow.
"EBITDA” represents earnings before interest (including non -cash accretion of financial obligation and
lease obligations), income taxes and depreciation, depletion and amortization.
“Adjusted EBITDA ” represents EBITDA, adjusted to exclude exploration acti vities, share -based
compensation and change in provision for reclamation and rehabilitation.
“Cash costs per ounce sold” is calculated by deducting revenues from silver sales and dividing the sum
of mining, milling and mine site administration cost.
“Total cash costs per ounce sold” is calculated by deducting revenues from silver sales from production
cash costs and production taxes and royalties and dividing the sum by the number of gold ounces sold.
Production cash costs include mining, milling, mine site security and mine site administration costs.
“AISC per ounce sold” includes total cash costs (as defined above) and adds the sum of G&A, sustaining
capital and certain exploration and evaluation (“ E&E”) costs, sustaining lease payments, provision for
environmental fees, if applicable, and rehabilitation costs paid, all divided by the number of ounces sold.
As this measure seeks to reflect the full cost of gold production from current operations, capital and E&E
costs related to expansion or growth projects are not included in the calculation of AISC per ounce.
Additionally, certain other cash expenditures, including income and other tax payments, financing costs
and debt repayments, are not included in AISC per ounce.
“Mine OCF” represents operating cash flow, excluding Nicaraguan taxes and royalties, changes in non -
cash working capital and exploration expenses.
On behalf of the Board,
Akiba Leisman
Chief Executive Officer
About Mako
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Mako Mining Corp. 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. Mako’s primary objective is to operate Sa n Albino profitably
and fund exploration of prospective targets on its district-scale land package.
For further information: Mako Mining Corp., Akiba Leisman, Chief Executive Officer, Telephone: 203-862-
7059, E -mail: [email protected] or visit our website at www.makominingcorp.com and
SEDAR www.sedar.com.
Forward-Looking Information: Some of the statements contai ned herein may be considered “forward -looking
information” within the meaning of applicable securities laws. Forward-looking information can be identified by words
such as, without limitation, “estimate", "project", "believe", "anticipate", "intend", "expe ct", "plan", "predict", "may" or
"should" or variations thereon or comparable terminology. The forward-looking information contained herein reflects
the Company’s current beliefs and expectations, based on management’s reasonable assumptions, and includes,
without limitation, that , based on the financial results , the Company intends to announce the first results from its
previously announced exploration results later this week; the Company expects to fund its growth with the ultimate
objective of doubling capacity to 1,000 tonnes per day by next year and Mako’s primary objective to opera te San
Albino profitably and fund exploration of prospective targets on its district-scale land package. Such forward-looking
information is subject to a variety of risks and uncertainties which could cause actual events or results to differ
materially fro m those reflected in the forward -looking information, including, without limitation, changes in the
Company’s exploration and development plans and growth parameters and its ability to fund its growth to reach its
stated target capacity; unanticipated costs; and other risks and uncertainties as disclosed in the Company’s public
disclosure filings on SEDAR at www.sedar.com. Such information contained herein represents management’s best
judgment as of the date hereof, based on information currently available and is included for the purposes of providing
investors with information regarding the Company’s Q1 2022 financial results and may not be appropriate for other
purposes. Mako does not undertake to update any forward-looking information, except in accordance with applicable
securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.