Mako Mining Provides Q3 2023 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
November 14th, 2023
TSX-V: MKO; OTCQX: MAKOF
Mako Mining Provides Q3 2023 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 September 30th, 2023 (“Q3 2023”), which is the ninth full
quarter of financial results since declaring commercial production on July 1st, 2021 at its San Albino gold
mine (“San Albino”) in northern Nicaragua. All dollar amounts referred to herein are expressed in United
States dollars unless otherwise stated.
The financial results for the quarter reflect a temporary delay in a third-party refining contract which led to
2,234 ounces of gold being delivered but not sold until the third week of October. Therefore, Revenues,
Adjusted EBITDA, Mine Operating Cash Flow and Net Income were commensurately lower, and Cash
Costs, Total Cash Costs and AISC were commensurately higher. This effect will reverse in its entirety
during Q4.
Q3 2023 Highlights
Financial
• $10.7 million in Revenue
• $3.0 million in Adjusted EBITDA (1)
• $4.0 million in Mine Operating Cash Flow (“Mine OCF”) (1) (3)
• $1.5 million Net Loss after $2.4 million of depreciation, depletion and amortization and $1.2 million
in exploration expenses
• $979 Cash Costs ($/oz sold) (1) (2)
• $1,063 Total Cash Costs ($/oz sold) (1) (2)
• $1,370 All-In Sustaining Costs (“AISC”) ($/oz sold) (1) (2)
• Drawdown of $2.0 million from Wexford Loan
• Three monthly repayment installments totaling $1.0 million were made on the Sailfish Loan during
Q3 2023. On September 8, 2023, the Sailfish Loan was fully repaid
• Delivered 13,500 oz of silver ($0.4 million) on the Sailfish Silver Loan in Q3 2023
(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 – Q3 2023 - Mine OCF Calculation and Cash Reconciliation (in $ millions)” for a reconciliation of the beginning and ending cash position
of the Company, including OCF.
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Growth
• $1.2 million in exploration and evaluation expenses ($0.5 million in areas surrounding San Albino
and approximately $0.7 million at Las Conchitas).
Subsequent to September 30th, 2023
• Delivered 4 payments, including 2 which were deferred in Q3, of 13,500 oz of silver on the Sailfish
Silver Loan ($1.2 million)
• Sold 5,587 ounces of gold ($10.4 million) in October 2023
• On October 16, 2023, the Company granted 975,000 restricted share units (“RSU”) and 275,000
deferred share units (“DSU”). The RSUs vest annually over three years commencing on October
13, 2024
• On November 2, 2023, the Company commenced a normal course issuer bid (“NCIB”) whereby
the Company intends to purchase up to a maximum of 3,290,929 common shares in the capital of
the Company. All common shares acquired by the Company under the NCIB will be subsequently
cancelled. Purchases under the NCIB will end no later than November 6, 2024
Akiba Leisman, Chief Executive Officer, states that “since August 14 th, the mine and plant have been
operating at or above designed levels. 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. This issue led to higher reported costs and lower reported
Adjusted EBITDA and Mine OCF, but this effect will completely reverse in Q4. Q4 is shaping up to be a
record for gold ounces recovered, gold ounces sold, Adjusted EBITDA , Mine OCF and Net Income, w ith
record low Cash Costs, Total Cash Costs and AISC. The cash flow coming from the mine is enabling us
to invest in exploration and rapidly repay debt, while we aggressively repurchase shares through our newly
instituted NCIB.”
Table 1 – Revenue
(1) Realized price before deductions from Sailfish streaming agreement.
(in $000s) 3 months ended
Sept 30, 2023 Sept 30, 2022 Change
Revenue 10,707 13,637 (2,930)
Gold sold (oz) 5,767 8,327 (2,560)
Average realized gold price ($/oz) (1) 1,930 1,724 206
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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 gold streaming agreement.
Table 3 – EBITDA Reconciliation
(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.
Tonnes mined 1,154,143
Tonnes milled 51,578
Availability 94%
Avg. tonnes per day 598
Gold sold (oz) 5,767
Avg. realized gold price ($/oz sold)(3) $1,930
Cash Costs ($/oz sold) (1)(2) $979
Total Cash Costs ($/oz sold) (1)(2) $1,063
AISC ($/oz sold) (1)(2) $1,370
Revenues (in $000's) $10,707
EBITDA (in $000's) (1) $1,650
Adjusted EBITDA (in $000's) (1) $2,967
Q3 2023
(in $000's) 3 months ended 3 months ended
Sept 30, 2023 Sept 30, 2022
EBITDA (1) $1,650 ($820)
Gain on disposal of subsidiaries - -
Share-based compensation (recovery) expense 119 111
Exploration activities 1,178 3,878
Write-down of Inventories 0 769
Change in provision for reclamation and rehabilitation 20 23
Adjusted EBITDA (1) $2,967 $3,961
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Chart 1
Q3 2023 - Mine OCF Calculation and Cash Reconciliation (in $ millions)
(1) Refers to 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.
For complete details, please refer to the financial statements and the associated management discussion
and analysis for the twelve months ended September 30th, 2023, 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
Mine OCF Calculation
Net cash from Operating Activities -1.7
Add back
Change in Non-cash WC -3.4
Cash from Operating Activities 1.7
Add back
Exploration Expense -1.2
Nicaraguan Taxes & Royalties -1.1
Mine Operating Cash Flow (Mine OCF) 4.0
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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 activities, 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, capit al 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
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 San 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 contained 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", "expect", "plan", "predict", "may" or
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"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 the Company expects record gold ounces recovered, gold ounces sold, Adjusted EBITDA,
Mine OCF and Net Income, with record low Cash Costs, Total Cash Costs and AISC in Q4; rapidly repaying debt
while the Company aggressively repurchases shares through its newly instituted NCIB; Mako’s primary objective to
operate 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 from 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
expected new record production numbers; unanticipated costs; the October 24 measures having impacts on business
operations not current expected, or new sanctions being imposed by the U.S. Treasury Department or other
government entity in Nicaragua in the future; and other risks and uncertainti es 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 Q 3 2023 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.