Mako Mining Reports Q1 2024 Financial Results Including EPS of US$0.08 /share and Gold Sales of 9,267 Oz Au at $1,043/oz AISC
LEGAL*58616408.1
1
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 21st, 2024
TSX-V: MKO; OTCQX: MAKOF
Mako Mining Reports Q1 2024 Financial Results Including EPS of US$0.08 /share and
Gold Sales of 9,267 Oz Au at $1,043/oz AISC
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to provide
financial results for the three months ended March 31st, 2024 (“Q1 2024”). All dollar amounts referred to
herein are expressed in United States dollars unless otherwise stated.
The Company’s financial results for Q1 2024 reflect gold sales of US$ 19.2 million, which generated
US$10.4 million in Mine Operating Cash Flow (1) (3), and US$5.3 million in Net Income . The Company
reported US$0.08 in earnings per share (EPS) during the quarter, while selling 9,267 oz of gold at $1,043
All-In Sustaining Cost (“AISC”) ($/oz sold (1) (2)).
Q1 2024 Highlights
Financial
• $19.2 million in Revenue
• $9.2 million in Adjusted EBITDA (1)
• $10.4 million in Mine Operating Cash Flow (“Mine OCF”) (1) (3)
• $5.3 million Net Income
• $858 Cash Costs ($/oz sold) (1) (2)
• $1,043 All-In Sustaining Costs (“AISC”) ($/oz sold) (1) (2)
• Debt Repayment of $1.3 million, including a $0.5 million settlement payment to GR Silver (see
Press Release dated March 28th, 2024)
(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 2024 - Mine OCF Calculation and Cash Reconciliation (in $ millions)” for a reconciliation of the beginning and ending cash position
of the Company, including OCF.
Growth
• $0.7 million in exploration and evaluation expenses ($0.3 million in areas surrounding San Albino
and approximately $0.4 million at Las Conchitas) . This doesn’t include an additional $0.4M of
sustaining exploration spent during the quarter.
LEGAL*58616408.1
2
Akiba Leisman, Chief Executive Officer, states that “Q1 2024 was a strong quarter with 9,875 ounces
produced and 9,267 ounces sold at $1,043/oz AISC. For the quarter, Mine OCF was $10.4 million which
increased cash and receivable balances by nearly $6 million and generated $5.3 million in net income.
Over the last six months, the mine has sold 22,748 ounces at $917/oz AISC, which generated $27 million
of Mine OCF and $14.8 million in net income ($0.225/share) at gold prices 15% lower than today . Over
these two quarters, book value increased by $17 .7 million despite an aggressive share repurchase
program. To date, the Company has repurchased 1,592,900 shares at an average price of C$2.90 per
share, leaving 1,698,029 shares remaining on the current NCIB, which is expected to be renewed and
expanded in November. The cash flow coming from the mine puts the Company into a very strong position
in anticipation of completing the Goldsource Mines acquisition later this quarter.”
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 gold streaming agreement.
(in $000s) 3 months ended 12 months ended
March 31, 2024 March 31, 2023 Change
Revenue 19,211 15,916 3,295
Gold sold (oz) 9,267 8,721 546
Average realized gold price ($/oz) (1) 2,088 1,886 202
Tonnes mined 1,612,366
Tonnes milled 52,478
Availability 96%
Avg. tonnes per day 606
Gold produced (oz) 9,875
Gold sold (oz) 9,267
Avg. realized gold price ($/oz sold)(3) $2,088
Cash Costs ($/oz sold) (1)(2) $858
AISC ($/oz sold) (1)(2) $1,043
Revenues (in $000's) $19,211
EBITDA (in $000's) (1) $8,265
Adjusted EBITDA (in $000's) (1) $9,207
Q1 2024
LEGAL*58616408.1
3
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.
Chart 1
Q1 2024 - 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.
(in $000's)
March 31, 2024 March 31, 2023
EBITDA (1) $8,265 $6,054
Share-based compensation (recovery) expense 246 72
Exploration activities 696 692
Write-down of Inventories - 816
Change in provision for reclamation and rehabilitation - 4
Adjusted EBITDA (1) $9,207 $7,638
3 months ended
Mine OCF Calculation Q1 2024
Net cash from Operating Activities 5.2
Add back
Change in Non-cash WC -3.3
Cash from Operating Activities 8.5
Add back
Exploration Expense -0.7
Nicaraguan Taxes & Royalties -1.2
Mine Operating Cash Flow (Mine OCF) 10.4
LEGAL*58616408.1
4
For complete details, please refer to the financial statements and the associated management discussion
and analysis for the three months ended March 31st, 2024, available on SEDAR (www.sedarplus.ca) 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 m easures 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, these 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 inform ation 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
LEGAL*58616408.1
5
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: 917-558-
5289, E -mail: [email protected] or visit our website at www.makominingcorp.com and
SEDAR www.sedarplus.ca.
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
"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 Q1; 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 , the
anticipated acquisition of Goldsource Mines by the end of Q 2 2024. 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 g rowth 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. Tre asury Department or other government entity in
Nicaragua in the future; 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 judg ment 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 2024 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.