Mako Mining Reports Q2 2024 Financial Results Including EPS of US$0.13 /share and Gold Sales of 12,313 Oz Au at $1,098/oz AISC
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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
August 13th, 2024
TSX-V: MKO; OTCQX: MAKOF
Mako Mining Reports Q2 2024 Financial Results Including EPS of US$0.13 /share and
Gold Sales of 12,313 Oz Au at $1,098/oz AISC
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to provide
financial results for the three months ended June 30th, 2024 (“Q2 2024”). All dollar amounts referred to
herein are expressed in United States dollars unless otherwise stated.
The Company’s financial results for Q2 2024 reflect gold sales of US$ 28.3 million, which generated
US$14.5 million in Mine Operating Cash Flow (1) (3), and US$8.8 million in Net Income . The Company
reported US$0.13 in earnings per share (EPS) during the quarter, while selling 12,313 oz of gold at $1,098
All-In Sustaining Cost (“AISC”) ($/oz sold (1) (2)).
Q2 2024 Highlights
Financial
• $28.3 million in Revenue
• $14.6 million in Adjusted EBITDA (1)
• $14.5 million in Mine Operating Cash Flow (“Mine OCF”) (1) (3)
• $8.8 million Net Income
• $793 Cash Costs ($/oz sold) (1) (2)
• $1,098 All-In Sustaining Costs (“AISC”) ($/oz sold) (1) (2)
• Debt Repayment of $0.8 million to Sailfish Silver Loan
• Stock Repurchase (NCIB) of $2.9 million
• Cash Balance of $6.7 million and Gold in Sales Receivable of $3.2 million (increase of $2.4 million
vs. Q1 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 – Q2 2024 - Mine OCF Calculation and Cash Reconciliation (in $ millions)” for a reconciliation of the beginning and ending cash position
of the Company, including OCF.
Unusual Factors Affecting Q2 2024 Earnings
• $2.3 million income tax expense accrual due to yearly anticipated profits exceeding levels projected
by the 3% of revenue minimum tax. Due to the high level of profitability experienced by the
Company thus far in 2024, taxes are now accrued on the basis of 30% of anticipated taxable
earnings
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• $0.9 million in net derivative losses on the Sailfish Silver Loan due to significantly higher silver
prices
• $0.3 million in severance to two former executives of the Company
Growth
• $179K in exploration and evaluation expenses. This does not include an additional $1.4M of non-
sustaining exploration invested during the quarter.
Akiba Leisman, Chief Executive Officer, states that “Q2 2024 was another very strong quarter for Mako,
with 12,313 ounces sold at $1,098/oz AISC. For the quarter, Mine OCF was $14.5 million, which increased
cash and receivable balances by $2.4 million after the repurchase of $2.9 million in stock, while generating
$8.8 million in net income. Over the last nine months, the mine has sold 35,061 ounces at $975/oz AISC,
which generated $41.7 million of Mine OCF and $23.6 million in net income ($0.35/share). Over these
three quarters, book value increased by $23.8 million despite an aggressive share repurchase program.
The cash flow coming from the mine puts the Company into a very strong position to continue to explore
the San Albino gold mine in Nicaragua and advance the Eagle Mountain gold project in Guyana.”
Table 1 – Revenue
(1) Realized price before deductions from Sailfish gold 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 $000s) 3 months ended 6 months ended
Jun 30, 2024 Jun 30, 2023 Change
Revenue 28,278 12,853 15,425
Gold sold (oz) 12,313 6,727 5,586
Average realized gold price ($/oz) (1) 2,349 1,978 371
Tonnes mined 2,109,344
Tonnes milled 52,681
Availability 97%
Avg. tonnes per day 598
Gold produced (oz) 12,206
Gold sold (oz) 12,313
Avg. realized gold price ($/oz sold)(3) $2,349
Cash Costs ($/oz sold) (1)(2) $793
AISC ($/oz sold) (1)(2) $1,098
Revenues (in $000's) $28,278
EBITDA (in $000's) (1) $14,140
Adjusted EBITDA (in $000's) (1) $14,649
Q2 2024
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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
Q2 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.
(3) Includes US$0.2M Exploration Expense (Regional Exploration) + US$ 1.4M Mineral Property Exploration Investment
(in $000's)
Jun 30, 2024 Jun 30, 2023
EBITDA (1) $14,140 $1,989
Share-based compensation (recovery) expense 330 204
Exploration activities 179 1,498
Write-down of Inventories - 353
Change in provision for reclamation and rehabilitation - (15)
Adjusted EBITDA (1) $14,649 $4,029
3 months ended
Mine OCF Calculation Q2 2024
Net cash from Operating Activities 8.5
Add back
Change in Non-cash WC -4.0
Cash from Operating Activities 12.5
Add back
Exploration Expense -0.2
Nicaraguan Taxes & Royalties -1.8
Mine Operating Cash Flow (Mine OCF) 14.5
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For complete details, please refer to the financial statements and the associated management discussion
and analysis for the three months ended June 30th, 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.
“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
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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 reasonab le 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 Q2; 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 an d 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 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 Q 2 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.