Mako Mining (MKO) Q3 2024 earnings summary

Executive summary

• Q3 2024 marks the first consolidated results post-acquisition of Goldsource Mines and the Eagle Mountain Project, with $15.7 million in revenue and $0.4 million net income.

• Production was constrained by a six-month permit delay, leading to lower output and higher costs, but operations normalized by September.

• 6,532 ounces of gold were sold at an average realized price of $2,470/oz.

Financial highlights

• Adjusted EBITDA reached $4.3 million, with mine operating cash flow at $5.0 million for Q3 2024.

• Cash costs were $1,465/oz sold, and AISC was $2,383/oz sold, including $607/oz from accelerated pre-strip activities.

• Cash balance at quarter-end was $5.0 million, with $1.5 million in gold sales receivable.

• Revenue increased by $5.0 million year-over-year, and gold sold rose by 765 oz compared to Q3 2023.

Outlook and guidance

• Q4 2024 is expected to see higher production, lower AISC, and increased profitability as operations return to normal.

• Head grades and recoveries have improved by over 85% and 10%, respectively, in early Q4 2024.