Mako Mining Corp. (TSXV: MKO) announced its financial results for the quarter ending June 30, 2021. As the company only declared commercial production on July 1, 2021, the quarterly results highlighted a pre-production revenue of US$4.8 million from its San Albino gold mine in northern Nicaragua.
The mining firm reported a net loss of US$2.3 million for the quarter compared to Q2 2020’s net loss of US$6.1 million. This bottom-line figure is a direct result of the company’s expenses, including general and administrative expenditures amounting to US$1.4 million.
At the end of the quarter, the company has US$1.8 million in cash and cash equivalents coming from a starting balance of US$2.6 million at the beginning of the year. Furthermore, the current assets came in at US$2.9 million while current liabilities are valued at US$21.8 million.
Related to its liabilities, the firm this morning entered into a loan agreement with Sailfish Royalty Corp. (TSXV: FISH) for an unsecured gold-linked term loan amounting to US$8 million. The proceeds of the loan are expected to repay short-term liabilities including approximately US$6.2 million owed to Nebari Resources Credit Fund I and approximately US$1.8 million of principal owed to funds managed by Wexford Capital. As compensation for the loan, the royalty company is entitled to certain cash compensation based on the prevailing price of gold.
The mining company has declared commercial production effective July 1, 2021, and started its mining activities at the Porcelana zone of the San Albino property which the company believes has the highest grade-thickness profile.
Mako Mining last traded at $0.34 on the TSX Venture.
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