Mangazeya Mining Ltd WHTGF

Mangazeya 1Q 2021 Financial Statements

[relic]

Mangazeya Mining announces the filing of its 1Q 2021 Financial Statements and MD&A Quarterly highlights

Publish date: 31.05.2021

Print version

TORONTO, ONTARIO, May 31, 2021 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX: MGZ.H) announced the filing of its unaudited interim condensed consolidated financial statements (“Financial Statements”) and management’s discussion and analysis (“MD&A”) quarterly highlights for the three months ended March 31, 2021 as required by the National Instrument 51-102 Continuous Disclosure Obligations.

All figures are quoted in Canadian dollars unless otherwise indicated.

First quarter 2021 highlights:

	1Q 2021	1Q 2020	Change	%
Gold production, ounces	13,397	3,386	10,011	295.7%
Refining gold, ounces	13,573	2,594	10,979	423.2%
Gold sales, ounces	12,506	3,243	9,263	285.6%
Ore mined, tones	294,606%	279,405%	15,201%	5.4%%
Stripping ratio, m3/t	2.86	1.50	1.36	72.2%
Ore processed, tones	156,771	26,663	130,108	488.0%
Ore grade in ore processed, g/t	2.46	1.72	0.74	43.0%
Revenue	27,606	7,413	20,193	272,4%
Adjusted EBITDA	19,197	3,006	16,191	538,6%
Total cash cost per ounce Savkino (TCC), CAD	–	1,110	(1,110)	(100,0%)
Total cash cost per ounce Kochkovskoye (TCC), CAD	1,008	738	270	36,5%
Total cash cost per ounce Nasedkino (TCC), CAD	830	–	830	–
Average gold price, CAD	2,207	2,286	(79)	(3,4%)
Cash balance	33,436	7,855	25,581	325,7%
Cash flow from operating activities before changes in working capital	17,350	676	16,674	2466,6%
Cash flow used in investing activities	(7,361)	(20,083)	12,722	(63,3%)
Cash flow from financing activities	(13,269)	21,715	(34,984)	(161,1%)

• The revenue for the 1Q 2021 increased by 272% in respect of the comparative period of the previous year as a result of the increase in sales volumes by 286%. The increased volume of revenue is related to production and sales of gold produced at Nasedkino deposit.
• The gold production in 1Q 2021 was 13.4k ounces, which represents a 296% increase in comparison with the previous year, due to start of production at Nasedkino deposit in the second half of 2020.

  Savkinskoye deposit
  In 1Q 2021 no gold has been produced or sold.

  Kochkovskoye deposit
  The gold produced in 1Q 2021 and 1Q 2020 amounted to 1.1 and 2.2k ounces respectively. The gold sales were 1.9k and 1.7k ounces in 1Q 2021 and 1Q 2020 respectively.
  TCC for gold sold in 1Q 2021 was $1,008 per ounce, which represents a 37% increase in comparison with 1Q2020 ($738) due to the decrease of production in 1Q 2021 while the fixed cost share in the cost of sales structure remained stable.

  Nasedkino deposit
  In 1Q 2021 12.3k ounces of gold were produced and 10.6k ounces of gold were sold. TCC for gold sold in 1Q 2021 was $830 per ounce.

• The gross profit of Mangazeya Mining Ltd for the first quarter of 2021 amounted to $13.9 mln, and the gross profit margin was 50%. The increase of this indicator against the comparative period of the previous year is connected with the increase of revenue.
• Administrative expenses for the 1Q 2021 were $2.2 mln, representing a decrease of 46% compared to 1Q2020.
• In 1Q 2021 the company had a positive adjusted EBITDA of $19.2 million and adjusted EBITDA margin of 69.5%.
• The finance expenses of the Company in 1Q 2021 amounted to $12.1 million and included the loss on foreign exchange of $6.4 mln due to depreciation of the ruble on revaluation of a foreign currency loan, as well as interest expenses in the amount of $4.0 mln.
• The Company’s net income for the first quarter of 2021 was $3.1 million.

Cash flow and capital resources:

• For the 1Q 2021 the Company had a positive cash flow of $17.5 million from operating activities before changes in working capital, being a result of increased sales and favorable market prices.
• In 1Q 2021 the Company invested $5.4 million and $1.3 million in property, plant and equipment and exploration and evaluation assets respectively.
• In 1Q 2021 the Company’s cash outflow on financing activity was $13.3 million, representing a settlement under bank loan agreements, payments under finance lease and financial instruments.

The Financial Statement and MD&A are available on Mangazeya’s website at https://mangazeyamining.ru/ and have been filed on SEDAR at www.sedar.com.

About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Anton Grigoryev
Corporate Secretary
Mangazeya Mining Ltd.
[e-mail]