Mangazeya Mining Ltd WHTGF

MANGAZEYA MINING 2Q 2021 FINANCIAL STATEMENTS AND MD&A

[relic]

MANGAZEYA MINING ANNOUNCES THE FILING OF ITS 2Q 2021 FINANCIAL STATEMENTS AND MD&A QUARTERLY HIGHLIGHTS

 

Publish date: 30.08.2021

 

 

Print version

TORONTO, ONTARIO, August 30, 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 and six months ended June 30, 2021 as required by the National Instrument 51-102 Continuous Disclosure Obligations.

All figures are quoted in thousands of Canadian dollars unless otherwise indicated.

SECOND QUARTER AND SIX MONTHS 2021 HIGHLIGHTS:

 

	2Q 2021	2Q 2020	Change	%	6M 2021	6M 2020	Change	%
Operation results
Gold production, ounces	17,585	9,129	8,456	92.6%	30,970	12,515	18,455	147.5%
Refining gold, ounces	15,463	9,378	6,085	64.9%	29,036	11,972	17,064	142.5%
Gold sales, ounces	6,716	10,279	6,437	62.6%	29,221	13,522	15,699	116.1%
Ore mined, tones	508,528	382,584	125,944	32.9%	803,134	661,989	141,145	21.3%
Stripping ratio, m3/t	2.37	2.14	0.23	10.7%	2.55	1.87	0.68	36.4%
Ore processed, tones	392,889	426,193	(33,304)	(7.8%)	549,660	452,856	96,804	21.4%
Ore grade in ore processed, g/t	1.94	1.48	0.46	31.1%	2.08	1.50	0.58	38.7%
Financial results
Revenue	37,246	22,115	15,131	68.4%	64,852	29,528	35,324	119.6%
Adjusted EBITDA	18,012	8,047	9,965	123.8%	37,209	11,053	26,156	236.6%
Total cash cost per ounce Savkino (TCC), CAD	–	987	(987)	(100.0%)	–	1,145	(1,145)	(100.0%)
Total cash cost per ounce Kochkovskoye (TCC), CAD	1,626	1,306	320	24.5%	1,482	1,187	295	24.9%
Total cash cost per ounce Nasedkino (TCC), CAD	771	–	771	–	796	–	796	–
Average gold price, CAD	2,228	2,151	77	3.6%	2,219	2,184	35	1.6%
Cash balance	22,652	24,360	(1,708)	(7.0%)	22,652	24,360	(1,708)	(7.0%)
Cash flow from operating activities before changes in working capital	19,192	8,997	10,195	113.3%	36,542	9,673	26,869	277.8%
Cash flow (used in) / provided by financing activities	(14,194)	23,831	(38,025)	(159.6%)	(27,463)	45,546	(73,009)	(160.3%)
Cash flow used in investing activities	(8,894)	(3,297)	(5,597)	169.8%	(16,255)	(23,380)	7,125	30.5%

 

• In 2Q 2021 the total revenue increased by 68% as compared to 2Q 2020 in line with the increase in sales volume by 63%. For the six months the revenue increase was 120%. The increased volume of revenue is related to production and sales of gold produced at Nasedkino deposit.
• The gold production in 2Q 2021 was 17.6k ounces, which represents a 93% increase in comparison with 2Q 2021, due to start of production at Nasedkino deposit in the second half of 2020.

  Savkinskoye deposit
  In 2Q and 6 months of 2021 no gold has been produced or sold.

  Kochkovskoye deposit
  The gold produced in 2Q and 6 months of 2021 amounted to 3.5 and 4.6k ounces respectively, which is approximately 52% lower than in the same periods of the previous year in line with reduced amounts of mining.
  The gold sales were 2.1k and 4.0k ounces in 2Q 2021 and 6 months of 2021 respectively.

  TCC for gold sold in 2Q 2021 was $1,626 per ounce, which represents a 25% increase in comparison with 2Q 2020 ($1,306) due to the decrease of production volumes, while the fixed cost share in the cost of sales structure remained stable.

  Nasedkino deposit
  In 2Q 2021 and 6 months 2021 14.6k and 25.3k ounces of gold were sold. TCC for gold sold was $771 and $796 per ounce respectively.

• The gross profit of Mangazeya Mining Ltd for six months of 2021 amounted to $29.5 mln, and the gross profit margin was 46%. The increase of gross profit against the comparative period of the previous year is connected with the increase of revenue.
• Administrative expenses for the 2Q 2021 were $2.3 mln, representing a decrease of 20% compared to 2Q 2020. Administrative expenses for the 6 months 2021 amounted to $4.5 mln, which is 35% lower in respect of the comparative period of the previous year.
• In the first 6 months of 2021 the Company had a positive adjusted EBITDA of $37.2 million and an adjusted EBITDA margin of 57.4%.
• The finance expenses of the Company in the 6 months of 2021 amounted to $15.1 million, including the expenses on derivative financial instruments of $8.3 mln as well as interest expenses on bank loans in the amount of $5.5 mln.
• The Company’s net income for the first quarter and 6 months of 2021 was $11.6 million and $14.7 million respectively.

CASH FLOW AND CAPITAL RESOURCES:

 

• For the 6 months of 2021 the Company had a positive cash flow of $36.5 million from operating activities before changes in working capital, being a result of increased sales and favorable market prices.
• In 6 months of 2021 the Company invested $12.7 million and $1.3 million in property, plant and equipment and exploration and evaluation assets respectively.
• In 6 months of 2021 the Company’s cash outflow on financing activity was $27.5 million, representing a settlement under bank loan agreements, payments under finance lease and financial instruments.

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]

https://mangazeyamining.ru/news/mangazeya-mining-announces-filing-2q-2021-financial-statements-mda-quarterly-highlights/