GOLD (USD): 1773.4 1.81%
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NEX: MGZ.H
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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.
a.grigoryev@mangazeya.ru