Mangazeya Mining announces the filing of its 2Q 2021 Financial Statements and MD&A Quarterly highlights
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||%|
|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%|
|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 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.
In 2Q and 6 months of 2021 no gold has been produced or sold.
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.
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.
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.
Mangazeya Mining Ltd.