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Mangazeya Mining announces the filing of its 3Q 2021 Financial Statements and MD&A Quarterly highlights

Publish date: 29.11.2021

Print version

TORONTO, ONTARIO, November 29, 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 nine months ended September 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.

Third quarter and nine months 2021 highlights:

3Q 2021 3Q 2020 Change % 9M 2021 9M 2020 Change %
Operation results
Gold production, ounces 19,838 20,088 (250) (1.2%) 50,818 34,234 16,584 48.4%
Refining gold, ounces 19,665 17,690 1,975 11.2% 48,701 29,663 19,038 64.2%
Gold sales, ounces 19,876 17,482 2,394 13.7% 49,097 31,004 18,093 58.4%
Ore mined, tones 593,567 379,187 214,380 56.5% 1,396,701 1,041,176 355,525 34.1%
Stripping ratio, m3/t 2.05 2.03 0.02 1.0% 2.34 1.93 0.41 21.3%
Ore processed, tones 415,839 561,177 (145,338) (25.9%) 965,499 1,014,033 (48,534) (4.8%)
Ore grade in ore processed, g/t 2.06 1.45 0.61 42.4% 2.08 1.47 0.61 41.1%
Financial results
Revenue 44,570 45,746 (1,176) (2.6%) 109,422 75,274 34,148 45.4%
Adjusted EBITDA 23,008 22,411 597 2.6% 60,217 33,464 26,753 79.9%
Total cash cost per ounce Savkino (TCC), CAD 1,283 (1,283) (100.0%) 1,452 (1,452) (100.0%)
Total cash cost per ounce Kochkovskoye (TCC), CAD 2,009 1,006 1,003 99.7% 1,793 1,165 628 53.9%
Total cash cost per ounce Nasedkino (TCC), CAD 650 1,229 (579) (47.1%) 743 1,229 (486) (39.5%)
Average gold price, CAD 2,242 2,617 (375) (14.3%) 2,229 2,428 (199) (8.2%)
Cash balance 13,003 30,834 (17,831) (57.8%) 13,003 30,834 (17,831) (57.8%)
Cash flow from operating activities before changes in working capital 23,148 21,230 1,918 9.0% 59,690 30,903 28,787 93.2%
Cash flow used in investing activities (8,835) (15,908) 7,073 (44.5%) (25,090) (39,288) 14,198 (36.1%)
Cash flow (used in) / provided by financing activities (14,837) 6,144 (20,981) (341.5%) (42,300) 51,690 (93,990) (181.8%)

  • The total revenue for the 9 months of 2021 increased by 45% as compared to the same period of the previous year in line with the increase in sales volumes by 58%.
  • The gold production in 9 months 2021 amounted to 50.8k ounces, which represents a 48% increase in comparison with the same period of the previous year, due to the increased volumes of mining and production at Nasedkino deposit.

    Savkinskoye deposit
    In 3Q and 9 months of 2021 no gold has been produced or sold.

    Kochkovskoye deposit
    The gold produced in 3Q and 9 months of 2021 amounted to 5.5 and 10.1k ounces respectively, which is lower than in the same periods of the previous year in line with the planned reduction of volumes of mining. The sales of gold were 5.7k and 9.7k ounces in 3Q 2021 and 9 months of 2021 respectively. TCC for gold sold in 9 months of 2021 was $1,793 per ounce, which represents a 54% increase in comparison with the same period of the previous year ($1,165) due to the decrease of production volumes, while the fixed cost share in the cost of sales structure remained stable.

    Nasedkino deposit
    In 3Q and 9 months of 2021 14.2k and 39.4k ounces of gold were sold. TCC for gold sold was $650 and $743 per ounce respectively.

  • The gross profit of Mangazeya Mining Ltd for the 9 months of 2021 amounted to $48.5 mln, and the gross profit margin was 44%. The increase of gross profit against the comparative period of the previous year by 38% is connected with the increase of revenue.
  • The general and administrative expenses for the 9 months of 2021 were $6.7 mln, representing a decrease of 28% compared to the same period of the previous year.
  • In the 9 months of 2021 the Company had a positive adjusted EBITDA of $60.2 million and an adjusted EBITDA margin of 55%.
  • The finance expenses of the Company in the 9 months of 2021 amounted to $23.6 million, including the expenses on derivative financial instruments of $13.1 mln as well as interest expenses on bank loans in the amount of $8.4 mln.
  • The Company’s net income for the third quarter and nine months of 2021 was $4.8 million and $19.5 million respectively.

Cash flow and capital resources:

  • For the 9 months of 2021 the Company had a positive cash flow of $59.7 million from operating activities before changes in working capital, being a result of increased sales and favorable market prices.
  • In 9 months of 2021 the Company invested $18.8 million and $2.5 million in property, plant and equipment and exploration and evaluation assets respectively.
  • In 9 months of 2021 the Company’s cash outflow on financing activity was $42.3 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