Minera Alamos (MAI) Q2 2024 earnings summary

Executive summary

• Mining and stacking rates at the Santana gold mine have rebounded, nearing 2022 levels after implementing a new operating plan in June 2024.

• The company forecasts a return to net corporate cash generation in Q4 2024 as gold recoveries expand.

• Final payments were made for 100% ownership of the Cerro de Oro project, now fully acquired and royalty-free.

Financial highlights

• Q2 2024 revenues totaled $1,499,444, with cost of goods sold and depletion at $1,329,811, resulting in mine operations income of $169,633.

• Net loss for Q2 was ($7,035,249), including a non-cash unrealized foreign exchange loss of ($4,690,218), or ($0.015) per share.

• Cash and cash equivalents stood at $8,608,289 as of June 30, 2024, down from $11,844,502 at March 31, 2024.

• Working capital was $14,480,746 as of June 30, 2024.

Outlook and guidance

• Gold mining and stacking in Q3 2024 are expected to exceed the total mined in all of 2023.

• Net corporate cash generation is projected to resume in Q4 2024 as operational improvements take effect.

• Both cash position and working capital are expected to improve in Q4 2024.