Minera Alamos (MAI) Q3 2024 earnings summary

Executive summary

• Achieved first full quarter of production from the Nicho Main Deposit at the Santana gold project, with mining and stacking rates accelerating and approaching 2022 levels.

• Initiated construction of the first phase of leach pad expansion to improve operational efficiency.

• Announced acquisition of Sabre Gold Mines and its Copperstone gold mine, and completed acquisition of 100% of Cerro de Oro gold project.

Financial highlights

• Stacked 3,800 ounces of gold in Q3 2024, surpassing the total for all of 2023.

• Recoverable gold inventory on the leach pad increased to 8,199 ounces as of September 30, 2024.

• Deferred revenue of $3,453,562 recorded for the sale of 1,000 ounces of gold, to be recognized as revenue in early Q4, positively impacting working capital by $1,738,017.

• Q3 loss from mine operations was $436,177, compared to a loss of $273,314 in Q3 2023.

• Net loss for the quarter includes a significant unrealized foreign exchange loss of $8,172,207 due to the weakening Mexican peso.

• Cash and cash equivalents were $5,966,559 as of September 30, 2024, down from $8,608,289 at June 30, 2024, mainly due to increased mining activity and the Cerro de Oro payment.

Outlook and guidance

• Mining and stacking activities are expected to continue increasing, with mining rates in October approaching the baseline target of 7,000 tpd.

• Phase 2 leach pad expansion at Santana to begin towards the end of Q4, increasing leaching area by 40%.

• Larger Phase 3 pad expansion pending permit approval.

• Anticipates improved financial performance as the lag between mining, stacking, and gold recovery closes.

• Acquisition of Sabre Gold Mines expected to add a complementary gold development project, with production targeted for early 2026.