Q4 2025 MD&A

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Q4 2025 MD&A

Source: https://makominingcorp.com/_resources/financials/2025/Mako-Q4-2025-MDA.pdf?v=091207
Fetched: 2026-09-12T07:05:05.023+00:00
Source artifact: 82f72a54-ccbb-4c8e-b2ab-a110ce55628b
Normalizer input: text

## Content

# Q4 2025 MD&A
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended December 31, 2025
Management’s Discussion and Analysis
For the year ended December 31, 2025
This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand Mako Mining Corp.
(the “Company” or “Mako”), the operations, financial position, and current and future business environment. This
MD&A is intended to supplement and complement Mako’s consolidated financial statements for the year ended
December 31, 2025, which have been prepared in accordance with International Financial Reporting Standards as
issued by the International Accounting Standards Board (“IFRS Accounting Standards”).
Mako was incorporated on April 1, 2004, under the laws of the Yukon Territory and continued into British Columbia
under the Business Corporations Act (British Columbia) on November 14, 2007. The Company is listed on the TSX
Venture Exchange (“TSX-V”) under the symbol “MKO”. Subsequent to year‑end, on March 30, 2026, the Company’s
common shares commenced trading on the NASDAQ Stock Market LLC (“NASDAQ”) under the symbol “MAKO”.
Additional information regarding Mako, including the risks related to the business and those that are reasonably
likely to affect Mako’s financial statements in the future, is contained in the Company’s continuous disclosure filings,
including the most recent audited consolidated financial statements, which is available on the Company’s website
at www.makominingcorp.com and under the Company’s profile on the SEDAR+ website at www.sedarplus.ca and
www.sec.gov.
This MD&A has been prepared as of March 31, 2026. All amounts are expressed in United States (US) dollars (“$”),
unless otherwise stated. References to “C$” are to the Canadian dollar.
BUSINESS OVERVIEW
The Company’s principal business activities are the production of gold and the exploration of its mineral interests
in Nicaragua, Guyana and the United States of America (the “USA” or “United States”).
On March 27, 2025, the Company completed the acquisition of the Moss gold mine located in Arizona, USA (the
“Moss Mine”). The acquisition was completed through Mako US Corp. (“Mako US”), a wholly-owned subsidiary of
the Company, which entity purchased all the membership interests in EG Acquisition LLC (“EGA”) from Wexford EG
Acquisition LLC (“Wexford EGA”), as vendor, a private company controlled by Wexford Capital LP (“Wexford”). EGA
owns 100% of the shares of Golden Vertex Corp. ("GVC"), the operating subsidiary of the Moss Mine. Refer to MOSS
MINE ACQUISITION for additional details.
On March 23, 2026, the Company completed the acquisition of Mt. Hamilton LLC (“MHC”) whereby Mako US
acquired all the registered membership interests of MHC. MHC owns the Mt. Hamilton project located in Nevada,
USA (the “Mt. Hamilton Transaction”). Refer to MT. HAMILTON ACQUISITION for additional details.
On July 3, 2024, the Company completed the acquisition of Goldsource Mines Inc. (“Goldsource”) by way of a plan of
arrangement, pursuant to which the Company acquired all of the issued and outstanding common shares of
Goldsource in exchange for 13.2 million common shares of Mako. Goldsource’s main asset is the Eagle Mountain
Project in Guyana, South America.
The Company’s main assets are the producing San Albino and the Las Conchitas gold deposits, collectively the “San
Albino Mine”, located within the San Albino-Murra Property in Nueva Segovia, Nicaragua. Mako developed the San
Albino Mine, which reached commercial production on July 1, 2021. The Company also owns the Moss Mine, an open
pit operation currently undergoing ramp-up activities. In addition to its mining operations, Mako continues to
explore its other concessions in Nicaragua and the USA and advance the Eagle Mountain Project in Guyana and the
Mt. Hamilton Project in Nevada, USA.
The projected free cash flow from the San Albino Mine and Moss Mine is anticipated to fund exploration on Mako’s
prospective land package in Nicaragua, development activities at the Mt. Hamilton Project in Nevada, USA, and
ongoing engineering activities at the Eagle Mountain Project in Guyana.
1
Management’s Discussion and Analysis
For the year ended December 31, 2025
FINANCIAL AND OPERATIONAL HIGHLIGHTS, MAJOR ACTIVITIES AND SIGNIFICANT SUBSEQUENT EVENTS
● Revenues of $50.3 million and $148.5 million (Q4 2024: $28.9 million and 2024: $92.1 million) for the three
months and the year ended December 31, 2025 (“Q4 2025” and “2025”), respectively.
● Consolidated sales of 11,564 ounces (“oz”) and 41,686 oz of gold in Q4 2025 and 2025 (Q4 2024: 10,888 oz and
2024: 39,001 oz), respectively.
● Net income of $14.3 million and $33.7 million for Q4 2025 and 2025 (Q4 2024: $4.7 million and 2024: 19.2
million), respectively.
● Consolidated production of 12,105 oz and 40,831 oz of gold in Q4 2025 and 2025 (Q4 2024: 12,053 oz and 2024:
39,941 oz), respectively.
● Cash flows from operating activities of $53 million in 2025 (2024: $34.5 million).
● Private Placement
On October 28, 2025, the Company completed a brokered private placement issuing 5,031,250 common shares
at a price of C$8.00 per share (the “Issue Price”), for gross proceeds of $28.8 million (C$40.3 million) (the
“Brokered Offering”). The underwriters received a commission of $1.85 million (C$2.4 million), equivalent to
6% of the gross proceeds of the Brokered Offering. Additional share issuance costs incurred totaled $0.15
million (C$0.2 million).
The Company also completed a concurrent non-brokered private placement (the “Non-Brokered Offering”) with
funds managed by Wexford Capital LP (“Wexford”), issuing 1,875,000 common shares at the Issue Price per
share, for gross proceeds of $10.7 million (C$15.0 million) (together with the Brokered Offering, the “Private
Placement”).
Net proceeds from the Private Placement are to be used for the ramp-up of operations at the Moss Mine,
advancement of the Company’s development assets, and general working capital purposes.
● Wexford Loan Repaid
On October 28, 2025, the Company fully repaid the outstanding balance of its loan from Wexford (the “Wexford
Loan”) totaling $6.5 million. The repayment consisted of principal of $6.3 million and accrued interest of $0.2
million.
● Investment in Senior Secured Debt
On July 2, 2025, the Company acquired, for $1.8 million of secured indebtedness of Elevation Gold Mining
Corporation (“Elevation”) from Maverix Metals Inc. (“Maverix”) under Elevation’s ongoing CCAA proceedings
(the “Senior Secured Debt”). The Senior Secured Debt, governed by multiple financial and security agreements,
was fully assigned to and assumed by the Company. As the principal secured creditor, the Company is now
entitled to distributions under the CCAA process. However, expected recoveries are significantly below the face
value of the Senior Secured Debt.
● Sailfish Silver Loan
In April 2025, the Company delivered the final installment of silver ounces payable under the silver-linked loan
agreement (“Sailfish Silver Loan”) to Sailfish Royalty Corp. (“Sailfish”). On April 28, 2025, Sailfish exercised its
option, available under the Sailfish Silver Loan, to purchase all refined silver produced from the Company’s San
Albino‑Murra concession for an additional payment of $1.0 million. Under the terms of the agreement, the
Company will deliver all refined silver to Sailfish on the last business day of each month. These deliveries will
continue until production of refined silver from the San Albino‑Murra concession is exhausted.
2
Management’s Discussion and Analysis
For the year ended December 31, 2025
Subsequent to December 31, 2025:
● Mt. Hamilton Acquisition
On March 23, 2026, the Company completed the acquisition of 100% of the membership interests of MHC the
owner of the Mt. Hamilton Project in Nevada, USA from Sailfish for total consideration of $40 million. The
consideration payable to Sailfish consists of two gold stream commitments:
(a) Initial Stream Term (60 months): The Company will deliver 341.7 ounces of refined gold per month, subject
to an adjustment formula ensuring the monthly delivery value is not less than $0.7 million and not more
than $1.0 million, equivalent to a gold price range of $2,700/oz to $3,700/oz after adjustments.
(b) Additional Stream Term (72 months): Following the Initial Stream Term, the Company will deliver 100
ounces of refined gold per month, not subject to any adjustment formula.
For all ounces delivered under both streams, Sailfish will pay the Company 20% of the London PM fixed price
for refined gold in United States dollars, as determined by the London Bullion Market Association (or any
successor association or body) on date of delivery of such deliverable gold.
● Updated Mineral Resource estimated for the Moss Mine
On March 10, 2026, the Company filed a technical report (the “Moss Mine Technical Report”) titled “NI 43-101
Technical Report for the 2025 Mineral Resource Estimate for the Moss Mine Project, Oatman Mining District,
Mohave County, Arizona, USA“ dated February 27, 2026 for the Moss Mine prepared under National Instrument
43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) completed by Mr. Chris Keech, P.Geo. of
CGK Consulting Services Inc., Mr. Gary Wong, P.Eng. of PDM Technical Services Ltd, William J. Lewis, P. Geo, of
Micon International Limited and Richard M. Gowans, P. Eng., of Micon International Limited, each are a qualified
persons under NI 43-101.
As outlined in the report, the Moss Mine contains an estimated measured open pit mineral resource of 9.55
million tons (“Mt”) averaging 0.36 grams per tonne (“g/t”) gold and 4.56 g/t silver for a total of 112,000 ounces
of gold and 1.4 million ounces of silver, and estimated indicated open pit mineral resource of 47.52 Mt averaging
0.35 g/t gold and 3.53 g/t silver for a total of 534,000 ounces of gold and 5.4 million ounces of silver. Mineral
resources are estimated using at a 0.17 g/t AuEq cutoff grade. There is an additional estimated Inferred mineral
resource of 12.33 Mt averaging 0.31 g/t gold and 1.46 g/t silver.
Gold equivalent ounces (AuEq) were calculated using silver and gold price assumptions and metallurgical
recoveries mentioned below which resulted in a silver to gold ratio of 194.6:1. These mineral resources are
reported within an optimized constraining open pit shell considering a gold price of $2,500/oz and a silver
price of $29.2/oz with a gold recovery of 75% and a silver recovery of 33%.
The effective date for the Mineral Resource Estimate is December 18, 2025. The Company anticipates advancing
the project toward a Mineral Reserve Estimate and updated project economics in the second quarter of 2026.
For the full Mineral Resource Estimate, including key assumptions and modifying factors, please see the Moss
Mine Technical Report available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
● Eagle Mountain Project
On March 25, 2026, the Company submitted to the Guyana Environmental Protection Agency (“EPA”) the
Environmental and Social Impact Assessment (“ESIA”). The ESIA reflects the Project’s baseline studies for
environmental, social, cultural, engineering, community engagement as well as expected impacts and
mitigation measures. Its filing marks a critical step in the regulatory review process in respect of the
Environmental Authorization to be issued by the EPA.
3
Management’s Discussion and Analysis
For the year ended December 31, 2025
RESULTS OF OPERATIONS
Consolidated Financial Three months ended Year ended
Performance December 31 December 31
(in $000's) 2025 2024 Change 2025 2024 Change
Revenue $ 50,394 $ 28,849 $ 21,545 $ 148,472 $ 92,076 $ 56,396
Income for the period 14,307 4,657 9,650 33,740 19,152 14,588
Operating ca

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]