Research: Mako Mining

• market cap is $327mm @ 50c – 583.7mm shares outstanding before offering, 654mm after offering
• have cash of ~$28mm and debt of $10mm
• $5.1mm of debt
• they just did an offering at:
  • 30,000,000 units of the Company (the “Units”) at an issue price per Unit of $0.40 (the “Offering Price”) for total gross proceeds of $12.0 million and a concurrent non-brokered private placement of an aggregate of 41,000,000 Units issued to Wexford Spectrum Trading Limited and Wexford Catalyst Trading Limited, funds managed by Wexford Capital LP (collectively, “Wexford”) on the same terms as the Bought
  • Deal Offering for total gross proceeds of $16.4 million
• each unit has a share and a half warrant at 60c
• they are 51% owned by some group called Wexford Capital:

• Wexford is led by Charles Davidson, Joseph Jacobs – have about $2.5b in assets
• they seem like they are just a big hedge fund
• CEO Akiba Leisman also is consultant at Wexford – oversees their public and private gold portfolio
• the whole team feels a bit more like a financial team than a mining team
• it looks like they are trading at 6.7x CF based on expected production at San Albino
• they aren’t really producing much yet
• run by team that has built Santa Elena, El Gallo and La Trinidad

San Albino

• high grade open-pit deposit
• in Nicaragua
• indicated resource of 150koz at 7.13g/t
• inferred resource of 192koz at 6.78g/t
• have a permit for 500tpd mill – are 65% complete
• recently expanded permit to 1,000tpd – not sure if they are expanding actual capacity though?

• this is a very odd deposit for an open-pit – it’s a vein, its narrow (1-2m in a lot of places) and its as much as 50m away from surface as you go west:

• capex on the mine is very low – $21.1mm
• going to be low cost – AISC of $395/oz, cash costs of $359/oz
• LOM ounces of 675koz – 41koz per year
• about 800kt of the ore is oxide
• recent drilling in May was 30.27g/t over 4.2m
• most of the recent drilling is very high grade but narrow

Las Conchitas

• had some high grade results – 84.6g/t over 1.6m, 32.7g/t over 3.1m, 56.8g/t over 1.4m
• this is adjacent to San Albino

• they have announced some decent results at Las Conchitas recently:

• these results were from the end of August
• they were widest intercepts at Las Conchitas so far
• conceptual model for the mineralization encountered at Las Conchitas consists of multiple, parallel, gold-bearing quartz veins with a gentle dip to the northwest
• here is one of the cross-sections they give for Las Conchitas:

• it looks pretty similar to Albino, narrow, high grade veins – though the grade is definitely lower than Albino

Potrerillo

• this is a newly acquired property
• to the NE of Albino
• sounds like it is contiguous and along strike so they think there is a lot of potential

Permit

• received permit for 1,000 tonnes per day operation in August 24^th
• the PEA is for a 500 tpd operation

I’m not sure about this one.  Its reasonable.  But it is such a weird deposit for an open-pit.