Mako Mining Corp. Annual Report - How They Did This Year

I’ve put together this guide to help you understand Mako Mining Corp.’s performance this past year. Instead of digging through dense financial filings, I’ve broken down the key takeaways so you can decide if this company fits your goals.

1. What does this company do?

Mako Mining is a Vancouver-based gold miner. While they primarily operate the San Albino mine in Nicaragua, they are expanding quickly. This year, they bought the Moss Mine in Arizona. This move diversifies their production into the U.S. and reduces their reliance on a single country. They also listed on the NASDAQ, making their shares easier for North American investors to buy and sell.

2. Financial performance

Mako grew significantly in 2025 compared to 2024:

• Profit: The company earned $33.7 million in profit, up from $19.2 million in 2024.
• Cash: They ended the year with $77.3 million in cash, a major jump from the $14.5 million they held last year.
• Shareholder Ownership: To pay for their expansion, the company increased its total shares from 79 million to 87 million. This provided the cash needed for growth, but it also meant issuing more shares, which reduced your ownership percentage in the company.

3. Major wins and challenges

The Big Move: Buying the Moss Mine is the heart of their current strategy. The mine is currently in a "restart and ramp-up" phase. This requires heavy spending to boost production and improve efficiency.

The Challenge: Operating costs rose from $38.2 million to $65.5 million. This increase comes from integrating the Moss Mine and bringing new production online. Watch to see if these costs stabilize as the mine reaches full capacity.

4. Financial health & Accounting

The company’s total assets grew from $107 million to $208 million, thanks to the new mine and higher cash reserves.

A Note on Accounting:

• Internal Controls: The company is currently upgrading software and improving oversight to strengthen their financial reporting. They have also adopted a "Clawback Policy," allowing them to reclaim executive bonuses if financial statements are restated.
• How they value assets: Mako uses the "units-of-production" method for mining assets, which matches depreciation costs to the actual amount of gold extracted. For other assets like buildings, they use "straight-line" depreciation. Inventory is valued at either the cost of production or the market value—whichever is lower.

5. Key risks

• Political Risk: Operating in Nicaragua carries risks like government instability or changes in mining laws that could affect profits.
• Gold Prices: Mako’s profit depends on the global price of gold. If gold prices drop, their profit margins will shrink.
• Technical Risk: Rapid expansion can lead to "technical surprises," such as finding less gold than expected or facing unexpected geological challenges.

6. Future outlook

Management is focused on integrating the Moss Mine and continuing exploration. With $77.3 million in cash, they have the flexibility to fund their plans. Moving forward, watch how well they manage rising costs while scaling production at the Moss Mine.

Investor Checklist: Before making your decision, ask yourself:

1. Am I comfortable with the risks of mining in Nicaragua?
2. Do I believe the Moss Mine acquisition will pay off once it reaches full production?
3. Am I okay with the share dilution that happened this year in exchange for the company's growth?