Minera Alamos $MAI.v $MAIFF filed 2Q21 financials.
For the quarter, the company earned a net profit of $1.3M mainly due to gain on sale of marketable securities and unrealized gains on same (Prime Mining). Minera spent $277k on exploration and $40k on investor relations.
Year to date cash flow statement shows CFOps usage of $4.5M. However, CF from investing activities was more than offset by proceeds generated from marketable securities. Minera has essentially built Santana entirely from investment gains derived from Prime Mining. Overall cash usage was $3.7M ytd. This is notable as they’ve been building a gold mine.
In the MD&A, the company speaks to updates in July and August pertaining to resilient site design and continued opening up of Nico Norte starter pit, mining rates, start of leaching and subsequent gold production. This is all good progress and is in line with management expectations. Challenges are always expected at start up and they have weathered the elements quite well. The key point for me is the guidance for net cash flow by year end. This sets up for a strong 2022.
Overall, progress has been steady as she goes. The company has plenty of cash to offset working capital requirements through to positive net cash flow by year end. 2021 is the transitional year which sets up a steady state operating environment in 2022 at Santana and production growth from 2022-2025 as CdO and La Fortuna kick in. Very few juniors in the market offer this compelling growth profile. The ones that did in the past (Wesdome, Kirkland) offered extraordinary returns for me. Why this remains my largest position. Hoping for better gold sentiment days ahead to coincide with accelerating earnings growth over the next 3 years.
Insider buying YTD has been consistent.
Disclaimer and Disclosures:
I own the stock. Therefore, I have an inherent bias.
I am not a certified investment professional nor a geologist. Assume everything I say herein is wrong. In fact, I am wrong more often than right. Please do your own due diligence and consult with your own investment advisor. Do not buy or sell on anything contained in this write up. None of this is a recommendation or solicitation to buy or sell.
I did not receive any compensation for this blog post. I did not receive any compensation from the company mentioned. I did receive a Minera Alamos shirt.
The content contained herein is strictly my opinion only. I do not warrant to the accuracy of the content or whether this is a suitable investment and disclaim any responsibility. Please consult with your own financial advisor.