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The best is yet to come
Topic Rating: +5 (5 votes) 
295 Posts
May 15, 2020 - 1:12 pm


Date of publication: 05/14/2020
Moscow, May 14, 2020. Mangazeya group of companies submitted financial statements for 2019 by Mangazeya Mining Ltd. Over the year, the company increased gold production by 60%.

The increase in production is associated with an increase in volumes at the Kochkovo field. During the reporting year, the Company produced 1,379.75 kg (44.36 thousand ounces), in 2018 production amounted to 860.63 kg (27.67 thousand ounces). In the fourth quarter of 2019, 549.59 kg (17.64 thousand ounces) of gold were produced compared to 265 kg (8.52 thousand ounces) of the corresponding period of 2018.

Revenue Mangazeya Mining Ltd. in 2019 increased by 115% to $ 79.925 million (56.971 USD). Sales of the precious metal increased by 87%. If 691.74 kg (22.24 thousand ounces) were sold in 2018, then in 2019 - already 1291.1 kg (41.51 thousand ounces). Also in the fourth quarter of 2019, revenue was 119% higher than in the comparable period of 2018.

As a result of a decrease in production volumes, the cash cost per ounce of gold (TCC) of the Savkinskoye deposit in 2019 increased by 11% and amounted to $ 1.453 (1.035 USD). On the Kochkovskoye deposit, due to growth in volumes, on the contrary, the cash cost of an ounce of gold (TSS) decreased by 41% and amounted to $ 924 (658 USD).

“In 2019, we were able to realize the potential of the Kochkovo field and showed high production and financial results. At the same time, do not forget that a significant part of the team’s efforts and attention was focused on the launch of the Nasedkino mine, which we plan this year. After the launch, Nasedkino will become the company's key and flagship asset for the coming years, ”commented the financial results of the founder of the Mangazeya Group Sergey Yanchukov.

The adjusted EBITDA in 2019 amounted to + $ 26,424 thousand (+18,840 USD) compared with the negative adjusted EBITDA for 2018 in the amount of $ 9,045 thousand (-6,450 USD). The company's net profit for 2019 reached $ 7.4 million (5.27 USD) compared with a net loss for 2018 of $ 18.5 million (13.19 USD).

The financial statements and the MD&A Report are available on the Mangazeya website http://mangazeyamining.ru/, as well as in the SEDAR system at: http://www.sedar.com.

About company

GK "Mangazeya" is a diversified group of companies whose main activities are gold mining, construction, development and agriculture.

Mangazeya Zoloto (Mangazeya Mining) is a gold mining company operating in the Russian Federation in the Trans-Baikal Territory, where it is developing the Savkinskoye and Kochkovskoye deposits. The construction of a mining and processing plant at the Nasedkino field is also ongoing. The launch of the facility is scheduled for 2020.

contacts press@mangazeya.ru

419 Posts
May 19, 2020 - 3:02 pm

019 was certainly a turnaround year for Mangazeya, but what was more impressive was the performance in Q4 of 2019.

Net earnings were $14.6 million or 1.13 cents/share.  On an annualized basis, this equates to earnings of $58.4 million and earnings of 4.5 cents/share.  Friday's closing price was 5 cents/share.  EPS multiples are generally in the order of 10 - 20 for gold companies.  MGZ has a forward multiple of just over 1!

But as Relic says "The Best is Yet to Come".

Gold prices are already significantly higher in 2020 than they were in Q4 of 2019.

Gold production is set to dramatically increase in 2020 when Nasedkino comes on stream with annual production in excess of 100,000 oz/yr.

I expect net earnings in 2020 to be well in excess of the current market cap.

How can this be?  Well MGZ is not on anyone's radar.  They trade on the NEX Exchange and they do zero promotion.  All projects are in Russia and the CEO owns most of the stock.  So while the upside is tremendous, there is country risk, but you'd be hard-pressed to find anything with a better risk-reward situation.

The CEO had the opportunity in the past to foreclose on his personal loans to the company and take it private.  Instead he converted the company debt to equity at 25 cents per share and has continuously maintained a Canadian Exchange listing.

Full Disclosure: I purchased an additional 202,000 shares today.

5 Posts
May 21, 2020 - 12:53 am

@ relic Thank you for your job. You have provided all factual information for years.

5 Posts
May 21, 2020 - 1:03 am

@ carib I totally agree with you. In particular, follow the Kochkovskiy project. I suspect there is great geological potential. Maybe there will be a surprise. Siberia still has the potential to do so.

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