- Mako Mining is a gold developer currently building its San Albino project in Nicaragua while the share price has more than doubled over the past year and outperformed peers.
- On Monday, the company released an updated resource estimate, with contained gold decreasing by 71% from 940,700 to 272,000 ounces.
- Based on a 500 tpd mine plan, open-pit resources could be exhausted in two years after only just starting production.
- At an enterprise value of $200 million, the company is now trading at a valuation between $718 to $2,100 per ounce which is well above normal levels.
- Management began construction of San Albino on a PEA that no longer appears valid, so we would avoid this company until there is a long-term plan in place.
For further details see:
Mako Mining: Gold Developer Chops Resource By 71% While In Construction