The first-ever mineral reserve declaration clears a major overhang that previously constrained Mako's cost of capital (per CEO). Expect management to announce capital cost reduction initiatives in coming quarters. Monitor the technical report filing within 45 days for further detail on reserve conversion. The royalty settlement with Patriot is a de-risking event, but the ongoing Royal Gold litigation (1% royalty on Moss portion) remains a tail risk.
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Executive Summary
Mako Mining announced its first-ever NI 43-101 mineral reserve estimate and updated project economics for the Moss Mine in Arizona, with 597,744 oz gold and 6.30 Moz silver in proven and probable reserves, supporting a 15-year mine life and an after-tax NPV(5%) of US$254 million at base-case gold/silver prices of US$3,500/oz and US$50/oz. The filing also discloses a royalty litigation settlement with Patriot Gold Corp. (US$1.55M additional payment pending court approval) and notes ongoing litigation with Royal Gold Inc. affiliates over a 1% royalty. This is a significant operational milestone that removes a key financing overhang (lack of declared reserves) and validates the economics of the Moss Mine.
Key Facts
- First-ever NI 43-101 mineral reserve declaration: 597,744 oz Au and 6.30 Moz Ag in 56.8 Mt grading 0.327 g/t Au and 3.45 g/t Ag
- After-tax NPV(5%) of US$254M at $3,500/oz gold and $50/oz silver base case
- 15-year mine life with average annual recovered gold of 30,928 oz and peak of 46,137 oz in 2031
- No initial capital required; LOM sustaining capex of US$86M expected to be funded from cash flow
- Royalty litigation settled with Patriot Gold Corp.; Mako will pay additional US$1.55M from US$3.7M held by bankruptcy monitor, pending Arizona Court approval
- Litigation continues with affiliates of Royal Gold Inc. regarding a 1% royalty on a portion of the Moss property
- Moss mine acquired in March 2025 for ~US$2M net; CEO states multiples of purchase price already returned via cash flow
Financial Impact
After-tax NPV(5%) of US$254M on an asset acquired for ~US$2M; total sustaining capex of US$86M over 15 years; additional US$1.55M settlement payment to Patriot Gold Corp.
Risk Factors
- Ongoing litigation with Royal Gold Inc. affiliates over a 1% royalty on part of Moss property
- Base-case economics rely on spot gold price of $3,500/oz — sustained decline in gold prices could impair project returns materially
- As the first-ever reserve declaration, conversion of inferred resources to reserves is not guaranteed and exploration upside is speculative
- Current mining is in lower-grade zones (Reynolds/Central pits); higher-grade East Pit production not expected until 2027
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001062993-26-003521 |
| Document: form6k.htm | 0001062993-26-003521 |
| Document: 0001062993-26-003521-index-headers.html | 0001062993-26-003521 |
| Document: 0001062993-26-003521-index.html | 0001062993-26-003521 |
| Document: 0001062993-26-003521.txt | 0001062993-26-003521 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | 6-K | $8.95 | awaiting T+60 | — | $7.92 (−11.46%) |
Sep 14, 2026 6w ago | 6-K | $10.06 | awaiting T+60 | — | $7.92 (−21.27%) |
Sep 10, 2026 6w ago | 6-K | $9.82 | awaiting T+60 | — | $7.92 (−19.35%) |
Aug 14, 2026 10w ago | 6-K | $10.12 | awaiting T+60 | — | $7.92 (−21.74%) |
Jul 7, 2026 16w ago | 6-K | $7.73 $9.39 | ▲ +21.47% | ▲ +19.48% | $7.92 (+2.46%) |
May 15, 2026 23w ago | 6-K | $8.21 $9.89 | ▲ +20.46% | ▲ +15.95% | $7.92 (−3.53%) |
May 15, 2026 23w ago | 6-K | $8.21 $9.89 | ▲ +20.46% | ▲ +15.95% | $7.92 (−3.53%) |
May 4, 2026 25w ago | 6-K | $7.55 $7.13 | ▼ −5.56% | ▼ −7.42% | $7.92 (+4.90%) |
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