Mako Mining: Record Gold Sales, Lower Profits, And I'm Still Buying
Mako Mining posted a historic level of gold sales in the second quarter, moving 14,610 ounces of the metal, yet the company’s earnings fell short of the results recorded in the first quarter.
The surge in sales set a new company benchmark, but the decline in profitability signals that additional variables are influencing the bottom line.
Record Gold Sales
The author of the commentary describes himself as a self‑taught investor who began allocating capital in 2014 and maintains a strong focus on gold and macroeconomic trends. He stresses a modest approach to the mining sector, acknowledging that continual learning is essential.
His investment outlook is built around a simple premise: maintain long positions in gold while staying short on fiat currencies. He rejects panic‑driven selling and treats precious metals as the most tangible form of money, viewing miners as genuine creators of value. At the same time, he emphasizes diversification and proper position sizing tailored to individual circumstances, prioritizing financial resilience over the pursuit of maximum returns.
Investment Outlook
When evaluating a mining company, he begins with an assessment of reserve quality, ore grade, projected mine life, and all‑in sustaining costs (AISC). These metrics form the foundation of his valuation, which he regards as the anchor for any investment decision. He stresses that he purchases based on hard numbers rather than narrative.
His personal holdings include major gold producers such as Barrick Gold, which he does not actively trade, while he also scans junior miners where the potential upside justifies the risk profile.
Valuation and Targets
Mako Mining’s shares are currently priced at roughly 0.74 times the company’s net asset value. He assigns a target price of $13.00 per share, a level that would represent a 27.7 % increase relative to a valuation of 0.95 times NAV.
Key catalysts that could lift the stock include a forthcoming change to the capital structure, an anticipated improvement in ore grades at the Moss project by January 2027, the completion of drilling programs at Mt. Hamilton, and the outcome of an environmental assessment for the Eagle Mountain site.
Risks
Potential downside factors involve the company’s heavy dependence on the San Albino operation, an overall scarcity of proven reserves, and exposure to regulatory and geopolitical uncertainties. Additional concerns stem from unquantified royalty litigation and identified weaknesses in internal controls, all of which could weigh on future performance.
The commentator notes that he recently joined the Seeking Alpha platform to share insights after gaining value from other contributors. He includes a disclaimer stating a close association with Seeking Alpha analyst “Andrew Mach.”
Source: seekingalpha.com · 2026-09-13