MANAGEMENT DISCUSSION AND ANALYSIS For the Years Ended April 30, 2022 and 2021 Report Dated July 29, 2022

INCA ONE GOLD CORP.

Management Discussion & Analysis

For the Years Ended April 30, 2022, and 2021

This Management's Discussion and Analysis ("MD&A") of Inca One Gold Corp. (the "Company" or "Inca One") has been prepared by management as of July 29, 2022 and should be read in conjunction with the Company's audited consolidated financial statements for the years ended April 30, 2022 and 2021 and the related notes thereto. This MD&A has been reviewed and approved by the Board of Directors of the Company. Unless otherwise specified, all financial information has been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. All dollar amounts herein are expressed in United States Dollars unless stated otherwise. References to CAD$ are to Canadian Dollars.

This MD&A contains forward-looking statements and should be read in conjunction with the risk factors described in "Risks and Uncertainties" and "Cautionary Statement on Forward-LookingInformation" at the end of this MD&A.

Description of the Business

Inca One was incorporated on November 9, 2005 and is in the business of developing custom mineral processing operations in Peru, to service government permitted small-scale miners. In recent years the Peruvian government instituted a formalization process for informal miners as part of its efforts to regulate their activities. The Company has two Peruvian gold milling facilities ("Chala One" and "Kori One") with a total permitted capacity of 450 tonnes per day ("TPD") and has been in commercial production since 2015. The Company purchases high-grade gold mill feed from legally recognized Peruvian small-scale miners and processes the material for the export and sale of gold doré and refined gold.

Inca One is listed on the TSX Venture Exchange (the "TSX-V") under the symbol "INCA", on the OTCQB Exchange under the symbol "INCAF", on the Frankfurt Stock Exchange under the symbol "SU9.F", and the Santiago Stock Exchange Venture under the symbol "IOCL".

Inca One's vision is to become the largest, undisputed high-grade gold ore processor of choice in Peru, while maintaining its uncompromising guiding principles while it grows. This vision will be achieved through:

  • Continuing to increase purchases of high-grade gold mill feed;
  • The acquisition and development of mineral concessions that could be mined by contract miners and that would provide long-term supply to Chala One and Kori One; and
  • Pursuing growth via merger and acquisition, including additional mineral processing operations.

Key Period Definitions (used below)

  • three months ended April 30, 2022 ("the Quarter" or "Q4 2022);
  • three months ended January 31, 2022 ("Q3 2022);
  • three months ended October 31, 2021("Q2 2022);
  • three months ended July 31, 2021("Q1 2022);
  • three months ended April 30, 2021 ("Q4 2021");
  • year ended April 30, 2022 ("YTD 2022") and
  • year ended April 30, 2021 ("YTD 2021")

1

INCA ONE GOLD CORP.

Management Discussion & Analysis

For the Years Ended April 30, 2022, and 2021

2022 Highlights and Key Business Developments

  • Raised $10.5 million in addition to the $2.5 million raised in March 2021, through a non-dilutive gold prepayment facility ("the Facility") with OCIM Precious Metal AG ("OCIM"), of which $6.5 million was paid back during the year.
  • Processed 75,737 tonnes (2021 - 31,657 tonnes), with an average of 207 tonnes per day (2021 - 87 tonnes per day) and had a gold production of 27,557 ounces (2021 - 15,400 ounces).
  • Total revenues of $47.1 million, an increase of $16.8 million when compared to 2021 of $30.3 million.
  • Gold sales of 25,063 ounces, which represents an increase of 8,748 ounces compared to 16,315 ounces sold in 2021.
  • Record monthly production averaging 340 tonnes per day ("TPD") during December 2021, including 10 days with greater than 400 TPD
  • The Company received gross proceeds of CAD $0.9 million from a private placement of 1,533,645 units at a subscription price of CAD$ 0.40 per unit and upon the exercise of 1,066,600 warrants and options at various exercise prices.

2

INCA ONE GOLD CORP.

Management Discussion & Analysis

For the Years Ended April 30, 2022, and 2021

Operational Highlights - Consolidated

Variance

Variance

Q4

Q3

Q2

Q1

Q4

%

%

Quarter over Quarter highlights

Q4 2022

Q4 2022

2022

2022

2022

2022

2021

to Q3

to Q4

2022

2021

Tonnes processed in period (t)

21,277

22,426

19,838

12,196

8,019

(17.84%)

125.67%

Average daily processing volume (t)

234

244

217

132

90

(4.10%)

160.00%

Mineral grade processed (oz/t gold)

0.39

0.39

0.38

0.46

0.49

0.00%

(20.41%)

Gold production (oz)

7,408

7,915

6,976

5,258

3,606

(6.41%)

105.44%

Gold sold (equivalent oz) (1)

8,254

6,671

6,020

4,614

5,101

23.73%

61.81%

Gold sold (oz)

8,086

6,554

5,907

4,516

4,977

23.39%

62.47%

Silver sold (oz)

13,237

9,208

8,910

6,878

8,420

43.76%

57.21%

Sales Revenue ($ millions)

15.84

12.18

10.7

8.40

9.01

30.07%

75.79%

Cost of goods sold ("COGS") ($ millions)

14.39

11.81

10.2

8.56

9.25

21.89%

55.64%

Gross operating margin (deficit) ($ millions)

1.45

0.37

0.55

(0.16)

(0.23)

287.97%

719.32%

Gross operating margin %

9.16%

3.07%

5.11%

(1.9%)

(2.6%)

198.29%

452.30%

Average gold (equivalent) price per oz sold ($)(2)

1,919

1,826

1,781

1,821

1,767

5.09%

8.60%

Cost per oz sold ($) (3)

1,743

1,770

1,690

1,856

1,813

(1.53%)

(3.86%)

Gross margin per oz sold ($) (4)

176

56

91

(35)

(46)

214.29%

482.61%

Average London Close price ($)

1,914

1,809

1,779

1,831

1,761

5.80%

8.69%

  1. Gold sold (equivalent oz) is a non-IFRS financial performance measure with no standard definition under IFRS, it is therefore possible that this measure could not be comparable with a similar measure of another corporation. This measure is calculated as the actual ounces of gold sold plus an estimate of the equivalent ounces of gold that could be purchased for the equivalent number of silver ounces sold.
  2. Average gold (equivalent) price per oz sold is calculated as the total sale revenue divided by the quantity of gold sold (equivalent oz) and is a non-IFRS financial measure with no standard definition under IFRS.
  3. Cost per oz sold is calculated as the total cost of goods sold divided by the quantity of gold sold (equivalent oz) and is a non-IFRS financial measure with no standard definition under IFRS.
  4. Gross margin per oz sold is calculated as the total gross operating margin (deficit) divided by the quantity of gold sold (equivalent oz) and is a non-IFRS financial measure with no standard definition under IFRS.

The Company has included certain non-IFRS measures in this MD&A, therefore it is possible that these measures could not be comparable with a similar measure of another corporation. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide readers an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

3

INCA ONE GOLD CORP.

Management Discussion & Analysis

For the Years Ended April 30, 2022, and 2021

Future Outlook

In March 2021, the Company received a $2.5 million gold pre-payment facility from OCIM Precious Metals AG. The net proceeds of $2.45 million were successfully used to increase gold mill feed purchasing and production from 86 TPD in March 2021 to 173 TPD in June 2021.

With the first OCIM gold pre-payment facility fully repaid, the Company entered into a second non-dilutive Facility with OCIM for a total of $9 million on August 6, 2021. Net proceeds of the Facility's first tranche was approximately $5.95 million, of which $4.6 million was used to purchase gold mill feed and $1.35 million was used for the repayment of a secured debenture. The term of the Facility is for 18 months and will be paid in gold bullion.

After receiving the proceeds of the new Facility from OCIM, August production immediately jumped to an all- time record of 6,838 tonnes and 221 TPD. The average production during August 2021 to November 2021 was approximately 220 TPD.

With the proceeds of the Facility's first tranche fully deployed, the Company organized an early drawdown of the second tranche of $3 million in December 2021. This additional working capital had immediate results as November and December purchasing averaged 273 TPD and 303 TPD respectively, both Company records.

During April 2022 and after making principal payments of approximately $6.5 million to OCIM, the Company agreed with OCIM to draw an additional $1.5 million against the Facility.

Processing during December averaged 340 TPD, which was an all time record for monthly production. Additionally, there were 9 days during December where the production was greater than 400 TPD and 18 days

4

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Inca One Gold Corp. published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 22:40:29 UTC.