Mandalay Resources Corporation Announces Production and Sales Results for the Fourth Quarter and Full-Year 2021, Provides Production and Cost Guidance for 2022
13 Janvier 2022 - 03:39PM
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) announced today its production and sales results
for the fourth quarter and full-year 2021 and provides production
and cost guidance for 2022.
Fourth Quarter and Full-Year 2021
Production Highlights:
- Exceeded full-year 2021 production guidance with a consolidated
saleable gold equivalent production of 123,002 ounces – highest
total since 2017;
- Full-year consolidated saleable gold equivalent sold was
126,241 ounces – highest amount since 2017;
- Achieved year-over-year production growth of 19% and sales
growth of 26% as compared to 2020;
- Fourth quarter consolidated 38,904 ounces of gold equivalent
sold – highest quarterly amount since Q2 2016; and
- Costerfield’s highest ever quarterly saleable gold equivalent
production of 19,507 ounces.
Production and Cost Guidance for
Full-Year 2022:
- 2022
consolidated production guidance of 118,000 – 130,000 ounces of
gold equivalent produced at an expected cash cost of $700 – $900
and all-in sustaining cost of $1,100 – $1,300.
Dominic Duffy, President and CEO of Mandalay,
commented:
“Mandalay Resources finished the year strongly
with Costerfield achieving a historic high in quarterly saleable
gold equivalent production with 19,507 ounces. On a consolidated
basis, the 32,362 saleable ounces of gold equivalent produced was
the Company’s second highest quarterly result of 2021 and the
full-year 123,002 ounces of saleable gold equivalent produced not
only exceeded our 2021 guidance, but was also the Company’s best
result since 2017. The consecutive year-over-year improvements
since 2019 clearly demonstrate the stability at Björkdal and the
growing quality of our anchor asset at Costerfield.
"Stemming from shipment backlogs, a
higher-than-average level of concentrate was sold at Costerfield in
December resulting in 26,877 ounces of gold equivalent sold during
Q4. The receipt of cash from December’s shipments however will be
recognized in 2022. Moreover, the full-year saleable gold
equivalent production of 68,729 ounces at Costerfield represented
an 18% year-over-year improvement. The Company anticipates an
incremental improvement to Costerfield’s production profile during
2022 as stoping ramps up at Youle and with the initiation of
production from the high-gold grade deposit Shepherd.
“At Björkdal, the 11,190 ounces and 45,236
ounces of saleable gold ounces produced during the fourth quarter
and full-year respectively, was in line with previous quarters and
year. The site continued with its step changes aimed at reducing
dilution and we expect grades to lift and stabilize at planned
levels during 2022. For 2022, Björkdal will increase its stoping
rates within the lower, higher grade levels of the Aurora zone and
will maintain the operational goal of achieving 1.2 million tonnes
of underground ore per annum.
“At Cerro Bayo, processing continued up until
December 1, 2021, when the Company successfully completed the sale
of the asset to Equus Mining. During September and October, the
site produced 1,665 ounces of saleable gold equivalent.
“For 2022, the Company anticipates a
consolidated production between 118,000 – 130,000 ounces of gold
equivalent at an expected cash cost of $700 – $900 and all-in
sustaining cost of $1,100 – $1,300. The Company is also looking
forward to following up on the highly successful 2021 exploration
campaign with an anticipated exploration spend between $7 – $9
million at Costerfield and between $4 – $5 million at Björkdal
during 2022.”
Saleable Production for the Quarter Ended December 31,
2021:
- In the fourth quarter of 2021, the Company produced a total of
25,596 ounces of gold, 830 tonnes of antimony and 50,556 ounces of
silver representing a total of 32,362 ounces of gold equivalent,
versus 24,488 ounces of gold and 858 tonnes of antimony in the
fourth quarter of 2020, representing a total of 27,351 ounces of
gold equivalent.
- Production at Björkdal was 11,190 ounces of gold in the fourth
quarter of 2021 as compared to 12,252 ounces of gold in the fourth
quarter of 2020.
- Production at Costerfield was 13,397 ounces of gold and 830
tonnes of antimony in the fourth quarter of 2021 versus 12,236
ounces gold and 858 tonnes antimony in the fourth quarter of
2020.
- Production at Cerro Bayo was 1,009 ounces of gold and 50,556
ounces of silver in the fourth quarter of 2021 versus no production
in the fourth quarter of 2020.
Saleable Production for the Year Ended December 31,
2021:
- The Company
produced a total of 98,292 ounces gold, 3,380 tonnes antimony and
266,596 ounces of silver, representing a total of 123,002 ounces of
gold equivalent production, versus 90,254 ounces gold and 3,903
tonnes of antimony, representing a total of 103,444 ounces of gold
equivalent in 2020.
- Production at Björkdal was 45,236
ounces gold.
- Production at Costerfield was
47,753 ounces gold and 3,380 tonnes antimony.
- Production at Cerro Bayo was 5,303
ounces of gold and 266,596 ounces of silver.
Table 1 – Fourth Quarter and Full-Year Saleable
Production for 2021 and 2020
Metal |
Source |
Three months endedDecember
312021 |
Three months endedDecember
312020 |
Year endedDecember
312021 |
Year endedDecember
312020 |
Gold (oz) |
Björkdal |
11,190 |
12,252 |
45,236 |
45,296 |
|
Costerfield |
13,397 |
12,236 |
47,753 |
44,958 |
|
Cerro Bayo |
1,009 |
- |
5,303 |
- |
|
Total |
25,596 |
24,488 |
98,292 |
90,254 |
Antimony (t) |
Costerfield |
830 |
858 |
3,380 |
3,903 |
Silver (oz) |
Cerro Bayo |
50,556 |
- |
266,596 |
- |
Average quarterly prices: |
|
|
|
|
|
Gold US$/oz |
|
1,796 |
1,876 |
|
|
Antimony US$/t |
|
13,221 |
6,260 |
|
|
Silver US$/oz |
|
23.31 |
24.43 |
|
|
Total Gold Eq. (oz)(1) |
|
|
|
|
|
|
Björkdal |
11,190 |
12,252 |
45,236 |
45,296 |
|
Costerfield |
19,507 |
15,099 |
68,729 |
58,148 |
|
Cerro Bayo |
1,665 |
- |
9,037 |
- |
|
Total |
32,362 |
27,351 |
123,002 |
103,444 |
- Quarterly gold
equivalent ounces (“Au Eq. oz”) produced is calculated by
multiplying the saleable quantities of gold (“Au”), silver (“Ag”)
and antimony (“Sb”) in the period by the respective average market
prices of the commodities in the period, adding the amounts to get
a “total contained value based on market price”, and then dividing
that total contained value by the average market price of Au in the
period. Average Au and Ag prices in the periods are calculated as
the average of the daily LME PM fixes in the period, with price on
weekend days and holidays taken of the last business day; average
Sb price in the period is calculated as the average of the daily
average of the high and low Rotterdam warehouse prices for all days
in the period, with price on weekend days and holidays taken from
the last business day. The source for Au and Ag prices is
www.transamine.com, and Sb price is www.metalbulletin.com.
Sales for the Quarter Ended December 31,
2021:
- In the fourth
quarter of 2021, the Company sold a total of 28,570 ounces of gold,
1,334 tonnes of antimony and 39,614 ounces of silver, representing
a total of 38,904 ounces of gold equivalent, versus 21,689 ounces
of gold and 915 tonnes of antimony in the fourth quarter of 2020,
representing a total of 24,742 ounces of gold equivalent.
- Björkdal sold
10,749 ounces of gold in the fourth quarter of 2021 versus 10,746
ounces of gold in the fourth quarter of 2020.
- Costerfield
sold 17,057 ounces of gold and 1,334 tonnes of antimony in the
fourth quarter of 2021 versus 10,943 ounces of gold and 915 tonnes
of antimony in the fourth quarter of 2020.
- Cerro Bayo sold
764 ounces of gold and 39,614 ounces of silver in the fourth
quarter of 2021 versus no sales in the fourth quarter of 2020.
Sales for the Year Ended December 31, 2021:
- The Company
sold 100,203 ounces gold, 3,627 tonnes antimony and 217,034 ounces
of silver, representing a total of 126,241 ounces of gold
equivalent, versus 87,432 ounces gold and 3,744 tonnes antimony,
representing a total of 99,935 ounces of gold equivalent in
2020.
- Björkdal sold 46,254 ounces
gold.
- Costerfield sold 49,585 ounces gold
and 3,627 tonnes antimony.
- Cerro Bayo sold
4,364 ounces gold and 217,034 ounces silver.
Table 2 – Fourth Quarter and Full-Year Sales for 2021
and 2020
Metal |
Source |
Three months endedDecember
312021 |
Three months endedDecember
312020 |
Year endedDecember
312021 |
Year endedDecember
312020 |
Gold (oz) |
Björkdal |
10,749 |
10,746 |
46,254 |
45,312 |
|
Costerfield |
17,057 |
10,943 |
49,585 |
42,120 |
|
Cerro Bayo |
764 |
- |
4,364 |
- |
|
Total |
28,570 |
21,689 |
100,203 |
87,432 |
Antimony (t) |
Costerfield |
1,334 |
915 |
3,627 |
3,744 |
Silver (oz) |
Cerro Bayo |
39,614 |
- |
217,034 |
- |
Average quarterly prices: |
|
|
|
|
|
Gold US$/oz |
|
1,796 |
1,876 |
|
|
Antimony US$/t |
|
13,221 |
6,260 |
|
|
Silver US$/oz |
|
23.31 |
24.43 |
|
|
Total Gold Eq. (oz)1 |
|
|
|
|
|
|
Björkdal |
10,749 |
10,746 |
46,254 |
45,312 |
|
Costerfield |
26,877 |
13,996 |
72,598 |
54,623 |
|
Cerro Bayo |
1,278 |
- |
7,389 |
- |
|
Total |
38,904 |
24,742 |
126,241 |
99,935 |
- Quarterly Au
Eq. oz sold is calculated by multiplying the saleable quantities of
Au, and Sb in the period by the respective average market prices of
the commodities in the period, adding the amounts to get a “total
contained value based on market price”, and then dividing that
total contained value by the average market price of Au for the
period. The source for Au and Ag prices is www.transamine.com, and
Sb price is www.metalbulletin.com, with price on weekend days and
holidays taken of the last business day.
Mandalay 2022 Guidance:
Table 3 – Production and Cost Guidance
For 2022
|
2022E |
|
Björkdal |
Gold produced (oz) |
51,000 – 56,000 |
|
Cash cost(1) per oz gold produced |
$980 – $1,130 |
|
All-in sustaining cost(1) per oz gold produced |
$1,400 – $1,550 |
|
Capital expenditures |
$29M – $33M |
|
Costerfield |
Gold produced (oz) |
50,000 – 55,000 |
|
Antimony produced (t) |
2,100 – 2,700 |
|
Gold equivalent produced(2) (oz) |
67,000 – 74,000 |
|
Cash cost(1) per oz gold eq. produced |
$560 – $710 |
|
All-in sustaining cost(1) per oz gold eq. produced |
$830 – $980 |
|
Capital expenditures |
$21M – $25M |
|
Consolidated |
Gold equivalent(2) produced (oz) |
118,000 – 130,000 |
|
Average cash cost per oz gold eq. |
$700 – $900 |
|
Average all-in sustaining cost(3) per oz gold eq. |
$1,100 – $1,300 |
|
Capital expenditures |
$50M – $58M |
|
- Cash cost and
all-in sustaining costs are non-IFRS measures. See “Non-IFRS
Measures” at the end of this press release
- Assumes average
metal prices of: Au $1,750/oz, Sb $13,000/t
- Consolidated
all-in sustaining costs per Au Eq. oz includes corporate overhead
spending
Mandalay’s 2022 production guidance is
based on:
- The
strengthening Australian dollar and Swedish krona relative to the
US dollar and overall country cost inflation has had a negative
impact on the above guidance.
- Average 2021
rates: AUD/USD 0.751 and USD/SEK 8.58
- Guidance 2022
rates: AUD/USD 0.730 and USD/SEK 8.79
- The expected
high capital spend at Björkdal includes $10.8M of capital works
being carried out at the tailings storage facility. This project
will allow for tailings capacity through to 2029.
- Capital
exploration spend forecast for both sites are:
- Björkdal: $4M –
$5M
- Costerfield:
$7M – $9M
For Further Information:
Dominic DuffyPresident and Chief Executive
Officer
Edison NguyenManager, Analytics and Investor
Relations
Contact:647.260.1566
About Mandalay Resources
Corporation:
Mandalay Resources is a Canadian-based natural
resource company with producing assets in Australia (Costerfield
gold-antimony mine) and Sweden (Björkdal gold mine). The Company is
focused on growing its production and reducing costs to generate
significant positive cashflow. Mandalay is committed to operating
safely and in an environmentally responsible manner, while
developing a high level of community and employee engagement.
Mandalay’s mission is to create shareholder
value through the profitable operation and continuing the regional
exploration program, at both its Costerfield and Björkdal mines.
Currently, the Company’s main objectives are to continue mining the
high-grade Youle vein at Costerfield, bring online the deeper
Shepherd veins, both of which will continue to supply high-grade
ore to the processing plant, and to extend Youle Mineral Reserves.
At Björkdal, the Company will aim to increase production from the
Aurora zone and other higher-grade areas in the coming years, in
order to maximize profit margins from the mine.
Forward-Looking Statements:
This news release contains "forward-looking
statements" within the meaning of applicable securities laws,
including statements regarding the Company’s expected production of
gold and antimony and costs for the 2022 fiscal year. Readers are
cautioned not to place undue reliance on forward-looking
statements. Actual results and developments may differ materially
from those contemplated by these statements depending on, among
other things, changes in commodity prices and general market and
economic conditions. The factors identified above are not intended
to represent a complete list of the factors that could affect
Mandalay. A description of additional risks that could result in
actual results and developments differing from those contemplated
by forward-looking statements in this news release can be found
under the heading “Risk Factors” in Mandalay’s annual information
form dated March 30, 2021, a copy of which is available under
Mandalay’s profile at www.sedar.com. In addition, there can be no
assurance that any inferred resources that are discovered as a
result of additional drilling will ever be upgraded to proven or
probable reserves. Although Mandalay has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
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