TORONTO, Oct. 10,
2024 /PRNewswire/ -- Mandalay Resources Corporation
("Mandalay" or the "Company") (TSX: MND) (OTCQB: MNDJF) announces
third quarter production results, highlighted by continued cash
generation. All currency references in this press release are
in U.S. dollars except as otherwise indicated.
Third Quarter Highlights:
- Quarter-end cash balance was $55
million;
- Consolidated gold equivalent production of 20,323 ounces;
- Consolidated gold equivalent sold was 21,551 ounces; and
- Outstanding balance of revolving credit facility repaid in
full.
Frazer Bourchier, President and CEO, commented:
"Mandalay's combined operations produced 20,323 gold equivalent
ounces in the third quarter of 2024. Q3 was always planned to be
the lowest ounce production quarter of the year, and production of
gold equivalent ounces is expected to rebound in Q4. This positions
Mandalay to meet its full-year production guidance of 90,000 –
100,000 gold equivalent ounces.
"The Company continued to maintain its strong balance sheet,
ending the quarter with $55 million
in cash. This includes the full repayment during the quarter of the
$20 million that was outstanding
under the revolving credit facility, leaving Mandalay with
$35 million in undrawn availability
under the facility."
Ryan Austerberry, COO,
commented:
"At Costerfield, we produced 10,697 gold equivalent ounces
during Q3 2024, comparable with the same period last year. However,
as compared with the previous quarter, production was down
primarily due to both the expected impact of our mining cycle in
the third quarter, and mining additional not-in-reserve profitable
ore at the extremities of Youle and Shepherd due to elevated metal
prices. For the quarter, average processed grades were 8.1 g/t and
1.3% for antimony. For Q4, we anticipate returning our focus to
mining higher-grade areas of the orebodies.
"At Björkdal, we produced 9,626 ounces of gold, which was
slightly less than anticipated due to incremental weather causing
flooding in the Eastern Zone thereby temporarily restricting access
to this area. Consequently, the site had to pivot to lower-grade
stope material underground and also rely on increased low grade
surface stockpile to maximize plant feed, leading to lower than
expected production. In the last quarter of 2024, Björkdal is
expected to return to production levels achieved in the first half
of the year."
Mr. Bourchier concluded, "To close out the year, our primary
focus remains continuing to deliver operating cashflow and
advancing our strategy to become a mid-tier gold producer."
Production for the Quarter Ended September 30, 2024:
- The Company produced a total of 17,844 ounces of gold and 252
tonnes of antimony representing a total of 20,323 gold equivalent
ounces produced, compared to 19,601 ounces of gold and 395 tonnes
of antimony in the third quarter of 2023, representing a total of
22,032 gold equivalent ounces produced.
- Production at Björkdal was 9,626 ounces of gold compared to
11,224 ounces of gold in the third quarter of 2023.
- Production at Costerfield was 8,218 ounces of gold and 252
tonnes of antimony versus 8,377 ounces gold and 395 tonnes antimony
in the third quarter of 2023.
Production for the Nine Months Ended September 30, 2024:
- The Company produced a total of 63,816 ounces of gold and 1,015
tonnes of antimony representing a total of 71,631 gold equivalent
ounces, versus 53,631 ounces of gold and 1,456 tonnes of antimony
in corresponding first nine months of 2023, which represented a
total of 62,868 gold equivalent ounces.
- Production at Björkdal was 32,595 ounces of gold.
- Production at Costerfield was 31,221 ounces of gold and 1,015
tonnes of antimony.
Table 1 – Third Quarter and Nine Months Production for 2024
and 2023
|
Metal
|
Source
|
Three months
ended
September 30,
2024
|
Three months
ended
September 30,
2023
|
Nine months
ended
September 30,
2024
|
Nine months
ended
September 30,
2023
|
|
Gold produced
(oz)
|
Björkdal
|
9,626
|
11,224
|
32,595
|
30,590
|
|
Costerfield
|
8,218
|
8,377
|
31,221
|
23,041
|
|
Total
|
17,844
|
19,601
|
63,816
|
53,631
|
|
Antimony produced
(t)
|
Costerfield
|
252
|
395
|
1,015
|
1,456
|
|
|
|
|
|
|
|
Gold
US$/oz
|
|
2,474
|
1,928
|
|
|
|
Antimony
US$/t
|
|
24,338
|
11,865
|
|
|
|
Total Gold Eq. (oz)
(1) Produced
|
Björkdal
|
9,626
|
11,224
|
32,595
|
30,590
|
|
Costerfield
|
10,697
|
10,808
|
39,036
|
32,278
|
|
Total
|
20,323
|
22,032
|
71,631
|
62,868
|
|
1.
|
Quarterly gold
equivalent ounces ("Gold Eq. (oz)") produced is calculated by
multiplying the production quantities of gold ("Au"), 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.The source for Au price is www.lbma.org.uk, and Sb price is
www.metalbulletin.com.
|
Sales for the Quarter Ended September
30, 2024:
- The Company sold a total of 19,111 ounces of gold and 248
tonnes of antimony, representing a total of 21,551 gold equivalent
ounces, compared to 18,106 ounces of gold and 400 tonnes of
antimony in the third quarter of 2023, representing a total of
20,568 gold equivalent ounces.
- Björkdal sold 10,790 ounces of gold versus 10,751 ounces of
gold in the third quarter of 2023.
- Costerfield sold 8,321 ounces of gold and 248 tonnes of
antimony versus 7,355 ounces of gold and 400 tonnes of antimony in
the third quarter of 2023.
Sales for the Nine Months Ended September 30, 2024:
- The Company sold a total of 65,729 ounces of gold and 1,009
tonnes of antimony, representing a total of 73,587 gold equivalent
ounces, compared to 53,326 ounces of gold and 1,455 tonnes of
antimony in the first nine months of 2023, representing a total of
62,566 gold equivalent ounces.
- Björkdal sold 33,871 ounces of gold.
- Costerfield sold 31,858 ounces of gold and 1,009 tonnes of
antimony.
Table 2 – Third Quarter and Nine Months Sales for 2024 and
2023
|
Metal
|
Source
|
Three months
ended
September 30,
2024
|
Three months
ended
September 30,
2023
|
Nine months
ended
September 30,
2024
|
Nine months
ended
September30,
2023
|
|
Gold sold
(oz)
|
Björkdal
|
10,790
|
10,751
|
33,871
|
30,211
|
|
Costerfield
|
8,321
|
7,355
|
31,858
|
23,115
|
|
Total
|
19,111
|
18,106
|
65,729
|
53,326
|
|
Antimony sold
(t)
|
Costerfield
|
248
|
400
|
1,009
|
1,455
|
|
|
|
|
|
|
|
Gold US$/oz
|
|
2,474
|
1,928
|
|
|
|
Antimony
US$/t
|
|
24,338
|
11,865
|
|
|
|
Total Gold Eq.
(oz)1 Sold
|
Björkdal
|
10,790
|
10,751
|
33,871
|
30,211
|
|
Costerfield
|
10,761
|
9,817
|
39,716
|
32,355
|
|
Total
|
21,551
|
20,568
|
73,587
|
62,566
|
|
1.
|
Quarterly Gold Eq. (oz)
sold is calculated by multiplying the sale 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 price is www.lbma.org.uk, and Sb price is
www.metalbulletin.com.
|
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, ramping up production from deeper
Shepherd veins, both of which will continue to supply high-quality
ore to the processing plant, and to extend Mineral Reserves. At
Björkdal, the Company will continue to produce 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 for the 2024 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 28, 2024, 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.
For Further Information: Frazer Bourchier, President and Chief
Executive Officer; Edison Nguyen,
Director, Business Valuations and IR; Contact: 647.258.9722
Logo -
https://mma.prnewswire.com/media/2528153/Mandalay_Resources_Corporation_Mandalay_Resources_Announces_Prod.jpg
View original
content:https://www.prnewswire.co.uk/news-releases/mandalay-resources-announces-production-and-cash-balance-for-third-quarter-2024-and-reaffirms-production-guidance-302273382.html
