Mandalay Resources Announces Financial Results for the Fourth Quarter and Full-Year 2023

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TORONTO, Feb. 22, 2024 /PRNewswire/ – Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX:MND) (OTCQB:MNDJF) is pleased to announce its financial results for the fourth quarter and year ended December 31, 2023.

The Company’s audited consolidated financial result for the year ended December 31, 2023, together with its Management’s Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under the Company’s profile on www.sedar.com and on the Company’s website at www.mandalayresources.com. All currency references in this press release are in U.S. dollars except as otherwise indicated.

Fourth Quarter 2023 Highlights:

Consolidated revenue up 22% as compared to the same period last year, reaching $50.6 million;
Björkdal had its strongest quarter since Q1 2022, generating revenue of $22.1 million;
Consolidated quarterly adjusted EBITDA1 of $23.1 million, a 15% increase as compared to corresponding quarter last year;
Consolidated cash cost1 of $979 and all-in sustaining cost1 of $1,296 per ounce of saleable gold equivalent production1;
Generated $14.9 million and $5.5 million in cash flow from operating activities and free cash flow1, respectively; and
Consolidated net income was $2.7 million ($0.03 or C$0.04 per share).

Full-Year 2023 Highlights:

Ending cash position of $26.9 million of cash on hand, with a net cash1 position of $3.3 million. As at the end of January 2024, cash position of $36.8 million, with an estimated net cash1 position of $13.0 million;
Generated consolidated revenue of $173.3 million;
Generated $43.3 million cash flow from operating activities;
Consolidated adjusted EBITDA1 of $60.3 million;
Consolidated cash cost1 of $1,100 and all-in sustaining cost1 of $1,497 per ounce of saleable gold equivalent production1; and
Consolidated net income was $7.9 million ($0.08 or C$0.11 per share).

 ________________________________

1

Saleable gold equivalent production, adjusted EBITDA, free cash flow, net cash and cash and all-in sustaining costs are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to section “Non-IFRS Measures”, for further information

Frazer Bourchier, President, and CEO commented:

“Mandalay navigated a challenging year with resilience and adaptability. After a poor start in 2023 due to various operational issues mostly at Costerfield, our strong financial performance in the fourth quarter underscored the effectiveness of our various strategic initiatives and the increased operational and financial focus of our team. We maintained our efforts on disciplined capital allocation at our two mines, positioning the Company for improved future cash generation. During this year, Mandalay generated $173.3 million in revenue, leading to an adjusted EBITDA of $60.3 million – a solid margin of 35%.

“In 2023, both cash and all-in sustaining costs per ounce increased compared to the previous year, primarily attributed to reduced gold equivalent production and Mandalay’s relatively high proportion of fixed costs. That being said, for the full year, our consolidated cash cost per ounce of saleable gold equivalent produced was $1,100, while the all-in sustaining cost was $1,497.”

Nick Dwyer, CFO commented:

“As at the end of Q4 2023, the Company maintained a healthy financial position, concluding with $26.9 million in available cash on hand and a net cash position of $3.3 million. It’s important to highlight that year-end cash and net cash positions were adversely affected by an unusual delay in receipts resulting from concentrate shipment delays, which were eventually received soon after the quarter. As of the end of January 2024, our cash balance has risen to approximately $36.8 million.

“Costerfield delivered a robust financial quarter, achieving $28.5 million in revenue and generating $17.0 million in adjusted EBITDA. This impressive margin was facilitated by processed grades of 13.1 g/t gold and 2.1% antimony. In support of our organic growth initiatives, we spent $8 million in exploration expenditures at this site during the year.

“Björkdal continued with its consistent quarter-over-quarter performance, recording $22.1 million in revenue, marking a significant 42% increase generated during the corresponding period last year. The upswing was largely credited to elevated gold grades, particularly from the Eastern Extension zone. The operation remains committed to prioritizing the mining of higher-grade gold areas of this extensive gold system.”

Mr. Bourchier concluded: “We are pleased to close the year on a positive note and aim to sustain this momentum as we work towards fulfilling our long-term growth and value creation goals. In 2024, our commitment remains steadfast in delivering sustainable growth and value for our shareholders, all while prioritizing safety, environmental responsibility, and community engagement. Concurrently, we continue the focus of strengthening our balance sheet.”

Fourth Quarter and Full-Year 2023 Financial Summary

The following table summarizes the Company’s consolidated financial results for the three months and years ended December 31, 2023 and 2022:

Three months

ended

December 31,

2023

Three months

ended

December 31,

2022

Year

ended

December 31,

2023

Year

ended

December 31,

2022

$’000

$’000

$’000

$’000

Revenue

50,588

41,381

173,344

191,699

Cost of sales

25,836

19,972

105,923

94,904

Adjusted EBITDA (1)

23,071

20,137

60,328

91,179

Income from mine ops before
depreciation and depletion (1)

24,752

21,409

67,421

96,795

Adjusted net income (1)

9,653

5,202

10,596

26,971

Consolidated net income

2,715

1,043

7,861

23,506

Capital expenditure

9,512

11,028

42,401

40,686

Total assets

295,248

282,224

295,248

282,224

Total liabilities

98,316

98,070

98,316

98,070

Adjusted net income per share (1)

0.10

0.06

0.11

0.29

Consolidated net income per share

0.03

0.01

0.08

0.26

1.

Income from mine operations before depreciation & depletion, Adjusted EBITDA, adjusted net income and adjusted net income per share are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to “Non-IFRS Measures” at the end of this press release for further information.

Full story available on Benzinga.com


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