TORONTO, Feb. 22, 2024 /CNW/ – 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).
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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.
In Q4 2023, Mandalay generated consolidated revenue of
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