Mandalay Resources Announces 2025 Outlook and Guidance for Gold and Antimony Production

Rhea-AI Summary

Mandalay Resources (TSX: MND, OTCQB: MNDJF) has announced its 2025 production and cost guidance. The company expects to achieve its 2024 guidance of 90,000-100,000 gold equivalent ounces and projects 2025 production of 85,000-95,000 gold equivalent ounces, including 76,500-85,000 ounces of gold and 1,050-1,150 tonnes of antimony.

The company forecasts 2025 cash costs of $1,200-$1,350 and all-in sustaining costs of $1,795-$1,975 per gold equivalent ounce. Planned sustaining capital expenditures total $43-$48 million, split between Costerfield ($18-$20 million) and Björkdal ($25-$28 million). Costerfield's 2025 production is expected at 43,000-48,000 gold equivalent ounces, with higher production anticipated in 2026.

Positive

• Company confirms meeting 2024 production guidance of 90,000-100,000 gold equivalent ounces
• Strong balance sheet with no debt
• Continued robust cash flow generation expected from both gold and antimony production
• Björkdal's gold production expected to remain stable in 2025

Negative

• Lower projected gold equivalent production guidance for 2025 (85,000-95,000 oz) compared to 2024
• Significant capital expenditure requirements ($43-$48 million) for 2025
• Decreased production expected at Costerfield for 2025 due to mine sequencing

TORONTO, Dec. 17, 2024 /PRNewswire/ - Mandalay Resources Corporation ("Mandalay" or "the Company") (TSX: MND) (OTCQB: MNDJF) is pleased to provide its production and cost guidance for 2025, which reflects the Company's continued commitment to operational excellence, sustainable growth, and delivering value to shareholders. All currency references are in USD unless noted.

Highlights:

• 2024 consolidated production remains within previous guidance of 90,000 – 100,000 gold equivalent ounces;
• 2025 consolidated production and cost guidance: 
  • Annual production of 85,000 – 95,000 gold equivalent ounces; 
    • Gold: 76,500 – 85,000 ounces;
    • Antimony:  1,050 – 1,150 tonnes;
  • Cash cost and all-in sustaining cost¹ of $1,200 – $1,350 and $1,795 – $1,975 per gold equivalent ounce, respectively;
  • Sustaining capital expenditures of $43 – $48 million;
    • Costerfield: $18 – $20 million; and
    • Björkdal: $25 – $28 million.

Frazer Bourchier, President and CEO, commented: 

"2024 has been a transformative year as we built on the strong foundation from our two producing assets in premier jurisdictions. Our commitment to excellence remains steadfast with a focus on maintaining rigorous operational and safety metrics to enable robust cash flow. We are pleased to re-affirm that we will meet our 2024 production guidance. Our strong operating performance in 2024 allowed us to build a cash-rich balance sheet with no debt.

"Looking ahead to 2025, we expect to continue to generate robust cashflow from both gold and antimony production.  Due to planned mine sequencing, we expect Costerfield's 2025 production to be 43,000 – 48,000 gold equivalent ounces followed by higher production in 2026. 2025 is a key mine development year at Costerfield with a planned investment of $18 – $20 million in sustaining capital, to enable mining flexibility, long-term growth, and sustained profitability.

"At Björkdal, gold production in 2025 is expected to remain consistent with 2024 levels, supported by stable processed grades and tonnage. Our plan continues to prioritize higher-margin underground material while leveraging the existing low-grade stockpiles to fully utilize the plant's 1.4 million tonne per annum capacity.

1	Cash costs 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 "Non-IFRS Measures" at the end of this press release for further information.

"Our planned exploration investment continues to underscore our commitment to replacing mine depletion, extending mine life, and pursuing near-mine discovery opportunities at both operations."

2025E Guidance Summary and Key Q1 Dates:

1.    Assumes AUD/USD 0.67 and USD/SEK 10.5

2.    Cash cost and all-in sustaining costs are non-IFRS measures. See "Non-IFRS Measures" at the end of this press release.

3.    Assumes average metal prices of: Au $2,575/oz; Sb $20,000/t.

4.    Consolidated all-in sustaining costs per Au Eq. oz includes corporate overhead spending.

• Q4 and year-end 2024 production results will be reported on January 13, 2025;
• Q4 and year-end 2024 financial results will be reported on February 20, 2025, with a conference call on February 21, 2025; and
• 2024 year-end Mineral Reserves and Resources update for Costerfield and Björkdal will be reported the week of February 24, 2025.

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 successful exploration at its Costerfield and Björkdal mines. Currently, the Company's main objectives at Costerfield are to continue mining the high-grade Youle and Shepherd veins, and to extend Mineral Reserves. At Björkdal, the Company will aim to increase production from the Eastern Extension area 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 2025 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.

Non-IFRS Measures: 

This news release may contain references to Income from mine operations before depreciation & depletion, adjusted EBITDA, adjusted net income, free cash flow, cash cost per ounce of gold equivalent produced and all-in sustaining cost all of which are non-IFRS measures and do not have standardized meanings under IFRS. Therefore, these measures may not be comparable to similar measures presented by other issuers. 

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SOURCE Mandalay Resources Corporation

FAQ

What is Mandalay Resources' (MNDJF) gold production guidance for 2025?

Mandalay Resources projects gold production of 76,500-85,000 ounces for 2025.

What are MNDJF's expected all-in sustaining costs for 2025?

The company expects all-in sustaining costs of $1,795-$1,975 per gold equivalent ounce for 2025.

How much antimony production is MNDJF guiding for 2025?

Mandalay Resources expects to produce 1,050-1,150 tonnes of antimony in 2025.

What is MNDJF's planned capital expenditure for 2025?

The company plans sustaining capital expenditures of $43-$48 million, with $18-$20 million for Costerfield and $25-$28 million for Björkdal.

What is Costerfield's expected production for 2025?

Costerfield is expected to produce 43,000-48,000 gold equivalent ounces in 2025.