Mandalay Resources Announces Financial Results for the Fourth Quarter and Full-Year 2023
- Consolidated revenue up 22% to $50.6 million in Q4 2023 compared to the same period last year.
- Björkdal had its strongest quarter since Q1 2022, generating revenue of $22.1 million in Q4.
- Consolidated net income was $2.7 million ($0.03 per share) in Q4 2023.
- Generated $173.3 million in revenue for full-year 2023.
- Adjusted EBITDA of $60.3 million for full-year 2023.
- Ending cash position of $26.9 million with a net cash position of $3.3 million.
- Maintained efforts on disciplined capital allocation.
- Consolidated cash cost of $1,100 and all-in sustaining cost of $1,497 per ounce of saleable gold equivalent production for full-year 2023.
- Mandalay reiterates 2024 guidance for production and cost.
- Conference call scheduled for February 23, 2024, with President and CEO Frazer Bourchier.
- None.
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
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 15% increase as compared to corresponding quarter last year; - Consolidated cash cost1 of
$979 $1,296 - Generated
$14.9 million $5.5 million - Consolidated net income was
$2.7 million $0.03 C per share).$0.04
Full-Year 2023 Highlights:
- Ending cash position of
$26.9 million $3.3 million $36.8 million $13.0 million - Generated consolidated revenue of
$173.3 million - Generated
$43.3 million - Consolidated adjusted EBITDA1 of
$60.3 million - Consolidated cash cost1 of
$1,100 $1,497 - Consolidated net income was
$7.9 million $0.08 C per share).$0.11
________________________________ | |
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
"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
Nick Dwyer, CFO commented:
"As at the end of Q4 2023, the Company maintained a healthy financial position, concluding with
"Costerfield delivered a robust financial quarter, achieving
"Björkdal continued with its consistent quarter-over-quarter performance, recording
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 | 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
Consolidated cash cost per ounce of
Mandalay generated adjusted EBITDA of
Consolidated net income was
Fourth Quarter and Full-Year 2023 Operational Summary
The table below summarizes the Company's operations, capital expenditures and operational unit costs for the three months and years ended December 31, 2023, and 2022:
Three ended December | Three ended December | Year ended December | Year ended December | |
$'000 | $'000 | $'000 | $'000 | |
Costerfield | ||||
Gold produced (oz) | 13,016 | 12,085 | 36,057 | 47,887 |
Antimony produced (t) | 404 | 504 | 1,860 | 2,292 |
Gold equivalent produced (oz) | 15,383 | 15,427 | 47,661 | 64,659 |
Cash cost (1) per oz gold eq. produced ($) | 738 | 608 | 876 | 624 |
All-in sustaining cost (1) per oz gold eq. produced ($) | 920 | 800 | 1,120 | 830 |
Capital development | 368 | 678 | 3,159 | 3,521 |
Property, plant and equipment purchases | 1,904 | 1,584 | 4,531 | 6,697 |
Capitalized exploration | 1,925 | 1,747 | 8,006 | 6,421 |
Björkdal | ||||
Gold produced (oz) | 11,558 | 10,256 | 42,148 | 41,247 |
Cash cost (1) per oz gold produced ($) | 1,299 | 1,362 | 1,354 | 1,321 |
All-in sustaining cost (1,3) per oz gold produced ($) | 1,664 | 1,810 | 1,749 | 1,692 |
Capital development | 2,453 | 2,570 | 8,982 | 8,748 |
Property, plant and equipment purchases | 2,244 | 3,335 | 13,766 | 11,100 |
Capitalized exploration | 618 | 1,114 | 3,891 | 3,885 |
Consolidated | ||||
Gold equivalent produced (oz) | 26,941 | 25,683 | 89,809 | 105,906 |
Cash cost (1) per oz gold eq. produced ($) | 979 | 909 | 1,100 | 896 |
All-in sustaining cost (1,3) per oz gold eq. produced ($) | 1,296 | 1,260 | 1,497 | 1,221 |
Capital development | 2,821 | 3,248 | 12,141 | 12,269 |
Property, plant and equipment purchases | 4,148 | 4,919 | 18,297 | 17,797 |
Capitalized exploration (2) | 2,543 | 2,861 | 11,963 | 10,620 |
1. | Cash cost and all-in sustaining cost 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. |
2. | Includes capitalized exploration relating to other non-core assets. |
3. | All-in sustaining costs in the current year includes tailings dam amortization, accordingly the 2022 comparative figures have been updated. |
Costerfield gold-antimony mine,
Costerfield produced 13,016 ounces of gold and 404 tonnes of antimony for 15,383 gold equivalent ounces in the fourth quarter of 2023. Cash and all-in sustaining costs at Costerfield of
During Q4 2023, Costerfield generated
Björkdal gold mine, Skellefteå,
Björkdal produced 11,558 ounces of gold in the fourth quarter of 2023. Cash and all-in sustaining costs at Björkdal were
Björkdal continues to show improvement in production and sales figures. During Q4 2023, Björkdal generated
Lupin,
Care and maintenance spending at Lupin was less than
La Quebrada,
No work was carried out on the La Quebrada development property during Q4 2023.
Normal Course Issuer Bid ("NCIB")
On February 15, 2024, the Company sought the approval of the Toronto Stock Exchange to make a normal course issuer bid ("NCIB") for up to
Mandalay 2024 Guidance Reminder:
Mandalay reiterates its full year production and cost guidance as shared on January 16, 2024 as in below table:
2024E | |
Björkdal | |
Gold produced (oz) | 43,000 – 47,000 |
Cash cost(1) per oz gold produced | |
All-in sustaining cost(1) per oz gold produced | |
Capital expenditures | |
Costerfield | |
Gold produced (oz) | 41,000 – 44,000 |
Antimony produced (t) | 1,100 – 1,500 |
Gold equivalent produced(2) (oz) | 47,000 – 53,000 |
Cash cost(1) per oz gold eq. produced | |
All-in sustaining cost(1) per oz gold eq. produced | |
Capital expenditures | |
Consolidated | |
Gold equivalent produced(2) (oz) | 90,000 – 100,000 |
Average cash cost(1) per oz gold eq. | |
Average all-in sustaining cost(1) (3) per oz gold eq. | |
Capital expenditures | |
1. | Cash cost and all-in sustaining costs are non-IFRS measures. See "Non-IFRS Measures" at the end of this press release |
2. | Assumes average metal prices of: Au |
3. | Consolidated all-in sustaining costs per Au Eq. oz includes corporate overhead spending. |
This guidance was based on:
- Foreign exchange assumptions:
- Average 2023 rates: AUD/
USD 0.665 and USD/SEK 10.61 ; and - Guidance 2024 rates: AUD/
USD 0.670 and USD/SEK 10 .30
- Average 2023 rates: AUD/
- Capital expenditures at Costerfield to be carried out at the tailings storage facilities of
$4 $6 million - Capitalized exploration expenditures of:
- Costerfield:
$9 $11 million - Björkdal:
$3 $4 million
- Costerfield:
Conference Call
A conference call with Frazer Bourchier, President and Chief Executive Officer of Mandalay, for investors and analysts on February 23, 2024, at 8:00 AM (
Participant Number ( | 1-888-664-6383 |
Conference ID: | 67249025 |
Alternatively, please register for the webcast here.
A replay of the conference call will be available until 11:59 PM (Toronto time), March 01, 2024, and can be accessed using the following dial-in numbers:
Encore Number (Canada Toll free): | 1-888-390-0541 |
Encore Replay Code: | 249025 |
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in
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 the deeper Shepherd veins into production, both of which are expected to continue to supply high-grade ore to the processing plant, and to extend Youle's 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 anticipated performance in 2023. 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 31, 2023, 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 saleable 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.
Management uses adjusted EBITDA and free cash flow as measures of operating performance to assist in assessing the Company's ability to generate liquidity through operating cash flow to fund future working capital needs and to fund future capital expenditures, as well as to assist in comparing financial performance from period to period on a consistent basis. Management uses adjusted net income in order to facilitate an understanding of the Company's financial performance prior to the impact of non-recurring or special items. The Company believes that these measures are used by and are useful to investors and other users of the Company's financial statements in evaluating the Company's operating and cash performance because they allow for analysis of its financial results without regard to special, non-cash and other non-core items, which can vary substantially from company to company and over different periods.
The Company defines adjusted EBITDA as income from mine operations, net of administration costs, and before interest, taxes, non-cash charges/(income), intercompany charges and finance costs. The Company defines adjusted net income as net income before special items. Special items are items of income and expense that are presented separately due to their nature and, in some cases, expected infrequency of the events giving rise to them. A reconciliation between adjusted EBITDA and adjusted net income, on the one hand, and consolidated net income, on the other hand, is included in the MD&A.
The Company defines free cash flow as a measure of the Company's ability to generate and manage liquidity. It is calculated starting with the net cash flows from operating activities (as per IFRS) and then subtracting capital expenditures and lease payments. Refer to Section 1.2 of MD&A for a reconciliation between free cash flow and net cash flows from operating activities.
For Costerfield, saleable equivalent gold ounces produced is calculated by adding to saleable gold ounces produced, the saleable antimony tonnes produced times the average antimony price in the period divided by the average gold price in the period. The total cash operating cost associated with the production of these saleable equivalent ounces produced in the period is then divided by the saleable equivalent gold ounces produced to yield the cash cost per saleable equivalent ounce produced. The cash cost excludes royalty expenses. Site all-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expense, accretion of reclamation provision and tailings dam amortization. Sustaining capital reflects the capital required to maintain each site's current level of operations. The site's all-in sustaining cost per ounce of saleable gold equivalent in a period equals the all-in sustaining cost divided by the saleable equivalent gold ounces produced in the period.
For Björkdal, the total cash operating cost associated with the production of saleable gold ounces produced in the period is then divided by the saleable gold ounces produced to yield the cash cost per saleable gold ounce produced. The cash cost excludes royalty expenses. Site all-in costs include total cash operating costs, royalty expense, accretion, depletion, depreciation and amortization. Site all-in sustaining costs include total cash operating costs, sustaining mining capital, royalty expense, accretion of reclamation provision and tailings dam amortization. Sustaining capital reflects the capital required to maintain each site's current level of operations. The site's all-in sustaining cost per ounce of saleable gold equivalent in a period equals the all-in sustaining cost divided by the saleable equivalent gold ounces produced in the period.
For the Company as a whole, cash cost per saleable gold equivalent ounce is calculated by summing the gold equivalent ounces produced by each site and dividing the total by the sum of cash operating costs at the sites. Consolidated cash cost excludes royalty and corporate level general and administrative expenses. This definition was updated in the third quarter of 2020 to exclude corporate general and administrative expenses to better align with industry standard. All-in sustaining cost per saleable ounce gold equivalent in the period equals the sum of cash costs associated with the production of gold equivalent ounces at all operating sites in the period plus corporate overhead expense in the period plus sustaining mining capital, royalty expense, accretion, depletion, depreciation and amortization, divided by the total saleable gold equivalent ounces produced in the period. A reconciliation between cost of sales and cash costs, and also cash cost to all-in sustaining costs are included in the MD&A.
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SOURCE Mandalay Resources Corporation
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