Mandalay Resources Reports Solid Q3 2024 Financials and Debt-Free Balance Sheet
Mandalay Resources reported strong Q3 2024 financial results with a 35% year-over-year revenue increase to $55.3 million. The company achieved a debt-free status with a cash balance of $54.7 million. Key highlights include $20.6 million in operating cash flow, consolidated net income of $5.4 million ($0.06 per share), and consolidated gold equivalent production of 20,323 ounces. Björkdal recorded its second-highest quarterly revenue of $28.0 million, while Costerfield generated $27.3 million. The company maintains its full-year guidance of 90,000-100,000 ounces despite Q3 being the lowest production quarter due to weather challenges at Björkdal and grade variability at Costerfield.
Mandalay Resources ha riportato risultati finanziari solidi per il Q3 2024, con un aumento del 35% dei ricavi anno su anno a 55,3 milioni di dollari. L'azienda ha raggiunto uno stato senza debiti, con un saldo di cassa di 54,7 milioni di dollari. I punti salienti includono 20,6 milioni di dollari di flusso di cassa operativo, un reddito netto consolidato di 5,4 milioni di dollari (0,06 dollari per azione) e una produzione consolidata equivalente in oro di 20.323 once. Björkdal ha registrato il suo secondo maggior fatturato trimestrale di 28,0 milioni di dollari, mentre Costerfield ha generato 27,3 milioni di dollari. L'azienda mantiene le previsioni per l'intero anno di 90.000-100.000 once, nonostante il Q3 sia stato il trimestre di produzione più basso a causa di sfide climatiche a Björkdal e variabilità di grado a Costerfield.
Mandalay Resources informó resultados financieros sólidos para el Q3 2024, con un aumento del 35% en los ingresos interanuales a 55.3 millones de dólares. La empresa alcanzó un estado libre de deudas, con un saldo de efectivo de 54.7 millones de dólares. Los aspectos destacados incluyen 20.6 millones de dólares en flujo de caja operativo, un ingreso neto consolidado de 5.4 millones de dólares (0.06 dólares por acción) y una producción equivalente en oro consolidada de 20,323 onzas. Björkdal registró sus segundos ingresos trimestrales más altos con 28.0 millones de dólares, mientras que Costerfield generó 27.3 millones de dólares. La empresa mantiene su guía para todo el año de 90.000-100.000 onzas, a pesar de que el Q3 fue el trimestre de producción más bajo debido a desafíos climáticos en Björkdal y variabilidad en el grado en Costerfield.
만달레이 리소스는 2024년 3분기 재무 실적이 강력하게 나타났으며, 전년 대비 매출 35% 증가로 5530만 달러에 달했다고 보고했습니다. 회사는 부채 없는 상태를 달성하였고, 현금 잔고는 5470만 달러에 달합니다. 주요 하이라이트는 2060만 달러의 운영 현금 흐름, 540만 달러의 통합 순이익(주당 0.06 달러) 및 20,323 온스의 통합 금 생산량을 포함합니다. 비외르크달은 2800만 달러의 분기 매출을 기록하여 두 번째로 높은 기록을 세웠고, 코스터필드는 2730만 달러를 생성했습니다. 회사는 Björkdal의 기상 문제와 Costerfield의 등급 변동성으로 인해 3분기가 가장 낮은 생산 분기였음에도 불구하고 연간 가이드를 90,000-100,000 온스로 유지하고 있습니다.
Mandalay Resources a rapporté des résultats financiers solides pour le 3e trimestre 2024, avec une augmentation de 35 % des revenus d'une année sur l'autre atteignant 55,3 millions de dollars. L'entreprise a atteint un statut sans dettes, avec un solde de trésorerie de 54,7 millions de dollars. Les points forts incluent 20,6 millions de dollars de flux de trésorerie d'exploitation, un revenu net consolidé de 5,4 millions de dollars (0,06 dollar par action) et une production consolidée équivalente en or de 20 323 onces. Björkdal a enregistré son deuxième plus haut chiffre d'affaires trimestriel avec 28,0 millions de dollars, tandis que Costerfield a généré 27,3 millions de dollars. L'entreprise maintient ses prévisions pour l'année entière de 90 000-100 000 onces, malgré le fait que le 3e trimestre ait été le trimestre de production le plus bas en raison des défis climatiques rencontrés à Björkdal et d'une variabilité de la qualité à Costerfield.
Mandalay Resources hat starke Finanzzahlen für das 3. Quartal 2024 berichtet, mit einem Umsatzanstieg von 35 % im Vergleich zum Vorjahr auf 55,3 Millionen Dollar. Das Unternehmen hat einen schuldenfreien Status erreicht, mit einem Cash-Bestand von 54,7 Millionen Dollar. Zu den wichtigsten Highlights zählen ein operativer Cashflow von 20,6 Millionen Dollar, ein konsolidierter Nettogewinn von 5,4 Millionen Dollar (0,06 Dollar pro Aktie) und eine konsolidierte Goldäquivalentproduktion von 20.323 Unzen. Björkdal verzeichnete den zweitgrößten Quartalsumsatz mit 28,0 Millionen Dollar, während Costerfield 27,3 Millionen Dollar erwirtschaftete. Das Unternehmen hält trotz des niedrigsten Produktionsquartals im 3. Quartal aufgrund von Witterungsherausforderungen bei Björkdal und Schwankungen in der Qualität bei Costerfield an seiner Jahresprognose von 90.000-100.000 Unzen fest.
- 35% YoY revenue growth to $55.3 million in Q3 2024
- Cash balance doubled to $54.7 million since December 2023
- Debt-free status achieved with full repayment of $20 million revolving credit facility
- Net income increased to $5.4 million from $4.1 million YoY
- Adjusted EBITDA grew to $27.2 million from $15.4 million YoY
- Cash operating cost increased 22% YoY to $1,322 per ounce
- All-in sustaining cost rose 25% YoY to $1,790 per ounce
- Gold equivalent production decreased 8% YoY to 20,323 ounces
- Björkdal production declined 14% YoY due to weather-related issues
- Antimony production at Costerfield decreased 36% YoY
The Company's condensed and consolidated interim financial result for the quarter ended September 30, 2024, 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
Third Quarter 2024 Highlights:
- Strengthened Balance Sheet: Cash balance of
$54.7 million - Cash Flow: Generated
$20.6 million $12.9 million - Revenue Growth: Consolidated revenue up by
35% as compared to Q3 2023, at$55.3 million - Björkdal recorded its second highest quarterly revenue of
$28.0 million - Costerfield generated
$27.3 million
- Björkdal recorded its second highest quarterly revenue of
- Cost: Consolidated cash operating cost1 of
$1,322 $1,790 - Profitability: Consolidated net income was
$5.4 million $0.06 C per share), compared to$0.08 $4.1 million $0.04 C per share) in Q3 2023.$0.06
Frazer Bourchier, President, and CEO commented:
"Mandalay's Q3 2024 results demonstrate our commitment to a disciplined financial strategy across both operations. This approach has enabled us to continue to generate cash flow and to further fortify our balance sheet. Q3 was always anticipated to be the lowest production quarter of the year, with Björkdal facing additional weather challenges and Costerfield experiencing grade variability. At Björkdal, will continue focusing on higher-margin ounces and operational efficiency, while Costerfield's mining schedule is set to shift back towards higher-grade areas in the last quarter of this year. Therefore, as we transition into Q4, we anticipate a return to first-half production run-rate levels, and still expect to achieve our full-year guidance of 90,000 to 100,000 ounces."
Hashim Ahmed, CFO commented:
"Revenue growth and free cash flow generation reflect our cost controls and prudent capital management while benefitting from high metal prices. As of the end of Q3 our cash balance was a healthy
"Our cash operating cost per ounce rose to
Mr. Bouchier concluded, "Our focus on execution and cost management underpins our broader growth objectives. We are committed to maximizing shareholder value through careful capital allocation, operational rigor, and enhancing our asset base to deliver sustainable, long-term returns for our stakeholders."
Third Quarter 2024 Financial Summary
The following table summarizes the Company's consolidated financial results for the three and nine months ended September 30, 2024 and 2023:
($ thousands, except where indicated) | Three months ended | Nine months ended | ||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Revenue | 55,289 | 40,907 | 173,854 | 122,756 |
Cost of sales | 25,911 | 24,245 | 78,104 | 80,087 |
Adjusted EBITDA (1) | 27,243 | 15,422 | 89,840 | 37,257 |
Adjusted net income (1) | 10,557 | 3,654 | 39,511 | 943 |
Consolidated net income | 5,352 | 4,068 | 27,097 | 5,146 |
Capital expenditure | 9,004 | 10,018 | 30,940 | 32,889 |
Total assets | 323,728 | 273,548 | 323,728 | 273,548 |
Total liabilities | 96,242 | 91,669 | 96,242 | 91,669 |
Adjusted net income (loss) per share (1) | 0.11 | 0.04 | 0.42 | 0.01 |
Consolidated net income per share | 0.06 | 0.04 | 0.29 | 0.06 |
1. | Adjusted EBITDA, adjusted net income and adjusted net income per share are non-GAAP performance measures with no standard definition under IFRS. Refer to "Non-GAAP Performance Measures" at the end of this press release for further information. |
In Q3 2024, Mandalay generated consolidated revenue of
Mandalay generated adjusted EBITDA of
Consolidated net income was
Third Quarter Operational Summary
The table below summarizes the Company's production, capital expenditures and operational unit costs for the three and nine months ended September 30, 2024 and 2023:
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2024 | 2023 | 2024 | 2023 | |
Costerfield | ||||
Gold produced (oz.) | 8,218 | 8,377 | 31,221 | 23,041 |
Antimony produced (t) | 252 | 395 | 1,015 | 1,456 |
Gold equivalent produced (oz.) | 10,697 | 10,808 | 39,036 | 32,278 |
Cash operating cost (1) per oz. gold eq. produced ($) | 1,174 | 975 | 911 | 942 |
All-in sustaining cost (1) per oz. gold eq. produced ($) | 1,424 | 1,265 | 1,168 | 1,215 |
Capital development ($'000) | 582 | 943 | 2,459 | 2,791 |
Property, plant and equipment purchases ($'000) | 690 | 1,030 | 2,834 | 2,627 |
Capitalized exploration ($'000) | 2,433 | 1,962 | 6,662 | 6,081 |
Björkdal | ||||
Gold produced (oz.) | 9,626 | 11,224 | 32,595 | 30,590 |
Cash operating cost (1) per oz. gold produced ($) | 1,487 | 1,189 | 1,356 | 1,375 |
All-in sustaining cost (1) per oz. gold produced ($) | 1,967 | 1,474 | 1,776 | 1,781 |
Capital development ($'000) | 1,941 | 1,959 | 6,732 | 6,529 |
Property, plant and equipment purchases ($'000) | 1,903 | 3,195 | 4,607 | 11,522 |
Capitalized exploration ($'000) | 1,455 | 929 | 3,066 | 3,273 |
Consolidated | ||||
Gold equivalent produced (oz.) | 20,323 | 22,032 | 71,631 | 62,868 |
Cash operating cost (1) per oz. gold eq. produced ($) | 1,322 | 1,084 | 1,113 | 1,153 |
All-in sustaining cost (1) per oz. gold eq. produced ($) | 1,790 | 1,436 | 1,530 | 1,583 |
Capital development ($'000) | 2,523 | 2,902 | 9,191 | 9,320 |
Property, plant and equipment purchases ($'000) (2) | 2,593 | 4,225 | 11,965 | 14,149 |
Capitalized exploration ($'000) | 3,888 | 2,891 | 9,784 | 9,420 |
1. | Cash operating cost and all-in sustaining cost are non-GAAP performance measures with no standard definition under IFRS. Refer to "Non-GAAP Performance Measures" at the end of this press release for further information. |
2. | includes equipment purchased for reclamation activities at non-operating site. |
Consolidated cash operating cost per ounce of gold equivalent produced increased by
All-in sustaining costs increased by
Costerfield gold-antimony mine,
During Q3 2024, Costerfield produced 8,218 ounces of gold compared to 8,377 ounces in Q3 2023, a decrease of
The cash operating cost per ounce of gold equivalent produced increased by
Björkdal gold mine, Skellefteå,
During Q3 2024, Björkdal produced 9,626 ounces of gold compared to 11,224 ounces in Q3 2023, a decrease of
The cash operating cost per ounce produced for Q3 2024 increased by
Conference Call
A conference call with Frazer Bourchier, President and Chief Executive Officer of Mandalay, for investors and analysts on November 7, 2024, at 10:00 AM (
Participant Number ( | 1-888-510-2154 |
Conference ID: | 13145 |
Alternatively, please register for the webcast here. A replay of the conference call will be available until 11:59 PM (Toronto time), November 14, 2024, and can be accessed using the following dial-in numbers:
Encore Number (Canada Toll free): | 1-888-660-6345 |
Encore Replay Code: | 13145 # |
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 regional exploration programs, at both its Costerfield and Björkdal mines. Currently, the Company's main objectives are to continue mining the high-grade Youle and Shepherd veins at Costerfield, 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 anticipated performance in 2024. 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, 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-GAAP Performance Measures
This news release may contain references to adjusted EBITDA, adjusted net income, free cash flow, cash operating cost per ounce of gold equivalent produced and all-in sustaining cost all of which are non-GAAP performance 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 "Non-GAAP Financial Performance Measures" section of the MD&A for a reconciliation between free cash flow and net cash flows from operating activities.
For Costerfield, equivalent gold ounces produced is calculated by adding to gold ounces produced, the 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 equivalent ounces produced in the period is then divided by the equivalent gold ounces produced to yield the cash operating cost per equivalent ounce produced. The cash operating 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 gold equivalent in a period equals the all-in sustaining cost divided by the equivalent gold ounces produced in the period.
For Björkdal, the total cash operating cost associated with the production of gold ounces produced in the period is then divided by the gold ounces produced to yield the cash operating cost per gold ounce produced. The cash operating 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 gold equivalent in a period equals the all-in sustaining cost divided by the equivalent gold ounces produced in the period.
For the Company as a whole, cash operating cost per 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 operating 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 ounce gold equivalent in the period equals the sum of cash operating 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 of reclamation provision and tailings dam amortization, divided by the total gold equivalent ounces produced in the period. A reconciliation between cost of sales and cash operating costs, and also cash operating cost to all-in sustaining costs are included in the MD&A.
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SOURCE Mandalay Resources Corporation
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