Investing.com
Published Apr 08, 2024 22:54
First Quarter Highlights:
"We are pleased to report Mandalay's continued operational success in the latest quarter, achieving a solid production result of nearly 25,000 gold equivalent ounces across both operations. This achievement positions the Company on a stable trajectory towards meeting our annual production target of 90,000 “ 100,000 gold equivalent ounces. Of significant note, Mandalay bolstered its cash reserves substantially, increasing its cash balance by over
"At Costerfield, we produced 14,566 gold equivalent ounces during Q1 2024, with an average processed head grade of 12.4 g/t and 2.2%, for gold and antimony, respectively. This is despite encountering challenges impacting operations due to two distinct adverse rain weather events, leading to temporary site access restrictions and power disruptions in
"At Björkdal, we achieved gold production of 10,370 gold ounces. Throughout the quarter, underground mining rates remained healthy and consistent notwithstanding some geotechnical challenges causing adjustments to the mine sequencing schedule. While the processed gold grades were lower than anticipated in the quarter, this large gold system with sufficient underground capital development provides us flexibility to pivot as required when these issues might occur. Site continues to explore opportunities to even further improve planning flexibility, enabling better management of potential impacts from future sequencing changes. One notable achievement we are very pleased with was the steady ramp up in mill throughput rates during the quarter. The commissioning of the mill expansion conversion project is progressing as scheduled and is expected to be completed in Q2 2024. This step change will increase the plant's feed to a run-rate of 1.45 million tonnes per annum."
Production for the Quarter Ended
Table 1 “ First Quarter Production for 2024 and 2023 and Fourth Quarter of 2023
Metal | Source | Three months ended 2024 | Three months ended 2023 | Three months ended 2023 |
Gold produced (oz) | Björkdal | 10,370 | 8,969 | 11,558 |
Costerfield | 11,976 | 7,368 | 13,016 | |
Total | 22,346 | 16,337 | 24,574 | |
Antimony produced (t) | Costerfield | 404 | 544 | 404 |
Gold US$/oz | 2,074 | 1,887 | 1,980 | |
Antimony US$/t | 13,298 | 12,656 | 11,603 | |
Total Gold Eq. (oz) (1) Produced | ||||
Björkdal | 10,370 | 8,969 | 11,558 | |
Costerfield | 14,566 | 11,017 | 15,383 | |
Total | 24,936 | 19,986 | 26,941 |
1. | Quarterly gold equivalent ounces ("Gold Eq. (oz)") produced is calculated by multiplying the production quantities of gold ("Au"), antimony ("Sb") in the period by the respective average market prices of the commodities in the period, adding the amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au in the period. Average Au prices in the periods are calculated as the average of the daily LME PM fixes in the period, with price on weekend days and holidays taken of the last business day; average Sb price in the period is calculated as the average of the daily average of the high and low |
Sales for the Quarter Ended
Table 2 “ First Quarter Sales for 2024 and 2023 and Fourth Quarter of 2023
Metal | Source | Three months ended 2024 | Three months ended 2023 | Three months ended 2023 |
Gold sold (oz) | Björkdal | 10,761 | 9,521 | 11,458 |
Costerfield | 12,426 | 8,499 | 11,743 | |
Total | 23,187 | 18,020 | 23,201 | |
Antimony sold (t) | Costerfield | 326 | 559 | 454 |
Gold US$/oz | 2,074 | 1,887 | 1,980 | |
Antimony US$/t | 13,298 | 12,656 | 11,603 | |
Total Gold Eq. (oz)1 Sold | ||||
Björkdal | 10,761 | 9,521 | 11,458 | |
Costerfield | 14,516 | 12,248 | 14,403 | |
Total | 25,277 | 21,769 | 25,861 |
1. | Quarterly Gold Eq. (oz) sold is calculated by multiplying the sale quantities of Au and Sb in the period by the respective average market prices of the commodities in the period, adding the amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au for the period. The source for Au price is www.transamine.com, and Sb price is www.metalbulletin.com, with price on weekend days and holidays taken of the last business day. |
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, ramping up production from deeper Shepherd veins, both of which will continue to supply high-quality ore to the processing plant, and to extend Mineral Reserves. At Björkdal, the Company will continue to produce from the Aurora zone and other higher-grade areas in the coming years, in order to maximize profit margins from the mine.
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 2024 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
Written By: Investing.com
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