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Classified in: Mining industry, Business
Subjects: CORPORATE OFFICERS, MISCELLANEOUS

Mandalay Resources Corporation Announces Production and Sales Results for the Fourth Quarter and Full-Year 2021, Provides Production and Cost Guidance for 2022


TORONTO, Jan. 13, 2022 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, OTCQB: MNDJF) announced today its production and sales results for the fourth quarter and full-year 2021 and provides production and cost guidance for 2022.

Fourth Quarter and Full-Year 2021 Production Highlights:

Production and Cost Guidance for Full-Year 2022:

Dominic Duffy, President and CEO of Mandalay, commented:

"Mandalay Resources finished the year strongly with Costerfield achieving a historic high in quarterly saleable gold equivalent production with 19,507 ounces. On a consolidated basis, the 32,362 saleable ounces of gold equivalent produced was the Company's second highest quarterly result of 2021 and the full-year 123,002 ounces of saleable gold equivalent produced not only exceeded our 2021 guidance, but was also the Company's best result since 2017. The consecutive year-over-year improvements since 2019 clearly demonstrate the stability at Björkdal and the growing quality of our anchor asset at Costerfield.

"Stemming from shipment backlogs, a higher-than-average level of concentrate was sold at Costerfield in December resulting in 26,877 ounces of gold equivalent sold during Q4. The receipt of cash from December's shipments however will be recognized in 2022. Moreover, the full-year saleable gold equivalent production of 68,729 ounces at Costerfield represented an 18% year-over-year improvement. The Company anticipates an incremental improvement to Costerfield's production profile during 2022 as stoping ramps up at Youle and with the initiation of production from the high-gold grade deposit Shepherd.

"At Björkdal, the 11,190 ounces and 45,236 ounces of saleable gold ounces produced during the fourth quarter and full-year respectively, was in line with previous quarters and year. The site continued with its step changes aimed at reducing dilution and we expect grades to lift and stabilize at planned levels during 2022. For 2022, Björkdal will increase its stoping rates within the lower, higher grade levels of the Aurora zone and will maintain the operational goal of achieving 1.2 million tonnes of underground ore per annum.

"At Cerro Bayo, processing continued up until December 1, 2021, when the Company successfully completed the sale of the asset to Equus Mining. During September and October, the site produced 1,665 ounces of saleable gold equivalent.

"For 2022, the Company anticipates a consolidated production between 118,000 ? 130,000 ounces of gold equivalent at an expected cash cost of $700 ? $900 and all-in sustaining cost of $1,100 ? $1,300. The Company is also looking forward to following up on the highly successful 2021 exploration campaign with an anticipated exploration spend between $7 ? $9 million at Costerfield and between $4 ? $5 million at Björkdal during 2022."  

Saleable Production for the Quarter Ended December 31, 2021:

Saleable Production for the Year Ended December 31, 2021:

Table 1 ? Fourth Quarter and Full-Year Saleable Production for 2021 and 2020

Metal SourceThree months
ended

December 31
2021
Three months
ended

December 31
2020
Year ended
December 31
2021
Year ended
December 31
2020
Gold (oz)Björkdal11,19012,25245,23645,296
 Costerfield13,39712,23647,75344,958
 Cerro Bayo1,009-5,303-
 Total25,59624,48898,29290,254
Antimony (t)Costerfield8308583,3803,903
Silver (oz)Cerro Bayo50,556-266,596-
Average quarterly prices:     
Gold US$/oz 1,7961,876  
Antimony US$/t 13,2216,260  
Silver US$/oz 23.3124.43  
Total Gold Eq. (oz)(1)     
 Björkdal11,19012,25245,23645,296
 Costerfield19,50715,09968,72958,148
 Cerro Bayo1,665-9,037-
 Total32,36227,351123,002103,444
  1. Quarterly gold equivalent ounces ("Au Eq. oz") produced is calculated by multiplying the saleable quantities of gold ("Au"), silver ("Ag") and 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 and Ag 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 Rotterdam warehouse prices for all days in the period, with price on weekend days and holidays taken from the last business day. The source for Au and Ag prices is www.transamine.com, and Sb price is www.metalbulletin.com.

Sales for the Quarter Ended December 31, 2021:

Sales for the Year Ended December 31, 2021:

Table 2 ? Fourth Quarter and Full-Year Sales for 2021 and 2020

Metal SourceThree months
ended

December 31
2021
Three months
ended

December 31
2020
Year ended
December 31
2021
Year ended
December 31
2020
Gold (oz)Björkdal10,74910,74646,25445,312
 Costerfield17,05710,94349,58542,120
 Cerro Bayo764-4,364-
 Total28,57021,689100,20387,432
Antimony (t)Costerfield1,3349153,6273,744
Silver (oz)Cerro Bayo39,614-217,034-
Average quarterly prices:     
Gold US$/oz 1,7961,876  
Antimony US$/t 13,2216,260  
Silver US$/oz 23.3124.43  
Total Gold Eq. (oz)1     
 Björkdal10,74910,74646,25445,312
 Costerfield26,87713,99672,59854,623
 Cerro Bayo1,278-7,389-
 Total38,90424,742126,24199,935
  1. Quarterly Au Eq. oz sold is calculated by multiplying the saleable 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 and Ag prices 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 2022 Guidance:

Table 3 ? Production and Cost Guidance For 2022

 2022E 
Björkdal
Gold produced (oz)51,000 ? 56,000 
Cash cost(1) per oz gold produced$980 ? $1,130 
All-in sustaining cost(1) per oz gold produced$1,400 ? $1,550 
Capital expenditures$29M ? $33M 
Costerfield
Gold produced (oz)50,000 ? 55,000 
Antimony produced (t)2,100 ? 2,700 
Gold equivalent produced(2) (oz)67,000 ? 74,000 
Cash cost(1) per oz gold eq. produced$560 ? $710 
All-in sustaining cost(1) per oz gold eq. produced$830 ? $980 
Capital expenditures$21M ? $25M 
Consolidated
Gold equivalent(2) produced (oz)118,000 ? 130,000 
Average cash cost per oz gold eq.$700 ? $900 
Average all-in sustaining cost(3) per oz gold eq.$1,100 ? $1,300 
Capital expenditures$50M ? $58M 
  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 $1,750/oz, Sb $13,000/t
  3. Consolidated all-in sustaining costs per Au Eq. oz includes corporate overhead spending

Mandalay's 2022 production guidance is based on:

For Further Information:

Dominic Duffy
President and Chief Executive Officer

Edison Nguyen
Manager, Analytics and Investor Relations

Contact:
647.260.1566

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 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 online the deeper Shepherd veins, both of which will continue to supply high-grade ore to the processing plant, and to extend Youle 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 expected production of gold and antimony and costs for the 2022 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 30, 2021, 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.

 



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News published on 13 january 2022 at 09:40 and distributed by: