Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) has said its production for full-year 2022 was 105,906 saleable gold equivalent ounces, while sales reached 106,094 ounces.
For 2023, the company’s consolidated production guidance is for 105,000-118,000 saleable gold equivalent ounces, while cash cost and all-in sustaining costs are expected at $800–$975 and $1,150-$1,325 per gold equivalent ounce, respectively.
"For the full year of 2022, the company produced 105,906 saleable gold equivalent ounces – marking the company's second highest consolidated annual production rate since 2017,” Dominic Duffy, president and CEO of Mandalay, said in a statement.
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"For Q4, Costerfield produced 15,427 gold equivalent ounces, which was broadly in line with the previous quarters of 2022. The site produced less ounces in December, as milled tonnes were below expectations due to a planned ball mill re-lining at the plant. In addition, a lower-than-average level of concentrate was sold at Costerfield during December due to the timing of shipments, resulting in 14,913 ounces of gold equivalent sold in Q4. Sales and cash receipts for higher-than-average stock on hand at the end of the year will be recognized in Q1 2023,” he added.
Duffy noted that annual production at Costerfield for 2023 is expected to be at 56,000–64,000 gold equivalent ounces, consistent with the production rate achieved in Q4 of 2022.
At Björkdal, full-year 2022 operating results were below expectations mainly because of lower underground grades due to increased dilution, coupled with higher utilization of the lower grade stockpile material at the mill because of the reduced haulage rates from Covid absenteeism, the Mandalay CEO said
He added: "We expect a higher annual production in 2023 of 49,000–54,000 gold ounces at Björkdal as we continue the work around implementing incremental improvements on dilution controls and better contingencies regarding staffing protocols. Additionally, we will also begin developing in several higher-grade areas of the Eastern Deeps Central zone.
"In 2023, we anticipate consolidated production of 105,000–118,000 ounces of gold equivalent at an expected cash cost of $800–$975 and an all-in sustaining cost of $1,150–$1,325. The company will strive to further unlock shareholder value through exploration with anticipated expenditures of $10–$14 million. The focus of the programs will be on expanding the Mineral Reserves and Resources at Costerfield in addition to testing new targets at both operations."
Fourth-quarter performance
In the fourth quarter of 2022, the company produced a total of 22,341 ounces of gold and 504 tonnes of antimony representing a total of 25,683 ounces of gold equivalent, versus 25,596 ounces of gold, 830 tonnes of antimony and 50,556 ounces of silver in the fourth quarter of the previous year, representing a total of 32,362 ounces of gold equivalent.
Also in the fourth quarter of 2022, the company sold a total of 21,272 ounces of gold and 484 tonnes of antimony, representing a total of 24,482 ounces of gold equivalent, versus 28,570 ounces of gold, 1,334 tonnes of antimony and 39,614 ounces of silver, representing a total of 38,904 ounces of gold equivalent in 2021.
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden. 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.
Contact the author at jon.hopkins@proactiveinvestors.com