Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) said it maintained a healthy net cash position and delivered stable results for the first three months of 2023, which marks the company’s 11th consecutive profitable quarter.
Mandalay exited the first quarter, which ended on March 31, 2023, with $34.2 million in cash and cash equivalents and $23.5 million in interest-bearing debt, putting it in a net cash position of $10.7 million.
Profit was $0.6 million or a loss per share of $0.01, compared to $5.2 million or a loss per share of $0.15 in the same quarter in 2022.
The company posted revenue for the quarter of $42.2 million, down 22% from $54.2 million in the year-ago quarter.
Mandalay attributed the decrease in revenue to lower production with lower metal grades at both of its sites. It sold 6,511 fewer gold equivalent ounces than in 1Q 2022.
“At Costerfield, performance was hindered by lower than planned mined ore tonnes and grade predominantly due to non-systemic incidents affecting the quarter,” commented Mandalay CEO Frazer Bourchier.
“At Björkdal, supply chain challenges delayed delivery of underground equipment, which led to lower grade and ore tonnes.”
He noted that looking forward, Mandalay would be free of all hedging encumbrances that were a requirement of a now-closed debt facility, for which the company incurred a $3 million outlay during 1Q, by the second quarter.
“In addition, the company will continue to invest in exploration to both extend mine life in known mineralized areas and to step out for potential new near mine discoveries,” he said in a statement.
“Management remains very focused on improving operational processes and controls to compensate for this 1Q 2023 shortfall in order to achieve 2023 guidance.”
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