Mandalay Resources Corporation has reported record fourth-quarter and full-year fiscal 2021 revenue and underlying earnings, which it attributed to the successful execution of its strategy, particularly its Costerfield gold-antimony mine in Australia.
The Toronto-based company posted consolidated revenue of $72.9 million for the three months to December 31, 2021, its highest yet for a quarter, resulting in adjusted underlying earnings (EBITDA) of $40.6 million, also a record. It reported net income of $15.3 million, or $0.17 per share.
"The main driver behind this is Costerfield's continued operational strength, making it a lynchpin to Mandalay's success today and going forward given its growing mineral reserves and resources,” president and CEO Dominic Duffy said in a statement.
“At Björkdal, its continued production improvements over the second half of the year sets the operation up for a much-improved 2022, while also investing in what is proving up to be a very successful exploration program," he added.
READ: Mandalay Resources boosts gold resources and reserves at Costerfield and Bjorkdal projects
Mandalay also reported record full-year revenue of $229.4 million, an increase of 28% from 2021, and adjusted underlying earnings of $115 million for a margin of 50%. Consolidated net income reached $54.9 million, or $0.60 per share.
Costerfield generated $33 million in quarterly adjusted underlying earnings and $17.8 million in net income, bringing the site's year-end totals to $88.9 million and $47.8 million, respectively, Mandalay said. Björkdal generated $85.3 million, $27.9 million and $4.9 million in revenue, adjusted underlying earnings and net income, respectively, in 2021, it added.
The company ended December 2021 with $30.7 million in cash on hand, which had increased to $47.2 million by the end of January 2022.
"2021 was a statement year for Mandalay, we've now demonstrated 24 months of operational execution and look to carry this momentum throughout 2022 by obtaining higher production numbers and better cash flows, which ultimately should lead to better shareholder returns,” Duffy said.
“The company is now in an excellent financial position with a strong balance sheet, and I would like to thank all of our employees and contractors for their continued commitment in making Mandalay a leading junior gold producer," he concluded.
Canada-based Mandalay Resources has producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine), with projects in Chile and Canada under closure or development status.
Contact the author at stephen.gunnion@proactiveinvestors.com