Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) told investors it was on track to reach its 2022 production guidance after posting a 'solid' first quarter.
In the three months to March 31, the metals miner recorded total production, across its mines, of 29,631 gold-equivalent ounces, up from 28,676 ounces in the first quarter of 2020. Total sales were 28,280 gold-equivalent ounces compared to 29,713 ounces in Q1, 2020.
From its Bjorkdal mine in Sweden, 12,384 ounces of saleable gold production was generated, which was the highest result since the second quarter of 2019 and 12,134 ounces of gold sold, the best quarterly sales result since the third quarter of 2019.
Dominic Duffy, CEO of Mandalay, noted that from the Australian mine at Costerfield, there had been another "solid quarter," producing 17,247 ounces of saleable gold equivalent, 12% growth compared to Q1 2021, mainly due to near-record gold grades of 13.5 grams per ton (g/t) during the current quarter.
"Metal produced in Q1 2022 decreased slightly compared to Q4 2021, as lower than average tonnes were processed due to issues encountered with the commissioning of the new crusher at the processing facility," he added.
"Only 32,206 tonnes were processed in Q1 2022, against an average of 36,370 tonnes per quarter in 2021. The new crusher is now functioning optimally, and we expect processed tonnes to remain at budgeted rates for the remainder of the year.
READ: Mandalay Resources reports record Q4 and 2021 earnings underpinned by its Costerfield project in Australia
"Towards the end of the quarter, shipping delays were encountered due to COVID-19 related issues at the Shanghai port where our product travels through - we expect these delays to be temporary," he said.
The company boss said that the strong start to the year "solidifies the stable operational base we have established over the past couple of years".
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 writer at giles@proactiveinvestors.com