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The Markets
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Gold & silver

Mandalay Resources continues to focus on costs and future growth as miner posts third-quarter numbers

"Mandalay delivered healthy financial results during the third quarter of 2022 as it earned $46.0 million in revenue and $19.4 million in adjusted EBITDA – a margin of 42%," said CEO Dominic Duffy

Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF), the metals miner, told investors it continues to focus on controlling costs and long-term growth as it posted its third-quarter results to end-September this year.

"Mandalay delivered healthy financial results during the third quarter of 2022 as it earned $46.0 million in revenue and $19.4 million in adjusted EBITDA – a margin of 42%," said CEO Dominic Duffy in a statement.

"The company generated $7.5 million in net cash flow from operating activities leading to adjusted net income of $2.5 million ($0.03 or C$0.04 per share)," he added.

"This marks our ninth consecutive quarter of profitability and was achieved despite net cash flow being impacted by Costerfield’s final 2021 tax payment of $11.5 million during the quarter."

READ: Mandalay Resources revises full year output guidance and maintains cost forecast as it unveils 3Q metrics

Mandalay has producing assets in Australia (the Costerfield gold-antimony mine) and Sweden (the Björkdal gold mine).

"From a cash and all-in sustaining cost perspective, both per ounce cost metrics remained relatively in line as compared to the same period last year," noted Duffy.

"For the third quarter of 2022, on a consolidated basis our cash cost per ounce of saleable gold equivalent produced was $846, while our all-in sustaining cost was $1,111. Year to date, we have been able to invest more than $7.0 million in our exploration programs and are on pace to record our highest ever annual exploration expenditure amount."

As at September 30, Mandalay also reported it had $42.6 million of cash on hand and $36.7 million in total interest-bearing debt outstanding. In the year so far, the miner generated $34.6 million in free cash flow and expects its net cash position to grow by year-end.

Shares added nearly 9% in Toronto to stand at C$1.85 each.

----Updates for share price---

Contact the author at giles@proactiveinvestors.com

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