Mandalay Resources Corporation Announces Production and Sales Results for the Third Quarter of 2020 and Revised Full-Year 202...
October 14 2020 - 6:45AM
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) announced today its production and sales results
for the third quarter of 2020.
Third Quarter 2020 Production Highlights:
- 22,793 saleable gold ounces
produced during Q3 2020, the Company’s best quarterly consolidated
saleable gold production since Q4 2017
- Fourth consecutive
quarter-over-quarter improvement in consolidated saleable gold
production
- 26,001 ounces of gold equivalent
sold during Q3 2020, the Company’s highest amount since Q1
2018
- Expect to fulfil or outperform our
original consolidated 2020 production guidance on a gold equivalent
ounce basis
In the third quarter of 2020, Mandalay produced
a consolidated 25,664 saleable ounces of gold equivalent and sold
26,001 ounces of gold equivalent.
Dominic Duffy, President and Chief Executive
Officer of Mandalay, commented, “The third quarter gold production
of 22,793 saleable ounces was the Company’s best quarterly
consolidated production since the fourth quarter of 2017, and also
marked the fourth consecutive quarter-over-quarter improvement in
saleable gold production. This was driven by another strong quarter
from Costerfield and supported by the consistent performance at the
Björkdal operation.”
Mr. Duffy continued, “At Costerfield, Youle
continued to deliver excellent results as the third quarter head
grades averaged 11.54 g/t and 4.1% for gold and antimony processed,
respectively. The improvement in processed gold grades relative to
the 11.17 g/t last quarter is a significant achievement as the site
continued to blend its mill feed with the lower grade Brunswick
ore. Overall, the site produced 14,620 saleable gold equivalent
ounces – 11,749 saleable gold ounces and 991 tonnes of salable
antimony. The 1,036 tonnes of antimony sold during this quarter was
the Company’s highest quarterly level since the first quarter of
2014. This is despite developing on comparatively lower grade
extents of the ore body on several levels of Youle during the third
quarter. For the remainder of the year, we are anticipating an
increase in production as more stopes are scheduled to come online
in Youle.”
Mr. Duffy continued, “At Björkdal, third quarter
production of 11,044 saleable gold ounces was in-line with the
previous quarter. However, due to dilution challenges that we are
still addressing, the site is tracking below our forecast
production levels year-to-date. Production for the remainder of the
year is expected to see some improvements and the focus will remain
on capital development to advance further down into the Aurora
zone’s higher-grades lower levels. Aurora’s capital development and
definition drilling highlighting multiple vein structures parallel
to Aurora sets up Björkdal for a significantly stronger 2021.”
Mr. Duffy concluded, “Mandalay continues to
build upon the momentum generated during the first half of year by
delivering another strong production and sales quarter. We expect
to fulfil or outperform our consolidated 2020 production guidance
on a gold equivalent ounces basis, however, we are providing an
update on production and costs guidance to better reflect the
variability and the overall performance at each site. Moreover, due
to the excellent capital development progress made at Costerfield,
that site has accelerated capital development originally planned
for 2021 into this year, increasing the development metres and
investment at Costerfield. We also intend on increasing exploration
spend by approximately $1 million at Costerfield for the remainder
of the year to follow up on the encouraging results seen to date.
For more details, please see the table below.”
Saleable
Production
For
The Quarter
Ended September
30,
2020:
- In the third
quarter of 2020, the Company produced a total of 22,793 ounces of
gold and 991 tonnes of antimony, representing a total of 25,664
ounces of gold equivalent, versus 14,983 ounces of gold and 402
tonnes of antimony in the third quarter of 2019, representing a
total of 16,625 ounces of gold equivalent.
- Production at
Björkdal was 11,044 ounces of gold in the third quarter of 2020, as
compared to 11,880 ounces of gold in the third quarter of
2019.
- Production at Costerfield was
11,749 ounces of gold and 991 tonnes of antimony in the third
quarter of 2020, versus 3,103 ounces gold and 402 tonnes antimony
in the third quarter of 2019.
Saleable
Production
For
The Nine
Months Ended
September 30,
2020:
- The Company
produced a total of 65,766 ounces gold and 3,045 tonnes antimony,
representing a total of 76,093 ounces of gold equivalent
production, versus 51,017 ounces gold and 1,348 tonnes of antimony
in the corresponding nine months of 2019, representing a total of
58,065 ounces of gold equivalent.
- Production at
Björkdal was 33,044 ounces gold.
- Production at
Costerfield was 32,722 ounces gold and 3,045 tonnes antimony.
Table
1 – Third
Quarter And Nine
Month Saleable Production
for 2020 and
2019
Metal |
Source |
Three months endedSeptember
302020 |
Three months endedSeptember
302019 |
Nine months
endedSeptember
302020 |
Nine months
endedSeptember
302019 |
Gold (oz) |
Björkdal |
11,044 |
11,880 |
33,044 |
40,508 |
|
Costerfield |
11,749 |
3,103 |
32,722 |
10,509 |
|
Total |
22,793 |
14,983 |
65,766 |
51,017 |
Antimony (t) |
Costerfield |
991 |
402 |
3,045 |
1,348 |
Average quarterly prices: |
|
|
|
|
|
Gold US$/oz |
|
1,907 |
1,473 |
|
|
Antimony US$/t |
|
5,524 |
6,015 |
|
|
Total Gold Eq.
(oz)(1) |
|
|
|
|
|
|
Björkdal |
11,044 |
11,880 |
33,044 |
40,508 |
|
Costerfield |
14,620 |
4,745 |
43,049 |
17,557 |
|
Total |
25,664 |
16,625 |
76,093 |
58,065 |
- Quarterly gold
equivalent ounces (“Au Eq. oz”) produced is calculated by
multiplying the saleable quantities of gold (“Au”), and antimony
(“Sb”) in the period by the respective average market prices of the
commodities in the period, adding the two amounts to get a “total
contained value based on market price”, and then dividing that
total contained value by the average market price of Au in the
period. Average Au price in the period is calculated as the average
of the daily LME PM fixes in the period, with price on weekend days
and holidays taken of the last business day; average Sb price in
the period is calculated as the average of the daily average of the
high and low Rotterdam warehouse prices for all days in the period,
with price on weekend days and holidays taken from the last
business day. The source for all prices is
www.metalbulletin.com.
Sales For
The Quarter
Ended September
30,
2020:
- In the third
quarter of 2020, the Company sold a total of 23,000 ounces of gold
and 1,036 tonnes of antimony, representing a total of 26,001 ounces
of gold equivalent, versus 16,132 ounces of gold and 412 tonnes of
antimony in the third quarter of 2019, representing a total of
17,814 ounces of gold equivalent.
- Björkdal sold
11,511 ounces of gold in the third quarter of 2020, versus 13,006
ounces of gold in the third quarter of 2019.
- Costerfield
sold 11,489 ounces of gold and 1,036 tonnes of antimony in the
third quarter of 2020, versus 3,126 ounces of gold and 412 tonnes
of antimony in the third quarter of 2019.
Sales For
The Nine
Months
Ended September
30, 2020:
- The Company
sold 65,743 ounces gold and 2,829 tonnes antimony, representing a
total of 75,193 ounces of gold equivalent, versus 53,750 ounces
gold and 1,361 tonnes antimony in the third quarter of 2019,
representing a total of 60,815 ounces of gold equivalent.
- Björkdal sold 34,566 ounces
gold.
- Costerfield sold 31,177 ounces gold
and 2,829 tonnes antimony.
Table 2 –
Third Quarter
And Nine Month Sales
for 2020 and
2019
Metal |
Source |
Three months endedSeptember
302020 |
Three months endedSeptember
302019 |
Nine months
endedSeptember
302020 |
Nine months
endedSeptember
302019 |
Gold (oz) |
Björkdal |
11,511 |
13,006 |
34,566 |
43,160 |
|
Costerfield |
11,489 |
3,126 |
31,177 |
10,590 |
|
Total |
23,000 |
16,132 |
65,743 |
53,750 |
Antimony (t) |
Costerfield |
1,036 |
412 |
2,829 |
1,361 |
Average quarterly prices: |
|
|
|
|
|
Gold US$/oz |
|
1,907 |
1,473 |
|
|
Antimony US$/t |
|
5,524 |
6,015 |
|
|
Total Gold Eq.
(oz)1 |
|
|
|
|
|
|
Björkdal |
11,511 |
13,006 |
34,566 |
43,160 |
|
Costerfield |
14,490 |
4,808 |
40,627 |
17,655 |
|
Total |
26,001 |
17,814 |
75,193 |
60,815 |
- Quarterly Au
Eq. oz sold is calculated by multiplying the saleable quantities of
Au, and Sb in the period by the respective average market prices of
the commodities in the period, adding the two amounts to get a
“total contained value based on market price”, and then dividing
that total contained value by the average market price of Au for
the period. The source for all prices is www.metalbulletin.com with
price on weekend days and holidays taken of the last business
day.
Table 3 – Revised and
Original 2020 Full-Year Guidance
|
2020E
Revised |
2020 Original |
Björkdal |
Gold produced (oz) |
43,000 – 47,000 |
51,000 – 57,000 |
Cash cost(1) per oz gold produced |
$950 – $1,100 |
$750 – $900 |
All-in sustaining cost(1) per oz gold produced |
$1,400 – $1,640 |
$1,110 – $1,340 |
Capital expenditures |
$22M – $27M |
$22M – $27M |
Costerfield |
Gold produced (oz) |
44,000 – 48,000 |
32,000 – 38,000 |
Antimony produced (t) |
4,000 – 4,300 |
3,000 – 3,500 |
Gold equivalent produced(2) (oz) – revised prices |
57,000 – 62,000 |
42,000 – 49,000 |
Gold equivalent(3) (oz) – original prices |
n/a |
44,000 – 52,000 |
Cash cost(1) per oz gold eq. produced |
$575 – $725 |
$725 – $875 |
All-in sustaining cost(1) per oz gold eq. produced |
$950 – $1,160 |
$1,010 – $1,220 |
Capital expenditures |
$21M – $26M |
$17M – $21M |
Consolidated |
Gold equivalent(2) produced (oz) – revised prices |
100,000 – 109,000 |
93,000 – 106,000 |
Gold equivalent(3) produced (oz) – original prices |
n/a |
95,000 – 109,000 |
Average cash cost(4) per oz gold eq. |
$765 – $915 |
$765 – $915 |
Average all-in sustaining cost(4) per oz gold eq. |
$1,090 – $1,360 |
$1,090 – $1,360 |
Capital expenditures |
$43M – $52M |
$39M – $48M |
- Cash cost and all-in sustaining
costs are non-IFRS measures. See “Non-IFRS Measures” at the end of
this press release
- Assumes average metal prices of: Au
$1,775/oz, Sb $5,792/t
- Original metal prices used in the
January 16, 2020 press release were Au $1,478/oz, Sb $5,931/t
- Consolidated costs per Au Eq. oz
includes corporate overhead spending and total care and maintenance
costs at Cerro Bayo
For
Further
Information:
Dominic DuffyPresident and Chief Executive
Officer
Edison NguyenManager, Analytics and Investor
Relations
Contact:647.260.1566
About Mandalay Resources
Corporation:
Mandalay Resources is a Canadian-based natural
resource company with producing assets in Australia and Sweden, and
care and maintenance and development projects in Chile. The Company
is focused on growing production at its gold and antimony operation
in Australia, and gold production from its operation in Sweden to
generate near-term cash flow.
Forward-Looking
Statements:
This news release contains "forward-looking
statements" within the meaning of applicable securities laws,
including statements regarding the Company’s production of gold and
antimony, cash costs and all-in sustaining costs and capital
expenditures for the 2020 fiscal year. Readers are cautioned not to
place undue reliance on forward-looking statements. Actual results
and developments may differ materially from those contemplated by
these statements depending on, among other things, changes in
commodity prices and general market and economic conditions. The
factors identified above are not intended to represent a complete
list of the factors that could affect Mandalay. A description of
additional risks that could result in actual results and
developments differing from those contemplated by forward-looking
statements in this news release can be found under the heading
“Risk Factors” in Mandalay’s annual information form dated March
30, 2020, a copy of which is available under Mandalay’s profile at
www.sedar.com. In addition, there can be no assurance that any
inferred resources that are discovered as a result of additional
drilling will ever be upgraded to proven or probable reserves.
Although Mandalay has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
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