TORONTO, Jan. 13, 2023 /PRNewswire/ -- Mandalay Resources
Corporation ("Mandalay" or the "Company") (TSX: MND) (OTCQB: MNDJF)
announced today its production and sales results for the fourth
quarter and full-year 2022 and provides production and cost
guidance for 2023.
2022 Production Highlights:
- Consolidated full-year 2022 production of 105,906 saleable gold
equivalent ounces; and
- Full-year consolidated saleable gold equivalent sold was
106,094 ounces.
2023 Production and Cost Guidance:
- Consolidated production guidance of 105,000 – 118,000 saleable
gold equivalent ounces; and
- Cash cost and all-in sustaining costs expected at $800 – $975 and
$1,150 – $1,325 per gold equivalent ounce,
respectively.
Dominic Duffy, President and CEO
of Mandalay, commented:
"2022 was a strong year for Mandalay Resources. On a
consolidated basis, Mandalay recorded its best month during 2022,
in October with 10,553 saleable gold equivalent ounces produced.
This contributed towards a solid fourth quarter with 25,683 gold
equivalent ounces produced. For the full-year of 2022, the Company
produced 105,906 saleable gold equivalent ounces – marking the
Company's second highest consolidated annual production rate since
2017. The lower annual production in 2022, when compared to 2021,
was primarily due to Cerro Bayo's
2021 production of 9,037 gold equivalent ounces, as opposed to no
production in 2022 due to the sale of the asset in December 2021, as well as COVID-related labor
shortages at both operating sites in 2022.
"For Q4, Costerfield produced 15,427 gold equivalent ounces,
which was broadly in line with the previous quarters of 2022. The
site produced less ounces in December, as milled tonnes were below
expectations due to a planned ball mill re-lining at the plant. In
addition, a lower-than-average level of concentrate was sold at
Costerfield during December due to the timing of shipments,
resulting in 14,913 ounces of gold equivalent sold in Q4. Sales and
cash receipts for higher-than-average stock on hand at the end of
the year will be recognized in Q1 2023.
"We are expecting annual production at Costerfield in 2023 of
56,000 – 64,000 gold equivalent ounces, consistent with the
production rate achieved in Q4 of 2022.
"At Björkdal, we were pleased with its consistent rate of
production as compared to the previous quarter, with 10,256 gold
ounces produced. However, full year 2022 operating results were
below expectations. This was mainly due to lower underground grades
due to increased dilution, coupled with higher utilization of the
lower grade stockpile material at the mill because of the reduced
haulage rates from COVID absenteeism.
"We expect a higher annual production in 2023 of 49,000 – 54,000
gold ounces at Björkdal as we continue the work around implementing
incremental improvements on dilution controls and better
contingencies regarding staffing protocols. Additionally, we will
also begin developing in several higher-grade areas of the Eastern
Deeps Central zone.
"In 2023, we anticipate consolidated production of 105,000 –
118,000 ounces of gold equivalent at an expected cash cost of
$800 – $975 and an all-in sustaining cost of
$1,150 – $1,325. The Company will strive to further unlock
shareholder value through exploration with anticipated expenditures
of $10 – $14
million. The focus of the programs will be on expanding the
Mineral Reserves and Resources at Costerfield in addition to
testing new targets at both operations."
Saleable Production for the Quarter Ended December 31, 2022:
- In the fourth quarter of 2022, the Company produced a total of
22,341 ounces of gold and 504 tonnes of antimony representing a
total of 25,683 ounces of gold equivalent, versus 25,596 ounces of
gold, 830 tonnes of antimony and 50,556 ounces of silver in the
fourth quarter of 2021, representing a total of 32,362 ounces of
gold equivalent.
- Production at Björkdal was 10,256 ounces of gold in the fourth
quarter of 2022 as compared to 11,190 ounces of gold in the fourth
quarter of 2021.
- Production at Costerfield was 12,085 ounces of gold and 504
tonnes of antimony in the fourth quarter of 2022 versus 13,397
ounces gold and 830 tonnes antimony in the fourth quarter of
2021.
Saleable Production for the Year Ended December 31, 2022:
- The Company produced a total of 89,134 ounces gold and 2,292
tonnes antimony, representing a total of 105,906 ounces of gold
equivalent production, versus 98,292 ounces gold, 3,380 tonnes of
antimony and 266,596 ounces of silver, representing a total of
123,002 ounces of gold equivalent in 2021.
- Production at Björkdal was 41,247 ounces gold.
- Production at Costerfield was 47,887 ounces gold and 2,292
tonnes antimony.
Table 1 – Fourth Quarter and Full-Year Saleable Production
for 2022 and 2021
|
Metal
|
Source
|
Three months
ended
December
31
2022
|
Three months
ended
December
31
2021
|
Year ended
December 31
2022
|
Year
ended
December
31
2021
|
|
Gold (oz)
|
Björkdal
|
10,256
|
11,190
|
41,247
|
45,236
|
|
Costerfield
|
12,085
|
13,397
|
47,887
|
47,753
|
|
Cerro Bayo
|
-
|
1,009
|
-
|
5,303
|
|
Total
|
22,341
|
25,596
|
89,134
|
98,292
|
|
Antimony (t)
|
Costerfield
|
504
|
830
|
2,292
|
3,380
|
|
Silver (oz)
|
Cerro Bayo
|
-
|
50,556
|
-
|
266,596
|
|
Average quarterly
prices:
|
|
Gold US$/oz
|
|
1,730
|
1,796
|
|
|
|
Antimony
US$/t
|
|
11,473
|
13,221
|
|
|
|
Total Gold Eq.
(oz)(1)
|
|
|
|
|
|
|
Björkdal
|
10,256
|
11,190
|
41,247
|
45,236
|
|
Costerfield
|
15,427
|
19,507
|
64,659
|
68,729
|
|
Cerro Bayo
|
-
|
1,665
|
-
|
9,037
|
|
Total
|
25,683
|
32,362
|
105,906
|
123,002
|
|
|
|
1.
|
Quarterly gold
equivalent ounces ("Gold Eq. (oz)") produced is calculated by
multiplying the saleable quantities of gold ("Au"), silver ("Ag")
and antimony ("Sb") in the period by the respective average market
prices of the commodities in the period, adding the 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 and Ag prices in the periods are
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 Au and Ag prices
is www.transamine.com, and Sb price is
www.metalbulletin.com.
|
Sales for the Quarter Ended December
31, 2022:
- In the fourth quarter of 2022, the Company sold a total of
21,272 ounces of gold and 484 tonnes of antimony, representing a
total of 24,482 ounces of gold equivalent, versus 28,570 ounces of
gold, 1,334 tonnes of antimony and 39,614 ounces of silver,
representing a total of 38,904 ounces of gold equivalent in
2021.
- Björkdal sold 9,569 ounces of gold in the fourth quarter of
2022 versus 10,749 ounces of gold in the fourth quarter of
2021.
- Costerfield sold 11,703 ounces of gold and 484 tonnes of
antimony in the fourth quarter of 2022 versus 17,057 ounces of gold
and 1,334 tonnes of antimony in the fourth quarter of 2021.
Sales for the Year Ended December 31,
2022:
- The Company sold 89,117 ounces gold and 2,316 tonnes antimony,
representing a total of 106,094 ounces of gold equivalent, versus
100,203 ounces gold, 3,627 tonnes antimony and 217,034 ounces of
silver, representing a total of 126,241 ounces of gold equivalent
in 2021.
- Björkdal sold 40,680 ounces gold.
- Costerfield sold 48,437 ounces gold and 2,316 tonnes
antimony.
Table 2 – Fourth Quarter and Full-Year Sales for 2022 and
2021
|
Metal
|
Source
|
Three months
ended
December
31
2022
|
Three months
ended
December
31
2021
|
Year
ended
December
31
2022
|
Year
ended
December
31
2021
|
|
Gold (oz)
|
Björkdal
|
9,569
|
10,749
|
40,680
|
46,254
|
|
Costerfield
|
11,703
|
17,057
|
48,437
|
49,585
|
|
Cerro Bayo
|
-
|
764
|
-
|
4,364
|
|
Total
|
21,272
|
28,570
|
89,117
|
100,203
|
|
Antimony (t)
|
Costerfield
|
484
|
1,334
|
2,316
|
3,627
|
|
Silver (oz)
|
Cerro Bayo
|
-
|
39,614
|
-
|
217,034
|
|
Average quarterly
prices:
|
|
Gold US$/oz
|
|
1,730
|
1,796
|
|
|
|
Antimony
US$/t
|
|
11,473
|
13,221
|
|
|
|
Total Gold Eq.
(oz)1
|
|
|
|
|
|
|
Björkdal
|
9,569
|
10,749
|
40,680
|
46,254
|
|
Costerfield
|
14,913
|
26,877
|
65,414
|
72,598
|
|
Cerro Bayo
|
-
|
1,278
|
-
|
7,389
|
|
Total
|
24,482
|
38,904
|
106,094
|
126,241
|
|
|
|
1.
|
Quarterly Gold Eq. (oz)
sold is calculated by multiplying the saleable quantities of Au, Ag
and Sb in the period by the respective average market prices of the
commodities in the period, adding the 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 Au and Ag prices is www.transamine.com, and
Sb price is www.metalbulletin.com, with price on weekend days and
holidays taken of the last business day.
|
Mandalay 2023 Guidance:
Table 3 – 2023 Production and Cost Guidance
|
2023E
|
|
Björkdal
|
|
Gold produced
(oz)
|
49,000 –
54,000
|
|
Cash
cost(1) per oz gold produced
|
$975 –
$1,125
|
|
All-in sustaining
cost(1) per oz gold produced
|
$1,325 –
$1,475
|
|
Capital
expenditures
|
$24M – $28M
|
|
Costerfield
|
|
Gold produced
(oz)
|
44,000 –
49,000
|
|
Antimony produced
(t)
|
1,800 –
2,400
|
|
Gold equivalent
produced(2) (oz)
|
56,000 –
64,000
|
|
Cash
cost(1) per oz gold eq. produced
|
$650 – $825
|
|
All-in sustaining
cost(1) per oz gold eq. produced
|
$925 –
$1,075
|
|
Capital
expenditures
|
$20M – $24M
|
|
Consolidated
|
|
Gold
equivalent(2) produced (oz)
|
105,000 –
118,000
|
|
Average cash cost per
oz gold eq.
|
$800 – $975
|
|
Average all-in
sustaining cost(3) per oz gold eq.
|
$1,150 –
$1,325
|
|
Capital
expenditures
|
$44M – $52M
|
|
|
|
1.
|
Cash cost and all-in
sustaining costs are non-IFRS measures. See "Non-IFRS Measures" at
the end of this press release
|
|
2.
|
Assumes average metal
prices of: Au $1,797/oz, Sb $10,805/t
|
|
3.
|
Consolidated all-in
sustaining costs per Au Eq. oz includes corporate overhead
spending.
|
Mandalay's 2023 production guidance is based on:
- Foreign exchange assumptions:
-
- Average 2022 rates: AUD/USD 0.695
and USD/SEK 10.12
- Guidance 2023 rates: AUD/USD
0.675 and USD/SEK 10.39
- Capital expenditures at Costerfield and Björkdal to be carried
out at the tailings storage facilities of $6M – $8M.
- Capital exploration expenditures of:
-
- Björkdal: $3M – $5M
- Costerfield: $7M – $9M
About Mandalay Resources
Corporation:
Mandalay Resources is a Canadian-based natural resource company
with producing assets in Australia
(Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Company is
focused on growing its production and reducing costs to generate
significant positive cashflow. Mandalay is committed to operating
safely and in an environmentally responsible manner, while
developing a high level of community and employee engagement.
Mandalay's mission is to create shareholder value through the
profitable operation and continuing the regional exploration
program, at both its Costerfield and Björkdal mines. Currently, the
Company's main objectives are to continue mining the high-grade
Youle vein at Costerfield, bring online the deeper Shepherd veins,
both of which will continue to supply high-grade ore to the
processing plant, and to extend Youle Mineral Reserves. At
Björkdal, the Company will aim to increase production from the
Aurora zone and other higher-grade areas in the coming years, in
order to maximize profit margins from the mine.
Forward-Looking
Statements:
This news release contains "forward-looking statements"
within the meaning of applicable securities laws, including
statements regarding the Company's expected production of gold and
antimony and costs for the 2023 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 31, 2022, 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.
Dominic Duffy, President and Chief Executive
Officer; Edison Nguyen, Director, Business Valuations and
IR, Contact: 647.260.1566 ext. 1
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