Mandalay Resources Corporation
Mandalay Resources Corporation
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Australia’s gold output for the Mar 2020 qtr has fallen 12% to 77t on Dec 2019 with many operators taking advantage of higher prices in 2019 and early 2020.
A big jump in gold equivalent production from its 2 operations, driven by Costerfield, Australia, has cut Mandalay Resources’ Mar 2020 qtr (Q1 20) net loss to $US4.5M from Q4 19’s $5.3M loss, but with adjusted net income jumping to $US5.2M from the previous qtr’s $4.2M loss.
Revenue nearly doubled to $41.5M from $22.7M and adjusted EBITDA rocketed to $20.9M from $4.7M, including a record adjusted EBITDA of $13.9M at Costerfield. Income from mine operations, before depreciation/depletion, rose to $22.7M from $5.7M.
Big jumps in gold and antimony production from the Costerfield mine in Australia have lifted Mandalay Resources’ Mar 2020 qtr (Q1 20) saleable gold equivalent production to 25,677oz AuEq from Q4 19’s 18,594oz and sales to 24,276oz AuEq from 16,228oz.
The Costerfield, Victoria, increases came as production from the high-grade Youle vein began to ramp up and President/CEO Dominic Duffy expects that to be sustained as the Youle vein becomes the more prominent source of ore feed over the remainder of the 2020.
Despite lower gold output from Mandalay Resources’ Costerfield gold-antimony operation in Victoria, Australia, the company has managed to cut its Dec 2019 year (FY/CY19) consolidated net loss to $US18.6M, including $5M of impairments, from the previous year’s $63.7M loss.
The adjusted net loss before special items fell to $10.4M from a $20.5M loss on revenue slipping to $107.8M from $112.16M, with income from mine operations pre depreciation, depletion up to $24.17M vs $19.17M. Adjusted EBITDA was better at $18.8M from $13.3M.
A good Dec 2019 year (FY/CY 19) from Mandalay Resources’ Björkdal, Sweden, gold operation has been offset by a bad one from its Costerfield gold-antimony operation in Victoria, Australia, cutting gold equivalent production to 76,659oz AuEq from 81,568oz, with gold down to 66,756oz from 67,329oz and antimony to 2,032t from 2,173t on the previous year. However, FY/CY20 is looking much better.
Mandalay Resources is expecting a big improvement in FY2020 gold production after an Aussie-led fall in FY19
Mandalay Resources is selling its Challacollo silver-gold project in Chile’s Tarapaca Region to Canadian junior explorer Aftermath Silver for up to $C10M.
The definitive agreement consists of a $7M non-contingent consideration, plus a 3% net smelter returns royalty on production capped at $3M.
A poor Sept 2019 qtr (Q3 19) performance from the Costerfield Gold Mine in Victoria, Australia, has seen Canada-based Mandalay Resources cut FY/CY2019 gold equivalent expectations to 72,000oz-84,000oz from 85,000oz-101,000oz, with average cash costs/all-in costs up.
9-months YTD19 gold equiv output down to 58,065oz from 62,395oz AuEq.
A series of problems at Costerfield has seen Mandalay Resources cut FY/CY19 expectations after a YTD19 production fall
Australian-based explorer Equus Mining is eyeing the potential to become a regional gold and silver producer in southern Chile after taking a 3-year option to explore Mandalay Resources’ inoperative Cerro Bayo mine.
Equus says the agreement will allow it to realise the exploration potential at Cerro Bayo and its own nearby Los Domos project.