Mandalay Sources Reviews Forged Q3 2024 Financials and Debt-Detached Stability Sheet

TORONTO, Nov. 6, 2024 /PRNewswire/ – Mandalay Sources Company (“Mandalay” or the “Company”) (TSX: MND) (OTCQB: MNDJF) is happy to announce sturdy monetary effects for the 3rd quarter ended September 30, 2024. The Corporate reported a strong 35% year-over-year building up in income to $55.3 million, at the side of significant enhancements in internet source of revenue and working coins current.

The Corporate’s condensed and consolidated intervening time monetary outcome for the quarter ended September 30, 2024, at the side of its Control’s Dialogue and Research (“MD&A”) for the corresponding length, will also be accessed underneath the Corporate’s profile on www.sedar.com and at the Corporate’s web page at www.mandalayresources.com. All foreign money references on this press let go are in U.S. greenbacks except for as another way indicated.

3rd Quarter 2024 Highlights:

• Reinforced Stability Sheet: Money stability of $54.7 million as at September 30, 2024, without a debt;
• Money Current: Generated $20.6 million and $12.9 million in coins current from working actions and detached coins current¹, respectively;
• Income Enlargement: Consolidated income up through 35% as in comparison to Q3 2023, at $55.3 million;
  • Björkdal recorded its 2nd perfect quarterly income of $28.0 million;
  • Costerfield generated $27.3 million in quarterly income;
• Value: Consolidated coins working price¹ of $1,322 and all-in maintaining price¹ of $1,790 consistent with ounce of saleable gold an identical manufacturing; and
• Profitability: Consolidated internet source of revenue used to be $5.4 million ($0.06 or C$0.08 consistent with proportion), in comparison to $4.1 million ($0.04 or C$0.06 consistent with proportion) in Q3 2023.

Frazer Bourchier, President, and CEO commented:

“Mandalay’s Q3 2024 results demonstrate our commitment to a disciplined financial strategy across both operations. This approach has enabled us to continue to generate cash flow and to further fortify our balance sheet. Q3 was always anticipated to be the lowest production quarter of the year, with Björkdal facing additional weather challenges and Costerfield experiencing grade variability. At Björkdal, will continue focusing on higher-margin ounces and operational efficiency, while Costerfield’s mining schedule is set to shift back towards higher-grade areas in the last quarter of this year. Therefore, as we transition into Q4, we anticipate a return to first-half production run-rate levels, and still expect to achieve our full-year guidance of 90,000 to 100,000 ounces.”

Hashim Ahmed, CFO commented:

“Revenue growth and free cash flow generation reflect our cost controls and prudent capital management while benefitting from high metal prices. As of the end of Q3 our cash balance was a healthy $54.7 million – more than doubling since December 2023 – and we have fully repaid the $20 million remarkable stability on our revolving credit score facility, good our liquidity and fiscal flexibility. This place helps Mandalay’s pursuit of strategic expansion alternatives week balancing operational investments.

“Our cash operating cost per ounce rose to $1,322 year-over-year, driven by higher processing expenses and temporarily lower production at both sites. These increased processing costs were primarily related to tailings and water management at Costerfield, and an increased percentage of lower grade surface stockpile throughput to maximize feed at Björkdal. Our all-in-sustaining cost also increased to $1,790 per ounce. We remain focused on implementing cost control measures in the coming quarters.”

Mr. Bouchier concluded, “Our focus on execution and cost management underpins our broader growth objectives. We are committed to maximizing shareholder value through careful capital allocation, operational rigor, and enhancing our asset base to deliver sustainable, long-term returns for our stakeholders.”

3rd Quarter 2024 Monetary Abstract

Please see desk summarizes the Corporate’s consolidated monetary effects for the 3 and 9 months ended September 30, 2024 and 2023:

In Q3 2024, Mandalay generated consolidated income of $55.3 million, 35% larger than $40.9 million within the 3rd quarter of 2023. This used to be basically because of larger reasonable learned steel costs: $2,557 consistent with ounce for gold and $25,821 consistent with tonne for antimony in Q3 2024 in comparison to $1,993 consistent with ounce for gold and $12,069 consistent with tonne for antimony in Q3 2023.

Mandalay generated adjusted EBITDA of $27.2 million within the 3rd quarter of 2024 in comparison to $15.4 million within the 3rd quarter of 2023. The rise in adjusted EBITDA used to be basically because of larger income within the wave quarter. Adjusted internet source of revenue used to be $10.6 million within the 3rd quarter of 2024, which excludes a $5.2 million loss on monetary tools, in comparison to an adjusted internet source of revenue of $3.7 million within the 3rd quarter of 2023.

Consolidated internet source of revenue used to be $5.4 million for the 3rd quarter of 2024, as opposed to $4.1 million within the 3rd quarter of 2023. Mandalay ended the 3rd quarter of 2024 with $54.7 million in coins and coins equivalents.

3rd Quarter Operational Abstract

The desk beneath summarizes the Corporate’s manufacturing, capital expenditures and operational unit prices for the 3 and 9 months ended September 30, 2024 and 2023:

Consolidated coins working price consistent with ounce of gold an identical produced higher through 22% to $1,322 consistent with ounce within the 3rd quarter of 2024 in comparison to $1,084 within the 3rd quarter of 2023 because of the 8% trim of gold an identical manufacturing in Q3 2024 with 20,323 oz. produced in comparison to 22,032 oz. in Q3 2023, blended with a 13% building up in coins prices basically because of higher prices for tailings and H2O control at Costerfield and higher procedure plant throughput (tonnage) at Björkdal.

All-in maintaining prices higher through 25% to $1,790 consistent with ounce of gold an identical produced in Q3 2024, in comparison to $1,436 in Q3 2023, basically because of the 22% building up in coins working prices consistent with ounce of gold an identical produced. Consolidated basic and administrative prices have been $0.9 million larger in comparison to the 3rd quarter of 2023 basically because of larger trade construction prices.

Costerfield gold-antimony mine, Victoria, Australia

All through Q3 2024, Costerfield produced 8,218 oz. of gold in comparison to 8,377 oz. in Q3 2023, a trim of two% or 159 oz.. The trim in oz. produced used to be a results of a trim within the reasonable milled gold head grade from 9.56 g/t in Q3 2023 to eight.09 g/t in Q3 2024. Manufacturing in Q3 2024 used to be suffering from some unplanned overbreak in Shepherd stopes. Antimony manufacturing all over Q3 2024 used to be 252 tonnes, a 36% trim from the 395 tonnes produced in Q3 2023. This used to be basically because of a trim within the reasonable milled antimony head grade from 2.18% in Q3 2023 to one.33% in Q3 2024 because of an higher mill feed of ore from Shepherd which carries much less antimony than ore from Youle ore frame.

The money working price consistent with ounce of gold an identical produced higher through 20% to $1,174 consistent with ounce in Q3 2024 in comparison to $975 consistent with ounce in Q3 2023, and all-in maintaining price consistent with ounce of gold an identical produced higher through 13% to $1,424 consistent with ounce in Q3 2024 in comparison to $1,265 consistent with ounce in Q3 2023, each basically because of a 19% building up in coins working prices in comparison to Q3 2023, basically because of higher processing prices because of larger prices for tailings and H2O control and higher mining prices because of larger prices for upkeep together with unplanned corrective gadget upkeep and higher prices for portions. Costerfield generated $27.3 million in income and $17.5 million in adjusted EBITDA, which led to internet source of revenue of $8.5 million.

Björkdal gold mine, Skellefteå, Sweden

All through Q3 2024, Björkdal produced 9,626 oz. of gold in comparison to 11,224 oz. in Q3 2023, a trim of 14% or 1,598 oz.. The relief at Björkdal used to be essentially brought about through cheapen mined tonnes because of inclement climate inflicting spillage within the Major (Japanese) Zone thereby quickly proscribing get admission to to this section. In consequence, the web site needed to pivot to, and depend on, lower-grade mining gardens. With diminished mining flexibility affecting mined tonnes, there used to be additionally an building up in low grade floor stockpile feed to maximise plant feed important to cheapen manufacturing oz.. The gold mill head grade is anticipated to go back to ranges of the primary part of 2024, as get admission to returns to the Major (Japanese) extension and extra subject matter is mined from that extra constant and significance underground section.

The money working price consistent with ounce produced for Q3 2024 higher through 25% to $1,487 consistent with ounce in comparison to $1,189 consistent with ounce in Q3 2023 and all-in maintaining price consistent with ounce of gold an identical produced higher through 33% to $1,967 consistent with ounce in Q3 2024 in comparison to $1,474 consistent with ounce in Q3 2023, each basically because of the 14% diminished gold manufacturing blended with a 7% building up in coins working prices basically because of larger throughput submit the commissioning of the mill conversion capital funding venture in Q1 2024 to bring about higher intake of grinding media and alternative mill consumables. Björkdal operations additionally incurred higher marketing consultant prices because of the engagement of a mining optimization staff with a focal point on making improvements to the usage of current era and techniques on the mine in the future into 2025 and past. The exterior staff of subject material mavens recommended the operations on mine debottlenecking, price optimization and productiveness enhancements. Björkdal generated $28.0 million in income and $11.8 million in adjusted EBITDA, which led to internet source of revenue of $4.7 million.

Convention Name

A convention name with Frazer Bourchier, President and Prominent Govt Officer of Mandalay, for traders and analysts on November 7, 2024, at 10:00 AM (Toronto era). traders might tie through the use of refer to dial-in quantity:

On the other hand, please sign up for the webcast here. A replay of the convention name might be to be had till 11:59 PM (Toronto era), November 14, 2024, and will also be accessed the use of refer to dial-in numbers:

About Mandalay Sources Company

Mandalay Sources is a Canadian-based herbal useful resource corporate with generating belongings in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Corporate is inquisitive about rising its manufacturing and decreasing prices to generate vital certain cashflow. Mandalay is dedicated to working safely and in an environmentally accountable method, week growing a imposing degree of folk and worker engagement.

Mandalay’s project is to assemble shareholder worth during the successful operation and regional exploration methods, at each its Costerfield and Björkdal mines. Recently, the Corporate’s primary goals are to proceed mining the high-grade Youle and Shepherd veins at Costerfield, and to increase Mineral Reserves. At Björkdal, the Corporate will try to extend manufacturing from the Japanese Extension section and alternative higher-grade gardens within the coming years, to deliver to maximise benefit margins from the mine.

Ahead-Having a look Statements

This information let go accommodates “forward-looking statements” inside the which means of acceptable securities regulations, together with statements in regards to the Corporate’s expected efficiency in 2024. Readers are cautioned to not park undue reliance on forward-looking statements. Original effects and trends might fluctuate materially from the ones pondered through those statements relying on, amongst alternative issues, adjustments in commodity costs and basic marketplace and financial situations. The standards recognized above aren’t supposed to constitute an entire listing of the standards that would have an effect on Mandalay. An outline of backup dangers that would lead to untouched effects and trends differing from the ones pondered through forward-looking statements on this information let go will also be discovered underneath the heading “Risk Factors” in Mandalay’s annual data method dated March 31, 2024, a book of which is to be had underneath Mandalay’s profile at www.sedar.com. As well as, there will also be deny word that any inferred assets which are came upon because of backup drilling will ever be upgraded to confirmed or possible reserves. Even though Mandalay has tried to spot remarkable elements that would motive untouched movements, occasions or effects to fluctuate materially from the ones described in forward-looking statements, there is also alternative elements that motive movements, occasions or effects to not be as expected, estimated or supposed. There will also be deny word that forward-looking statements will turn out to be correct, as untouched effects and past occasions may just fluctuate materially from the ones expected in such statements. Accordingly, readers must now not park undue reliance on forward-looking statements.

Non-GAAP Efficiency Measures

This information let go might comprise references to adjusted EBITDA, adjusted internet source of revenue, detached coins current, coins working price consistent with ounce of gold an identical produced and all-in maintaining price all of which can be non-GAAP efficiency measures and don’t have standardized meanings underneath IFRS. Subsequently, those measures is probably not related to alike measures introduced through alternative issuers.

Control makes use of adjusted EBITDA and detached coins current as measures of working efficiency to lend a hand in assessing the Corporate’s skill to generate liquidity via working coins current to charity past running capital wishes and to charity past capital expenditures, in addition to to lend a hand in evaluating monetary efficiency from length to length on a constant foundation. Control makes use of adjusted internet source of revenue to deliver to facilitate an figuring out of the Corporate’s monetary efficiency previous to the affect of non-recurring or particular pieces. The Corporate believes that those measures are worn through and are helpful to traders and alternative customers of the Corporate’s monetary statements in comparing the Corporate’s working and coins efficiency as a result of they enable for research of its monetary effects with out regard to important, non-cash and alternative non-core pieces, which is able to range considerably from corporate to corporate and over other sessions.

The Corporate defines adjusted EBITDA as source of revenue from mine operations, internet of management prices, and sooner than pastime, taxes, non-cash fees/(source of revenue), intercompany fees and finance prices. The Corporate defines adjusted internet source of revenue as internet source of revenue sooner than particular pieces. Particular pieces are pieces of source of revenue and expense which are introduced one at a time because of their nature and, in some instances, anticipated infrequency of the occasions giving be on one?s feet to them. A reconciliation between adjusted EBITDA and altered internet source of revenue, at the one hand, and consolidated internet source of revenue, at the alternative hand, is integrated within the MD&A.

The Corporate defines detached coins current as a measure of the Corporate’s skill to generate and lead liquidity. It’s calculated settingup with the web coins flows from working actions (as consistent with IFRS) and upcoming subtracting capital expenditures and hire bills. The following “Non-GAAP Financial Performance Measures” division of the MD&A for a reconciliation between detached coins current and internet coins flows from working actions.

For Costerfield, an identical gold oz. produced is calculated through including to gold oz. produced, the antimony tonnes produced instances the common antimony worth within the length divided through the common gold worth within the length. The entire coins working price related to the manufacturing of those an identical oz. produced within the length is upcoming divided through the an identical gold oz. produced to submit the money working price consistent with an identical ounce produced. The money working price excludes royalty bills. Web site all-in maintaining prices come with general coins working prices, maintaining mining capital, royalty expense, accretion of reclamation provision and tailings dam amortization. Maintaining capital displays the capital required to preserve each and every web site’s wave degree of operations. The web site’s all-in maintaining price consistent with ounce of gold an identical in a length equals the all-in maintaining price divided through the an identical gold oz. produced within the length.

For Björkdal, the full coins working price related to the manufacturing of gold oz. produced within the length is upcoming divided through the gold oz. produced to submit the money working price consistent with gold ounce produced. The money working price excludes royalty bills. Web site all-in maintaining prices come with general coins working prices, maintaining mining capital, royalty expense, accretion of reclamation provision and tailings dam amortization. Maintaining capital displays the capital required to preserve each and every web site’s wave degree of operations. The web site’s all-in maintaining price consistent with ounce of gold an identical in a length equals the all-in maintaining price divided through the an identical gold oz. produced within the length.

For the Corporate as a complete, coins working price consistent with gold an identical ounce is calculated through summing the gold an identical oz. produced through each and every web site and dividing the full through the sum of money working prices on the websites. Consolidated coins working price excludes royalty and company degree basic and administrative bills. This definition used to be up to date within the 3rd quarter of 2020 to exclude company basic and administrative bills to raised align with business same old.  All-in maintaining price consistent with ounce gold an identical within the length equals the sum of money working prices related to the manufacturing of gold an identical oz. in any respect working websites within the length plus company overhead expense within the length plus maintaining mining capital, royalty expense, accretion of reclamation provision and tailings dam amortization, divided through the full gold an identical oz. produced within the length. A reconciliation between price of gross sales and coins working prices, and in addition coins working price to all-in maintaining prices are integrated within the MD&A.

SOURCE Mandalay Sources Company

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