TORONTO, Jan. 15, 2018 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) announced today its production and sales results for the fourth quarter of 2017.
In the fourth quarter of 2017, Mandalay produced a consolidated 34,395 saleable ounces of gold equivalent and sold 29,547 ounces of gold equivalent. For the full year ended December 31, 2017, Mandalay produced 131,186 saleable ounces of gold equivalent and sold 127,367 ounces of gold equivalent.
Mark Sander, President and Chief Executive Officer of Mandalay, commented, “The Company’s superb fourth quarter performance at Björkdal, in which it produced 22,035 ounces of gold, enabled Mandalay to beat its annual consolidated revised guidance issued on August 10, 2017. The Björkdal result for the quarter is a record under Mandalay ownership, more than double the production of the year-ago quarter. On an annual basis, the total 62,028 ounces produced by Björkdal in 2017 is not only 30% greater than in the previous year, but is also the highest production from the mine since 1998. This performance is due to continued grade control discipline and the ability of the mine to deliver larger quantities of highest quality “A” ore to the plant. As well, we received a boost from positive reconciliations of mined “A” ore grades to our block model in the quarter.
“Costerfield produced 12,360 gold equivalent ounces in the fourth quarter of 2017 and 52,137 gold equivalent ounces for the full year. The fourth quarter production was similar to that of the fourth quarter of 2016; it remains consistent with the previous three quarters of this year and also with the current grade profile of the mine. We are on track with respect to the capital development program, announced in November, 2017, to reach the Brunswick vein and extend mine life.”
Dr. Sander continued, “At Cerro Bayo, where production has remained suspended since the June 9, 2017, inundation, a diligent and committed permitting process is underway to work with regulators to receive the outstanding permits necessary to restart the mine and complete the life of mine plan.”
Dr. Sander concluded, “Lastly, I am delighted to note that Mandalay’s consolidated production from our two currently producing assets during the fourth quarter of 2017 was higher than in the fourth quarter of 2016, when all three mines were operating. This resiliency is characteristic of our multi-mine Company and, more importantly, of our people.”
Saleable production for the three months ended December 31, 2017:
Saleable production for the year ended December 31, 2017:
Table 1 – Fourth quarter and full year saleable production for 2017 and 2016
Metal | Source | Three months ended 31 December 2017 | Three months ended 31 December 2016 | Year ended 31 December 2017 | Year ended 31 December 2016 |
Gold (oz) | Costerfield | 7,222 | 7,523 | 31,512 | 41,310 |
Björkdal | 22,035 | 10,934 | 62,028 | 48,143 | |
Cerro Bayo | - | 2,807 | 5,909 | 13,792 | |
Total | 29,257 | 21,264 | 99,449 | 103,245 | |
Antimony (t) | Costerfield | 805 | 792 | 3,115 | 3,598 |
Silver (oz) | Cerro Bayo | - | 365,214 | 794,533 | 1,731,031 |
Average quarterly prices: | |||||
Gold US$/oz | 1,275 | 1,218 | |||
Antimony US$/t | 8,137 | 7,498 | |||
Silver US$/oz | 16.71 | 17.17 | |||
Au Eq. (oz)1 | Costerfield | 12,360 | 12,403 | 52,137 | 60,076 |
Björkdal | 22,035 | 10,934 | 62,028 | 48,143 | |
Cerro Bayo | - | 7,956 | 17,021 | 37,278 | |
Total | 34,395 | 31,293 | 131,186 | 145,497 | |
1 Quarterly gold equivalent ounces (“Au 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 three 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; average Ag price in the period is calculated as the average of the daily London Broker’s silver spot price 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 three months ended December 31, 2017:
Sales for the year ended December 31, 2017:
Table 2 – Fourth quarter and full year sales for 2017 and 2016
Metal | Source | Three months ended 31 December 2017 | Three months ended 31 December 2016 | Year ended 31 December 2017 | Year ended 31 December 2016 |
Gold (oz) | Costerfield | 6,337 | 8,040 | 30,296 | 40,161 |
Björkdal | 18,565 | 8,979 | 58,058 | 47,887 | |
Cerro Bayo | 142 | 2,426 | 7,003 | 15,419 | |
Total | 25,044 | 19,445 | 95,215 | 103,467 | |
Antimony (t) | Costerfield | 668 | 883 | 2,879 | 3,573 |
Silver (oz) | Cerro Bayo | 18,334 | 320,175 | 926,832 | 1,796,693 |
Average quarterly prices: | |||||
Gold US$/oz | 1,275 | 1,218 | |||
Antimony US$/t | 8,137 | 7,498 | |||
Silver US$/oz | 16.71 | 17.17 | |||
Au Eq. (oz)1 | Costerfield | 10,599 | 13,480 | 49,425 | 58,937 |
Björkdal | 18,565 | 8,979 | 58,058 | 47,887 | |
Cerro Bayo | 383 | 6,940 | 19,884 | 39,740 | |
Total | 29,547 | 29,399 | 127,367 | 146,564 | |
1Quarterly Au 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 three 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.
Production and cost guidance for full year 2018:
Table 3 – 2018 guidance
Björkdal | Costerfield | Cerro Bayo | Consolidated | |
Saleable Au produced (koz) | 56-63 | 27-30 | - | 83-93 |
Saleable Sb produced (kt) | - | 2.8-3.2 | - | - |
Saleable Au Eq produced (koz)* | 56-63 | 45-50 | - | 101-113 |
Cash cost, $/oz Au Eq | 820-920 | 720-770 | N/A | 835-910 |
All-in cost, $/oz Au Eq | 1,060-1,210 | 1,150-1,250 | N/A | 1,155-1,280 |
Capex, $ million (including exploration) | 18-21 3.4 | 18-21 2.9 | - - | 37-41 6.3 |
Net care & maintenance, $ million | N/A | N/A | 2.5-3 | 2.5-3 |
Corporate administration, $ million | N/A | N/A | N/A | 6-6.7 |
*Assumes full-year 2018 metal prices of: Au $1,306/oz and Sb $8,361/t.
Mandalay’s 2018 production and cost guidance is based on:
For Further Information:
Mark Sander
President and Chief Executive Officer
Greg DiTomaso
Director of Investor Relations
Contact:
647.260.1566
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia, Sweden and care and maintenance and development projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia, the Americas and Europe to generate near-term cash flow and shareholder value.
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, silver and antimony for the 2017 fiscal year, and the Company’s production of gold and antimony for the 2018 fiscal year and the anticipated restart of the Company’s Cerro Bayo mine. 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, 2017, 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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