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Mandalay Resources eyeing production increases at both its mines, while Youle deposit in Australia continues to deliver

Last updated: 09:15 11 May 2023 EDT, First published: 16:15 27 Oct 2021 EDT

Snapshot

  • Mandalay Resources delivers 11th consecutive profitable quarter
  • Research Capital repeats 'Buy' on Mandalay Resources as it releases positive results from ongoing drilling at Sweden-based gold mine
  • Mandalay Resources sees 2nd highest quarterly revenue since 2016
Mandalay Resources Corp. -

About the company

Mandalay Resources Corp. is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine), with projects in Chile and Canada under care and maintenance or development statuses. The company is focused on growing its production and reducing costs to generate significant positive cashflow.

How it is doing

11 May 2023

Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) said it maintained a healthy net cash position and delivered stable results for the first three months of 2023, which marks the company’s 11th consecutive profitable quarter.

Mandalay exited the first quarter, which ended on March 31, 2023, with $34.2 million in cash and cash equivalents and $23.5 million in interest-bearing debt, putting it in a net cash position of $10.7 million.

Profit was $0.6 million or a loss per share of $0.01, compared to $5.2 million or a loss per share of $0.15 in the same quarter in 2022.

The company posted revenue for the quarter of $42.2 million, down 22% from $54.2 million in the year-ago quarter.

18 Apr 2023

Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) reported first-quarter gold production that fell short of internal expectations, but the company’s new CEO isn’t lowering full-year guidance. 

The Toronto-based company posted consolidated saleable gold equivalent production of 19,986 ounces and consolidated saleable gold equivalent sales of 21,769 ounces.

06 Mar 2023

Mandalay Resources Corp. (TSX:MND, OTCQB:MNDJF) said it has appointed industry veteran Frazer Bourchier to its board of directors to lead the company as its new president and CEO effective April 3, 2023.

In the interim, the company said current CEO Dominic Duffy will work closely with Bourchier to support a smooth transition. Duffy will remain on the company’s board as a non-executive director, it added.

What the brokers say

24 Jan 2022

Research Capital has repeated its ‘Buy’ rating on Mandalay Resources Corp as the company released more positive results from ongoing drilling at its Bjorkdal underground gold mine in Sweden. 

In a note to clients, the analysts maintained its Buy rating and $5.75 per share target price, based on the continued use of a 1 multiple to the net asset value.

The analysts noted:  “The company turned its attention to the Central Zone area and has drilled another 17 holes comprising 7,253 meters (m), resulting in the intersection of mineralization at least 350m from the current workings and the addition of 16 new veins to the 21 known ones.”

What management says

13 May 2022

Mandalay Resources CEO Dominic Duffy joined Steve Darling from Proactive to share news the company has released its financial results for the quarter ended March 31, 2022. Duffy telling Proactive the company in Q1 saw revenue of 54.2 million dollars which was the second highest since Q2 of 2016. The company also had 28.0 million free cash flow1 and $35.5 million in net cash flow from operating activities. The company also is net debt free, with $50.4 million of cash on hand and $45.7 million in total interest-bearing debt outstanding. Duffy also said their asset Costerfield continued with a strong performance as it posted 30.4 million in revenue and $22.9 million in adjusted EBITDA. Björkdal generated production and sales with 23.7 million and $9.4 million in revenue and adjusted EBITDA.

Mandalay Resources sees 2nd highest quarterly revenue since 2016

Mandalay Resources CEO Dominic Duffy joined Steve Darling from Proactive to share news the company has released its financial results for the quarter ended March 31, 2022. Duffy telling Proactive the company in Q1 saw revenue of 54.2 million dollars which was the second highest since Q2 of 2016....

on 13/5/22