leadf
logo-loader
viewMandalay Resources Corp.

Mandalay Resources has strong quarter despite metal uncertainty

goldsilver_350_527a5653465c0.jpg

A strong performance from its two main mines enabled gold, silver and antimony producer Mandalay Resources (TSE:MND) to shrug off volatile prices over the past three months.

The group, which runs the Costerfield gold mine in Australia and silver mine Cerra Bayo in Chile, increased revenues by 3% to US$50.3mln in the three months to September compared to a year ago. Net income rose by 22% to US$11mln.

Brad Mills, chief executive, said the growing contribution from Costerfield was “particularly gratifying”.

Production from the Aussie mine passed the 16,000 ounce gold equivalent level (a rate of 64,000 ounces per year) and cash costs came down to US$626/ounce gold equivalent and US$873/ounce site all-in cost.

Going forward, Mandalay expects production to rise to between 3-3.2mln ounces of silver, 60-70,000 ounces of gold and 3-3,300 tonnes of antimony in 2014.

In total, that amounts to a gold equivalent of between 130,000 -143,000 ounces.

The company declared a dividend of US$0.0093 per share. Cash at the period end was US$27.7mln with no debt.

Broker RFC Ambrian said the results highlighted a good quarter for Mandalay despite the prevailing commodities prices, while the dividend implies an effective 5% dividend yield.

It added: “It is our expectation that the company will maintain positive margins on sales and should be highly profitable for the financial year despite the recent falls in precious metal and antimony prices.

“The expansions at both mines are continuing in line with our expectations and we anticipate a smooth ramp-up in production.”

The broker also increased its target price by four Canadian cents to C$0.99, which it said reflected its belief the company can maintain low cost production at both mines.

Quick facts: Mandalay Resources Corp.

Price: 1.48 CAD

TSX:MND
Market: TSX
Market Cap: $134.95 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Mandalay Resources Corp. named herein, including the promotion by the Company of Mandalay Resources Corp. in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Mandalay Resources expecting busy year on projects in Australia and Sweden

Mandalay Resources (TSX-MND) President and CEO Dominic Duffy joined Steve Darling from Proactive Investors Vancouver to discuss the latest progress on two of their projects. Duffy discussing Costerfield in Australia and Bjorkdal in Sweden. Duffy telling Proactive what work they have...

on 24/6/19

2 min read