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.