Mandalay Resources Corporation (TSX: MND) (OTCQB: MNDJF) announced its production and sales results for the fourth quarter and full-year 2021 and provides production and cost guidance for 2022.
Fourth Quarter and Full-Year 2021 Production Highlights:
Production and Cost Guidance for Full-Year 2022:
Dominic Duffy, President and CEO of Mandalay, commented:
“Mandalay Resources finished the year strongly with Costerfield achieving a historic high in quarterly saleable gold equivalent production with 19,507 ounces. On a consolidated basis, the 32,362 saleable ounces of gold equivalent produced was the Company’s second highest quarterly result of 2021 and the full-year 123,002 ounces of saleable gold equivalent produced not only exceeded our 2021 guidance, but was also the Company’s best result since 2017. The consecutive year-over-year improvements since 2019 clearly demonstrate the stability at Björkdal and the growing quality of our anchor asset at Costerfield.
“Stemming from shipment backlogs, a higher-than-average level of concentrate was sold at Costerfield in December resulting in 26,877 ounces of gold equivalent sold during Q4. The receipt of cash from December’s shipments however will be recognized in 2022. Moreover, the full-year saleable gold equivalent production of 68,729 ounces at Costerfield represented an 18% year-over-year improvement. The Company anticipates an incremental improvement to Costerfield’s production profile during 2022 as stoping ramps up at Youle and with the initiation of production from the high-gold grade deposit Shepherd.
“At Björkdal, the 11,190 ounces and 45,236 ounces of saleable gold ounces produced during the fourth quarter and full-year respectively, was in line with previous quarters and year. The site continued with its step changes aimed at reducing dilution and we expect grades to lift and stabilize at planned levels during 2022. For 2022, Björkdal will increase its stoping rates within the lower, higher grade levels of the Aurora zone and will maintain the operational goal of achieving 1.2 million tonnes of underground ore per annum.
“At Cerro Bayo, processing continued up until December 1, 2021, when the Company successfully completed the sale of the asset to Equus Mining. During September and October, the site produced 1,665 ounces of saleable gold equivalent.
“For 2022, the Company anticipates a consolidated production between 118,000 – 130,000 ounces of gold equivalent at an expected cash cost of $700 – $900 and all-in sustaining cost of $1,100 – $1,300. The Company is also looking forward to following up on the highly successful 2021 exploration campaign with an anticipated exploration spend between $7 – $9 million at Costerfield and between $4 – $5 million at Björkdal during 2022.”
Saleable Production for the Quarter Ended December 31, 2021:
Saleable Production for the Year Ended December 31, 2021:
Table 1 – Fourth Quarter and Full-Year Saleable Production for 2021 and 2020
|Silver (oz)||Cerro Bayo||50,556||–||266,596||–|
|Average quarterly prices:|
|Total Gold Eq. (oz)(1)|
Sales for the Quarter Ended December 31, 2021:
Sales for the Year Ended December 31, 2021:
Table 2 – Fourth Quarter and Full-Year Sales for 2021 and 2020
|Silver (oz)||Cerro Bayo||39,614||–||217,034||–|
|Average quarterly prices:|
|Total Gold Eq. (oz)1|
Mandalay 2022 Guidance:
Table 3 – Production and Cost Guidance For 2022
|Gold produced (oz)||51,000 – 56,000|
|Cash cost(1) per oz gold produced||$980 – $1,130|
|All-in sustaining cost(1) per oz gold produced||$1,400 – $1,550|
|Capital expenditures||$29M – $33M|
|Gold produced (oz)||50,000 – 55,000|
|Antimony produced (t)||2,100 – 2,700|
|Gold equivalent produced(2) (oz)||67,000 – 74,000|
|Cash cost(1) per oz gold eq. produced||$560 – $710|
|All-in sustaining cost(1) per oz gold eq. produced||$830 – $980|
|Capital expenditures||$21M – $25M|
|Gold equivalent(2) produced (oz)||118,000 – 130,000|
|Average cash cost per oz gold eq.||$700 – $900|
|Average all-in sustaining cost(3) per oz gold eq.||$1,100 – $1,300|
|Capital expenditures||$50M – $58M|
Mandalay’s 2022 production guidance is based on:
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Company is focused on growing its production and reducing costs to generate significant positive cashflow. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement.
Mandalay’s mission is to create shareholder value through the profitable operation and continuing the regional exploration program, at both its Costerfield and Björkdal mines. Currently, the Company’s main objectives are to continue mining the high-grade Youle vein at Costerfield, bring online the deeper Shepherd veins, both of which will continue to supply high-grade ore to the processing plant, and to extend Youle Mineral Reserves. At Björkdal, the Company will aim to increase production from the Aurora zone and other higher-grade areas in the coming years, in order to maximize profit margins from the mine.
Omai Gold Mines Corp. (TSX-V:OMG) is pleased to announce explorat... READ MORE
Monument Mining Limited (TSX-V: MMY) (FSE: D7Q1) is pleased to an... READ MORE
Doré Copper Mining Corp. (TSX-V: DCMC) (OTCQX: DRCMF) (FRA: DCM) is ple... READ MORE
Golden Tag Resources Ltd. (TSX-V: GOG) (OTCQB: GTAGF) is pleased to anno... READ MORE
Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) announced prelimin... READ MORE
We acknowledge the [financial] support of the Government of Canada.