Mandalay Resources Corporation (TSX: MND) (OTCQB: MNDJF) announced its production and sales results for the third quarter of 2020.
Third Quarter 2020 Production Highlights:
In the third quarter of 2020, Mandalay produced a consolidated 25,664 saleable ounces of gold equivalent and sold 26,001 ounces of gold equivalent.
Dominic Duffy, President and Chief Executive Officer of Mandalay, commented, “The third quarter gold production of 22,793 saleable ounces was the Company’s best quarterly consolidated production since the fourth quarter of 2017, and also marked the fourth consecutive quarter-over-quarter improvement in saleable gold production. This was driven by another strong quarter from Costerfield and supported by the consistent performance at the Björkdal operation.”
Mr. Duffy continued, “At Costerfield, Youle continued to deliver excellent results as the third quarter head grades averaged 11.54 g/t and 4.1% for gold and antimony processed, respectively. The improvement in processed gold grades relative to the 11.17 g/t last quarter is a significant achievement as the site continued to blend its mill feed with the lower grade Brunswick ore. Overall, the site produced 14,620 saleable gold equivalent ounces – 11,749 saleable gold ounces and 991 tonnes of salable antimony. The 1,036 tonnes of antimony sold during this quarter was the Company’s highest quarterly level since the first quarter of 2014. This is despite developing on comparatively lower grade extents of the ore body on several levels of Youle during the third quarter. For the remainder of the year, we are anticipating an increase in production as more stopes are scheduled to come online in Youle.”
Mr. Duffy continued, “At Björkdal, third quarter production of 11,044 saleable gold ounces was in-line with the previous quarter. However, due to dilution challenges that we are still addressing, the site is tracking below our forecast production levels year-to-date. Production for the remainder of the year is expected to see some improvements and the focus will remain on capital development to advance further down into the Aurora zone’s higher-grades lower levels. Aurora’s capital development and definition drilling highlighting multiple vein structures parallel to Aurora sets up Björkdal for a significantly stronger 2021.”
Mr. Duffy concluded, “Mandalay continues to build upon the momentum generated during the first half of year by delivering another strong production and sales quarter. We expect to fulfil or outperform our consolidated 2020 production guidance on a gold equivalent ounces basis, however, we are providing an update on production and costs guidance to better reflect the variability and the overall performance at each site. Moreover, due to the excellent capital development progress made at Costerfield, that site has accelerated capital development originally planned for 2021 into this year, increasing the development metres and investment at Costerfield. We also intend on increasing exploration spend by approximately $1 million at Costerfield for the remainder of the year to follow up on the encouraging results seen to date. For more details, please see the table below.”
Saleable Production For The Quarter Ended September 30, 2020:
Saleable Production For The Nine Months Ended September 30, 2020:
Table 1 – Third Quarter And Nine Month Saleable Production for 2020 and 2019
Metal | Source | Three months ended September 30 2020 |
Three months ended September 30 2019 |
Nine months ended September 30 2020 |
Nine months ended September 30 2019 |
Gold (oz) | Björkdal | 11,044 | 11,880 | 33,044 | 40,508 |
Costerfield | 11,749 | 3,103 | 32,722 | 10,509 | |
Total | 22,793 | 14,983 | 65,766 | 51,017 | |
Antimony (t) | Costerfield | 991 | 402 | 3,045 | 1,348 |
Average quarterly prices: | |||||
Gold US$/oz | 1,907 | 1,473 | |||
Antimony US$/t | 5,524 | 6,015 | |||
Total Gold Eq. (oz)(1) | |||||
Björkdal | 11,044 | 11,880 | 33,044 | 40,508 | |
Costerfield | 14,620 | 4,745 | 43,049 | 17,557 | |
Total | 25,664 | 16,625 | 76,093 | 58,065 |
Sales For The Quarter Ended September 30, 2020:
Sales For The Nine Months Ended September 30, 2020:
Table 2 – Third Quarter And Nine Month Sales for 2020 and 2019
Metal | Source | Three months ended September 30 2020 |
Three months ended September 30 2019 |
Nine months ended September 30 2020 |
Nine months ended September 30 2019 |
Gold (oz) | Björkdal | 11,511 | 13,006 | 34,566 | 43,160 |
Costerfield | 11,489 | 3,126 | 31,177 | 10,590 | |
Total | 23,000 | 16,132 | 65,743 | 53,750 | |
Antimony (t) | Costerfield | 1,036 | 412 | 2,829 | 1,361 |
Average quarterly prices: | |||||
Gold US$/oz | 1,907 | 1,473 | |||
Antimony US$/t | 5,524 | 6,015 | |||
Total Gold Eq. (oz)1 | |||||
Björkdal | 11,511 | 13,006 | 34,566 | 43,160 | |
Costerfield | 14,490 | 4,808 | 40,627 | 17,655 | |
Total | 26,001 | 17,814 | 75,193 | 60,815 |
Table 3 – Revised and Original 2020 Full-Year Guidance
2020E Revised | 2020 Original | |
Björkdal | ||
Gold produced (oz) | 43,000 – 47,000 | 51,000 – 57,000 |
Cash cost(1) per oz gold produced | $950 – $1,100 | $750 – $900 |
All-in sustaining cost(1) per oz gold produced | $1,400 – $1,640 | $1,110 – $1,340 |
Capital expenditures | $22M – $27M | $22M – $27M |
Costerfield | ||
Gold produced (oz) | 44,000 – 48,000 | 32,000 – 38,000 |
Antimony produced (t) | 4,000 – 4,300 | 3,000 – 3,500 |
Gold equivalent produced(2) (oz) – revised prices | 57,000 – 62,000 | 42,000 – 49,000 |
Gold equivalent(3) (oz) – original prices | n/a | 44,000 – 52,000 |
Cash cost(1) per oz gold eq. produced | $575 – $725 | $725 – $875 |
All-in sustaining cost(1) per oz gold eq. produced | $950 – $1,160 | $1,010 – $1,220 |
Capital expenditures | $21M – $26M | $17M – $21M |
Consolidated | ||
Gold equivalent(2) produced (oz) – revised prices | 100,000 – 109,000 | 93,000 – 106,000 |
Gold equivalent(3) produced (oz) – original prices | n/a | 95,000 – 109,000 |
Average cash cost(4) per oz gold eq. | $765 – $915 | $765 – $915 |
Average all-in sustaining cost(4) per oz gold eq. | $1,090 – $1,360 | $1,090 – $1,360 |
Capital expenditures | $43M – $52M | $39M – $48M |
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden, and care and maintenance and development projects in Chile. The Company is focused on growing production at its gold and antimony operation in Australia, and gold production from its operation in Sweden to generate near-term cash flow.
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