Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, OTCQB: MNDJF) is pleased to announce financial results for the first quarter ended March 31, 2025. The Company reported a robust year-over-year 41% increase in revenue to $78.1 million, along with improvements to net income.
The Company’s condensed and consolidated interim financial result for the quarter ended March 31, 2025, together with its Management’s Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under the Company’s profile on www.sedar.com and on the Company’s website at www.mandalayresources.com. All currency references in this press release are in U.S. dollars except as otherwise indicated.
First Quarter 2025 Highlights:
Strengthened Balance Sheet: Cash balance grew to $88.3 million as of March 31, 2025, from $76.4 million on December 31, 2024;
Continued Cash Flow Generation: $27.9 million in cash flow from operating activities and $11.2 million free cash flow1;
Robust Revenue Growth: Consolidated revenue increased by 41% compared to Q1 2024, at $78.1 million;
Costerfield generated quarterly revenue of $39.7 million;
Björkdal recorded highest quarterly revenue of $38.4 million;
Cost Performance: Consolidated cash operating cost1 of $1,348 per ounce of gold equivalent production. All-in sustaining cost1 of $2,004 per ounce, driven by planned H1 2025 front-loaded capital investments at both operations;
Adjusted EBITDA1: Generated $44.1 million, a 65% increase compared to Q1 2024 of $26.7 million; and
Profitability: Consolidated net income was $14.8 million ($0.16 or C$0.23 per share), compared to $5.9 million ($0.06 or C$0.09 per share) in Q1 2024.
Frazer Bourchier, President, and CEO commented:
“Our first quarter performance highlights Mandalay’s ongoing solid operational foundation and our consistent ability to deliver earnings and cash flow. Supported by favourable metal prices and disciplined execution, we have yet again further strengthened our financial position while progressing key strategic and growth priorities. We look forward to building on a solid start to the year and are maintaining our full-year 2025 guidance, as we expect stronger production in the second half coupled with reduced capital expenditure.”
Hashim Ahmed, CFO commented:
“Mandalay ended Q1 2025 with $88.3 million in cash and no debt. As compared with previous quarters, the increase in consolidated all-in sustaining costs this quarter was primarily driven by lower production and planned, front-loaded capital investments in the first half of this year. These investments include infill drilling at Costerfield and accelerated development at Björkdal, both critical initiatives that underpin our long-term profitability and production stability. Net income rose to $14.8 million – up 152% from Q1 2024 – while our adjusted EBITDA margin expanded to 56%. We ended the quarter with a clean balance sheet, ample available financial liquidity, and remain committed to disciplined capital allocation to enhance long-term shareholder value.”
First Quarter 2025 Financial Summary
In Q1 2025, Mandalay generated consolidated revenue of $78.1 million, 41% higher than $55.5 million in the first quarter of 2024. This was mainly due to higher average realized metal prices: $3,046 per ounce for gold and $34,923 per tonne for antimony in Q1 2025 compared to $2,200 per ounce for gold and $13,823 per tonne for antimony in Q1 2024.
Mandalay generated adjusted EBITDA of $44.1 million in the first quarter of 2025 compared to $26.7 million in the first quarter of 2024. The increase in adjusted EBITDA was mainly due to higher revenue in the current quarter. Adjusted net income was $20.0 million in the first quarter of 2025, which excludes a $5.0 million loss on financial instruments and a $0.2 million revision of reclamation liability, compared to an adjusted net income of $12.2 million in the first quarter of 2024.
Consolidated net income was $14.8 million for the first quarter of 2025, versus $5.9 million in the first quarter of 2024. Mandalay ended the first quarter of 2025 with $88.3 million in cash and cash equivalents.
First Quarter Operational Summary
Consolidated cash operating cost per ounce of gold equivalent produced increased by 30% to $1,348 per ounce in the first quarter of 2025 compared to $1,039 in the first quarter of 2024. This was due to a decrease in gold production and an increase in operating costs. Gold equivalent production declined by 10% to 22,342 ounces in Q1 2025 compared to 24,936 ounces in Q1 2024. This was mainly due to mining lower-grade material from Costerfield’s mineral reserve as scheduled for 2025. The 16% increase in cash costs in Q1 2025 relative to Q1 2024 was mainly due to increased tailings management costs at Costerfield necessitating paste fill underground,but this is expected to meaningfully decrease following the expected commissioning of the new tailings facility in Q2 2025. Additional cost increases are due to ore development contractors at Björkdal in Q1 2025 required for planned increased mining flexibility.
All-in sustaining costs increased by 40% to $2,004 per ounce of gold equivalent produced in Q1 2025, compared to $1,430 in Q1 2024. This increase was due to the higher cash operating costs as noted earlier, and the higher planned sustaining capital expenditures during the quarter compared to Q1 2024 including accelerated capital expenditure at Björkdal to catch up on development, increased infill drilling at Costerfield, and the tailings storage facility construction scheduled during H1 2025 at Costerfield. The increased infill drilling expenditure at Costerfield focused on converting inferred resources into indicated while the drilling in Q1 2024 targeted extensional testing classified as non-sustaining.
Costerfield gold-antimony mine, Victoria, Australia
During Q1 2025, Costerfield produced 9,549 ounces of gold compared to 11,976 ounces in Q1 2024, a decrease of 20% or 2,427 ounces. The decrease in ounces produced was a result of a decrease in the average milled gold head grade from 12.41 g/t in Q1 2024 to 9.60 g/t in Q1 2025, which was expected as per life of mine reserve ore mine scheduling. Antimony production during Q1 2025 was 161 tonnes, a 60% decrease from the 404 tonnes produced in Q1 2024. This was mainly due to a decrease in the average milled antimony head grade from 2.21% in Q1 2024 to 0.92% in Q1 2025. The reduction in antimony grade was anticipated, albeit somewhat lower than expected, as increased material is being mined from the lower antimony grade deposit of Shepherd.
The cash operating cost per ounce of gold equivalent produced increased by 45% to $1,133 per ounce in Q1 2025 compared to $780 per ounce in Q1 2024 mainly due to higher costs for tailings and water management including personnel and material costs to handle the disposal of tails via paste, a necessity until completion of the new tailings storage facility mid-2025. This per ounce cost increase is also due to 20% decreased gold equivalent production. All-in sustaining cost per ounce of gold equivalent produced increased by 55% to $1,555 per ounce in Q1 2025 compared to $1,005 per ounce in Q1 2024, due to an increase in per unit cash operating costs as mentioned above and higher sustaining capital expenditure including increased infill drilling as the focus during the quarter was converting inferred resources into indicated resources while the drilling in Q1 2024 targeted extensional testing classified as non-sustaining. Costerfield generated $39.7 million in revenue and $26.6 million in adjusted EBITDA, which resulted in net income of $10.6 million.
Björkdal gold mine, Skellefteå, Sweden
During Q1 2025, Björkdal produced 10,827 ounces of gold compared to 10,370 ounces in Q1 2024, an increase of 4% or 457 ounces. Although the production was higher, it was a marginal increase with lower mining tonnes, but improved mining grades coming from the Main zone where access was regained, and increased plant throughput and recovery.
The cash operating cost per ounce produced for Q1 2025 increased by 12% to $1,577 per ounce compared to $1,403 per ounce in Q1 2024 due to higher cash operating costs mainly due to higher mining costs from additional spend on ore development contractors. All-in sustaining cost per ounce of gold produced increased by 20% to $2,247 per ounce in Q1 2025 compared to $1,868 per ounce in Q1 2024 mainly due to an increase in per unit cash operating costs as mentioned above and higher sustaining capital expenditures increased costs for accelerated capital expenditures to catch up on development for future required production flexibility along with planned increased cost on replacing mining equipment including a new cable bolter delivered during the quarter. Björkdal generated $38.4 million in revenue and $19.9 million in adjusted EBITDA, which resulted in net income of $11.4 million.
Source:www.mandalayresources.com