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Mandalay Resources Delivers Strong First Quarter 2024 Financial Results

Press Release

TORONTO, ON, May 8, 2024 — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to announce financial results for the first quarter ended March 31, 2024, supported by solid production results, disciplined capital allocation, and favorable metal prices.

The Company’s condensed and consolidated interim financial result for the quarter ended March 31, 2024, together with its Management’s Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under the Company’s profile on and on the Company’s website at All currency references in this press release are in U.S. dollars except as otherwise indicated.

First Quarter 2024 Highlights:

  • Significant strengthening of Balance Sheet with cash balance of $47.1 million;
  • Growing net cash position1 now at $19.4 million;
  • Generated $29.5 million and $16.1 million in cash flow from operating activities and free cash flow1, respectively;
  • Consolidated revenue up 32% and 10% as compared to Q1 2023 and Q4 2023 respectively, reaching $55.5 million;
  • Björkdal recorded its highest ever quarterly revenue of $24.9 million;
  • Costerfield generated $30.6 million in quarterly revenue, its highest since Q2 2022;
  • Consolidated quarterly adjusted EBITDA1 of $26.7 million, two-fold increase as compared to corresponding quarter last year;
  • Consolidated cash operating cost1 per gold equivalent ounce produced decreased 15% to $1,039 per ounce in Q1 2024 compared $1,222 in Q1 2023;
  • All-in sustaining cost decreased to $1,430 per gold equivalent ounce produced in Q1 2024, compared to $1,612 in Q1 2023; and
  • Consolidated net income was $5.9 million ($0.06 or C$0.09 per share).

Frazer Bourchier, President, and CEO commented:

“Our strong production results, coupled with a stable cost structure, led to strong cash generation in the quarter. As compared with the previous quarter, Mandalay significantly bolstered its cash balance by over $20 million, resulting in $47.1 million in cash with a net cash position of $19.4 million in Q1 2024.

“At Björkdal, the site achieved its highest quarterly revenue yet, nearing $25 million. This was primarily driven by increased tonnage processed and a 9% increase in average gold head grade in Q1 2024, as

  • Gold equivalent production, adjusted EBITDA, free cash flow, net cash, cash operating costs and all-in sustaining costs are non-GAAP financial performance measures with no standard definition under IFRS. Refer to “Non-GAAP Financial Performance Measures” at the end of this press release for further information.

Mandalay Resources Corporation

Mandalay Resources Corporation

compared to the same period last year. Meanwhile, at Costerfield, the site recorded its second consecutive quarter-over-quarter revenue increase, reaching $30.6 million.”

Hashim Ahmed, CFO commented:

“On a consolidated basis, the Company generated $16.1 million in free cash flow during Q1 2024, equating to approximately $636 per ounce of gold equivalent sold. This was supported by a twofold increase in cash flow from operating activities during the same period, amounting to $29.5 million by the end of Q1 2024.

“Our consolidated cash and all-in sustaining costs per ounce of gold equivalent produced during Q1 2024 were $1,039 and $1,430, respectively, marking a decrease compared to the corresponding quarter last year, primarily due to increased gold equivalent production and a stable cost base.

“Mandalay remains committed to a disciplined approach towards capital expenditure, prioritizing projects and initiatives that offer significant returns that align with our long-term growth objectives. In line with this commitment, exploration expenditure is anticipated to remain on course, with an expected full-year spending of $12 – $15 million across both operational sites. Additionally, we have successfully renegotiated an extension to our Revolving Credit Facility with Scotiabank, now until 2027, bolstering our financial flexibility to further support these objectives.

Mr. Bourchier continued: “The Company looks forward to building upon its established track record of success by maintaining operational controls and disciplined capital allocation at both mines. This approach will solidify the Company’s position for sustained cash flow generation and value creation for its stakeholders. A stronger balance sheet also enables the Company to continue to look for M&A opportunities in the sector.”

First Quarter 2024 Financial Summary

The following table summarizes the Company’s consolidated financial results for the three months ended

March 31, 2024, December 31, 2023, and March 31, 2023:

($ thousands, except where indicated) Q1 2024 Q1 2023
Revenue 55,511 42,179
Cost of sales 27,031 26,606
Adjusted EBITDA (1) 26,735 12,945
Adjusted net income (1) 518
Consolidated net income 5,888 554
Capital expenditure 13,145 8,776
Total assets 300,354 279,413
Total liabilities 106,049 94,907
Adjusted net income per share (1) 0.13 0.01
Consolidated net income per share 0.06 0.01
  1. Adjusted EBITDA, adjusted net income and adjusted net income per share are non-GAAP financial performance measures with no standard definition under IFRS. Refer to “Non-GAAP Financial Performance Measures” at the end of this press release for further information.

In Q1 2024, Mandalay generated consolidated revenue of $55.5 million, 32% higher than the first quarter of 2023. The increase in revenue was due to an increase in gold production contributing to higher gold

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