Mandalay Resources Delivers Strong Second Quarter 2024 Financial Results Leading To $63 Million Cash Balance

Press Release

TORONTO, ON, August 7, 2024 — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to announce strong financial results for the second quarter ended June 30, 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 June 30, 2024, 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.

Second Quarter 2024 Highlights:

• Continued strengthening of balance sheet with cash balance of $62.9 million as at June 30, 2024 and a growing net cash position1 of $35.8 million;
• Generated $24.1 million and $15.6 million in cash flow from operating activities and free cash flow1, respectively;
• Consolidated revenue up by 59% as compared to Q2 2023, at $63.1 million;
• Björkdal recorded its highest ever quarterly revenue of $28.8 million; o Costerfield generated $34.3 million in quarterly revenue;
• Consolidated cash operating cost1 per gold equivalent ounce produced decreased by 12% to $1,022 per ounce in Q2 2024 compared to $1,159 per ounce in Q2 2023;
• All-in sustaining cost1 per gold equivalent ounce produced decreased by 17% to $1,419 per ounce in Q2 2024 compared to $1,704 per ounce in Q2 2023; and
• Consolidated net income was $15.9 million ($0.17 or C$0.23 per share), compared to $0.5 million in Q2 2023.

Subsequent to the quarter end, based on the Company’s strong quarter-end cash position and ongoing cash flow expectations, Mandalay repaid the entire outstanding balance ($20 million) of its Revolving Credit Facility. As a result, Mandalay currently has no indebtedness other than minor equipment leases. The undrawn $35 million Revolving Credit Facility remains in place.

Frazer Bourchier, President, and CEO commented:

“In the second quarter, we again delivered revenue and earnings growth, driven by solid production results and a stable cost profile that met our internal plans. Based on our strong quarter-end cash position of approximately $63 million and anticipated future cash flow generation, we have fully repaid the remaining $20 million balance on our Revolving Credit Facility, leaving us with $35 million in undrawn availability under the facility. We will keep proactively managing our balance sheet to increase our financial flexibility.”

1. 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.

“On a consolidated basis, the Company generated $15.6 million in free cash flow during Q2 2024, equating to approximately $582 per ounce of gold equivalent sold. This was supported by an increase in cash flow from operating activities during the same period, amounting to $24.1 million by the end of Q2 2024. As compared with the previous quarter, Mandalay’s cash balance rose by approximately $16 million with an ending net cash position of $35.8 million in Q2 2024.

“Our consolidated cash and all-in sustaining costs per ounce of gold equivalent produced during Q2 2024 were $1,022 and $1,419, respectively, marking a decrease compared to the corresponding quarter last year, primarily due to increased gold equivalent production.

“Björkdal achieved its highest quarterly revenue, nearing $29 million. This was primarily driven by increased tonnage processed in Q2 2024, as compared to the same period last year. Meanwhile, Costerfield recorded its third consecutive quarter-over-quarter revenue increase reaching $34.3 million.”

Mr. Bourchier concluded: “Mandalay made substantial progress in strengthening its balance sheet during the first half of the year. We are executing well on our operational strategic priorities and remain on track to achieve our annual production guidance, while continuing to take steps to further optimize our operations for better sustained cash flow generation, positioning the Company for long-term growth and increased shareholder value.”

Second Quarter 2024 Financial Summary

The following table summarizes the Company’s consolidated financial results for the three and six months ended June 30, 2024 and 2023:

	Three months ended		Six months ended
($ thousands, except where indicated)		June 30,		June 30,
	2024	2023	2024	2023
Revenue	63,054	39,670	118,565	81,849
Cost of sales	25,162	29,236	52,193	55,842
Adjusted EBITDA (1)	35,862	8,890	62,597	21,835
Adjusted net income (loss) (1)	16,802	(3,229)	28,954	(2,711)
Consolidated net income	15,857	524	21,745	1,078
Capital expenditure	8,791	14,095	21,937	22,872
Total assets	323,272	271,324	323,272	271,324
Total liabilities	109,244	91,001	109,244	91,001
Adjusted net income (loss) per share (1)	0.18	(0.03)	0.31	(0.03)
Consolidated net income per share	0.17	0.01	0.23	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 Q2 2024, Mandalay generated consolidated revenue of $63.1 million, 59% higher than the second quarter of 2023. The increase in revenue was due to an increase in gold production contributing to higher gold equivalent ounces sold of 26,759 ounces in Q2 2024 as compared to 20,229 ounces in Q2 2023 together with higher average realized prices: $2,314 per ounce for gold and $20,320 per tonne for antimony in Q2 2024 compared to $1,949 per ounce and $12,406 per tonne in Q2 2023.

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