Mandalay Resources (MND.T), a Canadian mineral producer with as assets in Australia and Sweden, released its production and sales results from Q3 2022 with a revised full-year 2022 guidance today.
The company announced the aggregate production of 27,287 ounces of gold equivalent (AuEq) as well as the combined sales of 26,551 ounces.
Mandalay noted that cash and all-in sustaining cost guidance remain the same due to cost savings and a stronger American dollar.
There was also a reduction in capital expenditure guidance by $9.0 million USD to $13.0 million, to a consolidated $41 million to $45 million.
Revised 2022 production guidance dropped from 106,000 ounces to 115,000 ounces AuEq, from 118,000 ounces to 130,000 ounces AuEq.
Dominic Duffy, president and CEO of Mandalay, commented, “Despite this lower production, our cost per ounce metrics have stayed comparatively in line with the previously stated guidance and will remain unchanged due to tight cost controls and the strengthening of the U.S. dollar relative to the Australian dollar and Swedish krona, both of which help offset the lower consolidated production rates. We also expect to reduce capital spending by approximately $9- to $13-million due to cost saving measures and delaying purchases of capital items.”
Saleable production for the quarter ended September 30, 2022, for Mandalay totalled 22,817 ounces of gold and 582 tonnes of antimony versus 26,328 ounces of gold, 860 tonnes of antimony and 85,279 ounces of silver in Q3 2021.
Sales for Q3 2022 equaled a total of 22,273 ounces of gold and 557 tonnes of antimony compared to 23,886 ounces of gold, 677 tonnes of antimony and 87,396 ounces of silver in Q3 2021.
In the middle of September, Mandalay announced results from drilling at its Costerfield operation in Victoria, Australia.
Results from the Shepherd infill drilling confirmed an extension of high-grade veining to the north and both extended and upgraded the southern portion. Highlights included 234.7 g/t gold over 4.17 metres and 377.4 g/t gold over 0.54 metres.
Additional veining was located to the east of Youle with high potential for extension including 22.2 g/t gold and 16.0% antimony over 0.24 metres.
With what was learned at Shepherd, Mandalay has invested in further drilling to increase the confidence of high-grade domains as well as sparsely drill extensions.
The Youle East drill program results were not as high grade as the main portions of Youle and Shepherd. However, like the South Shepherd program, it has shown grade further to the south of current workings.
Mandalay reported $47.95 million in cash and cash equivalents as of June 30, 2022, with revenues of $50.12 million for the three months ending June 30, 2022, for net income of $2.7 million for the quarter.
The company currently trades at $1.70 CAD per share for a market cap of $156.20 million.
