Welcome!

News Feed Item

Mandalay Resources Announces Financial Results and Quarterly Dividend for the Second Quarter of 2014

TORONTO, Aug. 6, 2014 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today revenue of $44.9 million, adjusted EBITDA of $16.4 million and net income of $4.9 million or $0.01 per share for the second quarter of 2014. The Company's unaudited consolidated financial results for the three and six months ended June 30, 2014, 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.

In accordance with the Company's dividend policy, Mandalay's Board of Directors declared a quarterly dividend of $2,693,278 (6% of the trailing quarter's gross revenue), or $0.0079 per share (CDN$ 0.0086 per share), payable on August 28, 2014 to shareholders of record as of August 18, 2014.

Brad Mills, Chief Executive Officer of Mandalay, commented, "Cerro Bayo and Costerfield delivered steady operational and financial performance in the second quarter. This result is especially pleasing given the various transition issues the business faced in the quarter as it ramped up production at Cerro Bayo to 1,400 tpd from 1,200 tpd and transitioned mining from the W-lode to the Cuffley lode at Costerfield. Cerro Bayo achieved its new design rate at the end of June and we started delivering the first stoping ore tonnes from Cuffley in August.

Unit costs for both mines were within the expected range for the period and half year. Cerro Bayo cash costs were notable at under $6/ounce of silver produced net of gold credits. Costerfield unit costs were impacted a bit negatively during the quarter due to variety of transition issues related to the Cuffley mine startup and are expected to improve significantly in the second half of the year.  With both of the growth projects nearing completion, we expect to see volumes improve in the second half and costs decrease further.

During the quarter, the Company also secured $60 million in 5.875% five year debt to ensure the funding of the Challacollo development project and announced the acquisition of Elgin Mining Inc.  With a quarter-end cash balance of $69 million and a working capital balance of $93 million, the Company is in an excellent financial position to deliver the growth of both the Challacollo project and Björkdal mine in the coming years."

Second Quarter 2014 Financial Highlights

The following table summarizes the Company's financial results for the second quarter of 2014 and 2013:

  Three months
ended
June 30, 2014
Three months
ended
June 30, 2013
Six months
ended
June 30, 2014
Six months
ended
June 30, 2013
  $ $ $ $
Revenue 44,887,966 35,903,497 82,979,810 77,528,185
Adjusted EBITDA 16,403,983 10,989,749 32,430,649 30,827,831
Income from mine operations 10,549,487 5,043,404 20,981,620 20,828,470
Net Income/ (Loss) 4,935,833 3,104,793 10,679,906 14,008,907
Total assets 273,952,425 184,849,080 273,952,425 184,849,080
Total liabilities 98,737,432 39,810,925 98,737,432 39,810,925
Earnings/ (Loss) per share 0.01 0.01 0.03 0.04

The increases in revenue, adjusted EBITDA and profit during the second quarter of 2014 over the same quarter in 2013 were principally due to the higher volumes sold and increases in metal prices.

Net income is inclusive of a non-cash, non-operating loss of $148,040 related to mark-to-market adjustments of financing warrants and an AUD/USD currency option and deferred tax income of $10,967. Excluding these items, income after tax from underlying operations for the second quarter was $5,072,906 ($0.01 per share). By comparison, in the second quarter of 2013 the Company's net income of $3,104,793 ($0.01 per share) was inclusive of non-cash, non-operating gain of $422,359 related to mark-to-market adjustments of financing warrants and deferred tax recovery of $1,757,773. Excluding these items, income after tax from underlying operations in the second quarter of 2013 was $924,661 ($0.00 per share).

On May 26, 2014, Mandalay paid a quarterly dividend in the aggregate amount of $2,334,883 (CDN$ 0.0074 per share). In May, 2014 Mandalay completed a $60 million five year 5.875% debt financing (see press release of May 14, 2014).  Cash and cash equivalents of the Company were $69 million as of June 30, 2014 compared to $23.9 million as of June 30, 2013.

Second Quarter 2014 Operational Highlights

Costerfield gold-antimony mine, Victoria, Australia

In the second quarter of 2014, Costerfield produced 7,256 ounces ("oz") of saleable gold ("Au") and 855 tonnes ("t") of saleable antimony ("Sb"), versus 6,879 oz Au and 738 t Sb in the second quarter of 2013.

Cash cost per Au Eq. oz produced in the second quarter of 2014 was $989 versus $917 in the second quarter of 2013. The higher cash cost per oz in the second quarter of 2014 was mainly due to higher operating costs incurred in the transition of mining from the W-lode to the Cuffley lode and higher environmental and community related issues associated with addressing potential antimony crusher dust dispersion. The site all-in cost per Au eq. oz produced in the second quarter of 2014 was $1,278, versus $1,178 in the second quarter of 2013. The Company expects this cost to decline materially as it ramps up mining in the Cuffley lode.

Cerro Bayo silver-gold mine, Patagonia, Chile

During the second quarter of 2014, the Cerro Bayo mine produced 741,382 oz of saleable silver ("Ag") and a record 6,823 oz of saleable Au, versus 921,895 oz Ag and 6,167 oz Au in the second quarter of 2013. The variation in production quantities is attributable to the higher tonnes mined and processed in the current quarter as the Company increased production toward 1,400 tpd. Silver grades were lower than the comparable quarter and gold grades mined were higher.

Cash cost per oz Ag produced net of Au by-product was $5.83 during the second quarter of 2014, lower than the $6.12 in the second quarter of 2013, principally due to higher Au credits achieved arising from a higher Au price and higher Au production. Site all-in costs were $12.08/oz versus $11.54/oz in the previous year.

Conference Call

Mandalay Management will be hosting a conference call for investors and analysts on August 7, 2014 at 8:00 am (Toronto time). Analysts and interested investors are invited to participate using the following dial-in numbers:

Participant Number (International/Local): (416) 764-8688
Participant Number (Toll free North America): (888) 390-0546
Conference ID: 46269373

A replay of the conference call will be available until 23:59 pm (Toronto time), August 21, 2014 and can be accessed using the following dial-in numbers:

Encore Toll Free Dial-in Number: 1-888-390-0541
Local Dial-in-Number: (416) 764-8677
Encore ID: 269373

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and producing and development projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including guidance as to anticipated gold, silver, and antimony production in future year or years. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading "Risk Factors" in Mandalay's annual information form dated March 28, 2014, a copy of which is available under Mandalay's profile at www.sedar.com. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Non-IFRS Measures

This news release may contain references to adjusted EBITDA, cash cost per ounce of gold equivalent produced, cash cost per saleable ounce of silver produced net of gold credits, site all-in cost per ounce of gold equivalent produced and site all-in cost per saleable ounce of silver produced net of gold credits, which are all non-IFRS measures and do not have standardized meanings under IFRS. Therefore, these measures may not be comparable to similar measures presented by other issuers. Management uses adjusted EBITDA as measures of operating performance to assist in comparing the Company's ability to generate liquidity through operating cash flow to fund future working capital needs and fund future capital expenditures and to assist in financial performance from period to period on a consistent basis. The Company believes that these measures are used by and are useful to investors and other users of the Company's financial statements in evaluating the Company's operating and cash performance because they allow for analysis of our financial results without regard to special, non-cash and other non-core items, which can vary substantially from company to company and over different periods.

The Company defines adjusted EBITDA as earnings before interest, taxes, non-cash charges and finance costs. For a detailed reconciliation of net income to adjusted EBITDA, please refer to page 11 of management's discussion and analysis of the Company's financial statements for the second quarter of 2014.

Equivalent gold ounces produced is calculated by adding to gold ounces produced, the antimony tonnes produced times the average antimony price in the period divided by the average gold price in the period.  The total cash operating cost associated with the production of these equivalent ounces produced in the period is then divided by the equivalent gold ounces produced to yield the cash cost per equivalent ounce produced. The cash cost excludes royalty expenses. Values for 2013 have been re‐calculated accordingly.  Site all-in costs include total cash operating costs, royalty expense, depletion, depreciation, accretion and write-off of exploration and evaluation. The site all-in cost is then divided by the equivalent gold ounces produced to yield the site all-in cost per equivalent ounce produced.

The cash cost per silver ounce produced net of gold byproduct credit is calculated by deducting the gold credit (which equals ounces gold produced times the realized gold price in the period) from the cash operating costs in the period and dividing the resultant number by the silver ounces produced in the period. The cash cost excludes royalty expenses. The site all-in cost per silver ounce produced net of gold byproduct credit is calculated by adding royalty expenses, depletion, depreciation, accretion and write-off of exploration and evaluation to the cash cost net of gold byproduct credit dividing the resultant number by the silver ounces produced in the period.

SOURCE Mandalay Resources Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
"Cloud computing is certainly changing how people consume storage, how they use it, and what they use it for. It's also making people rethink how they architect their environment," stated Brad Winett, Senior Technologist for DDN Storage, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with bu...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
This is going to be a live demo on a production ready CICD pipeline which automate the deployment of application onto AWS ECS and Fargate. The same pipeline will automate deployment into various environment such as Test, UAT, and Prod. The pipeline will go through various stages such as source, build, test, approval, UAT stage, Prod stage. The demo will utilize only AWS services including AWS CodeCommit, Codebuild, code pipeline, Elastic container service (ECS), ECR, and Fargate.
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The now mainstream platform changes stemming from the first Internet boom brought many changes but didn’t really change the basic relationship between servers and the applications running on them. In fact, that was sort of the point. In his session at 18th Cloud Expo, Gordon Haff, senior cloud strategy marketing and evangelism manager at Red Hat, will discuss how today’s workloads require a new model and a new platform for development and execution. The platform must handle a wide range of rec...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of ...