Q2 2017 Results TORONTO, Aug. 10, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) today announced revenue of $44.1 million, adjusted EBITDA of $12.1 million and consolidated net loss of $10.1 million, or $0.02 loss per share, for the second quarter of 2017.
The Company’s condensed and consolidated interim financial results for the quarter ended June 30, 2017, 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.
Commenting on second quarter of 2017 results, Dr. Mark Sander, President and CEO of Mandalay, noted, “Mandalay’s financial performance in the second quarter of 2017 was negatively affected by the operating suspension at Cerro Bayo in response to the June 9, 2017, flooding of the Delia NW mine, as previously discussed in the Company’s production and sales report issued for the quarter (see Mandalay July 12, 2017, press release). Suspension of operations caused reduced silver and gold production, and therefore revenue, at higher cost per ounce than planned.
“Operations at Cerro Bayo remain suspended pending completion of the investigation of the cause of the event and the risk assessment of restarting mining in the vicinity of Laguna Verde. In addition, the Chilean regulator, Sernageomin, has issued a decree that it must approve a request to reopen based on the results of the risk assessment. This process is likely to add an additional one to two months to the one to two months months needed to complete the risk assessment, making it unlikely that we will be in a position to restart mine development and production this year. Therefore, we are providing revised guidance for 2017 assuming no Cerro Bayo production or capital spending for the rest of the year while maintaining guidance for Bjrkdal and Costerfield.”
Dr. Sander continued, “Looking at the Company’s operations, Bjrkdal delivered record gold production for the quarter at low cash cost per ounce. The annualized rate of production during the quarter was approximately 64,000 ounces per year. We are pleased that the grade control program continues to function well and that the debottlenecking actions we took in the open pit and underground mines at the end of the first quarter performed exactly as planned. Second quarter results reflected higher than planned mill feed grades as well as higher mining rates and we expect continued good performance from Bjrkdal for the rest of the year.”
Dr. Sander continued, “Costerfield continued to deliver dependable performance in the second quarter of 2017, producing 14,300 gold equivalent ounces at a very sound cash cost of $648 per ounce, and at an all-in cost of $962 per ounce. We expect continued performance at these levels for the balance of the year.”
Dr. Sander concluded, “The Company’s balance sheet remains in a strong position after the re-structure of the exchangeable loan with Gold Exchangeable Limited. We paid off half of the $60 million of the loan and amendended the terms of the remaining $30 million, including an extension of the maturity date to May 2022 (see Mandalay May 24, 2017 press release). When combined with our new $40 million revolving credit facility announced in July, 2017, (see Mandalay July 25, 2017, press release), we have ample funding to maintain our capital investment program in our existing mines, restart Cerro Bayo, and maintain working capital. We also have the ability to act quickly on attractive acquisition opportunities that may arise, which remains a core strategic objective for the Company.”
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