Production Highlights & Record Setting Financial Performance for This Canadian Gold Miner

... we will look at the Company’s record-setting 2021 performance and how they plan to build upon it moving into 2022. [Open in your browser]( [Investor Alert] [Stockhouse.com]( Production Highlights & Record Setting Financial Performance for This Canadian Gold Miner --------------------------------------------------------------- [Visit the company website]( [Facebook]( [Twitter]( Highlights & Record Setting Financial Performance for This Canadian Gold Miner) [LinkedIn]( [Email](mailto:?subject=Production Highlights & Record Setting Financial Performance for This Canadian Gold Miner&body= Jon Brown, Stockhouse In Stockhouse Editorial's first chapter of our multipart look at Mandalay Resources Corp. ([TSX: MND]( [OTCQB: MNDJF]( [Forum]( we highlighted the Canadian-based natural resource company's producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). [SEE COMPANY PROFILE]( In Part 2, we will look at the Company's record-setting 2021 performance and how they plan to build upon it moving into 2022. Q1 2022 saleable production highlights: In [mid-April 2022]( the company reported that it had produced a total of 24,581 ounces of gold and 683 tonnes of antimony representing a total of 29,631 ounces of gold equivalent, versus 23,661 ounces of gold and 832 tonnes of antimony in the first quarter of 2021, representing a total of 28,676 ounces of gold equivalent. - Production at Björkdal was 12,384 ounces of gold in the first quarter of 2022 as compared to 11,855 ounces of gold in Q1 2021 - Production at Costerfield was 12,197 ounces of gold and 683 tonnes of antimony in Q1 2022 versus 11,082 ounces gold and 832 tonnes antimony in Q1 2021 - Consolidated saleable gold equivalent production and sales of 29,631 and 28,280 ounces respectively - 12,384 ounces of saleable gold production at Björkdal, highest quarterly production result since Q2 2019 - 12,134 ounces of gold sold at Björkdal, highest quarterly sales result since Q3 2019 Speaking on this news, the Company's President and CEO, Dominic Duffy called this a solid start to the year that puts the Company on course to achieve its 2022 production guidance. He added that these operational results demonstrate the sustainability and incremental growth at both sites with a consolidated saleable production of 29,631 ounces of gold equivalent in Q1 2022, which is higher as compared to the same period last year. "At Björkdal, the 12,384 saleable gold ounces of production during the first quarter was our highest quarterly production result since Q2 2019. Site production was at planned levels, and we expect it to continue to grow throughout the year as we focus on higher grade production areas in the mine and continue to implement dilution reduction measures. Costerfield achieved another solid quarter, producing 17,247 ounces of saleable gold equivalent, 12% growth compared to Q1 2021, this is mainly due to near-record gold grades of 13.5 g/t during the current quarter. Metal produced in Q1 2022 decreased slightly compared to Q4 2021, as lower than average tonnes were processed due to issues encountered with the commissioning of the new crusher at the processing facility. Only 32,206 tonnes were processed in Q1 2022, against an average of 36,370 tonnes per quarter in 2021. The new crusher is now functioning optimally, and we expect processed tonnes to remain at budgeted rates for the remainder of the year." [INVESTOR UPDATES]( Record-setting financial performance: In its financial results for the Q4 and full-year 2021, the company highlighted consolidated quarterly revenue of $72.9 million, the highest ever quarterly result, as well as adjusted EBITDA1 of $40.6 million, also the highest ever quarterly result; and consolidated net income of $15.3 million ($0.17 or C$0.21 per share). For the full year 2021, Mandalay Resources saw record revenue of $229.4 million, as well as record adjusted EBITDA of $115 million. Further highlights: - Consolidated net income of $54.9 million ($0.60 or C$0.75 per share) - $18.2 million in free cash flow and $62.0 million in net cash flows from operating activities - $30.7 million in cash on hand at the end of December 2021, $47.2 million in cash on hand at the end of the January 2022 In [a news release]( CEO Duffy, commented that Mandalay's strong results in the quarter and for the full-year 2021 provides further evidence of the successful execution of its strategy. "We achieved significant financial milestones in 2021 including a 28% year-over-year growth in revenue for a record $229.4 million by year-end, resulting in over $18 million in free cash flow. The Company is now in an excellent financial position with a strong balance sheet, and I would like to thank all of our employees and contractors for their continued commitment in making Mandalay a leading junior gold producer." He added that the main driver behind this is Costerfield's continued operational strength, making it a lynchpin to Mandalay's success today and going forward given its growing Mineral Reserves and Resources. "Costerfield generated $33 million in quarterly adjusted EBITDA and $17.8 million in net income, bringing the site's year-end totals to $88.9 million and $47.8 million, respectively. While at Björkdal, its continued production improvements over the second half of the year sets the operation up for a much-improved 2022, while also investing in what is proving up to be a very successful exploration program. The site generated $85.3 million, $27.9 million, and $4.9 million in revenue, adjusted EBITDA and net income, respectively, in 2021." In 2021, Mandalay Resources also generated a consolidated $115 million in adjusted EBITDA for a margin of 50% – another company record. The company earned $22 million (C$0.30 per share) in adjusted net income and $15.3 million (C$0.21 per share) in net income during Q4 2021, marking the eighth consecutive quarter of profitability. For the full year, the company generated $49.2 million (C$0.67 per share) in consolidated adjusted net income and $54.9 million (C$0.75 per share) in net income. The company ended 2021 with a cash balance of $30.7 million, a slight increase as compared to the third quarter of 2021, however, this does not consider approximately $15 million in cash normally scheduled to be received in December but was pushed into January 2022 due to the ongoing global logistic challenges. Because of this, Mandalay had a cash balance of $47.2 million by the end of January 2022. Moreover, during the first half of this year, the company expects a minimum C$3 million to be released as part-compensation for worked finalized at Lupin during last year. The company repaid $15.1 million towards its Syndicated Facility last year, leaving $43.9 million owing. Their consolidated cash cost for 2021 was $873 per saleable gold equivalent ounce produced; a 4% increase compared to the $843 for full-year 2020. This increase was mainly associated with the startup costs of the processing facility at Cerro Bayo and the higher operating expenses at Björkdal. CEO Duffy noted that the all-in sustaining cost per saleable gold equivalent ounce produced declined 3% year-over-year to $1,212. "2021 was a statement year for Mandalay, we've now demonstrated 24 months of operational execution and look to carry this momentum throughout 2022 by obtaining higher production numbers and better cash flows, which ultimately should lead to better shareholder returns." Mandalay stock is up 58% year-to-date and 73.8% since this time, last year. Looking ahead: At Costerfield, the focus is on increasing the mine's life and the team is exploring at depth. While the mine has been known historically to have a short life, CEO Duffy boasted that it currently is having its longest run yet under Mandalay's watch, having increased its exploration spend every year for the last three years, with this year substantially higher than in the past. "We anticipate adding additional mine life to this asset. It is extremely high grade. So, any material we add, is profitable for the Company. On its exploration front, we also will be drilling deeper holes as well." The team is searching for Swan lode-type deposits because, similar to Fosterville, Costerfield is very close to Fosterville and exhibits similar type of geology. CEO Duffy pointed out that the main difference being that Fosterville has much wider veins, so where they take advantage of the full grade, Costerfield's are veins actually higher grade, but they're very narrow, only 30 centimeters. At Björkdal, the main focus is a production increase over the next three years. This is expected to be accomplished by increasing the ounce output on an annual basis. The Company is also working to increase the underground gold grades. This also ties in with exploration, following the discoveries in the east (Main, Central and Lake zones), which is a high-grade deposit, historically processing around about 1.3 grams per tonne. This central zone has been intercepting multiple veins over 50 grams per tonne. Once the Company is granted permits for a mining extension later this year, it can set up the mine so and take immediate advantage of the high grades leading into 2023. "We could have very substantial impact on our production on annual basis, but we don't know how significant because we haven't drilled it out enough yet. But it continues to grow. It continues to be a high grade. We hope to change this operation from a high tonnage, low grade mine to a high tonnage, medium grade mine, with no increased in costs as well. It's very exciting. That's why I say Björkdal has a potential to become the more significant cost generator for the company going forward." More generally, after a long trough in the gold mining industry and with the current price of gold riding a solid rally, the high grades of both projects provide a comfort zone for shareholders, Mandalay Resources provides a very attractive development opportunity for investors positioning themselves in this sector. Meet the team: When it comes to what drove him to take this project on, in an interview with Stockhouse Editorial, CEO Duffy pointed to the cost of it was the grade and how underexplored it was as its most attractive features. "It is rare to find such an operation as Costerfield because it had had multiple years of operation in the 1800s restarting in the early 1900s. It had always been extremely high grade, but it had never really been explored with modern technology. To another degree, it was not being mined very well or processed correctly. There was a lot of immediate upside that we saw in Costerfield, but it was more the longer term potential for growing this asset to be something more substantial. It has been operating 12 years continuously now under Mandalay, so it is definitely successful. At Björkdal, I suppose it was the size of the deposit and for how much life you have in front of you with this asset, and how much time really, you have to make continued improvements to this deposit. It has been running for over 30 years and I dare so to be there for another 30 years." Investment summary: Mandalay Resources has grown its cash position substantially over the last two years, from having virtually nothing, just a lot of debt, to paying down those debts down and building up its reserves, and it is on track to grow even more over the coming years. The financials of the company are very stable, and it gives the management team the flexibility to do a number of things to advance its business and grow the company. 2021 was the team's largest exploration spend at Costerfield in Company's history and this year is already substantially higher. As CEO Duffy explained, this isn't just about conserving cash, but being able to put capital back into the operations while generating substantial amounts of incremental cash balance. "Historically Mandalay also was a dividend payer and that was stopped in 2018 when we took out the credit facility, which restricted us from dividends. We will be discussing with the Board the possibility of reinstating dividends once we have paid off the credit facility, which will be early next year.". This operational control points to even greater blue-sky opportunity, making Mandalay Resources Corp. a stock where investors should keep watch. In the meantime, visit [mandalayresources.com]( for full details on the company. [VIEW COMPANY WEBSITE]( FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing. --------------------------------------------------------------- [stockhouse]( Stockhouse Publishing Ltd. 1100 – 609 West Hastings Street | Vancouver | BC | V6B 4W4 | CA [Unsubscribe]( | [Manage Preferences]( [Facebook]( [Twitter]( [LinkedIn]( This email was sent to you by Stockhouse Publishing Ltd. because you consented to receive messages from us. You may manage your subscription preferences at any time. You may contact our email compliance officer at compliance@stockhouse.com The advertiser featured in this Stockhouse Publishing Ltd. Alert has paid a fee in cash not exceeding $5,000 to have their corporate information featured. The information shown is solely the responsibility of the advertiser [Mandalay Resources], not Stockhouse Publishing Ltd, whose only function was as a supplier of media facilities. 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