Mandalay Resources (MND) investor relations material

Executive summary

• Q1 2025 revenue rose 41% year-over-year to $78.1 million, driven by higher gold and antimony prices and disciplined execution at Costerfield and Björkdal.

• Net income increased 152% to $14.8 million, with adjusted EBITDA up 65% to $44.1 million and basic EPS rising to $0.16.

• Cash balance grew to $88.3 million with no debt at quarter-end, reflecting strong cash flow and financial discipline.

• Announced a proposed merger of equals with Alkane Resources, aiming for enhanced scale, liquidity, and market re-rating, with a share exchange ratio of 7.875 Alkane shares per Mandalay share.

• Comprehensive income reached $27.3 million, reversing a prior year loss of $3.0 million.

Financial highlights

• Income from mining operations more than doubled to $37.4 million, with consolidated revenue at $78.1 million and net income at $14.8 million.

• Free cash flow was $11.2 million, with capital expenditures totaling $16.7 million and operating cash flow at $27.9 million.

• Cash and cash equivalents increased to $88.3 million, with a $35 million undrawn credit facility and no debt.

• Adjusted net income was $20.0 million, excluding a $5.0 million loss on financial instruments and a $0.2 million reclamation liability revision.

• Total assets grew to $372.7 million, with liabilities at $115.9 million.

Outlook and guidance

• Full-year 2025 guidance maintained, with expectations for stronger production and reduced capital expenditure in H2 2025.

• Q2 free cash flow expected to be lower due to increased capital investment and tax payments.

• Strategic investments in infill drilling and development are expected to underpin long-term profitability and production stability.

• Lower capital spending expected in the second half of the year.

• Merger with Alkane Resources expected to close in July, pending shareholder and regulatory approvals.