Mandalay Resources (MND) investor relations material

Executive summary

• Revenue rose 41% year-over-year to $78.1 million in Q1 2025, driven by higher realized metal prices and disciplined execution.

• Net income increased 152% to $14.8 million, with adjusted EBITDA up 65% to $44.1 million compared to Q1 2024.

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

• Q1 2025 featured disciplined execution, prudent capital allocation, and continued exploration investment, highlighted by a proposed merger of equals with Alkane Resources.

• The merger with Alkane will create a diversified, cash-flowing mining company with three operations and a pro forma production base of approximately 180,000 ounces by 2026.

Financial highlights

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

• Free cash flow reached $11.2 million, with $27.9 million in cash flow from operating activities.

• Adjusted EBITDA margin expanded to 56% in Q1 2025.

• Capital expenditure increased to $16.7 million, reflecting front-loaded investments in mine development, equipment replacement, and completion of a new tailings facility.

• Ended Q1 with $88.3 million in cash, no debt, and $35 million in undrawn credit facility.

Outlook and guidance

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

• Q2 expected to see stronger production but higher capital and tax payments; lower capital spending anticipated in the second half of the year.

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

• Exploration, especially at TrueBlue, remains a key focus with multiple drill rigs active and further resource growth targeted.

• The merger is expected to close by July, subject to shareholder approval and regulatory clearances.