Mandalay Resources (MND) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 59% year-over-year to $63.1M, with net income of $15.9M and comprehensive income of $19.3M, supported by higher production and favorable metal prices.

• Cash balance increased to $62.9M at quarter-end, with a net cash position of $35.8M after full repayment of the $20M revolving credit facility in July 2024.

• Operating cash flow for H1 2024 was $53.6M, more than double the prior year, and free cash flow in Q2 reached $16M.

• On track to meet annual production guidance of 90,000–100,000 gold equivalent ounces, with 51,000 ounces produced in H1 2024.

• Strategic focus on organic growth, mine life extension, and disciplined capital allocation to drive long-term shareholder value.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $35.9M, four times higher than Q2 2023; gross margin and income from mining operations improved significantly.

• Gold equivalent production increased 26% year-over-year to 26,372 ounces, with higher realized gold ($2,314/oz) and antimony ($20,320/t) prices.

• Cash operating cost per gold equivalent ounce produced decreased 12% to $1,022; all-in sustaining cost fell 17% to $1,419.

• Net income margin for Q2 2024 was 25.2%, up from 1.3% in Q2 2023; basic EPS was $0.17.

• Cash and cash equivalents increased to $62.9M as of June 30, 2024, from $26.9M at year-end 2023.

Outlook and guidance

• Annual production guidance of 90,000–100,000 gold equivalent ounces reaffirmed, with continued focus on operational optimization and sustained cash flow generation.

• Costerfield gold grades expected to remain stable, with antimony grades slightly declining in H2 2024 and 2025; mine tonnage to remain similar.

• Björkdal production improvements attributed to mill conversion and development of higher-grade areas.

• Gold derivative contracts restructured and extended into 2025, providing price protection for future production.

• No current exposure to new Canadian global minimum tax legislation due to revenue below threshold.