Mandalay Resources (MND) Q3 2024 earnings summary

Executive summary

• Achieved strong financial performance in Q3 2024, with revenue rising 35% year-over-year to $55.3 million and significant improvements in net income and free cash flow, supported by favorable metal prices and disciplined cost control.

• Cash position more than doubled since December 2023, ending the quarter at $54.7 million, and all debt was repaid.

• Maintained focus on operational efficiency and strategic growth initiatives despite operational challenges at both Costerfield and Björkdal.

• Q3 was the lowest production quarter of the year due to weather at Björkdal and grade variability at Costerfield, but full-year production guidance of 90,000–100,000 gold equivalent ounces remains unchanged.

Financial highlights

• Q3 2024 revenue rose to $55.3 million, up from $21 million in Q3 2023, mainly due to higher gold and antimony prices.

• Net income increased to $5.4 million from $4.1 million year-over-year.

• Operating cash flow surged to $20.6 million, and free cash flow improved to $12.9 million, compared to $4 million and negative $6 million last year.

• Adjusted EBITDA increased to $27.2 million from $15.4 million year-over-year; adjusted net income was $10.6 million, excluding a $5.2 million loss on financial instruments.

• All-in sustaining costs per ounce sold increased 25% year-over-year to $1,790, driven by higher operating costs and lower production.

Outlook and guidance

• Annual production guidance of 90,000–100,000 gold equivalent ounces reaffirmed, with Q4 production expected to return to first-half run-rate levels.

• CapEx expected to be at the low end of the $41–$49 million range for 2024, with Q4 seeing higher activity due to tailings work at Costerfield.

• Similar CapEx range anticipated for 2025, pending formal guidance in January.

• Focus remains on operational discipline, capital allocation, and both organic and inorganic growth opportunities.

• Emphasis on higher-margin ounces at Björkdal and a shift to higher-grade areas at Costerfield in Q4.