Mandalay Resources (MND) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 22% YoY to $50.6M and adjusted EBITDA increased 15% to $23.1M; full-year revenue was $173.3M and adjusted EBITDA was $60.3M.

• Stronger Q4 results followed operational challenges earlier in 2023, particularly at Costerfield; management cited strategic initiatives and stronger operating and financial focus.

• Full-year net income was $7.9M, while year-end cash was $26.9M and net cash was $3.3M.

Financial highlights

• Q4 revenue was $50.6M vs. $41.4M YoY; adjusted EBITDA was $23.1M vs. $20.1M, and net income was $2.7M vs. $1.0M.

• Q4 adjusted net income was $9.7M vs. $5.2M in Q4 2022; 2023 adjusted net income was $10.6M vs. $27.0M in 2022.

• FY 2023 revenue was $173.3M vs. $191.7M; adjusted EBITDA was $60.3M vs. $91.2M, and net income was $7.9M vs. $23.5M.

• Q4 operating cash flow was $14.9M and free cash flow was $5.5M; FY operating cash flow was $43.3M.

• Q4 realized gold price was $1,965/oz vs. $1,706/oz YoY, and sales increased by 1,379 gold-equivalent ounces.

Outlook and guidance

• 2024 production guidance: 90,000–100,000 gold-equivalent oz consolidated; Björkdal 43,000–47,000 gold oz and Costerfield 47,000–53,000 gold-equivalent oz.

• 2024 consolidated cash cost guidance is $1,050–$1,170/oz and all-in sustaining cost is $1,450–$1,580/oz; capital expenditures are $41M–$49M.

• Costerfield guidance includes 41,000–44,000 gold oz and 1,100–1,500 tonnes of antimony; Björkdal capital expenditures are guided at $20M–$24M.

• Planned 2024 capitalized exploration is $9M–$11M at Costerfield and $3M–$4M at Björkdal; Costerfield tailings-storage capital is $4M–$6M.

• Management aims to sustain Q4 momentum, strengthen the balance sheet, and advance long-term growth while prioritizing safety, environmental responsibility, and community engagement.