Mandalay Resources Announces Record Financial Performance in 2024, Generating $69 Million in Free Cash Flow

TORONTO, Feb. 20, 2025 (GLOBE NEWSWIRE) — Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND, OTCQB:MNDJF) announced its financial results for the fourth quarter and year ended December 31, 2024. The Company delivered record revenue and significant cash flow growth, highlighting its commitment to operational excellence and financial discipline.

Fourth Quarter 2024 Highlights:

• Cash Flow: Generated $38.5 million in cash flow from operating activities and $24.6 million free cash flow¹, respectively;
• Revenue Growth: Consolidated revenue increased by 32% compared to Q4 2023, at $66.8 million;
  • Costerfield recorded its second highest quarterly revenue of $44.2 million;
  • Björkdal generated $22.6 million;
• Cost: Consolidated cash operating cost¹ of $1,085 and all-in sustaining cost¹ of $1,595 per ounce of saleable gold equivalent production; and
• Adjusted EBITDA¹: Generated $32.3 million, a 40% increase compared to Q4 2023 of $23.1 million;
• Profitability: Consolidated net income was $20.7 million ($0.22 or C$0.31 per share), compared to $2.7 million ($0.03 or C$0.04 per share) in Q4 2023.

Full-Year 2024 Highlights:

• Strengthened Balance Sheet: Cash balance increased to $76.4 million as of December 31, 2024, from $26.9 million a year earlier;
• Debt-Free Position: Fully repaid its $20 million revolving credit facility, maintaining $35 million in undrawn availability;
• Record Revenue: Achieved highest-ever revenue of $240.7 million, a 39% increase from 2023;
• Cash Flow: Generated $112.7 million in cash flow from operating activities and $69.1 million in free cash flow;
• Delivered on Cost Guidance: Consolidated cash cost¹ of $1,106 and all-in sustaining cost¹ of $1,548 per ounce of saleable gold equivalent production; and
• Profitability: Consolidated net income was $47.8 million ($0.51 or C$0.70 per share), compared to $7.9 million ($0.08 or C$0.11 per share) in 2023.

Frazer Bourchier, President and CEO commented:

“2024 was a milestone year for Mandalay, marked by record financial performance and substantial earnings growth. Our strategic emphasis on higher-margin production, cost efficiency, and operational improvements have delivered outstanding results. With a strong cash position, zero debt, and an ongoing commitment to sustainable cash generation, we enter 2025 well-prepared to capitalize on strategic opportunities and drive long-term value creation.”

Hashim Ahmed, CFO commented:

“Mandalay achieved its highest annual revenue to date, reaching $241 million, and generated a record free cash flow of $69 million from the two operating assets. Our year-end net cash position rose more than tenfold to $76 million compared to year-end 2023, underscoring our disciplined cost management, operational efficiencies, and favorable metal prices – all of which supported the achievement of our 2024 production and cost guidance.

“Looking ahead to 2025, key investments, include the new tailings facility at Costerfield and accelerated underground development at Björkdal, are strengthening our operational foundation for the future. The majority of these expenditures are expected to occur in the first half of the year. Additionally, we remain dedicated to creating further value through near-mine and regional exploration at both sites, with the potential for additional resource allocation to accelerate progress based on success. We are excited to carry this momentum forward and execute our plans in a strong precious metal price environment.”

____________________________

¹ Gold equivalent production, adjusted EBITDA, free cash flow, net cash, cash operating costs and all-in sustaining costs are non-GAAP financial performance measures with no standard definition under IFRS. Refer to “Non-GAAP Financial Performance Measures” at the end of this press release for further information.

Outlook for 2025:

Previously announced, please refer to the December 17, 2024, press release.

• Consolidated production and cost guidance:
  • Annual production of 85,000 – 95,000 gold equivalent ounces;
    • Gold: 76,500 – 85,000 ounces;
    • Antimony: 1,050 – 1,150 tonnes;
  • Cash cost and all-in sustaining cost of $1,200 – $1,350 and $1,795 – $1,975 per gold equivalent ounce;
• Continued investments in sustaining initiatives of $43 – $48 million, highlights of major projects:
  • Costerfield:
    • Tailings facility, adding an additional six years of capacity;
  • Björkdal:
    • Expand underground mine development to improve operational flexibility and reduce reliance on lower-grade stockpiles;
    • Replacement of aging mining fleet to enhance equipment availability and reduce downtime;
  • Exploration at both operations: ensuring long-term production stability.

The Company's audited consolidated financial statements for the year ended December 31, 2024, together with its Management's Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under the Company's profile on www.sedarplus.ca and on the Company's website at www.mandalayresources.com. All currency references in this press release are in U.S. dollars except as otherwise indicated.

Fourth Quarter and Full-Year 2024 Financial Summary

The following table summarizes the Company's consolidated financial results for the three months and years ended December 31, 2024 and 2023:

1. Adjusted EBITDA, adjusted net income and adjusted net income per share are non-GAAP performance measures with no standard definition under IFRS. Refer to “Non-GAAP Performance Measures” at the end of this press release for further information.

In Q4 2024, Mandalay generated consolidated revenue of $66.8 million, a 32% increase compared to $50.6 million in Q4 2023. This was mainly due to higher average realized metal prices: $2,687 per ounce for gold and $35,833 per tonne for antimony in Q4 2024 compared to $1,965 per ounce for gold and $10,987 per tonne for antimony in Q4 2023.

Mandalay generated adjusted EBITDA of $32.3 million in Q4 2024, compared to $23.1 million in Q4 2023. The increase in adjusted EBITDA was mainly due to higher revenue in the current quarter. Adjusted net income was $27.8 million in Q4 2024, excluding a $2.0 million loss on financial instruments, a $4.2 million revision of reclamation liability …

Full story available on Benzinga.com