TORONTO, October 14, 2014 /PRNewswire/ --
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today its production and sales results for the third quarter, 2014.
Brad Mills, Chief Executive Officer of Mandalay, commented: "Mandalay's production in the third quarter of 2014 reached new all-time quarterly records with respect to total gold (18,990 ounces), antimony (1,000 tonnes), and total gold equivalent (39,021 ounces). This excellent performance was due to a record production quarter at Costerfield with the successful transition to stoping from the new Cuffley lode; a strong quarter at Cerro Bayo due to increased throughput and high ore grades; and initial production from the Björkdal mine post-closing of the Elgin Mining acquisition on September 10, 2014."
Mr. Mills continued, "Mandalay sales in the third quarter did not keep pace with the record production as a result of delayed loading of concentrates on ships from Cerro Bayo due to inclement weather at the port. Otherwise, we realized record gold sales and strong antimony sales from Costerfield and our first gold sales from Björkdal. We expect the delayed shipments from Cerro Bayo to be caught up by the end of the year."
Mr. Mills concluded with remarks on revised Mandalay guidance: "Total guidance for full-year 2014 has risen slightly to 141,000-156,000 ounces gold equivalent. Within this revision, the guidance for gold and silver production from Cerro Bayo is unchanged. From Costerfield, the guidance for antimony has been revised upward from the previous 3,000-3,300 tonnes to 3,500-3,800 tonnes, whereas the guidance for gold has been revised downward from the previous 37,000-43,000 ounces to 32,000-37,000. These changes are due to differences between the ore grades estimated and actually encountered in early Cuffley lode mining; their impacts on total gold equivalent production from Costerfield largely offset each other. Finally, from Björkdal, while the fourth quarter guidance of 8,000-10,000 ounces is unchanged from the guidance issued upon the close of the Elgin transaction, Björkdal produced 3,091 ounces in the third quarter post-close, which has been added to the full-year guidance."
Saleable production for the three months ended September 30, 2014:
- The Company produced a record total of 18,990 ounces ("oz") gold ("Au"), a record 1,000 tonnes ("t") antimony ("Sb"), and 823,379 oz silver ("Ag"), representing a record total of 39,021 oz of gold equivalent ("Au Eq.") production.
- Production at Costerfield (Australia) was a record 9,454 oz Au and a record 1,000 t Sb representing a record total of 16,792 oz Au Eq. The production increase was due mainly to higher tonnage mined and processed as transition to mining in the newly developed Cuffley lode occurred.
- Production at Cerro Bayo (Chile) was 6,445 oz Au and 823,379 oz Ag, higher than the year-ago-quarter, due to favourable grades and higher throughput.
- Production at Björkdal (Sweden) was 3,091 oz Au. Björkdal was acquired on September 10, 2014; accordingly, this production relates only to the 20-day period from September 10 to 30, 2014.
Saleable production for the nine months ended September 30, 2014:
- The Company's production totaled 46,264 oz Au, 2,713 t Sb, and 2,308,330 oz Ag, representing a total of 102,209 oz of Au Eq.
- Production at Costerfield was 24,625 oz Au and 2,713 t Sb.
- Production at Cerro Bayo was 18,548 oz Au and 2,308,330 oz Ag.
Table 1 - Third Quarter and Nine Month Saleable Production for 2014 and 2013
Three months Three months Nine months Nine months
Metal Source to to ended ended
30 September 30 September 30 September 30 September
2014 2013 2014 2013
Gold (oz) Costerfield 9,454 8,831 24,625 21,913
Cerro Bayo 6,445 5,611 18,548 16,210
Björkdal 3,091 - 3,091 -
Total 18,990 14,442 46,264 38,123
Antimony (t) Costerfield 1,000 966 2,713 2,470
Silver (oz) Cerro Bayo 823,379 733,659 2,308,330 2,266,995
Average quarterly prices:
Gold US$/oz 1,281 1,328
Antimony US$/tonne 9,405 9,928
Silver US$/oz 19.76 21.33
Au Eq. (oz)[1] Costerfield 16,792 16,053 44,811 39,768
Cerro Bayo 19,138 17,399 54,307 54,370
Björkdal 3,091 - 3,091 -
Total 39,021 33,452 102,209 94,138
[1]Quarterly Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market prices of the commodities in the period, adding the three amountstoget a "total contained value based on market price", and then dividing thattotal contained value by the average market price of Au in the period. Average Au price in the period is calculated as the average of thedaily LME PM fixes in the period, with price on weekend days and holidays taken of the last business day; average Sb price in the period is calculated as the average of the daily average of the high and low Rotterdam warehouse prices for all days in the period, with price on weekend days and holidays taken from the last business day; average Ag price in the period is calculated as the average of the daily London Broker's silver spot price for all days in the period, with price on weekend days and holidays taken from the last business day. The source for all prices ishttp://www.metalbulletin.com.
Sales for the three months ended September 30, 2014:
- The Company sold 16,106 oz Au (a record), 852 t Sb, and 467,606 oz Ag, representing a total of 29,572 oz Au Eq.
- Costerfield sold 8,891 oz Au (a record) and 852 t Sb.
- Cerro Bayo sold 3,921 oz Au and 467,606 oz Ag.
- Björkdal sold 3,294 oz Au in the period from September 10 through the end of the quarter.
Sales for the nine month ended September 30, 2014:
- The Company sold 42,913 oz Au, 2,355 t Sb, and 2,080,435 oz Ag, representing a total of 92,669 oz Au Eq.
- Costerfield sold 23,235 oz Au and 2,355 t Sb.
- Cerro Bayo sold 16,384 oz Au and 2,080,435 oz Ag.
- Björkdal sold 3,294 oz Au.
Table 2 - Third Quarter and Nine Month Sales for 2014 and 2013
Three months Three months Nine months Nine months
Metal Source to to ended ended
30 September 30 September 30 September 30 September
2014 2013 2014 2013
Gold (oz) Costerfield 8,891 7,532 23,235 20,263
Cerro Bayo 3,921 7,090 16,384 16,654
Björkdal 3,294 - 3,294 -
Total 16,106 14,622 42,913 36,917
Antimony (t) Costerfield 852 777 2,355 2,295
Silver (oz) Cerro Bayo 467,606 973,107 2,080,435 2,379,766
Average quarterly prices:
Gold US$/oz 1,281 1,328
Antimony US$/tonne 9,405 9,928
Silver US$/oz 19.76 21.33
Au Eq. (oz)[2] Costerfield 15,148 13,344 40,752 36,818
Cerro Bayo 11,130 22,727 48,623 56,629
Björkdal 3,294 - 3,294 -
Total 29,572 36,071 92,669 93,447
[2]Quarterly Au Eq. oz sold is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market prices of the commodities in the period, adding the three amountstoget a "total contained value based on market price", and then dividing thattotal contained value by the average market price of Au for the period. The source for all prices ishttp://www.metalbulletin.comwith price on weekend days and holidays taken of the last business day.
Revision of 2014 production guidance
Mandalay is revising its 2014 full-year production guidance upward from the previous 138,000-148,000 saleable oz Au Eq. guidance issued with completion of the Elgin transaction on September 10. This includes offsetting revisions upward and downward, respectively, of Sb and Au production from Costerfield, and an additional three thousand ounces from Björkdal that was produced post-closing of the Elgin transaction on September 10, 2014.
Table 3 - Revised full-year 2014 production guidance
Total Cerro Bayo Costerfield Björkdal
Saleable
silver production Moz 3.0-3.2 3.0-3.2
Saleable
gold production oz 66,000-77,000 23,000-27,000 32,000-37,000 11,000-13,000
Saleable
antimony production t 3,500-3,800 3,500-3,800
Saleable
oz Au Eq. production oz Au Eq. 141,000-156,000
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia, Sweden and producing and exploration projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia, the Americas and Europe to generate near-term cash flow and shareholder value.
Forward-Looking Statements:
This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's production of gold, silver and antimony for the 2014 fiscal year. Readers are cautioned nottoplace undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intendedtorepresent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading "Risk Factors" in Mandalay's annual information form dated March 28, 2014, a copy of which is available under Mandalay's profile athttp://www.sedar.com.In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgradedtoproven or probable reserves. Although Mandalay has attemptedtoidentify important factors that could cause actual actions, events or resultstodiffer materially from those described in forward-looking statements, there may be other factors that cause actions, events or results nottobe as anticipated, estimated or intended. There can be no assurance that forward-looking statements will provetobe accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Bradford Mills, Chief Executive Officer; Greg DiTomaso, Investor Relations, Contact: +1-647-260-1566
