In This Article:
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Revenue: Highest annual revenue to date at $241 million.
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Free Cash Flow: Record free cash flow of $69 million.
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Net Cash Position: Increased to $76 million from negative $6 million in 2023.
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Operating Costs: Totaled $110 million, a 4% increase.
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Adjusted EBITDA: $122 million, doubling from $60 million.
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Net Income: $48 million, up from $8 million in 2023.
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Cash Operating Cost per Ounce: $1,106 per ounce of gold equivalent.
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All-in Sustaining Costs: Increased by 3% to $1,548 per ounce.
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Gold Production: Costerfield produced over 12,000 pure gold ounces in Q4; annual production of 43,000 ounces.
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Antimony Production: 1,300 tonnes, nearly 55,000 gold equivalent ounces.
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Bjorkdal Gold Production: Q4 production of 9,700 gold ounces; annual total of just over 42,000 gold ounces.
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Share Price Increase: More than doubled during 2024, up 114%.
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Antimony Spot Price: Increased to around $40,000 per tonne by end of 2024.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mandalay Resources Corp (MNDJF) achieved a record free cash flow of $69 million in 2024, a significant increase from $300,000 in 2023.
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The company eliminated all debt and now has a fully undrawn $35 million revolver facility, providing available liquidity of over $100 million.
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Production increased by 8% year-on-year, reaching 97,000 gold equivalent ounces, which was at the upper end of their guidance.
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The share price more than doubled in 2024, increasing by 114%, and is up over 150% at the time of the call.
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Mandalay Resources Corp (MNDJF) reported its highest annual revenue to date at $241 million, with adjusted EBITDA doubling to $122 million from $60 million.
Negative Points
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Operating costs increased by 4% to $110 million, primarily due to processing costs at Costerfield and increased throughput tonnage at Bjorkdal.
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All-in sustaining costs per ounce of gold equivalent produced increased by 3% to $1,548 per ounce in 2024.
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The mine life at Costerfield remains at four years, which is considered normal but may not meet expectations for growth despite increased exploration spending.
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The antimony market is volatile, with prices increasing significantly but also facing global import-export restrictions that pressure refiner margins.
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Despite exciting drilling results at Bjorkdal, production has remained steady at 40,000 to 45,000 ounces per year, with no significant increase in output.
Q & A Highlights
Q: Can you discuss the current mine life at Costerfield and potential areas for growth? A: Frazer Bourchier, President and CEO, explained that while the current mine life at Costerfield is considered normal, the focus has been on resource growth, particularly at True Blue and Cuffley Deeps. These areas are expected to contribute to reserve growth in the coming years, with True Blue potentially becoming a significant contributor in three years.