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TORONTO, Feb. 24, 2022 (GLOBE NEWSWIRE) — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX:MNDOTCQB:MNDJF) is pleased to announce its financial results for the quarter and year ended December 31, 2021.
The Company’s audited consolidated financial results for the year ended December 31, 2021, together with its Management’s Discussion and Analysis (“MD&A”) for the corresponding period, can be accessed under the Company’s profile on www.sedar.com and on the Company’s website at www.mandalayresources.com. All currency references in this press release are in US dollars except as otherwise indicated.
Fourth Quarter 2021 Highlights:
- Consolidated quarterly revenue of $72.9 million, highest ever quarterly result;
- Adjusted EBITDA1 of $40.6 million, highest ever quarterly result; and
- Consolidated net income of $15.3 million ($0.17 or C$0.21 per share).
Full-Year 2021 Highlights:
- Record revenue of $229.4 million;
- Record adjusted EBITDA1 of $115.0 million;
- Consolidated net income of $54.9 million ($0.60 or C$0.75 per share);
- $18.2 million in free cash flow1 and $62.0 million in net cash flows from operating activities; and
- $30.7 million in cash on hand at the end of December 2021, $47.2 million in cash on hand at the end of the January 2022.
Dominic Duffy, President and CEO of Mandalay, commented:
“Mandalay’s strong results this quarter and for the full-year 2021 further provides evidence of the successful execution of our strategy. We achieved significant financial milestones in 2021 including a 28% year-over-year growth in revenue for a record $229.4 million by year -end, resulting in over $18 million in free cash flow. The Company is now in an excellent financial position with a strong balance sheet, and I would like to thank all of our employees and contractors for their continued commitment in making Mandalay a leading junior gold producer.
“The main driver behind this is Costerfield’s continued operational strength, making it a lynchpin to Mandalay’s success today and going forward given its growing Mineral Reserves and Resources as indicated in our February 16, 2022, press release. Costerfield generated $33.0 million in quarterly adjusted EBITDA1 and $17.8 million in net income, bringing the site’s year-end totals to $88.9 million and $47.8 million, respectively. While at Björkdal, its continued production improvements over the second half of the year sets the operation up for a much-improved 2022, while also investing in what is proving up to be a very successful exploration program. The site generated $85.3 million, $27.9 million and $4.9 million in revenue, adjusted EBITDA1 and net income, respectively, in 2021.
“In 2021, the Company also generated a consolidated $115.0 million in adjusted EBITDA1 for a margin of 50% – another Company record. We earned $22.0 million (C$0.30 per share) in adjusted net income and $15.3 million (C$0.21 per share) in net income during the fourth quarter, marking our eighth consecutive quarter of profitability. For the full-year, the Company generated $49.2 million (C$0.67 per share) in consolidated adjusted net income and $54.9 million (C$0.75 per share) in net income.
“Mandalay ended 2021 with a cash balance of $30.7 million, a slight increase as compared to the third quarter of 2021, however, this does not consider approximately $15 million in cash normally scheduled to be received in December but was pushed into January 2022 due to the ongoing global logistic challenges. As a result, at the end of January 2022, Mandalay had a cash balance of $47.2 million. Moreover, during the first half of 2022, Mandalay anticipates the release of a minimum of C$3.0 million as part-compensation for worked finalized at Lupin during 2021. During 2021, the Company repaid $15.1 million towards its Syndicated Facility, leaving $43.9 million owing.
“Our consolidated cash cost for 2021 was $873 per saleable gold equivalent ounce produced; a 4% increase compared to the $843 for full-year 2020. This increase was mainly associated with the startup costs of the processing facility at Cerro Bayo and the higher operating expenses at Björkdal. While our all-in sustaining cost per saleable gold equivalent ounce produced declined 3% year-over-year to $1,212.
“2021 was a statement year for Mandalay, we’ve now demonstrated 24 months of operational execution and look to carry this momentum throughout 2022 by obtaining higher production numbers and better cash flows, which ultimately should lead to better shareholder returns.”
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1 Adjusted EBITDA and free cash flow are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Refer to “Non-IFRS Measures” at the end of this press release for further information.
Fourth Quarter and Full-Year 2021 Financial Summary
The following table summarizes the Company’s financial results for the three months and year ended December 31, 2021, and 2020:
| three months ended December 31, 2021 |
three months ended December 31, 2020 |
Year ended December 31, 2021 |
Year ended December 31, 2020 |
|
| $’000 | $’000 | $’000 | $’000 | |
| Revenue | 72,904 | 45,320 | 229,396 | 178,974 |
| Cost of sales | 30,609 | 18,798 | 108,853 | 78,782 |
| Adjusted EBITDA (1) | 40,648 | 25,346 | 114,960 | 94,247 |
| Income from mine ops before depreciation, depletion | 42,295 | 26,522 | 120,543 | 100,192 |
| Adjusted net income (1) | 21,992 | 12,065 | 49,203 | 34,704 |
| Consolidated net income | 15,334 | 14,722 | 54,879 | 9,309 |
| Capital expenditure | 12,250 | 14,194 | 50,303 | 46,878 |
| Total assets | 317,843 | 301,284 | 317,843 | 301,284 |
| Total liabilities | 141,156 | 165,505 | 141,156 | 165,505 |
| Adjusted net income per share (1) | 0.24 | 0.13 | 0.54 | 0.38 |
| Consolidated net income per share | 0.17 | 0.16 | 0.60 | 0.10 |
- Adjusted EBITDA, adjusted net income and adjusted net income per share are non-IFRS measures, defined at the end of this press release “Non-IFRS Measures”.
In the fourth quarter of 2021, Mandalay generated consolidated revenue of $72.9 million, 61% higher than in the fourth quarter of 2020. This increase is attributable to Mandalay selling 14,162 more gold equivalent ounces combined in the fourth quarter of 2021 compared to the fourth quarter of 2020. The Company’s realized gold price …
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