Mandalay Resources Corp's (TSE:MND) first quarter showed a strengthening of the metal miner's finances along with good production from its Swedish mine, Björkdal.
The miner has producing mines at Björkdal and in Costerfield, Australia.
In the three months to end March, Mandalay completed a $54 million financing, meaning it ended the quarter with $37 million in the bank, compared to $8.4 million at the end of 2018.
DEEP DIVE: Mandalay Resources eyeing significant growth at its producing mines after strengthening finances
Among plans for the cash is further exploration at both the Australian and Swedish mines, which has already kicked off, the company said.
For the first quarter, the firm generated revenue of $29.9 million, down from $39.7 million in the same period a year ago, while the net loss was $1.3 million, similar to a loss of $1.2 million in the year-ago quarter, but significantly reduced from the loss of $31.2 million posted in the final quarter of 2018.
Mandalay said its realized gold price declined 4% quarter-over-quarter, while the realized price of antimony declined by 14%, meaning revenue in the latest three months was $9.8 million lower than in the first quarter of 2018.
But Dominic Duffy, CEO of Mandalay, noted: "On a revenue, adjusted EBITDA, and adjusted net income basis, Mandalay’s first quarter 2019 results are stronger than the three quarters that preceded it. Mandalay’s financial results from the first quarter of 2019 show that the company is steadily turning around its financial position. This improved performance comes as a result of Mandalay working through, and overcoming, several operational challenges that it faced in 2018.”
New underground fleet
Duffy added that the improved finances were largely attributable to Björkdal’s increased production, with the mine benefitting from a full quarter of having the new underground haulage fleet on site and produced 14,385 ounces of gold.
"Gold production from Björkdal in the first quarter of 2019 exceeded our expectations and was the highest gold production quarter since its record fourth quarter of 2017. We expect the higher production rates at Björkdal to remain stable for the remainder of 2019," he said.
In the quarter, Mandalay produced 21,940 gold equivalent ounces from its operations compared to 19,173 ounces in the preceding quarter and 23,172 ounces in the first quarter of 2018.
The all in costs per ounce were $1,412, compared to $1,709 in the December quarter, and $1,463 per ounce in the first quarter of 2018.
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