Metals miner Mandalay Resources Corp (TSE:MND) (OTCMKTS:MNDJF) said it met its revised production guidance across the group for the year to end December, and is eying further output growth to come.
Posting figures for the fourth quarter and full year, the miner said it expected output to lift from its Swedish (Björkdal) and Australia (Costerfield) operations.
For the full year 2020, it expects to produce between 95,000 and 109,000 ounces of gold equivalent and an average cash cost per ounce of between US$765 and US$915 per ounce.
READ: Mandalay Resources reports continued exploration success from its producing Australian and Swedish mines
In the fourth quarter, Costerfield produced 4,749 ounces of saleable gold and 684 tonnes of saleable antimony, or 7,604 ounces of gold equivalent, explained Mandalay CEO Dominic Duffy, adding that the improvement was due to output from the high-grade Youle vein.
"Even though Youle tonnage was not significant during the quarter, the higher-grades from Youle provided a substantial boost to production. Youle production continued to increase throughout the quarter, leading to December production of 2,018 ounces of gold and 237 tonnes of antimony, the highest production levels achieved for gold and antimony since March 2018, and December 2017, respectively," he said.
"We will continue to mine the Brunswick vein for the first six months of 2020, however, we anticipate Youle’s growing influence will lift metal production going into 2020," he added.
Meanwhile, at Björkdal there was continued steady performance in the fourth quarter, with production of 10,990 ounces of saleable gold and 51,498 ounces of saleable gold for the full-year, around a 12% increase year-over-year, Mandalay told investors.
"The operation is well situated for the planned underground ramp-up and increased ore contribution from the Aurora zone to the mill during 2020," it added.
Overall in the fourth quarter, Mandalay produced a consolidated 18,594 saleable ounces of gold equivalent and sold 16,228 ounces of gold equivalent.
For the full-year, the firm generated 76,659 saleable ounces of gold equivalent and sold 77,043 ounces of gold equivalent.
Challenging year for Costerfield
"2019 was a challenging year for Mandalay’s Costerfield operation as the site’s production was severely impacted by excess dilution and poor recoveries from the Brunswick vein," added Duffy.
But he said hard work and dedication has put Mandalay now in "a very good position going into 2020, which is reflected in the guidance figures".
"2020 is a transitional year for Mandalay as we expect to see continual growth from Costerfield, setting the company up for anticipated higher production figures in 2021."
Shares in Toronto eased 0.78% to C$1.27 each.
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