For the 12 months to end-December, 2020, the company reported net income of C$9.3 million, swinging from a loss of C$18.6 million in 2019, on revenue of C$178.9 million, it’s highest since 2016, and up from C$107.8 million a year earlier. Free cash flow for the year came in at C$25.3 million, with C$72.2 million in net cash flows from operating activities from its mines in Sweden and Australia.
READ: Mandalay Resources extends mine life at Costerfield and increases gold underground reserves at Björkdal as it provides year-end updates
CEO Dominic Duffy said the fourth quarter, which saw adjusted earnings before interest, tax, depreciation and amortization (EBITDA) had capped off a “tremendous year”, which saw four consecutive quarters of improvement.
“In 2020 the company generated $179.0 million in revenue and a record $94.2 million in adjusted EBITDA for a margin of 53% – also a record,” he said.
“We earned $12.1 million (CAD$0.17 per share) in adjusted net income during the fourth quarter, marking our fourth consecutive quarter of profitability. For the full-year, the company generated $34.7 million (CAD$0.51 per share) in adjusted net income – representing approximately 25% of our market capitalization as at December 31, 2020.”
A remarkable performance from the high-grade Youle deposit in Australia had underpinned the performance, he noted, highlighting cash costs last year were US$843 per saleable gold equivalent ounce, a 21% improvement on the figure of US$1,066 per ounce for full-year 2019.
Processed gold grades at Costerfield in Australia averaged 11.6 grams per ton (g/t) and 4.3% antimony for full-year 2020, compared to 5.1 g/t gold and 2.5% antimony in 2019 and Mandalay expects to see continued high gold grades at Costerfield in 2021.
Duffy said Björkdal in Sweden had “maintained stable production and sales” last year, generating C$81.5 million and C$32.0 million in revenue and adjusted EBITDA, respectively.
“The increase in revenue year-over-year was aided by stronger realized gold prices. We expect Björkdal to build upon its fourth-quarter production success - the highest quarterly amount in 2020 – of 12,252 gold ounces as underground tonnages continue to rise as ore from Aurora’s higher-grade lower levels comes online,” he added.
Mandalay ended 2020 with cash of C$34.2 million, which did not include a C$5 million payment relating to a delayed shipment at Costerfield, noted the miner. The payment would normally have been received in December but was received in early January, it added.
For full-year 2020, Mandalay across its two mines produced 103,444 ounces of gold equivalent and sold 99,935 ounces of gold equivalent, meeting its 2020 production guidance and achieving 35% year-over-year growth.
In the fourth quarter, it generated 27,351 saleable ounces of gold equivalent and sold 24,742 ounces of gold equivalent.
Contact the author at [email protected]
Story by ProactiveInvestors
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