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2016-02-19

Mandalay Resources Corporation: Mandalay Resources Corporation Announces Fourth Quarter and Full Year 2015 Financial Results and Quarterly Dividend

TORONTO, Feb. 18, 2016 (GLOBE NEWSWIRE) --
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND)
announced today revenue of $43.6 million, adjusted EBITDA of $14.0 million
and adjusted net income before special items of $0.3 million or $0.00 income
per share for the fourth quarter of 2015.

The Company's consolidated net loss for the quarter, after special items
totaling $3.4 million, is $3.1 million, or ($0.01) per share. The special
items include: impairment of the La Quebrada asset (held for sale) of $2.3
million; additional depletion of $0.3 million ($1.5 million for the full year
2015) at Björkdal as a result of finalizing the purchase price allocation in
respect of the Company's acquisition of Elgin Mining in 2014 and the
associated tax savings of $0.6 million, and a one-off tax expense adjustment
at Costerfield of $1.4 million.

The Company's audited consolidated financial results for the year ended
December 31, 2015, 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
atwww.mandalayresources.com. All currency references in this press release
are in U.S. dollars except as otherwise indicated.

In accordance with the Company's dividend policy, Mandalay's Board of
Directors declared a quarterly dividend of $2,618,760 (6% of the trailing
quarter's gross revenue), or $0.0064 per share (CDN$0.0088 per share),
payable on March 10, 2016 to shareholders of record as of February 29, 2016.

For the full year, Mandalay generated record revenues of $194.5 million based
on sale of a record 167,808 oz gold equivalent ("oz Au Eq"), adjusted EBITDA
of $68.0 million and adjusted net income before special items of $19.0
million or $0.05 per share. After special items totaling $4.3 million for the
year, the Company reported consolidated net income of $14.7 million and
earnings of $0.04 per share.

Commenting on the fourth quarter and full year 2015 financial results,
Bradford Mills, Mandalay CEO, noted, "The Company produced and sold a record
amount of gold equivalent ounces in 2015. It maintained strong operating
margins despite lower metal prices, with EBITDA margins for the three months
and year ended December 31, 2015, of 32% and 35% respectively. As a result,
we are pleased to be able to continue our usual dividend this quarter despite
the current depressed price environment for our products."

Mr. Mills continued, "Costerfield maintained strong volume performance and
excellent cost performance for all quarters in 2015, achieving record annual
quantities sold (40,686 oz Au and 3,563 tonnes antimony ('t Sb') for a total
of 62,895 oz Au Eq) and record low cash production ($559/oz Au Eq) and all-in
($773/oz Au Eq) operating costs. Key to this performance is having completed
all major capital items for the current life of mine plan, including capital
development, water evaporation facilities, and tailings footprint."

"Cerro Bayo grades improved in the fourth quarter as we continued the planned
mine-outs of the Fabiola and Dagny mines, while developing the new, higher
grade mines at Delia SE and Coyita. For the full year, the mine sold
2,778,837 oz Ag and 24,489 oz Au. Fourth quarter performance was considerably
better than the average quarterly production and sales as we started to see
the effects of transition to the Delia SE Mine. This resulted in lower cash
costs per oz Ag produced net of Au credit of $4.58/oz and all-in costs of
$11.75/oz in the fourth quarter which were considerably better than the
full-year cash cost of $7.50/oz and all-in cost of $14.69/oz."

Mr. Mills concluded, "Björkdal delivered cash costs of $940 per oz Au and
all-in costs of $1,224 per oz Au in the fourth quarter, and cash costs of
$884 per oz Au and all-in costs of $1,128 per oz Au for the entire year.
While lower volumes of gold production in the fourth quarter impacted costs,
we demonstrated during the quarter that effective grade control is possible
for the underground mine. We are now implementing these practices and
re-orienting development in the mine to incorporate our grade control
strategy. We expect this implementation to gradually lift grades over the
coming four quarters."

Fourth Quarter and Full Year 2015 Financial Highlights

The following table summarizes the Company's financial results for the three
months and year ended December 31, 2015 and 2014:

--------------------------------------------------------------------------------------------------------------------------
| Three Three Year Year |
| |
| months months |
| ended ended ended ended |
| |
| December December December December |
| 31, 2015 31, 2014 31, 2015 31, 2014 |
| $'000 $'000 $'000 $'000 |
| Revenue 43,646 66,973 194,500 184,629 |
| Adjusted EBITDA 13,997 21,463 67,989 64,435 |
| Income from mine operations before depreciation and depletion 17,409 25,721 77,408 75,446 |
| Adjusted net income 343 7,588 18,985 17,576 |
| Consolidated net income/(loss) (3,105 ) 7,588 14,665 17,576 |
| Total assets 346,573 362,805 346,573 362,805 |
| Total liabilities 138,879 142,787 138,879 142,787 |
| Adjusted net income per share $ 0.00 $ 0.02 $ 0.05 $ 0.05 |
| Consolidated net income/(loss) per share $ (0.01 ) $ 0.02 $ 0.04 $ 0.05 |
--------------------------------------------------------------------------------------------------------------------------

For the fourth quarter of 2015, revenue and EBITDA was negatively impacted by
lower realized metal prices than in the fourth quarter of 2014 - 7.8% lower
per oz Au, 7.4% lower per oz Ag and 41.0% lower per t Sb. For the year ended
December 31, 2015, realized metal prices were lower than for the previous
year by: 6.1% per oz Au, 13.0% per oz Ag and 27.0% per t Sb.

Year-on-year operational currency exchange rate declines in 16% for the
Australian dollar, 17% in the Chilean peso and 15% in the Swedish krona and
40% lower petroleum prices helped offset some of the impact of lower metal
prices.

Cash and cash equivalents of the Company were $49.2 million as of December 31,
2015, compared to $49.0 million as of December 31, 2014. During 2015 the
Company paid out a record total of $12.9 million in dividends.

Fourth Quarter and Full Year 2015 Operational Highlights

The table below summarizes the Company's capital expenditures and operational
unit costs for the quarter and full year.

--------------------------------------------------------------------------------------------------------------------------------------------
| Three Three Year Year |
| |
| months months ended ended |
| ended ended |
| December December December December |
| |
| 31, 2015 31, 2014 31, 2015 31, 2014 |
| 1 |
| $'000 $'000 $'000 $'000 |
| Capital development(2) 7,812 7,432 28,765 23,803 |
| Capital purchases(2) 2,719 4,938 14,612 16,650 |
| Capital exploration(2) 4,425 2,860 11,144 14,265 |
| Cerro Bayo: Cash cost per oz Ag produced net of Au byproduct credit $ 4.58 $ 3.95 $ 7.50 $ 5.30 |
| Cerro Bayo: Site all-in cost per oz Ag produced net of Au byproduct credit $ 11.75 $ 10.37 $ 14.69 $ 11.36 |
| Costerfield: Cash cost per oz Au equivalent produced $ 540 $ 608 $ 559 $ 772 |
| Costerfield: Site all-in cost per oz Au equivalent produced $ 760 $ 884 $ 773 $ 1,036 |
| Björkdal: Cash cost per oz Au equivalent produced $ 940 $ 901 $ 884 $ 870 |
| Björkdal: Site all-in cost per oz Au equivalent produced $ 1,224 $ 1,051 $ 1,128 $ 1,024 |
| Company saleable Au produced (oz) 28,948 31,636 109,102 77,900 |
| Company saleable Ag produced (oz) 725,243 1,021,189 2,545,984 3,329,519 |
| Company saleable Sb produced (t) 937 926 3,712 3,639 |
| Company saleable Au Eq produced (oz) 43,393 52,601 166,679 154,810 |
| Company Average Cash Cost per oz Au Eq. Oz $ 751 $ 748 $ 764 ...

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