Editor's PickMarket News

Mandalay Resources eyeing production increases at both its mines, while Youle deposit in Australia continues to deliver

Firm has two producing mines with exploration and growth upside Operating in mining-friendly jurisdictions High-grade Youle vein in Australia set to increase mine life and profit margins What Mandalay Resources does: Mandalay Resources Corp (TSE:MND) is a metals miner and produces gold, silver and antimony. The company is focused on operating and optimizing its mines at Costerfield in Australia and Björkdal in Sweden. Both assets have the potential for further growth via production and exploration. The aim is to be cash generative, to self-fund exploration, establish and maintain high operating margins, and return cash to shareholders. The Costerfield mine produces gold and antimony and covers 1,293 hectares. Antimony has various uses including making paints, flame-proof materials and ceramics, as well as an alloy with lead. Björkdal has a mine life of over a decade and has a processing capacity of 1.3 million tonnes a year. The project covers over 12,000 hectares. In 2019, Mandalay struck a binding deal with Equus Mining to dispose of its third asset, the Cerro Bayo mine in Chile, a non-operating asset since, on  care-and-maintenance since 2017, when a flood led to output being suspended. Also in 2019, the firm arranged the sale of other non-core assets – the Challacollo concessions to third parties, and the Ulu project in Nunavut. How is it doing:     Inflection points: Third-quarter financials Precious metals moves Exploration and production news What the boss says: In the firm’s third-quarter production and sales release, CEO Dominic Duffy, said: “Mandalay continues to build upon the momentum generated during the first half of the year by delivering another strong production and sales quarter. We expect to fulfil or outperform our consolidated 2020 production guidance on a gold equivalent ounces basis”. He added that “due to the excellent capital development progress made at Costerfield, that site has accelerated capital development originally planned for 2021 into this year, increasing the development metres and investment at Costerfield. We also intend on increasing exploration spend by approximately $1 million at Costerfield for the remainder of the year to follow up on the encouraging results seen to date.” Contact the author at giles@proactiveinvestors.com

Get the daily email that makes reading the news actually enjoyable.Stay informed and entertained, for free.Subscribe to our newsletter

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!