• Cash Flow from Operations: $24 million in Q2 2024.

• Adjusted EBITDA: $36 million in Q2 2024.

• Cash Balance: $63 million at the end of Q2 2024.

• Revolving Credit Facility: $20 million repaid, with $35 million undrawn available until 2027.

• Gold Equivalent Production: Approximately 26,000 ounces in Q2 2024.

• Revenue: $63 million in Q2 2024, a 59% increase from Q2 2023.

• Gold Sales: 26,759 ounces in Q2 2024, up from 20,229 ounces in Q2 2023.

• Cost of Sales: Decreased 14% to $25 million in Q2 2024 from $29 million in Q2 2023.

• Cash Costs per Ounce: $1,022 in Q2 2024.

• All-in Sustaining Costs per Ounce: $1,419 in Q2 2024.

• Free Cash Flow: Approximately $16 million in Q2 2024.

• Gold Price: $2,314 per ounce in Q2 2024.

• Antimony Price: $20,320 per tonne in Q2 2024.

• Warning! GuruFocus has detected 5 Warning Signs with ERJ.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mandalay Resources Corp (MNDJF) achieved significant financial progress in the first half of 2024, generating $24 million in cash flow from operations and an adjusted EBITDA of $36 million.

• The company strengthened its balance sheet, ending the quarter with a cash balance of $63 million and repaid the entire $20 million outstanding balance on its revolving credit facility.

• Operationally, Mandalay Resources Corp (MNDJF) is on track to meet its annual production guidance of 90,000 to 100,000 gold equivalent ounces, having produced approximately 51,000 gold equivalent ounces in the first half of 2024.

• The Costerfield site saw a 32% increase in gold equivalent ounces produced in Q2 2024 compared to the same period last year, driven by a rise in the average milled gold head grade.

• Bjorkdal achieved a 21% increase in production in Q2 2024 compared to Q2 2023, attributed to the inclusion of high-grade Aurora development in the plant's feed material.

Negative Points

• Costerfield faced geotechnical challenges that required adjustments to the mine schedule, potentially impacting production stability.

• Processed antimony grades at Costerfield were lower in Q2 2024 compared to Q2 2023, and this trend is expected to persist.

• The company anticipates a decrease in gold equivalent mining grades at Costerfield in the second half of the year.

• Despite strong financial performance, the company has not committed to a dividend, prioritizing investment opportunities and potential acquisitions.

• There was a notable sale of shares by the lead independent director, raising concerns about insider confidence in the company's strategy.