• Revenue: Increased to $55 million, up from $41 million in Q3 2023.

• Net Income: $5 million, up from $4 million in Q3 2023.

• Operating Cash Flow: Rose to $21 million from $4 million in the previous year.

• Free Cash Flow: Increased to $13 million compared to negative $6 million last year.

• Cash Position: Strengthened to $55 million as of quarter-end, more than doubling since December 2023.

• Debt: Fully repaid $20 million revolving credit facility, leaving zero debt.

• Gold Production - Costerfield: 8,218 ounces of gold produced in Q3 2024.

• Antimony Production - Costerfield: 252 tons, a 36% decline from Q3 2023.

• Gold Production - Bjorkdal: 9,626 ounces, a 14% decrease from Q3 2023.

• All-in Sustaining Costs: $1,790 per ounce, up 25% year-over-year.

• Working Capital: Grew by 13% year-over-year to $54 million.

• Warning! GuruFocus has detected 3 Warning Signs with FTEK.

Release Date: November 07, 2024

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

Positive Points

• Mandalay Resources Corp (MNDJF) reported strong financial performance with revenue increasing to $55 million, up from $41 million in Q3 2023.

• The company's cash position has significantly strengthened, standing at $55 million at the quarter's end, more than doubling since December 2023.

• Mandalay Resources Corp (MNDJF) fully repaid its $20 million revolving credit facility, leaving the company with zero debt.

• Operating cash flow rose substantially to $21 million, and free cash flow increased to $13 million, compared to $4 million and negative $6 million last year, respectively.

• The company remains on track to achieve its annual production guidance of 90,000 to 100,000 gold equivalent ounces, maintaining its long-term commitment to profitability and shareholder revenue.

Negative Points

• Operational challenges were faced in Q3, including a slight production decline at Costerfield due to typical quarterly metal grade variations.

• Antimony production declined by 36% from Q3 2023, attributed to increased feed from the lower antimony grade Shepherd deposit.

• Bjorkdal experienced a 14% decrease in gold production due to flooding from unseasonal rainfall, impacting access to higher margin areas.

• Operating costs rose by 7% year over year, driven by increased costs for tailings and water management.

• All-in sustaining costs per ounce sold increased by 25% year on year, mainly due to increased operating costs and a reduction in ounces produced.

Q & A Highlights

Q: Can you comment on the antimony grades and the potential for improvement given the current market prices? Also, is there a possibility to lock in higher prices through long-term contracts? A: The antimony grades are lower as expected due to mining in the Shepherd area, but higher-grade areas remain in the reserves. Some higher grades will come through in the next few years. Unfortunately, the antimony market lacks financial instruments to lock in prices, but we continue to explore options. (Frazer Bourchier, President & CEO; Ryan Austerberry, COO; Hashim Ahmed, CFO)