Mandalay Resources Corporation

Q3 2024 revenue was US$55 million, up from US$41 million in Q3 2023. Net income was US$5 million, versus US$4 million a year ago. Operating cash flow was US$21 million and free cash flow was US$13 million, compared with US$4 million and negative US$6 million, respectively, in Q3 2023. Consolidated all-in sustaining costs were US$1,790 per ounce sold, up 25% year over year. Cash at September 30, 2024 was about US$55 million, versus US$27 million at the end of Q3 last year, and the company repaid its remaining US$20 million revolver, leaving zero debt. Management reiterated full-year production guidance of 90,000 to 100,000 gold equivalent ounces. On CapEx, management said the company is tracking toward the low end of the US$41 million to US$49 million range, and noted Q4 will be heavier because of tailings work at Costerfield.

Frazer Bourchier emphasized that the quarter showed strong financial performance even with operational disruptions, highlighting revenue growth, free cash flow generation, cost control, and favorable metal prices. He stressed that the stronger cash balance and zero debt give the company flexibility to fund organic exploration, manage capital carefully, and pursue strategic growth. His tone was confident but measured, repeatedly stressing discipline and avoiding dilution in any growth or M&A decision.

Hashim Ahmed framed Q3 as another quarter of strong financial performance driven by cost discipline and revenue growth. He cited revenue of US$55 million, net income of US$5 million, operating cash flow of US$21 million, free cash flow of US$13 million, and consolidated AISC of US$1,790 per ounce sold, up 25% year over year. He also pointed to a cash balance of about US$55 million, working capital of US$54 million, and full repayment of the revolving credit facility, leaving US$35 million in undrawn capacity.

Analysts focused on antimony grades and pricing, asking why mine grade is below reserve grade and whether Mandalay could lock in higher prices with longer-term contracts. Management said lower antimony grades are expected as the mine moves through Shepherd and remnant higher-grade areas, but some higher-grade material should still come through over the next couple of years; they also said the antimony market is too small for meaningful financial hedging instruments. Another question centered on business development: management said higher metal prices have made asset purchases more expensive and potentially dilutive, so they remain cautious and focused on non-dilutive opportunities. On CapEx, management said Q4 will be heavier because of Costerfield tailings work, but full-year spend may still come in slightly below budget and broadly in line with the historical range.