Mandalay Resources Reports Steady Q2 Production, US$101M Cash and Crucial Investment to Support Growth at Costerfield
TORONTO, July 09, 2025 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND, OTCQB:MNDJF) announces second quarter production results for the quarter ended June 30, 2025.
Second Quarter Highlights:
Quarter-end cash balance of $101 million, $13 million Q-o-Q increase despite significant sustaining and growth capital expenditures;
Produced 22,554 consolidated gold equivalent ounces;
Costerfield: 8,145 ounces of gold and 137 tonnes of antimony for 11,371 ounces of gold equivalent;
Björkdal: 11,183 ounces of gold;
Sold 21,247 consolidated gold equivalent ounces; and
Commissioned new 7-year capacity tails dam at Costerfield.
Frazer Bourchier, President and CEO, commented:
"With $101 million in cash and no debt, Mandalay brings a strong financial position and operational performance to the pending Alkane merger, which is expected to close in early August. The combined company will be nearly double the size of Mandalay and will be well positioned for a potential valuation re-rate. In addition, the 22,554 gold equivalent ounces produced in Q2 keeps Mandalay on track to achieve full-year production guidance of 85,000, 95,000 gold equivalent ounces.
"Q2 was, as expected as a high cash expenditure quarter with its annual tax reconciliation payment of $7 million and final expenditures of $4 million for the completion of the tails dam build at Costerfield. We were pleased to complete a major milestone with the successful commissioning of this new seven-year capacity tailings storage facility, which opens the potential to again add mine life via exploration and unlock value beyond its current mineral reserves."
Ryan Austerberry, COO, commented:
"Björkdal produced 11,183 gold ounces in Q2, navigating a seasonally slower June. While some manageable overbreak was encountered, mining activity and grades were maintained, with both milling throughput and recoveries delivering as planned. The team continues to actively implement new operating strategies to drive improved reliability over the summer period.
"At Costerfield, production totaled approximately 11,371 gold equivalent ounces, including 8,145 ounces of gold and 137 tonnes of antimony in Q2. Despite a four-day plant shutdown due to mill maintenance that impacted throughput late in the quarter, mined tonnes remained strong with gold and antimony production aligned with expectations.
"Looking ahead, both operations are advancing improvement initiatives aimed at maintaining or enhancing plant performance. We expect similar production levels at Björkdal in the second half, while at Costerfield, we anticipate a grade uplift, particularly in antimony, as we advance production into the higher-grade Youle zones."
Production for the Quarter Ended June 30, 2025:
The Company produced a total of 19,328 ounces of gold and 137 tonnes of antimony representing a total of 22,554 gold equivalent ounces produced, compared to 23,626 ounces of gold and 359 tonnes of antimony in the second quarter of 2024, representing a total of 26,372 gold equivalent ounces produced.
Production at Björkdal was 11,183 ounces of gold compared to 12,599 ounces of gold in the second quarter of 2024.
Production at Costerfield was 8,145 ounces of gold and 137 tonnes of antimony versus 11,027 ounces gold and 359 tonnes antimony in the second quarter of 2024.
Production for the Six Months Ended June 30, 2025:
The Company produced a total of 39,704 ounces of gold and 298 tonnes of antimony representing a total of 44,896 gold equivalent ounces, versus 45,972 ounces of gold and 763 tonnes of antimony in corresponding first six months of 2024, which represented a total of 51,308 gold equivalent ounces.
Production at Björkdal was 22,010 ounces of gold.
Production at Costerfield was 17,694 ounces of gold and 298 tonnes of antimony.
Table 1, Second Quarter and Six Months Production for 2025 and 2024
Metal
Source
Three monthsendedJune 30,2025
Three monthsendedJune 30,2024
Six monthsendedJune 30,2025
Six monthsendedJune 30,2024
Gold produced (oz)
Björkdal
11,183
12,599
22,010
22,969
Costerfield
8,145
11,027
17,694
23,003
Total
19,328
23,626
