Mandalay production reaches four-year high

Toronto-listed gold and antimony producer Mandalay Resources Corp reported its highest annual output since 2017, and the highest December quarter production since 2016.
Mandalay production reaches four-year high Mandalay production reaches four-year high Mandalay production reaches four-year high Mandalay production reaches four-year high Mandalay production reaches four-year high

Mandalay's Costerfield mine in Victoria

The company, which operates the Costerfield gold-antimony mine in Victoria and the Bjorkdal gold mine in Sweden, said it exceeded full-year 2021 production guidance with a consolidated saleable gold-equivalent production of 123,000oz.

Year-on-year production showed growth of 19%.

Fourth-quarter consolidated sales amounted to 38,904oz. Costerfield reported the highest ever production figure for a quarter at 19,507oz goldequivalent.

The quarterly figures also included silver and gold from the Cerro Bayo mine in Chile for two months of the quarter, after which the sale of the project to Equus Mining was completed.

For 2022, Mandalay published guidance that production would range between 118,000 to 130,000oz gold equivalent, with an all-in sustaining cost of between US$1100 and $1300 per ounce.

Average prices received in the December quarter were $1796/oz for gold, $23.31/oz for silver and $13,221/tonne for antimony.

The antimony price is of particular interest with global supply tightening - the fourth-quarter average price was up from US$6,260/t for the same period in 2020.

President and chief executive officer Dominic Duffy said the year-on-year improvements since 2019 demonstrate the stability of Bjorkdal and the growing quality of the company's anchor asset at Costerfield.

Production for the year at the three operations was broken down into 45,236oz gold at Bjorkdal; 47,753oz of gold and 3,380 tonnes of antimony at Costerfield and 5,303oz of gold and 266,596oz of silver at Cerro Bayo.