TORONTO, October 15, 2012 /PRNewswire/ --
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today its production and sales results for the third quarter of 2012.
Production for the three months ended September 30, 2012:
- The Company produced a total of 9,104 ounces ("oz") gold ("Au"), 594 tonnes ("t") antimony ("Sb"), and 804,779 oz silver ("Ag"), representing a total of 28,206 oz of gold equivalent ("Au Eq.").
- Production at Costerfield (Australia) was 4,317 oz Au and 594 t Sb, significantly greater than in the third quarter of 2011 due to the mine reaching its design production rate.
- Production at Cerro Bayo (Chile) was 4,787 oz Au and 804,779 oz Ag, including inventory adjustment gains of 335 ounces of gold and 54,562 ounces of silver. Third quarter 2012 production at Cerro Bayo was significantly greater than the third quarter of 2011 due to on-time execution of the planned ramp-up of the mining rate.
Production for the nine months ended September 30, 2012:
- The Company produced a total of 24,198 oz Au, 1,696 t Sb, and 2,016,373 oz Ag, representing a total of 74,403 oz of Au Eq.
- Production at Costerfield (Australia) was 12,129 oz Au and 1,696 t Sb, significantly greater than in the year-ago period due to the mine reaching its design production rate.
- Production at Cerro Bayo (Chile) was 12,069 oz Au and 2,016,373 oz Ag, significantly greater than in the year-ago period due to the ramp-up of the mining rate.
Brad Mills, Chief Executive Officer of Mandalay, commented: "Our strong third quarter 2012 production and sales results demonstrate the sustainable level of performance that we will maintain and improve on going forward. Having achieved initial design production rates, the strategy for these operations now is to implement growth options that take advantage of our growing reserve and resource positions at both operations. We plan to update the market in the next few weeks about our progress with exploration and expansion plans. We are on track to achieve our 2012 production guidance and we will announce 2013 production guidance with our third quarter financial results."
Sales quantities of all three metals closely matched production quantities in the third quarter of 2012, reflecting steady states of the Company's finished concentrate shipping processes and inventories. The difference with year-to-date production represents growth in our finished product inventory as the Company ramps up production. Sales quantities are significantly higher than the same period a year ago due to the growth in production as the mines reached their initial design production rates in the second half of this year.
Table 1. Third Quarter and Nine Month Production for 2012 and 2011.
9 months to 3 months to 3 months to 9 months to 30 30 September 30 September 30 September September Metal Source 2012 2011 2012 2011 Costerfield 4,317 2,057 12,129 9,441 Gold (oz) Cerro Bayo 4,787 1,567 12,069 4,569 Total 9,104 3,624 24,198 14,010 Antimony (t) Costerfield 594 305 1,696 1,230 Silver (oz) Cerro Bayo 804,779 299,679 2,016,373 923,369 Average quarterly prices: Gold US$/oz Antimony US$/tonne 1,654 1,703 Silver 12,784 14,899 US$/oz 29.83 38.83 Au Eq. Costerfield 8,906 4,725 25,536 21,688 (oz) Cerro Bayo 19,300 8,400 48,867 26,437 Total 28,206 13,125 74,403 48,125
Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the quarter by the respective average market prices of the commodities in the quarter, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the average market price of Au in the quarter. Average Au price in the quarter is calculated as the average of the daily LME PM fixes in the quarter, with price on weekend days and holidays taken from the last business day; average Sb price in the quarter is calculated as the average of the daily average of the high and low Rotterdam warehouse prices for all days in the quarter, with price on weekend days and holidays taken from the last business day; average Ag price in the quarter is calculated as the average of the daily London Broker's silver spot price for all days in the quarter, with price on weekend days and holidays taken from the last business day. The source for all prices ishttp://www.metalbulletin.com.
Table 2. Third Quarter and Nine Month Sales for 2012 and 2011.
9 months to 3 months to 3 months to 9 months to 30 30 September 30 September 30 September September Metal Source 2012 2011 2012 2011 Costerfield 3,896 2,108 11,343 10,078 Gold (oz) Cerro Bayo 4,904 1,690 11,148 3,191 Total 8,800 3,798 22,491 13,269 Antimony (t) Costerfield 528 279 1,586 1,188 Silver (oz) Cerro Bayo 803,810 376,409 1,875,235 715,850 Quarter end prices: Gold US$/oz Antimony US$/tonne 1,776 1,620 Silver 12,650 15,800 US$/oz 34.65 30.45 Au Eq. Costerfield 7,660 4,829 23,784 22,275 (oz) Cerro Bayo 20,587 8,765 45,541 18,373 Total 28,247 13,594 69,325 40,648
Au Eq. oz sold is calculated by multiplying the saleable quantities of gold (Au), silver (Ag), and antimony (Sb) in the quarter by the respective quarter end market prices of the commodities, adding the three amounts to get a "total contained value based on market price", and then dividing that total contained value by the quarter end market price of Au. The source for all prices is http://www.metalbulletin.com with price on weekend days and holidays taken from the last business day.
About Mandalay Resources Corporation
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and producing and exploration projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.
This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's anticipated gold, silver and antimony production and sales in 2012. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading "Risk Factors" in Mandalay's annual information form dated March 30, 2012, a copy of which is available under Mandalay's profile at http://www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
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Chief Executive Officer
SOURCE Mandalay Resources Corporation