TORONTO, Nov. 5, 2013 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today revenues of $50.3 million, EBITDA of $22.9 million and net income of $10.9 million or$0.03 per share for the third quarter of 2013. In accordance with the Company\'s dividend policy, Mandalay\'s Board of Directors declared a quarterly dividend of $3,019,156 (6% of the trailing quarter\'s gross revenue), or$0.0093 per share (CDN$0.0097 per share), payable on November 25, 2013 to shareholders of record as ofNovember 15, 2013.
The Company\'s unaudited consolidated financial results for the three and nine months ended September 30, 2013, together with its Management\'s Discussion and Analysis ("MD&A") for the corresponding period can be accessed under the Company\'s profile on www.sedar.com and on the Company\'s website atwww.mandalayresources.com. All currency references in this press release are in U.S. dollars except as otherwise indicated.
Brad Mills, Chief Executive Officer of Mandalay, commented, "Mandalay\'s strong production and operating cost performance in the third quarter of 2013 enabled the Company to deliver robust financial performance compared to the year-ago quarter, despite significantly lower realized prices for all metals. We achieved higher revenue and only slightly lower EBITDA in 2013 than in 2012. Our bottom-line net income was almost$2 million higher in 2013 than a year ago. The dividend increased this quarter by 41% from prior quarter to$0.0093 per share in line with our distribution policy.
Mr. Mills continued, "With both mines performing above plan, we have been able to continue our capital investment program, exploration program, and business development efforts in spite of lower metal prices, and our conservative reserve and capital planning has enabled us to avoid the write-downs prevalent across the industry over the last few months. Particularly gratifying is the growing contribution from Costerfield to our bottom line as production passed the 16,000 ounce gold equivalent level (a rate of 64,000 ounces per year) and cash costs came down to $626/ounce gold equivalent (and $873/ounce site all-in cost). The Company has added to its cash balance available to fund compelling growth projects in 2014, with $27.7 million in cash and equivalents on hand at the end of the quarter. We also continue to be debt-free."
"With this press release we are giving our production, cost, and capital spending guidance for 2014. This guidance includes the impact of the assumed completion of the second access to the Delia NW vein at Cerro Bayo by the end of the first quarter of 2014 and the consequent increase in mine production rate to 1,400 tonnes per day. It also includes the impact of the expected development of production (beginning late in the fourth quarter of 2013) from the Cuffley lode at Costerfield, assuming that our ongoing capital development and infill drilling activities at Cuffley support conversion of currently Indicated Mineral Resources to Mineral Reserves."