Click here to close now.


Microsoft Cloud Authors: Carmen Gonzalez, Pat Romanski, Keith Mayer, Jayaram Krishnaswamy, Elizabeth White

News Feed Item

Mandalay Resources Corporation Announces Record Third Quarter Financial Results and Initial Dividend

TORONTO, November 9, 2012 /PRNewswire/ --

Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND) announced today revenues of $48.8 million and EBITDA of $23.4 million for the third quarter of 2012. These record quarterly results were achieved as both of the Company's mines, Cerro Bayo and Costerfield, reached design production and reduced costs.

Given the excellent third quarter 2012 financial results, Mandalay's Board of Directors has declared the Company's first dividend - an initial quarterly dividend of CDN$0.01 per share, payable on December 5, 2012 to shareholders of record as of November 20, 2012.

Brad Mills, Chief Executive Officer of Mandalay, commented: "From a financial perspective, Mandalay performed extremely well in the third quarter, repaying substantially all of our debt and achieving record revenue and EBITDA. We are now generating significant amounts of cash flow after all capital and exploration requirements. Looking forward to 2013, we currently expect the Company's gold equivalent production to increase by between 12%-23%."

The Company's unaudited consolidated financial results for the three and nine months ended September 30, 2012, together with its Management's Discussion and Analysis ("MD&A") for the corresponding periods can be accessed under the Company's profile on and on the Company's website at All currency references in this press release are in U.S. dollars except as otherwise indicated.

Third Quarter 2012 Financial Highlights

The following table summarizes the Company's financial results for the three and nine months ended September 30, 2012, and September 30, 2011.

                          Three months     Three months    Nine months    Nine months
                              ended            ended          ended          ended
                             Sept 30,         Sept 30,       Sept 30,       Sept 30,
                               2012             2011           2012           2011
                                $                $               $              $
    Revenue                 48,847,630       26,960,784    116,105,859     67,930,832
    EBITDA                  23,399,401       10,968,335     51,091,422     28,637,354
    Income from
    Mine Operations         24,094,727       10,260,134     50,078,292     26,182,769
    Net Income / (loss)      9,011,008       13,177,845     19,337,192     17,521,563
    Total Assets           163,483,354      135,162,587    163,483,354    135,162,587
    Total Liabilities       41,266,533       38,683,332     41,266,533     38,683,332
    Earnings / (loss)
    per share                     0.03             0.05           0.07           0.07
    Earnings / (loss)*      16,090,881        5,712,154     32,203,462     15,721,547
    Earnings / (loss) 
    per share**                   0.05             0.02           0.11           0.06

* Underlying Earnings is Net Income before fair value and deferred tax adjustments
** Underlying Earnings per share is Net Income before fair value and deferred tax adjustments per share


In the third quarter of 2012 the Company achieved revenue, EBITDA, and net income of $48.8 million, $23.4 million and $9.0 million ($0.03 per share) respectively.

Net income is inclusive of non-cash, non-operating expense of $4,713,133 related to mark-to-market adjustments of silver and gold put options[1] ("puts"), a silver note payable to Coeur d'Alene Mine Corporation (the "Silver Note"), fair value expense related to financing warrants of $1,657,000 and deferred tax expense of $709,740. Excluding these items, profit after tax from underlying operations for the third quarter was $16,090,881 ($0.05 per share).  By comparison, in the third quarter of 2011 the Company's net income of $13,177,845 ($0.05 per share) was inclusive of a $7,465,691 positive mark to market adjustment for puts. Excluding that adjustment, profit from underlying operations in Q3 of 2011 was $5,712,154 ($0.02 per share).

During the quarter, the Company used $9 million of internally generated cash to repay all of the amounts outstanding under its revolving corporate loan facility with Bank of Montreal and equipment loan facilities in Australia and to make the penultimate payment of the Silver Note. In addition, the Company repurchased and cancelled 1,312,000 shares at a cost of $1,062,904 in the third quarter of 2012. At the end of the third quarter of 2012, the Company had just $945,949 in total outstanding debt and $6.4 million in cash. All remaining debt will be repaid before year end.

Dividend Policy

Mandalay's Board of Directors has adopted a dividend policy that provides for a quarterly discretionary cash dividend based on financial results and the future cash requirements of the Company.

Given the excellent third quarter 2012 financial results, the Board of Directors has declared an initial quarterly dividend of CDN$0.01 per share, payable on December 5, 2012 to shareholders of record as of November 20, 2012.

This is designated as an eligible dividend for the purposes of the Income Tax Act (Canada) and any similar provincial legislation.

Production, Cost and Capital Expenditure Guidance for 2013

                                     Total              Cerro Bayo          Costerfield
    Saleable silver
    production               2.8 - 3.1 million oz  2.8 - 3.1 million oz                                   
    Saleable gold production   36,000 - 42,000 oz    18,000 - 21,000 oz  18,000 - 21,000 oz
    Saleable antimony
    production                    2,800 - 3,000 t                           2,800 - 3,000 t
    Gold equivalent 
    production               112,000 - 123,000 oz                         
    Cost/oz silver net 
    by-product                                            $4.00 - $6.00
    Cost/oz gold equivalent                                                   $950 - $1,000
    Capital expenditure               $37 million           $21 million         $16 million
    Exploration expenditure           $11 million            $7 million          $4 million

_________________________ [1]These put options gives the Company the right, but not the obligation, to sell a specified amount of gold or silver at a specified price within a specified time.


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.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's anticipated production of gold, silver and antimony for the 2012 fiscal year and production, cost and capital expenditure guidance for 2013. Readers are cautioned not to place undue reliance on forward-looking statements. 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 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.

Non-IFRS Measures

This news release contains references to EBITDA and Underlying Earnings both of which are non-IFRS measures and do not have standardized meanings under IFRS. Therefore, these measures may not be comparable to similar measures presented by other issuers.

The Company defines EBITDA as earnings before interest, taxes and non cash charges. EBITDA is presented as the Company believes it is a useful indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net income or cash flows as determined in accordance with IFRS. For a detailed reconciliation of net income to EBITDA, please refer to page 9 of Management's Discussion and Analysis of the Company's financial statements for the third quarter of 2012.

For further information:

Bradford Mills
Chief Executive Officer
Greg DiTomaso
Investor Relations

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. Because they can be accessed via the Internet, these devices create a tremendous opportunity to inte...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
SYS-CON Events announced today that Kintone has been named "Bronze Sponsor" of SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business application (BYOA) platform, and workflow automation system.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...