TORONTO, May 09, 2018 (GLOBE NEWSWIRE) — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX:MND) today announced revenue of $39.7 million, adjusted EBITDA of $12.1 million and consolidated net loss of $1.2 million or $0.00 loss per share, for the first quarter of 2018.

The Company’s condensed and consolidated interim financial results for the quarter ended March 31, 2018, 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^[1] and on the Company’s website at www.mandalayresources.com^[2]. All currency references in this press release are in U.S. dollars except as otherwise indicated.

Dr. Mark Sander, President and CEO of Mandalay, commenting on the first quarter 2018 financial results, noted, “During the first quarter of 2018, Mandalay generated a net cash inflow of $6.5 million. This compares with a net cash outflow of $8.1 million in the first quarter of 2017. The inflow is due mostly to customer payments arising from sale of the record fourth quarter 2017 production at Björkdal. Mandalay grew its cash balance by 38% quarter-over-quarter, increasing it from $16.9 million at the end of 2017 to $23.4 million on March 31, 2018. This first quarter growth in cash is consistent with our expectation that Mandalay will return to positive cash flow in 2018.”

“The Company generated 6% greater adjusted EBITDA in the first quarter of 2018 than in the year ago period, despite a decline of 12% in revenue. Lower revenue was more than offset by reduction in cost of sales by a proportionately greater 19% as compared to the first quarter of 2017. This was mainly a result of relatively high-cost Cerro Bayo being removed from the production mix after the June production suspension.”

Dr. Sander continued, “The first quarter of 2018 was distinguished by record quarterly revenue at Björkdal under Mandalay ownership, resulting from sales of the record fourth quarter 2017 production.  We are pleased that the grade control program continues to function well, that the sustained metallurgical performance of the plant continues, and that the debottlenecking carried out during 2017 in the open pit and underground mines keeps performing as planned. As all of these operational improvements have taken hold, we expect continued strong performance from Björkdal into the remainder of 2018.  In the coming months, we plan to introduce new loading and haulage contractors to the open pit and underground mine in a campaign to improve safety, control costs, and bring new capacity to bear on our goal of increasing the mining rate of highest-grade A-quality ore.”