Mandalay Resources Corporation

Good morning. My name is Paul, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Mandalay Resources Corporation's fourth quarter and full year 2021 financial results conference call. Joining us on the call is Dominic Duffy, President, Chief Executive Officer, and Director of Mandalay Resources. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. This call contains forward-looking statements which reflect the current expectations or beliefs of the company based on information currently available to the company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from the different From the current expectations are disclosed under the heading risk factors and elsewhere in the company's annual information form dated March 31st, 2021, available on CEDAR and the company's website. Dominic, you may now begin.

Thank you, Paul. Good morning, everyone, and thank you for joining us today. With me on the call is Nick Dwyer, Mandalay's Chief Financial Officer, and I also have Chris Davis, Mandalay's Vice President of Exploration and Operational Geology. Mandalay released its fourth quarter and year-end 2021 financial results at market close yesterday. You can find our consolidated financial statements and MDMA on the Mandalay Resources website. We also have it under our profile on CETA. Mandalay achieved significant operational and financial milestones in 2021, illustrating the strength and execution on our strategy. Including this quarter, our year-end results have been heavily steered by the quality of Yule, our high-grade and low-cost gold and antimony mine in Victoria, Australia. For the year and the consolidated basis, Mandalay produced 123,000 ounces of saleable gold equivalent, which not only exceeded our 2021 guidance, but was also the company's best result achieved since 2017. Year-over-year production improvements since 2019 demonstrate the completed turnaround at both assets. and the long-term financial stability and growth they will provide for Mandalay. Looking ahead, we're expecting significant production increases at Bjorkdal and a slight production improvement at Costa Field over 2022. And we anticipate consolidated production of 118 to 130,000 ounces of gold equivalents. produced at an expected cash cost of $700 to $900 and all in sustaining around about $1,100 to $1,300. I am pleased that in December we successfully completed the sale of non-core Cerro Bayo mine to Equus Mining. We believe that Equus is well positioned to move this project forward. allowing for both parties to mutually benefit. Before discussing our operations in more detail, I'd like to pass the call off to Nick, who will walk through the financial highlights of the company during Q4 and full year. Nick.

Thanks, Dominic. Mandalay delivered another excellent quarter and an overall fantastic 2021 year. The company achieved numerous financial records, including revenue and adjusted EBITDA For Q4 and full year 2021, we recorded $73 million and $229 million in revenue, respectively. On adjusted EBITDA, we achieved records of $41 million and $115 million during the same periods. As compared to full year 2020, our revenue grew by 28% and we also improved our adjusted EBITDA margin to a healthy 50%. This lift was due to an overall increase in consolidated gold equivalent ounces sold of 26% compared to last year. During Q4, we recorded a consolidated net income of $15 million, which is 17 US cents per share or 21 cents Canadian. For the year, consolidated net income was $55 million, which is 60 US cents per share or 76. 75 cents Canadian, which is a great effort. Mandalay's average realized gold price for 2021 was $1,818 per ounce as compared to $1,804 during 2020. Also, Antimony's strong appreciation to above $11,000 per tonne from under $6,000 last year had pushed Antimony's contribution to consolidated revenue to 18%. Currently, the antimony price is above $13,000 per tonne, which is excellent for Madeleine. Our consolidated cash cost did lift from $843 to $873 per gold equivalent produced for 2021. This was mainly due to the costs incurred at Cerebio for the processing of the lower margin material. Dominic mentioned earlier that this asset sale was completed in Q4 last year. From an all-in sustaining cost point of view, the increased production performance from Costa Field aided the groups, all-in amounts to $1,254 per ounce to $1,212 for 2021. Madeleine closed the year with $30.7 million in cash, a slight increase from the $29.8 million in Q3 2021. However, due to global shipping challenges at Costa Field, our year-end cash total leaves out a significant amount of cash, which was normally scheduled to be received in December but was pushed out to January 2022. So that said, at the end of January 2022, Mandalay had a cash position of $47.2 million. Regarding our debt, our syndicated facility stands at 43.9 million, and we will continue to service this debt with the 3.8 million quarterly repayments during 2021, sorry, during 2022, with the $29 million balloon payment, which is due in Q1 2023. Lastly, and Chris can speak to this in more detail, but the 2022 exploration spend is expected to be increased following our successful 2021 program. At Bjorkdal, we are looking to spend $4 to $5 million US, while at the Costa field, it will be around $7 to $9 million US. I'd like to turn the call back to Dom. Thanks, Nick.