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Mandalay IR PPT Jan 2023

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Mandalay IR PPT Jan 2023

  2. 2. Forward-looking Statements This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life of mine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things: exploration results or production results not meeting management’s expectations; capital, production and operating cost results not meeting current plans; and 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 presentation can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 31, 2022, a copy of which is available under Mandalay’s profile at www.sedar.com. 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. Quality Control and Assurance Quality control and assurance programs are implemented in line with the standards of National Instrument 43-101. The exploration programs at Mandalay’s properties are supervised by Chris Davis, Vice President of Operational Geology and Exploration at Mandalay Resources, is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (MAusIMM CP(Geo)), and a Qualified Person as defined by NI 43-101. He has reviewed and approved the technical and scientific information provided in this presentation. Mr. Davis regularly visits Mandalay’s properties and supervises the collection and interpretation of scientific and technical information contained in this presentation. Mr. Davis has visited Costerfield and Björkdal and has supervised the preparation of this presentation. All currency references in US$ unless otherwise indicated. 2
  3. 3. A Profitable Gold Producer Delivering Value and Exploration Upside 3 Costerfield Mine Australia Björkdal Mine Sweden 105,000 – 118,000 AuEq oz 2023E PRODUCTION GUIDANCE(1) Two producing gold mines in Australia and Sweden – both mining-friendly, tier-one jurisdictions • Full-year 2022 consolidated saleable gold equivalent production of 105,906 ounces – establish high margin production rate; • Successful turnaround with both operations continuing to be significant cash generators in 2022; • At Costerfield, significant Shepherd discovery during 2021, currently performing extension drilling; • Björkdal long term plan focus higher grade areas; and • Exploration success at Björkdal, finding higher-grade areas at the Eastern Deeps Central zone, currently obtaining mining permit 1. Assumes average metal prices of: Au $1,797/oz and Sb $10,805/t
  4. 4. 4 Demonstrated Operational Turnaround and Organic Growth TEN CONSECUTIVE QUARTERS of excellent operational results • Stable production results since 2019 demonstrates the stability at Björkdal and growing quality of Costerfield • Sustainable cash cost reductions as a result of higher-grade material and improved underground operations • For 2023: • Costerfield: ramp up stoping on the higher-grade central areas of Youle. Continue development in the Shepherd zone. • Björkdal: increase stoping rates within the lower, higher- grade levels of the Aurora. Initiate development in several higher-grade areas of the Eastern Deeps Central zone. 0 500 1,000 1,500 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2019A 2020A 2021A 2022A 2023E USD$/oz Production AuEq oz Production and Cash Cost Performance 2023E CONSOLIDATED COST GUIDANCE Cash cost $800 – $975 per oz AuEq All-in sustaining cost $1,150 – $1,325 per oz AuEq Capital expenditures $44M – $52M ** Average 2022E cash cost graphed. Costerfield: $560 – $710 AuEq oz produced. Björkdal: $980 – $1,130 Au oz produced. ** Average 2023E cash cost for graphed. Costerfield: $ $800 – $975 AuEq oz produced. Björkdal: $975 – $1,125 Au oz produced Costerfield: 56,000 – 64,000 AuEq. oz Björkdal: 49,000 – 54,000 Au oz
  5. 5. Track Record of Profitability Turnaround resulting in steadily improving financial performance 5 -10,000 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 USD'000 Quarterly Financial Performance Revenue Adjusted EBITDA Adjusted net income (loss) $150.3M REVENUE IN NINE MONTHS 2022 $0.24 ADJUSTED INCOME PER SHARE IN NINE MONTHS 2022 $21.8M ADJUSTED NET INCOME GENERATED IN NINE MONTHS 2022 $156.5M IN NINE MONTHS 2021 $71.0M ADJUSTED EBITDA IN NINE MONTHS 2022 $74.3M IN NINE MONTHS 2021
  6. 6. 6 Expect to be net debt free in 2021 Net Debt Free while Generating Strong Free Cash Flow Improved operations and cash generation expected to significantly improve balance sheet 6 $34.6M FREE CASH FLOW IN NINE MONTHS 2022 $42.6M CASH AS AT Q3 2022 • Revolving Credit Facility: $35M three-year facility with Scotiabank. Proceeds will be used for general corporate and working capital purposes • Normal Course Issuer Bid in place, will fund purchases of Common Shares through surplus cash available from its operations NET DEBT FREE IN Q1 2022 – MAJOR CORPORATE GOAL ACHIEVED -$60,000 -$50,000 -$40,000 -$30,000 -$20,000 -$10,000 $0 $10,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 USD'000 Consolidated Net Debt/ Cash
  7. 7. Capital Structure and Key Shareholders 7 CAPITAL STRUCTURE Share price (CAD$) (1) $2.68 per share Shares Outstanding 92.2M Fully Diluted Shares Outstanding (2) 94.1M Market Capitalization (CAD$) $247.1M Cash and Cash Equivalents (USD$) (4) $42.6M Total Interest-Bearing Debt (USD$) (4) $36.7M Enterprise Value (USD$) (3,4) $191.7M ANALYST COVERAGE BMO Capital Markets Brian Quast Research Capital Stuart McDougall Share Price Performance 1. As at Jan 12, 2023 | 2. Includes: 0.4M RSU, 0.5 PSU, 0.3 DSU and 2M employee stock options with exercise prices of: CAD$0.61 – CAD$6 and expiry dates from Jun 30, 2024 – Jun 30, 2029. 3. Using exchange rate of CAD$1 = USD$0.80 | 4. From Mandalay’s Financial Statements as of Sept 30, 2022 | 5. Ownership positions are estimates - as at Jan 2023 Note: numbers may be rounded 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 0 0.5 1 1.5 2 2.5 3 3.5 4 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Volume CAD$ Volume Close KEY SHAREHOLDERS
  8. 8. 1.7 8.5 Mandalay Peer Group (Average) EV/ TTM Net Cash from OPs Significantly Undervalued Relative to Peers 8 Source: Company filings. 1. Enterprise value reflects share prices as at Jan 11, 2023, for Peer group and of $2.68 for Mandalay. 2. Mandalay actual 2022 production vs. Peer groups’ 2022E Note Peer group: Argonaut Gold, Aura Minerals, Calibre Mining, GCM Mining, Jagurar Mining, Karora Resources, McEwen Mining, Robex Resources, Superior Gold, Victoria Gold and Wesdome Gold Mines Despite operational and financial success, MND trades at lower value relative to peers $1,200 $1,278 Mandalay Peer Group (Average) 2022E AISC (USD$/oz) ~0.9x that of Peers 192 354 Mandalay Peer Group (Average) Enterprise Value (USD$M) ~0.2x that of Peers 3% -26% 16% Spot Price of Gold Peer Group (Average) Mandalay Price Performance since December 31, 2022 151 397 Mandalay Peer Group (Average) EV/Proven & Probable Au oz 106 164 Mandalay Peer Group (Average) 2022E Production AuEq. ('000) (2) ~0.4x that of Peers ~0.5x that of Peers ~0.7x that of Peers
  10. 10. Costerfield Gold-Antimony Mine Production profile reinvigorated by high-grade Youle vein • Constant ramp-up of Youle production since Q4 2019 • Processed grades of 11.8 g/t Au and 3.96% Sb YE2022 • Stable production scheduled over the next 5 years • Highly-prospective land package with massive exploration upside • Recent exploration success, growing mine life 10 OVERVIEW Location Victoria, Australia Land package 1,293 hectares Life of Mine 5 years 2022A/ 2023E Production 64,659 AuEq oz/ 56,000 – 64,000 AuEq oz 2023E Cash costs (1) $650 – $825 per oz AuEq 2023E AISC (1) $925 – $1,075 per oz AuEq 2023E CAPEX $20M – $24M P&P Reserves (2) Total: 769,000 t @ 12.6 g/t Au & 2.5% Sb for 312,000 Au oz & 19,600 Sb t 1. Cash and all-in sustaining costs are non-IFRS measures. Please refer to the Company's management's discussion and analysis for further information. 2. Mining Plus Pty Ltd. Effective December 31, 2021, documented in an independent NI 43-101 Technical Report, filed March 31, 2022 3. Source: Kitco News September 3, 2021, “Richest gold mines in the world in Q1 2021 – report” One of the HIGHEST GOLD GRADE mines in the world (3) 12.61 Au g/t 11.17 Au g/t 11.54 Au g/t 11.21 Au g/t 11.00 Au g/t 9.91 Au g/t 13.04 Au g/t 13.49 Au g/t 13.46 Au g/t 11.01 Au g/t 11.91 Au g/t 5.45% 4.18% 4.10% 3.47% 3.85% 3.96% 4.06% 3.99% 3.61% 2.61% 2.71% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2021 2022 Milled Head Grade Mill head grade Au Mill head grade Sb
  11. 11. Youle Vein: High-Quality, Low-Cost Production and Organic Growth Youle providing Costerfield with sustainable organic growth 11 0 20 40 60 80 100 0 2 4 6 8 10 12 14 16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 Recovery % Grade (g/t or %) Grade and Recovery Mill head grade Au g/t Mill head grade Sb % Au Recovery Sb Recovery - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 - 5,000 10,000 15,000 20,000 25,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 $USD per AuEq oz AuEq oz Production Production and Cash Costs AuEq produced Cash cost per oz AuEq Produced 64,659 AuEq oz PRODUCED YE2022 68,729 AuEq oz PRODUCTION IN YE2021 12.1 g/t Au & 2.9% Sb GRADES IN NINE MONTHS 2022 11.3 Au g/t & 4.0% Sb in NINE MONTHS 2021
  12. 12. Demonstrated History of Replacing Mined Ounces and Resource Growth 12 • Has maintained an approximate 2 – 4 year mine life for the past 9 years. This has grown to 5 years in 2022. • Achieved with minimal exploration spending • Total discovery cost of M&I Resources of approximately $31 per AuEq oz • Historically very little target testing and generative drilling (less than $10M prior to 2020) • Anticipated 2023 exploration expenditure of $7M – $9M, with focus on target testing and generative exploration MANDALAY HAS BEEN PRODUCING FROM COSTERFIELD FOR +10 YEARS $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Exploraiton Expenditure (US$ ,000) AuEq (oz) Costerfield M+I Profile V's Exploration Expenditure (Au Eq. oz) Shepherd Youle Brunswick Cuffley Augusta Cumulative Depletion Infill (US$) Testing (US$) Generative (US$) Yearly Depletion
  14. 14. Exciting District-Scale High-Grade Exploration Potential Costerfield exploration program consists of: 14 1. NEAR MINE VEINING EXTENSIONS 2. CENTRAL CORRIDOR DEEPS 3. SATELLITE DEPOSIT TARGET TESTING Youle Workings and Shepherd Discovery Brown’s Corridor 2.5km of shallow workings with significant grades drilled in 2021 Augusta Portal and Mine True Blue Corridor 3.5km of shallow workings and geochemical signature Brunswick Portal and Processing Facility Antimony Creek Corridor 4km of shallow workings and surface geochemical signature 5km 1km 2.5km Central Corridor 6km of Historic and Current workings delivering +1M oz of gold at 12g/t with current Mineral Reserve of 410,000 oz at 16.6 g/t AuEQ
  15. 15. 1. Youle: Consistent High-Grade Production • Continuous core defined by multiple intercepts of +50 g/t AuEq over 1.8 m minimum mining width • Focus has moved to the high-grade Shepherd Zone however significant production inventory and extension potential exists for Youle NEW HIGH-GRADE RESULTS: NORTH OF YOULE EXTENDING AT DEPTH 345.1 g/t gold and 19.7% antimony over a true width of 0.11 m in BC166W1 316.1 g/t gold and 0.1% antimony over a true width of 0.22 m in BC167 142.0 g/t gold and 0.0% antimony over a true width of 0.07 m in BC157 15 Historic Mine producing from 1863 - 1938 Current Youle Mine has produced 190,000 oz at 17.7 g/t AuEq since August 2019 Shepherd South Potential 2021 Shepherd Discovery 0.11m @ 345.1 g/t Au and 19% Sb 0.22m @ 316.1 g/t Au 0.07m @ 142 g/t Au
  16. 16. 1. Shepherd: Significant Grades Found Through 5 Veins in 2021 – 2022 16 DRILLING HIGHLIGHTS: Eastern Vein Group • 23.6 g/t gold over 6.27 m in BC187; • 426.7 g/t gold over 0.77 m in BC193; • 172.3 g/t gold over 0.27 m in BC213; • 69.5 g/t gold over 1.11 m in BC210; • 399.0 g/t gold over 0.11 m in KD773; • 61.8 g/t gold over 1.66 m in BC214; • 24.6 g/t gold and 2.3% antimony over 1.19 m in BC218A; • 10.0 g/t gold and 2.3% antimony over 8.2 m in BC239; • 14.8 g/t gold and 11.6% antimony over 1.76 m in BC241 Western Vein Group • 460.5 g/t gold over 0.11 m in BC176 (1); • 165.1 g/t gold over 0.20 m in BC176W1; • 231.0 g/t gold over 0.18 m in BC187; • 33.7 g/t gold over 3.22 m in BC201; • 712.8 g/t gold over 0.10 m in BC205; • 19.4 g/t gold over 4.84 m in BC210; • 155.0 g/t gold and 10.5 % antimony 0.11 m over BC234; and • 66.6 g/t gold over 0.25 m in BC220 Eastern Vein Group Western Vein Group Significant southern extension added to the Shepherd Zone – currently with a strike of 500 m 1. All widths quoted are the true widths of the veins or composite zones. 2. True width of BC176 is quoted from only recovered core. There is approximately an additional 40% of veined core that was not recovered. For more information, please see January 29, 2021, press release.
  17. 17. 17 1. Shepherd: Grade Continuity Through Shepherd and Extending the Veining Horizon Mineralization located 300 m further along trend of Shepherd and a further 150 m at depth DRILLING HIGHLIGHTS: Infill drilling extends high-grade veining to the north and southern portion: • 234.7 g/t gold over 4.17 m (ETW 1.49 m) in BC262; and • 377.4 g/t gold over 0.54 m (ETW 0.40 m) in BC371 Mineralization located 300 m to the south along trend of Shepherd and a further 150 m at depth including: • 332.0 g/t gold over 0.33 m (ETW 0.26 m) in BC274W1 Potential third veining horizon located in three drill holes approximately 40 m further west of the known Shepherd veining: • 17.6 g/t gold & 18.6% antimony over 0.17 m (ETW 0.17 m) in BC299 Additional veining located to the east of Youle with high potential for extension: • 22.2 g/t gold & 16.0% antimony over 0.24 m (ETW 0.12 m) in BC295 Drilling above Youle intercepts an undiscovered and unmined panel of veining including: • 27.8 g/t gold & 31.5% antimony over 0.67 m (ETW 0.36 m) in BC328
  18. 18. 2. Central Corridor Deeps 18 Sb+Au Target Au Target 0.19m @ 344.7 g/t Au 2.45m @ 45.5 g/t Au Inc: 0.08m @ 1,361 g/t Au 3 mineralization styles are being targeted at depth below the historic and current mines of the Central Corridor • Youle style (gold-antimony) westward dipping potentials are being targeted below Cuffley and Brunswick and north of Youle • Shepherd style (gold in quartz) subvertical vein arrays have been intercepted under Cuffley and are being re-targeted along with the extension of Shepherd and the potential underneath Brunswick in 2023. • The emplacement environment akin to that of Fosterville (highest grade gold mine in the world (1) and 30 km to the east of Costerfield) has been located below Costerfield. Targeting of this zone will continue in 2023. 1 2 3 1. Source: Kitco News September 3, 2021, “Richest gold mines in the world in Q1 2021 – report”
  19. 19. The following regional programs are expected to recommence in 2023: • Drilling will recommence on satellite targets containing historic mines, insufficient drill testing and encouraging geochemical signatures. • Soil and bedrock geochemical testing will continue through 2023. • An active seismic survey profile will be undertaken across the field enhancing depth and regional targeting. 19 Browns True Blue Robinsons West Costerfield Margaret MacDonald 3. Regional Exploration Antimony Creek
  20. 20. 3. Regional Exploration: Robinson Prospect 20 Section at 5040N showing the location of surface historic workings and the location of new drilling at depth. Initial 4 holes intercepted visible gold in the immediate surrounds of the historic Robinson Mine approximately 2 km from Costerfield’s operating underground infrastructure. Identified a potential offset to the historically producing Robinson Mine with an intercept of: • 1,780 g/t gold over 0.17 m (estimated true width of 0.15 m) in RB007 Images of the RB007 intercept including a picture of the core tray showing surrounding breccia and assays grades (A), hand specimen of the uphold contact of the mineralized breccia (B) and micrographs of some of the gold grains (C)
  21. 21. Three Keys to Value Creation at Costerfield 21 Continued Sustainable High- grade Production Deep Hole Drilling Exploring High-Potential Targets • Costerfield is the second highest grade gold mine in Australia after neighboring Fosterville mine. Shepherd discovery continues high grade results • Increasing gold recoveries at plant with CavTube flotation installation Targeting high-grade mineralization at depth • Regional success has shown potential for super grade deposits within the region • The second hole in this program intercepted visible gold in two zones at a depth of 900 m and 1,000 m • Deep hole program will continue throughout 2023 Surface drilling on highly-prospective targets • Shepherd targets continue to return significant results in 2022 • Targets currently being drilled and planned include; Margaret, Brunswick Deeps, Cuffley Deeps Youle Extension, Eastern Youle, True Blue, and Robinsons • Exploration update videos available here
  23. 23. Björkdal Gold Mine LONG LIFE ASSET WITH SIGNIFICANT HIGHER GOLD GRADE OPPORTUNITIES AND MINING OPTIONALITY • Currently ramping-up production of higher-grade, more profitable underground ore, including Eastern Deeps following mining permit • Exploration success and development ramp-up at higher-grade, wider Aurora zone continues 23 OVERVIEW Location Skellefteå, Sweden Land package 12,949 hectares Life of Mine 9 years 2022A/ 2023E Production 41,247 Au oz/ 49,000 – 54,000 Au oz 2023E Cash costs (1) $975 – $1,125 per Au oz 2023E AISC (1) $1,325 – $1,475 per Au oz 2023E CAPEX $24M – $28M P&P Reserves (2) 12.2 mt @ 1.39 g/t Au for 542,000 Au oz 1. Cash and all-in sustaining costs are non-IFRS measures. Please refer to the Company's management's discussion and analysis for further information 2. Mining Plus Pty Ltd. Effective December 31, 2021, documented in an independent NI 43-101 Technical Report, filed March 31, 2022
  24. 24. Björkdal Gold Mine: Operations 24 Operational focus is on ramping-up supply of higher-margin underground ore feed to the mill - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 Tonnage Processing Underground Open Pit Stockpile 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 Au grade g/t Au Production oz Production & Grade Au Production Au grade 41,247 Au oz PRODUCED IN YE2022 45,236 Au Oz PRODUCED IN YE2021
  25. 25. Extension Drilling: Targeting Areas of Elevated Grades and Veining Continuity • Anticipated 2023 exploration expenditure of $3M – $5M • Aurora and surrounding veining remains the dominant source of ore at Björkdal • Exploration focus has transitioned from Aurora extension to brining into resource, other areas of veining where elevated grade are probable • The Eastern drilling follows the strike extension of the Main, Central and Lake Zone veining to the east and at depth as the deposit plunges to the east • Significant high grades have been located within the eastern extension veining • 2023: underground drilling will focus further on this eastern area as well as the recommencement of Norther Zone drilling, infilling and extending the identified long lived veins north of Aurora 25 Area offers upgrade potential for the mine Perspective view of the Björkdal Mine looking towards the SW highlighting the interaction of the veining (Red), Marble (Blue) and Björkdal fault (Yellow). Drilling from the 2022 Eastern extension and North Zone programs is also shown.
  26. 26. Eastern Extension Programs 26 EASTERN EXTENSION HIGHLIGHTS: Central Zone Extension • 47.7 g/t gold over 11.7 m (Estimated True Width “ETW” 5.85 m) in MU21-052: o Including 1,056.0 g/t over 0.40 m; • 47.5 g/t gold over 6.4 m (ETW 4.11 m) in MU21-047: o Including 716.0 g/t over 0.31 m; and • 507.0 g/t gold over 0.45 m (ETW 0.23 m) in MU21-051; • 45.5 g/t gold over 2.3 m (ETW 1.15 m) in MU21-028; Main Zone Extension • 174.0 g/t gold over 0.50 m (ETW 0.49 m) in MU21-010; • 6.1 g/t gold over 10.8 m (ETW 8.85 m) in MU21-010; and • 105.0 g/t gold over 0.30 m (ETW 0.21 m) in MU21-015. Lake Zone Extension • 119.2 g/t gold over 0.65 m (ETW 0.44 m) in MU21-028; • 226.0 g/t gold over 0.30 m (ETW 0.21 m) in MU21-029. • 92.2 g/t gold over 0.50 m (ETW 0.40 m) in MU21-029. Eastward mine extension drilling programs indicates an upgrading with depth at Björkdal. Focused perspective view of the Björkdal Mine looking towards the SSW highlighting the interaction of the veining (Red) Marble (Blue) and Björkdal fault (Yellow). Drilling of the 2021 Eastern Extension drilling programs are shown. Main Zone Central Zone Lake Zone
  27. 27. 27 Northern Extension NORTHERN ZONE HIGHLIGHTS: • MU22-002 • 155.0 g/t gold over ETW of 0.61 m; • 183.0 g/t gold over ETW 0.34 m; • 64.8 g/t gold over 0.85 m (ETW 0.55 m) in MU22-002 • MU9-016 • 33.5 g/t gold over an ETW of 0.27 m; • 27.6 g/t gold over ETW of 0.75 m; and • 10.5 g/t gold over ETW of 0.40 m • 27.0 g/t gold over ETW of 0.60 m in MU20-001; • 2.5 g/t gold over ETW of 2.5 m in MU20-002; • 8.7 g/t gold over ETW of 0.19 m in MU20-003 and; • 37.2 g/t gold over ETW of 0.27 m in MU20-006 • Sheeted Aurora orientation veining has been identified up to 500 m to the north of current workings. • Veining is underexplored however initial interpretation indicates a breadth of veining similar to Aurora. Section Looking West showing the Northern Zone veining in relation to Aurora North Zone Aurora Central Zone Lake Zone Main Zone
  28. 28. Regional exploration in 2023 will focus on drill testing the highest priority targets within 2 different styles of mineralization. • Björkdal style (gold in sheeted quartz veining) veining has been observed in Mapping, Base of till drilling and historic diamond drilling to the east of Björkdal. • Boliden style (VMS Copper Gold) is targeted to the south-west of Björkdal with some targets sharing a structural connection with the historic Boliden Mineralization • Generative Process will continue including Base of Till drilling, Ground Magnetics and Induced Polarization surveys. 28 Regional Testing: Generating Significant Targets Through Mapping and Sampling Boliden OP-UG (1925-1966) 8.3 Mt @ 15.9 g/t Au Au-Cu-As VMS Strömfors deposit 2.59 Mt @ 2.95 g/t Au Au-Ag-Cu-Zn-Pb VMS Norrberget 162 Kt @ 2.8 g/t (reserve) Backfors Storslyet Granholm Tarsnas-Nyholm Vidmyran East Björkdal Storheden Björkdal 17.2 Mt @ 2.07 g/t (M&I Resource) Lapptjarm
  29. 29. The Path Forward 29 Underground Production Focus on More Profitable Ore Exploring High-Potential Targets • Underground ore is higher-grade and most profitable mill feed • Process 1.2Mtpa from underground sources and less low-grade stockpile • Increased mill throughput planned • Increase Aurora zone’s contribution to overall mill feed • Focus on other high-grade vein systems • Extend the mineralization of Aurora zone • Initiate development in several higher-grade areas of the Eastern Deeps Central zone Underground production, delineation of the Aurora zone and development of the Eastern Deeps Central zone currently underway • Exploration update videos available here
  31. 31. Creating Long-term Sustainable Value for Shareholders Through: 31 1. 2. 3. 4. Responsible leadership. Continuously improve our best practice regarding safety, environmental standards and involvement with local communities and other stakeholders Innovation. Continue growing the production and cash generation from our operations Value-creation driven by strategic exploration of current resources funded by organic cash flow. Ultimate aim of expanding our assets’ life of mine to +10 years Efficient capital allocation Continue to evaluate opportunities for inorganic growth Continue to build a cycle resilient, diversified and sustainable producer
  32. 32. Investment Summary 32 Strengthened Operations Strengthened Financial Performance and Return to Profitability High-Potential Exploration Upside High-Potential and Fully-funded for Future Growth • Costerfield: High-grade Youle and Shepherd vein major growth catalyst • Björkdal: Focus on higher-margin ore • Strong growth in revenue, adjusted EBITDA and adjusted net income • Generated $35M in free cash flow during first nine months of 2022 • Continuing regional exploration highly-prospective targets at both assets • Defined pipeline for long-term value creation • Cash position of $42.6M as Q3 2022 • Became net debt free in 2022 • Fully-funded exploration programs • High potential for future profitability and growth
  33. 33. 33 Edison Nguyen 647.260.1566 ext. 1 e.nguyen@mandalayresources.com @MandalayAuAg TSX: MND OTCQB: MNDJF mandalayresources.com
  34. 34. APPENDICES
  35. 35. Non-Core Assets: Chilean Properties 35 La Quebrada Copper-Silver Project • High-level geological evaluation of property ongoing • Advanced exploration stage project • Excellent location and access to infrastructure – 40 km from La Serena (Region IV, Chile) • District-wide consolidation opportunities Land package 8,907 hectares Ownership 100% Indicated Resources (1) 459M lbs Cu @ 0.6% Cu & 11.2M oz Ag @ 10 g/t Ag Resources are excluded in the Company’s total 2020 Mineral Reserves and Resources 1. Source: La Quebrada NI 43-101: “La Quebrada Copper-Silver Project, Casa Piedra Sector” Technical Report completed by Michael Easdon. Filed on SEDAR on Aug. 16, 2017
  36. 36. Costerfield Mineral Reserves 36 Mineral Reserves at Costerfield (as of Dec 31, 2021) Category Tonnes (kt) Au Grade (g/t) Sb Grade (%) Cont. Au (koz) Cont. Sb (kt) Proven Proven Underground 267 15.9 4.4 136 11.7 Proven Stockpile 41 10.1 3.3 14 1.4 Probable Underground 460 10.9 1.4 162 6.5 Total Proven + Probable 769 12.6 2.5 312 19.6 Source: Mining Plus Pty Ltd. Effective December 31, 2021, documented in an independent NI 43-101 Technical Report, which will be filed within 45 days from filed Feb 16, 2022
  37. 37. Björkdal Mineral Reserves 37 Sources: Mining Plus Pty Ltd. Effective December 31, 2021, documented in an independent NI 43-101 Technical Report, which will be filed within 45 days from filed Feb 16, 2022. Norrberget Open Pit: SLR Consulting Ltd. Effective December 31, 2020, documented in an independent NI 43-101 Technical Report filed Mar 31, 2021 Mineral Reserves at Björkdal (as of Dec 31, 2021) Category Tonnes (kt) Au Grade (g/t) Cont. Au (koz) Proven Underground 1,127 2.05 74 Probable Underground 5,350 1.76 302 Open Pit 2,949 1.07 101 Norrberget Open Pit 162 2.80 15 Stockpile 2,532 0.61 50 Total Probable + Probable 12,121 1.39 542
  38. 38. A Values-Based and Values-Focused Company Sustainability underpins everything we do. WE ARE SUCCESSFUL WHEN: • Our employees live and work safely and experience the personal satisfaction that comes with high performance and recognition • The communities in which we operate value our presence • Our environmental impact is minimized and causes no permanent harm • We have a large, diversified set of customers who are delighted with and compete for our products • Our shareholders realize a superior total return on their investment and support our corporate values • Our values are visibly demonstrated by strong local management, at the point of impact with our stakeholders, and coordinated across the Company for maximum effect 38
  39. 39. Management and Board of Directors 39 Dominic Duffy President, Chief Executive Officer & Director Senior Management Board of Directors Nick Dwyer Chief Financial Officer Ryan Austerberry Chief Operations Officer Chris Davis Vice President, Operational Geology & Exploration Bradford A. Mills Chairman Braam Jonker Lead Independent Director Dominic Duffy President, Chief Executive Officer & Director Rob Doyle Director Julie Galloway Director Amy Freedman Director Terry Ackerman Director