TORONTO, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) today announced revenue of $48.5 million, adjusted EBITDA of $13.8 million and consolidated net income before special items of $1.1 million, or $0.00 per share, for the third quarter of 2016. The Company's unaudited consolidated interim financial results for the three months ended September 30, 2016, 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 at www.mandalayresources.com. All currency references in this press release are in U.S. dollars except as otherwise indicated. In accordance with the Company's dividend policy, Mandalay's Board of Directors declared a quarterly dividend of $2.9 million (6% of the trailing quarter's gross revenue), or $0.0065 per share (CDN$0.0086 per share), payable on November 24, 2016, to shareholders of record as of November 14, 2016. Consolidated revenue increased to $48.5 million from $43.3 million in the third quarter of 2015, largely due to increases in prices of gold, silver and antimony. Adjusted EBITDA rose proportionately to $13.8 million from $11.5 million. Operational income before tax decreased to $1.2 million from $2.2 million in the prior year quarter, and consolidated net income decreased to $0.5 million from $1.6 million in the third quarter of 2015. These decreases were due to a combination of higher taxes at Costerfield, which has exhausted its tax-loss carryforwards, and the write-off of $1.2 million for mineral properties and exploration. Commenting on third quarter 2016 financial results, Dr. Mark Sander, President and CEO of Mandalay, noted, "Mandalay generated strong revenue and adjusted EBITDA in the third quarter of 2016 despite the impact of the suspension of operations at Cerro Bayo due to the fatality incurred in September (see Mandalay's press releases of September 11 and 19, and October 12, 2017). Total production in the current quarter was 34,586 ounces of gold equivalent, less than the year-ago quarter production of 40,293 ounces of gold equivalent due to the operational suspension at Cerro Bayo. Cash cost of production was higher in the current quarter than in the third quarter of 2016 ($970 per ounce gold equivalent vs $783 per ounce gold equivalent in the year ago period), due to ongoing fixed operating expenses incurred at Cerro Bayo through the suspension. Therefore, stronger financial outcomes are due mostly to higher metal prices in the current quarter than in the third quarter of 2015. Mandalay ended the quarter with $74.6 million in cash and cash equivalents, up from $45.7 million at the beginning of the quarter, largely due to our recent equity financing (see Mandalay July 26, 2016, press release), coupled with a year-on-year increase in EBITDA.""Cerro Bayo saleable production during the quarter was 2,831 ounces gold and 388,139 ounces silver, significantly lower, as expected, than in the third quarter of 2015 (5,305 ounces gold and 632,498 ounces silver) due to the safety-related operational curtailment, combined with the ongoing slower transition to the new Coyita and Delia SE mines from plan. Unit mining and processing costs increased in the current quarter compared to the year-ago quarter due to the ongoing fixed costs incurred during the curtailment. The impact of this carried through to high cash and all-in costs per saleable ounce of silver produced.