Customers

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Mandalay produces a variety of products for our customers worldwide. We believe it is vital to the Company to ensure that we maintain a diversified set of customers who are delighted with, and compete for our products. Mandalay has consistently worked to increase its customer base and distribute the best product to the right customer. At Costerfield this entailed the development of a gravity gold concentrate product that is sold domestically, enabling better pricing for Mandalay from a higher quality product best suited for local refineries, which does not contain an antimony by-product.

Product Quality
To ensure we have a product that customers will compete for, product quality is crucial. In many cases for the concentrates the Company produces and sells, pricing is dependent on the quality of the product. Thus, the Company realizes the importance of a commitment to performance and innovation, to continue to focus on processing improvements to optimize our recoveries, which consequently has a direct impact on the quality of our products. The chart below illustrates that Mandalay has a growing customer base and are paying steadily reducing commercial and treatment charges for our products.

Total_Commercial_Charges

Flotation Automation at Cerro Bayo
The automation project at the Cerro Bayo mill was designed to improve the metallurgical results in the flotation process by improving/implementing system controls that monitor variability of metallurgical parameters in real-time and facilitate adjustments to the operating parameters (flow rates for mill feed, pulp, compressed air and water) from the control room. Design and implementation of the project began in 2013 and took approximately 12 months.

The project’s metallurgical performance improvements manifested themselves in the form of improved gold and silver recoveries and the grade of metal in the Company’s silver-gold concentrate, maintaining a consistent grade of 11,500 grams per tonne of silver in the concentrate.