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Mandalay Resources Corp. T.MND

Alternate Symbol(s):  MNDJF

Mandalay Resources Corporation is a Canada-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine). The Company’s operations include the Costerfield mine, Bjorkdal mine, and non-core operations. The Costerfield mine operation is located in Victoria, Australia, within the Costerfield mining district, approximately 10 kilometers (km) northeast of the town of Heathcote, Victoria. The Bjorkdal operation is located within the Boliden mining district, approximately 28 km northwest of the municipality of Skelleftea and approximately 750 km north of Stockholm. The Company’s non-core properties include La Quebrada and Lupin. The Company's La Quebrada is a copper-silver development property located in the Coquimbo Region of Chile, neighboring the Minera San Geronimo owned Tugal open pit.


TSX:MND - Post by User

Bullboard Posts
Post by dr_airtimeon Mar 06, 2013 1:03pm
405 Views
Post# 21088221

P&P and M&I Reserves

P&P and M&I Reserves

See below. Would be nice if I didn't have to do this for them as 99% of readers of today's PR won't do this calculation. 

 

If you add up P&P reserves they are 633k Au-equivalent ounces or about a 5 year P&P reserve life based on a 130 Au-equivalent oz/year production profile. 
 
This converts Ag at 54:1 and builds up P&P tonnes of antimony @ current spot of around $5/lb or $1100/tonne and then divides by spot gold @ $1580. The P&P Antimony is only around 50,000 Au-equivalent ounces. The calculation is:
 
7200 tonnes x $USD 11,000/tonne = $79,200,000 gross metal revenue / Au $1580/oz = 50,126 Au-equivalent ounces. 
 
M&I resources for their two producing mines (Cerro Bayo & Costerfield) are around 900 Au-equivalent ounces. You need to look at the consolidated M&I table in the PR and ignore the copper resources and back out 11M of silver resources from their Chilean La Quebrada development stage project. 
 
 
Would be nice if this time next year we have close to 1M Au-equivalent P&P oz, another near-term production undergound precious metals mine we bought for a song from either the swath of TSXV juniors going under, or projects majors will be disposing this year, plus we are guiding for 140-150k Au-equivilant ounces in 2014 and gold is over $2000 and silver over $40 so our EBITDA is $200M for 2014 (it was $29M in Q4) which would have to put us at least at a $600M MC or 3X multiple which is close to a double from here. 
 
That is my thesis anyways. MND had been my best performing PM stock over the last 5 months by staying flat since the Divvy announcement. 
 
If you don't know the Mandaly story, they bought both Costerfield and Cerro Bayo for a steal in 2009 after the financial crisis so 2013 is looking great for them to follow through again. 
Bullboard Posts