RE:RE:RE:Second Quarter Thales42,
Take a deep breath, and step back and look at the big picture here.
On August 10, there was an early warning report published on SEDAR in which the recent activities of GMT Capital Group were disclosed. Here is the BIG NEWS:
Check out Section 2.2: "During the month of July 2020, certain of GMT's hedge fund and private client managed accounts acquired an aggregate of 1,397,700 Common Shares over the facilities of the TSX at prices ranging from $1.37 USD to $1.40 USD per Common Share."
I checked the monthly July trading volume on the TSX, and it is listed as 1,089,841 shares changing hands, and the monthly volume of MNDJF on the OTC was 205,948. Combine the USD and Canadian trading volume and the total trading volume is 1,295,789 shares!
That news release tells me that GMT is sitting there buying up every single available Mandalay Resources share while having their brokers control the stock price within a narrow 15 cent trading range. So they are picking off weak longs who are upset over Mandalay's hedging losses or the stock's failure to do a double with the rising price of gold.
So you have to ask yourself whether you should donate your shares to GMT at this point in time, or whether you should join GMT and buy every extra share that you can while GMT's brokers are doing you a favor by keeping MND's stock price LOW?
So I would totally ignore the hedging loss from Q2, and focus on two facts. The new hedging arrangements are much better than the previous hedging, so I expect the hedging losses to be much smaller in Q3 and Q4. Second the increase in gold production at Bjorkdal and Costerfield mean that only about 1/3 of gold production will be hedged in Q4 2020.
Finally, my total revenue projection for 2020 is about $209 million USD with a total profit (not counting hedges) of 72 cents per share, which would top their previous record profit of 14 cents per share made in 2012. So on a 20 PE unhedged, I could see MND trading at 14 dollars per share by next March. This is why GMT is buying every available share!
Every serious gold bug should be either holding their existing positions of MND or adding more shares at this time.
ganndolph