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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 Costerfield operation is located in Victoria, Australia, within the Costerfield mining district, approximately 10 km northeast of the town of Heathcote, Victoria. Youle and Shepherd are the main source of material for Costerfield. The Costerfield operation has a land package of approximately 1,219 hectares. 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 Bjorkdal mine produces ore from the Aurora zone underground mine, as well as from a stockpile of low-grade material accumulated over the course of its life of mine. The Bjorkdal operation has a land package of around 12,949 hectares. Its non-core properties include Lupin mines (Canada) and La Quebrada (Chile).


TSX:MND - Post by User

Comment by Nick2021on Feb 01, 2022 12:49pm
289 Views
Post# 34385851

RE:RE:Time for Duffy to Reinstate the Dividend!

RE:RE:Time for Duffy to Reinstate the Dividend!I personally think that MND stock will not appreciate significantly in value unless the company succeeds in doing two things simultaneously:

1)  continue to increase production at Costerfield
2)  increase Costerfield's mine life out to at least 7 years

The latter is key, because without it, MND is simply not a realistic takeover/merger target.  Costerfield is a great mine for throwing off free cash flow, but if it is going to give up the ghost in 4 years or so, who would want it?  The fact that MND has successfully maintained it at 4+ years of mine life for over a decade doesn't mean anything.  They need to drill it out and get the reserves up high enough to sustain a longer timeline.  Bjorkdal, even with the great drill results, just isn't in the same league (yet).  

This is why they should have a dividend.  If Costerfield produces a huge amount of free cash, but that isn't reflected in the share price, they have to find some way of paying people who hold their paper.  A dividend is straightforward and simple.  Otherwise, they're just depleting their reserves to absolutely no shareholder benefit.  This will be doubly true in another 5 quarters, when the hedging agreement will be finished.  
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