Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 challenger426on Jan 19, 2023 9:10pm
264 Views
Post# 35234663

RE:RE:MND seems so undervalued

RE:RE:MND seems so undervaluedThanks for providing your list to consider.  Let me add that the Share buyback program could reduce the shares outstanding by up to 5% which will be added to the bottom line for 2023.

The market cap I mentioned for MND is only the present market cap, which we can all agree is extremely low.  That was my point. That means a takeout offer can come in much higher than the current share price.  It will not be a simple merger of 2 companies type as we have seen with some gold company deals lately.  On the other hand, nobody will pay anywhere near a $2.52B market cap unless they strongly believe the price of gold will go up considerably from here.  A $750M to $1B takeout is very reasonable at this point but I think a $500M offer would be considered by investors thinking short term which is a double in the share price.

At a $2500/oz average gold price, the worst and best case scenario using the same Capex cost and numbers in my previous post gives me a share price range for MND between $10.96 to $14.85.  Will gold go up another 600/oz from here within the next year, two, or three?  The share price range in my numbers all depends on hitting the lower or higher AISC and gold production targets.  At $10.96 share price is about a $1B market cap using the 92.5M shares outstanding. 

For now with a gold price at $1900/oz, we know MND should be trading between $4.15 and $7.19 again depending on actual AISC and gold production for 2023.  To go higher than these numbers, gold production at their mines or the gold price needs to increase.  Reducing shares outstanding, debt, etc, can also help the bottom line. 

<< Previous
Bullboard Posts
Next >>