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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

Post by Lowcapmocapon May 17, 2024 5:17am
265 Views
Post# 36044832

I'm out

I'm out Hopefully for everyone else that means it rockets from here XD

On a more serious note I sold my whole position about a day after my last post really due to the reintroduction of the gold hedges (which will restart in July and end in March 2025). M&A talk already had me very concerned but now that we're possibly in a (most likely already in one) historic pm bull run I don't feel comfortable missing out on the true leverage that unhedged miners can give you.

Knowing that about 17k mined gold ounces will be sold this year around $2150 when gold could easily be above $2400 for the rest of the year is ridiculous. The hedge will only work out if gold falls below $1980 (or something around that), and imo that is not happening. Whoever suggested the hedge should be fired. 

Dominic Duffy stepping down was a bigger loss than I realized as now the direction of the company seems a bit muddled. Before it was about getting out of debt, dealing with obligations, expanding the resource and then reintroducing dividends as soon as the balance sheet became healthy (heck they actually bought back some shares last year to give them credit while this team bought zero when the price fell to c$ 1.50). Now it seems like shareholders are expected to wait while hoping these harebrained schemes (like bad hedging and m&a in a bull market) payoff so I doubt you'll see any buybacks or dividends anytime soon (especially as reclamation costs spike next year as lupin get wound up)

I may come back to it if the company gets it's act together but right now I'd rather have more money in gold, silver or copper stocks I own which have vastly outperformed this stock (and continue to outperform by 2x plus). 

Duffy led this company out of the grave and dealt with unfortunate circumstances to get to a great position to really profit from this bull market.

This new team shot themselves in the foot and are wasting years of hard work.

I'll take my chances elsewhere 
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