Mandalay Resources Corp. T.MND

Costerfield mine fire

[Nick2021]

This production report is literally unbelievable  -- 2023 guidance is already halfway out of reach.  To hit the LOW end of 103,000 Au Eq, MND has to produce 27,666 ounces for Q2, Q3, and Q4.  

This quarter they produced 19,986.  To hit that, they have to increase production by 38% from Q1.  Let's look at WHY production was so low.

First off, what are 'temporary root causes'?  That statement means nothing.

Why was Costerfield production down?  "processed grades were below expectations as the feed to the mill required a higher volume of lower grade stockpile material to supplement the lower level of mined tonnes during the quarter."  This is a description, but not an explanation.  Oh, I see -- production was down because we mined low-quality ore.

Here's something they didn't mention (not sure why) -- there was a major fire at Costerfield:  https://www.abc.net.au/news/2023-03-05/augusta-mine-rescue-after-fire-costerfield-victoria/102055730

I wonder what's up with that fire?  According to the news report, MND is investigating it -- anyone hear a peep about it?  Would that be a 'temporary root cause'?

For Bjorkdal, there is no explanation -- some problem with personnel and trucks, but these can't have been serious, because they put MORE through their mill than they expected.  What does that even mean?

[Sherry35]

I read the article on the fire at Costerfield. No mention in the production report. Event like that would stop all operations.