Post by
Lowcapmocap on Mar 01, 2024 12:08pm
Extremely, EXTREMELY BULLISH!
Gold has pretty much consolidated above 2000 USD an ounce and seems to be resuming higher. I was expecting sentiments in the gold mining space to come back after gold breached 2000 but it was more fragile than expected. This time round if gold glides above 2100 and beyond I have no doubt the PM mining space will get it's mojo back. Potential for an explosive gold rally from these level are quite high, and if the US macro data comes out weak next week then hold on for the ride.
With Mandalay this year has the potential to be phenomenal with: higher realized gold prices than even accounted for (they assumed the gold price would average 1900 when making they FY 2024 guidance); no more hedges; buying back of stock (yes they actually bought and cancelled over 160k units of stock last year with way more to be bought back this year); both mines operating at full capacity; a team and board that very aware of making sure to manage capital in a sensible way and make decisions on when the available capital is appropriate: potential silver exploration equity upside.
Again with the illiquidity of this stock the potential for a lightening quick correction to the upside is high so current prices are probably a gift to anyone wanting to add to their position
Biggest concerns to watch imo are to see if exploration yields results as a lot is being spent on it now, and to keep an eye on those ASIC costs.
Anything can happen but right now it's looking good for Mandalay and the junior mining space. 2024 could be Manadaly's best year