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

Bullboard - Stock Discussion Forum 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... see more

TSX:MND - Post Discussion

View:
Post by Nick2021 on May 09, 2024 3:09pm

MND hedge

I was dumbfounded to find out on today's conference call that 4 months ago MND decided to hedge a quarter of its production . . .  naturally, right before gold prices took their huge leap this year.  This is absolutely unbelievable -- after eating HUGE costs from the financing hedge that we were forced to accept as the price of not going bankrupt, and waiting forever for the company to finally be free of that millstone, they do the following:

2023 -- crater production right as the hedge goes away
2024 -- take on a new hedge, just before gold prices shoot up (which, incidentally, is exactly what happened with the last hedge

Anyway, I assume that this is what that throwaway line about a "6 million dollar loss" in the financials refers to; which means that over the course of this year, assuming the price of gold stays the same, the cost of the hedge is going to be more than the free cash flow of a full quarter.  Good job!
Comment by Golder007 on May 09, 2024 3:22pm
Dumb people like you Nick should be put in care facility. Truly your math is as incorrect as your post. This company has great value to unfold from higher gold price. if you dont like the stock, selll it and stop complaing.. "I assume that this is what that throwaway line about a "6 million dollar loss" in the financials refers to; which means that over the course of this year ...more  
Comment by Nick2021 on May 09, 2024 3:35pm
"Truly your math is incorrect as your post" It's not my math, I'm taking it from the Q1 finances.  Here is the relevant line: "Adjusted net income was $12.2 million in the first quarter of 2024, which excludes a $6.0 million loss on financial instruments and $0.3 million of write-off of assets," A six million loss for one ...more  
Comment by Lowcapmocap on May 10, 2024 7:19am
I absolutely agree. I was wondering what the unrealized loss was related too. At least it was only one quarter so I'll cut them some slack. Only positive now is that they've acknowledged their mistake and will not hedge into the future (also q2 QoQ results will look very impressive from the artificial q1 suppression, unless gold heavily corrects). What concerns me more is the renewal of ...more  
Comment by the_ocotillo on May 10, 2024 9:49am
The M&A asperations are a huge red flag (for me anyway) I've been around since Gold Ore Resources (Bjorkdal mine only) which was somehow bought off by Elgin Mining (Lupin gold mine garbage fire) which was bought by Mandalay (Cerro Bayo silver mine now worth only $1m to shareholders thru Equus shares).  Funny how they didn't put out a "glowing" press release in FEB ...more  
Comment by Nick2021 on May 10, 2024 11:21am
Agreed.  One of the things that I liked about Mandalay in the past was that they just mined gold and didn't mess with the financialization side of the business; until they had to take on a hedge to qualify for a loan, they didn't use them.  Taking on a hedge when gold is at an all time high can only be done for two reasons: 1)  their operations have become so marginal that ...more  
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities