Mandalay Resources Corp.

Mandalay Resources Corp. is a Canadian-based natural resource company with producing assets in Australia and producing and exploration projects in Chile. The company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.

Expert Comments:

Benjamin Asuncion, Haywood Securities (4/14/15)
"Mandalay Resources Corp. reported consolidated Q1/15 metal sales of 44.7 Koz Au eq, which was in-line with our estimates. Consolidated gold-equivalent production totaled 42.3 Koz Au eq. . .Cerro Bayo reported metal sales of 793 Koz silver and 7.1 Koz gold (1.3 Moz Ag eq). . .and production of 591 Koz Ag and 5.0 Koz Au (1.0 Moz Ag eq). The lower production is estimated to be attributed to lower planned mine grades (due to mine sequencing), as management reiterated guidance implying grades and resultant production are anticipated to increase later in the year."

Andrew Kaip, BMO Capital Markets (4/13/15)
"Mandalay Resources Corp. released Q1/15 saleable production of 591 Koz silver and 27.7 Koz gold, approximately 19% and 8% below our forecasts of 727 Koz and 30.0 Koz, respectively. However, sales of 793 Koz silver and 28.7 Koz gold were essentially in-line with our forecasts. . .the production miss is largely attributed to lower-than-expected head grades at Cerro Bayo as Mandalay prepares to transition mining from the Fabriola vein to the Delia SE mine around mid-year. . .we expect higher sales to largely offset the negative earnings and cash flow impact of lower-than-expected production in the quarter."

Chris Thompson, Raymond James (4/13/15)
"We are maintaining our Strong Buy 1 rating following Mandalay Resources Corp.'s release of in-line Q1/15 production results. We see steady-state 2015 production from Costerfield and improving grade driven production profiles at Cerro Bayo and Bjorkdal, which underpin the company as offering a robust and prudent growth profile (to more than 200 Koz Au eq in 2017E), a diversified metal and jurisdictional mix, and an ability to deliver free cash flow and a dividend at current metal prices."

Mike Parkin, Desjardins Securities (4/13/15)
"This afternoon after market close, Mandalay Resources Corp announced its Q1/15 production results. . .despite the light production in Q1/15, the company is maintaining its full-year production guidance of 167–185 Koz Au eq; Q1/15 production represents 24% of the midpoint of guidance so we are not concerned about Mandalay missing guidance. We model Mandalay beating guidance and expect that the Street is likely expecting production that is in-line. . .Mandalay is working to develop a new production plan to incorporate the new higher-grade reserve estimate into the mine plan at Bjorkdal."

Chris Thompson, Raymond James (4/2/15)
"We continue to regard Mandalay Resources Corp. as a top quality story that's on the verge of material cash flow and production growth. A revised mine plan for Bjorkdal supports robust economics and growth (production, cash flow) commencing in 2016; that underpins our view of the company as offering a robust and prudent growth profile (to +200 Koz Au eq in 2017E), a diversified metal and jurisdictional mix, and an ability to deliver free cash flow and a dividend at current metal prices."

"I like Mandalay Resources Corp. Its management is very experienced in rescuing assets that have been mismanaged. Mandalay has turned around the Cerro Bayo silver-gold mine in Chile and the Costerfield gold-antimony mine in Australia. Last year, it bought the Björkdal gold mine in Sweden from Elgin Mining, and I think Mandalay will turn that around too. Management owns a lot of stock. Mandalay pays a healthy dividend: 5.4%. The market has not yet completely woken up yet to this stock. We still think it's easily a 100% gain. It's one of our top five holdings." read more >

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