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Mandalay Resources Corp.

TICKER: MND:TSX

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.


The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Comments:

Andrew Kaip, BMO Capital Markets (9/17/14) "Last week, Mandalay Resources Corp. announced completion of the acquisition of Elgin Mining Inc. and an update on the Challacollo project. The Elgin transaction provides Mandalay exposure to incremental gold production from the producing Björkdal gold mine in Sweden. . .completion of the Elgin transaction reflects a positive step toward intermediate gold producer status. BMO Research forecasts that Björkdal has the potential to produce 60 Koz gold annually at cash costs of US$760/oz."

Mike Parkin, Desjardins Securities (9/11/14) "Mandalay Resources Corp.'s management stated that the feasibility study for its Challacollo silver-gold underground development project, which commenced in March of this year, is running on track and on budget for completion by Q1/15. The company has hired the mine general manager and construction manager who are overseeing the feasibility and permitting process; it has selected certain contractors for key aspects of the process, including drilling, assaying and metallurgical test work."

Benjamin Asuncion, Haywood Securities (9/11/14) "Mandalay Resources Corp. completed the acquisition of Elgin Mining Inc. for total consideration of 50M Mandalay shares and $27M in cash. Given the size and breadth of its asset portfolio, management plans to divest non-core assets, namely the La Quebrada copper-silver project in Chile and the past-producing Lupin gold mine in Nunavut, Canada."

Chris Thompson, Raymond James (9/4/14) "Shareholders overwhelmingly approved Mandalay Resources Corp.'s acquisition of Elgin Mining. . .we continue to rate the company a Strong Buy based on a manageable near-term organic growth profile, strong management team as well as exploration upside (Cerro Bayo, Costerfield, Challacollo and now Bjorkdal). Our new target price of $1.50/share (previously $1.40/share) recognizes additional value for Challacollo and a conservative expectation of Bjorkdal's near-term CFPS-generating potential."

Benjamin Asuncion, Haywood Securities (9/3/14) "Mandalay Resources Corp.'s acquisition of Elgin Mining Inc. is expected to close on or about Sept. 10. With the acquisition of Elgin, we estimate consolidated gold equivalent production of 146 Koz at a cash cost of $795/oz in 2014 growing to 207 Koz at a cash cost of $743/oz in 2015 and 215 Koz at a cash cost of $719/oz in 2016."

more comments

Benjamin Asuncion, Haywood Securities (8/15/14) "A secondary offering on a bought deal basis for 40M Mandalay Resources Corp. shares has been conducted by West Face Capital Inc. through an agreement with BMO Capital Markets at a price of CA$1.10/share for gross proceeds of CA$44M. . .this transaction has no direct impacts on Mandalay's financial position as it is a secondary offering."

Benjamin Asuncion, Haywood Securities (8/8/14) "While Mandalay Resources Corp. reported Q2/14 financials that were in line with our estimates, improved visibility on the Elgin Mining Inc. acquisition closing prompts the integration into our formal estimates and drives the target price increase. Given the recent settlement of Elgin's legacy reclamation obligations, which was Mandalay's primary closing stipulation, we view a successful closing as the probable outcome."

RFC Ambrian (8/7/14) "There were no surprises in Mandalay Resources Corp.'s Q2/14 results, and the outlook for the year ahead suggests that the momentum achieved to date will continue. The company (again) demonstrated its reliable productivity and cost control. . .we continue to rate Mandalay as a Buy."

Andrew Kaip, BMO Capital Markets (8/6/14) "Mandalay Resources Corp. reported Q2/14 headline earnings per share of $0.01. . .earnings were in line with our estimate. . .encouragingly, with the transition at Costerfield nearing completion and new design rates achieved at Cerro Bayo, the company anticipates higher production volumes and lower costs in H2/14."

Craig Foggo, RFC Ambrian (8/1/14) "Mandalay Resources Corp. has advanced, by way of the previously disclosed convertible bridge loan, approximately CA$5M to Elgin Mining. The bridge loan bears interest at a rate of 10% per annum, has a term of six months, is convertible into Elgin common shares at Mandalay's option at a price of CA$0.157/share and is secured by, among other things, a pledge of all of the shares of Elgin's Swedish subsidiaries. . .this transaction will assist in the completion of the merger between Mandalay and Elgin, as the agreement is conditional upon the settlement of all outstanding reclamation obligations."

Andrew Kaip, BMO Capital Markets (7/28/14) "Mandalay Resources Corp.'s resolution of Elgin Mining Inc.'s outstanding coal reclamation obligations is an important step to completing the transaction. Accelerated exercise of Elgin's outstanding warrants is expected to increase Mandalay's share count by approximately 12.3M and result in proceeds of CA$2.46M."

Craig Foggo, RFC Ambrian (7/18/14) "Mandalay Resources Corp. has announced drill results from its infill and extensional drilling at the Costerfield gold-antimony mine, Victoria, Australia, during the first half of 2014. . .these results follow those positive drill results announced last week for its Cerro Bayo operation in Chile. The underlying message in both announcements being, resources/reserves will again be replenished and more importantly, grown. . .Mandalay has continued to demonstrate its ability to increase resources at Costerfield, having added 3.8x its original resources since the project was acquired in 2009."

Benjamin Asuncion, Haywood Securities (7/11/14) "Mandalay Resources Corp. provided an exploration update from its Cerro Bayo mine, where widely spaced drilling has extended the distribution of known mineralization at the Coyita and Yasna veins, and has also encountered new subparallel veins in several intersections (e.g., Kasia and Irene veins) (Laguna Verde). . .outside the Laguna Verde area, approximately 2,700m of drilling in 12 holes were completed."

RFC Ambrian (7/11/14) "This quarter, Q2/14, saw a continued solid production performance from Mandalay Resources Corp. . . production numbers were actually sound, with most metals exceeding the previous quarter's production. . .we expect the effects of higher-grade ore at Costerfield and the expanded production rates at Cerro Bayo to lead to the company achieving its guidance production rates over the remainder of 2014."

Benjamin Asuncion, Haywood Securities (7/10/14) "For Q2/14, Mandalay Resources Corp. produced 14.1 Koz gold, 741 Koz silver and 855 t antimony. Production compares with our estimates of 15.4 Koz gold, 782 Koz silver and 867 t antimony. . .the two key takeaways are the ramp-up of Cerro Bayo (1,350 tpd in June versus expanded capacity of 1,400 tpd) and the increasing contribution from the Cuffley lode at Costerfield through to year-end (which we anticipate will deliver higher grades and improvement margins)."

Andrew Kaip, BMO Capital Markets (7/10/14) "Mandalay Resources Corp. released Q2/14 saleable production of 741 Koz silver and 14.1 Koz gold. . .antimony production came in at 855 t, ~11% above the our estimate of 767 t. . .Q2/14 gold equivalent production was largely in line with our forecasts, and the company appears to be tracking to achieve full-year production guidance at Cerro Bay and Costerfield."

Andrew Kaip, BMO Capital Markets (7/9/14) "Mandalay Resources Corp.'s drilling at its Cerro Bay mine identified two new veins under Laguna Verde (the Kasia and Irene veins) and defined the extension of the Coyita vein by establishing a mineralized zone measuring 500m along strike and at least 200m down dip. The weighted average grade from released holes was 290 g/t silver and 3.4 g/t gold over an average true width of 1.4m."

The Gold Report Interview with Chris Mancini (7/9/14) "One that we've been buying recently is Mandalay Resources Corp. That's a company that is taking advantage of the downturn in the gold price. It has two mines that are generating cash flow. One is an epithermal vein system in Chile, the other is an underground mine in Australia. The company has done a good job of adding to the life of both mines through drilling. Mandalay recently bought a project from Silver Standard Resources, another epithermal vein system in northern Chile. And a couple of weeks ago Mandalay announced a friendly deal to buy Elgin Mining Inc., which owns the Björkdal gold mine in Sweden. This is an undercapitalized mine in Sweden that has a lot of exploration potential. If Mandalay gets the mine up to production capacity and then creates value through the drill bit again, we will look back on that as a good deal." More >

Ron Struthers, Struthers Resource Stock Report (6/17/14) "Mandalay Resources Corp. announced an agreement that will add Elgin Mining Inc.'s Bjorkdal gold mine in Sweden as Mandalay's third producing and positive-cash-flow-generating asset. Bjorkdal is a safe, highly productive, mechanized underground and open pit mine with a highly automated processing plant producing gravity gold concentrate and flotation gold concentrate. . .with Bjorkdal's forecasted production for H2/14 added to Mandalay's existing production guidance, the company's total Au eq production guidance for 2014 increases from 152 Koz Au eq to 167 Koz Au eq."

Duncan Hughes, RFC Ambrian (6/11/14) "We have lifted our target price by CA$0.32 and maintain our Buy rating on the back of Mandalay Resources Corp.'s recent acquisition of Elgin Mining Inc. This acquisition is value accretive and should set Mandalay up as a 160 Koz/year Au eq producer. . . the company is expected to continue to be a highly profitable, dividend-paying precious metals producer."

Benjamin Asuncion, Haywood Securities (6/5/14) "Mandalay Resources Corp. increases gold exposure and adds a third mine through its Elgin Mining Inc. acquisition. . .we look for Mandalay to replicate the turnaround success demonstrated at existing mines. . .while the Elgin acquisition adds a modest level of share dilution (~13%), we see potential for management to unlock shareholder value over the medium term while increasing gold exposure (Au eq production of ~30%) and adding diversification."

Andrew Kaip, BMO Capital Markets (6/4/14) "Mandalay Resources Corp. announced plans to acquire Elgin Mining Inc. for approximately CA$70M. . .assuming that Mandalay can execute on the currently planned mill expansion to 1.5 Mtpa and move underground mine grades closer to reserve grade, the Elgin acquisition looks to be 25% accretive to the 10% nominal NPV for Mandalay at spot metal prices of US$18.82/oz silver and US$1,246/oz gold. Following expansion to 1.5 Mtpa in 2016E, BMO Research estimates a 30% increase in earnings per share and 24% increase in cash flow per share. Incorporating Elgin, Mandalay has established itself as a junior gold-focused producer."

Giles Gwinnett, Proactive Investors (6/4/14) "Miner Mandalay Resources Corp. is set to add a third producing asset to its portfolio as it unveiled the CA$70M acquisition of Elgin Mining Inc. Elgin's Björkdal gold mine in Sweden is a positive cash flow-generating asset and would add 50 Koz/year gold to the firm's current 130–143 Koz Au eq per year production rate."

Ron Struthers, Resource Stock Guide (5/15/14) "Mandalay Resources Corp. had a good Q1/14, with revenue of $38.1M, EBITDA (earnings before interest, taxes, depreciation and amortization) of $16M and net income of $5.7M or $0.02 per share for the first quarter of 2014. . .the stock hit new highs this week; if you did not get in around $0.75, I would look for a pullback to the $0.90–0.95 area."

The Gold Report Interview with Adrian Day (5/12/14) "Mandalay Resources Corp. is a well-funded junior with promising projects. It's traded on the Toronto Stock Exchange but it doesn't have a high profile in North America. I think that's one of the reasons the stock is so low. Mandalay has producing assets in Australia and near-term production assets in Chile, primarily gold and silver. It's a $300M company that pays a 3.3% yield. It's trading at $0.98 and I think it's just a steal. We're buying away on that one." More >

Benjamin Asuncion, Haywood Securities (5/7/14) "Mandalay Resources Corp. reported Q1/14 financial and operating results that exceeded expectations, headlined by operating cash flow of $0.05/share. . .the company declared a quarterly dividend of $0.0074/share on May 5, 2014. . .we see 2014 as a pivotal year for Costerfield with the production from the high-grade Cuffley lode contributing to increased production, lower costs and improved margins. . .for Cerro Bayo we see silver production expanded to 3.2 Moz Ag plus Au in 2014."

Chris Thompson, Raymond James (5/6/14) "We are maintaining our Strong Buy rating and $1.40 target price on shares of Mandalay Resources Corp. following the release of its Q1/14 financial results, which beat expectations. . .the company has a manageable near-term organic growth profile, strong management team (which consistently delivers on expectations), as well as exploration upside (Cerro Bayo and Costerfield). In addition, Mandalay is well funded with ~$70M in cash (supplemented recently with a $50M debt financing), which essentially fully funds construction at Challacollo."

Benjamin Asuncion, Haywood Securities (5/6/14) "Mandalay Resources Corp. reported Q1/14 operating cash flow (OCF) (before changes in working capital) of $16.1M or $0.05/share on revenues of $38.1M and EBITDA of $16M, which exceeded our estimates of $10.08M or $0.03/share in OCF on revenues of $36.8M and EBITDA of $11.6M. Stronger-than-anticipated financial performance was largely attributed to lower operating costs and higher realized prices due to a favorable revenue adjustment."

Duncan Hughes, RFC Ambrian (5/6/14) "Mandalay Resources Corp.'s Q1/14 results reflect a continuing solid production performance, with overall profit slightly above our expectations ($5.7M versus our $3.8M forecast) due to our higher cost estimate. . .the company has access to significant capital: an existing $30M revolving credit facility (for corporate, working capital, capex and certain specified acquisitions) and the proposed $50M bond issue."

Benjamin Asuncion, Haywood Securities (4/30/14) "Mandalay Resources Corp. provided an update to the previously announced bond offering on April 23. . .while the terms look comparatively less favorable than those originally outlined in the Arpil 23rd press release, we now have certainty on the prices and the offering still looks favorable in comparison to high-yield debt. . .the proceeds are anticipated to fund the Challacollo capital requirements through start-up."

The Gold Report Interview with Duncan Hughes (4/30/14) "Mandalay Resources Corp. (MND:TSX) is my top Buy recommendation. This is a good example of a low-cost producer that pays dividends. . .Mandalay has long said it is looking to acquire undervalued assets, as it has done successfully in the past. The opportunity to tap into a debt facility obviously puts Mandalay in a much stronger position to make further acquisitions. . .Mandalay said it would pick up an undervalued high-quality asset, and Challacollo certainly looks to be that. More metallurgical work needs to be done, but Challacollo has good potential to be a low-cost silver producer. Mandalay is still all about two successful operations. Cerro Bayo produces silver (after gold credits) at $11/oz all-in. That's low cost. Cerro Bayo was not being mined optimally by Coeur Mining Inc. when Mandalay bought it in 2010. Now Mandalay is making a nice profit on it. Costerfield, Mandalay's gold-antimony mine in Australia, has always been a challenging project. Mandalay has turned it around and made it profitable as well.

Mandalay is undervalued, considering the possibility of expansion in 2014 and the fact that Mandalay is actually making money at current metals prices. Cerro Bayo and Costerfield are high-grade operations, and when you do a standard discounted cash flow model, you obviously can't factor in too much future production. This means that the net present value you generate probably doesn't do the company justice given that it takes many years to drill out the resources and reserves of these ore bodies. At Cerro Bayo, for example, Mandalay recently had some really significant exploration drill results, demonstrating that the current veins being mined continue for some distance under the shallow Laguna Verde. I don't think the market has picked up on the significance of that." More >

John Harrington, Proactive Investors (4/24/14) "Mandalay Resources Corp.'s loan should be value enhancing. . .the company is set to take advantage of the low interest rate environment to raise US$60M. . .the bonds will have a redemption date five years hence and are expected to carry a coupon of between 5% and 5.5% a year."

Benjamin Asuncion, Haywood Securities (4/24/14) "Mandalay Resources Corp. announced a proposed private placement with Gold Exchangeable Ltd. for $60M in senior exchangeable notes. . .we note the attractive terms of the debt offering and that it removes some questions regarding the development of the Challacollo project, should a positive feasibility study be delivered in Q4/14."

Duncan Hughes, RFC Ambrian (4/24/14) "Mandalay Resources Corp., the company with polymetallic projects in Chile and Australia, has announced that it intends to borrow $60M from Gold Exchangeable Ltd. . .the company intends to use the proceeds for general corporate purposes. . .this looks like a very sensible (if somewhat complicated!) funding facility for Mandalay."

Andrew Kaip, BMO Capital Markets (4/24/14) "Mandalay Resources Inc. announced the launch of a proposed US$60M private placement of senior exchangeable bonds. . .proceeds from the bond offering will strengthen the company's financial position as it looks toward a development decision for the Challacollo project at the end of 2014. Indicative terms of the offering suggest a low-cost and non-dilutive form of debt financing for the company."

Benjamin Asuncion, Haywood Securities (4/15/14) "Mandalay Resources Corp. reported production of 13.2 Koz Au, 744 Koz Ag, and 858t Sb for Q1/14. . .at the Costerfield Au-Sb mine in central Victoria, Australia, this quarter marked the first higher-grade ore processed from the Cuffley Lode. . .Cerro Bayo production expanded from 1.3 Moz Ag plus Au in 2011 to 3.2 Moz Ag plus Au in 2014. . .for Challacollo, we estimate 2014 expenditures of $7M to complete a 8,000–10,000m drill program. . .as of December 31, 2013, the company had cash of $33M, working capital of $47M and no debt."

Chris Thompson, Raymond James (4/15/14) "We are upgrading Mandalay Resources Corp. to Strong Buy based on the increased mine lives, coupled with the company's healthy balance sheet (~$23M in cash and no debt), track record of delivering on guidance, exploration upside offered at both mines, and development upside offered at Challacolla. We also highlight the dividend, which is healthy and provides investors downside protection. . .Mandalay has also delivered three years of production growth at Cerro Bayo. . .the acquisition of the Challacolla silver project late last year (from Silver Standard for $15.8M in shares and cash) offers the company further development upside."

Duncan Hughes, RFC Ambrian (4/15/14) "Mandalay Resources Corp.'s Q1/14 production results reflect continued solid performance. . .the year looks to be another exciting one for the company, with expansions at both of its mines and further exploration and drilling to commence in Q2/14 at the recently acquired Challacollo silver project. Mandalay remains our preferred low-cost gold and silver producer, as it looks well insulated against peers within the current, relatively unpredictable, precious metals pricing environment."

Andrew Kaip, BMO Capital Markets (4/14/14) "Mandalay Resources Corp. reported its Q1/14 production results, including antimony production of 858t, ~13% above the BMO estimate of 758t. . .we forecast increasing silver and gold production over 2014E, as the company continues to integrate the higher-grade Cuffley lode at Costerfield, and second access to the Delia NW vein at Cerro Bayo allows an increase in mining rates to 1.4 Ktpd."

Duncan Hughes, RFC Ambrian (3/26/14) "Mandalay Resources Corp. has commenced a feasibility study for Challacollo; this will be completed by 2014E. Subject to receiving a positive feasibility study and permits, the company's goal is to begin production at the project within three years. . .we continue to rate Mandalay as a Buy."

Andrew Kaip, BMO Capital Markets (3/14/14) "Mandalay Resources Corp. has advanced sufficient underground development at the Augusta zone for roughly one year of production at the mill's current run rate of 400 tpd. The company plans to move production to the Cuffley zone and to begin mining the area by year-end 2014."

The Gold Report Interview with Ron Struthers (3/5/14) "We picked up Mandalay Resources Corp. at a good price in November because I like its Costerfield mine in Australia. It has gold grades: more than 9 g/t with 4% antimony on top. Its other mine, Challacollo, in Chile, has a very good silver grade. . .of 209 g/t with 2.28 g/t gold along with it. The company is very profitable, reporting net income of $29M for 2013. That's $0.09/share, and it is paying a good dividend, too." More >

Andrew Kaip, BMO Capital Markets (2/26/14) "Mandalay Resources Corp. continues to be focused on growth of sustainable cash margins and projects that demonstrate strong returns in a weak metal price environment. The company also continues to return capital to shareholders in the form of dividends and an normal course issuer bid program. . .in 2013, the company produced 3.1 Moz silver, 50 Koz gold and 3.3 Kt antimony, exceeding full-year production guidance."

The Gold Report Interview with Benjamin Asuncion (2/24/14) "Historically, Mandalay Resources Corp. has a track record of very cheap acquisitions, with the Costerfield mine in Australia and the Cerro Bayo mine in Chile. Challacollo provides Mandalay with a project that has seen quite a bit of exploration and some historic production going back to the 1980s or so. The property has a defined resource containing 33 Moz silver at a grade of 200 grams per tonne, but my sense is Mandalay will look to tighten up those grades to help boost the economics when the company tables the feasibility in the coming 12 months. The company is planning an 8,000–10,000 meter drill program focused on infilling the deposit, as the majority of those ounces are in the Inferred category.

Brad Mills, the CEO, was formerly CEO of Lonmin Plc. He was an executive with BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK), as was President Mark Sander. They have a history of delivering on expectations and we're starting to see the fruition of a lot of development plans come into place, namely at Costerfield with the high-grade Cuffley Lode. Historically, margins at Costerfield had been lackluster, generating enough to pay for ongoing exploration but not as significant of a contributor to the bottom line. The value driver has been Cerro Bayo, but we saw improved contribution from Costerfield last year and expect that to increase going forward. Mandalay also stands out among the juniors given its alignment with shareholders, both in terms of returning value to shareholders through dividends and management owning a significant stake in the company." More >

Chris Thompson, Raymond James (2/19/14) "We are maintaining our Outperform rating and $1.20/share target price on Mandalay Resources Corp. We continue to recommend investors accumulate shares based on its solid growth profile, proven and consistent operating team, strong balance sheet and attractive valuation. . .Mandalay had a solid quarter, cash flow per share beat our expectations, while adjusted earnings per share was in line."

Ben Kramer-Miller, Wall St. Cheat Sheet (2/19/14) "Mandalay Resources Corp. is one of the better-run, small-cap gold and silver mining companies. It has a market capitalization of $289M, and it trades at less than seven times trailing earnings; furthermore, it has a dividend yield that exceeds 4%."

Benjamin Asuncion, Haywood Securities (2/19/14) "Mandalay Resources Corp. reported Q4/13 financial and operating results that were generally in line with our estimates. . .Costerfield [is] on track to deliver in 2014: Development reached the Cuffley lode by the end of the quarter and infrastructure is currently on multiple levels to allow for production in Q1/14. . .Cerro Bayo [is] set for expansion in Q1/14. . .for Cerro Bayo, we see expanding silver production, from 1.3 Moz of silver plus gold in 2011 to 3.2 Moz silver plus gold in 2014."

Duncan Hughes, RFC Ambrian (2/17/14) "Mandalay Resources Corp., the company with precious metal and antimony projects in Chile and Australia, has announced that its 2013 exploration and acquisition efforts have resulted in a significant increase in mineral resources and mineral reserves. . .Mandalay has a track record of continuously replenishing its reserves, and its increased resources demonstrate the continuity of highly probable economic mineralization. . .we continue to rate it a Buy."

Benjamin Asuncion, Haywood Securities (2/14/14) "Mandalay Resources Corp. tabled significant reserve growth at Costerfield while maintaining reserves at Cerro Bayo (replacement of 2013E production), currently supporting mines lives of ~3 and ~5 years, respectively. . .our $1.30 target and Buy rating remain unchanged."

Andrew Kaip, BMO Capital Markets (2/13/14) "Mandalay Resources Corp. grew gold and antimony reserves by ~41% and ~108% over 2013, respectively. . .strong growth in reserves at Costerfield was largely attributable to the conversion of a significant amount of Inferred resources at the Cuffley and N lodes. . .the increase in reserves significantly adds to the Costerfield mine life and supports current expansion plans to 500 tpd."

Duncan Hughes, RFC Ambrian (2/11/14) "Mandalay Resources Corp., the company with precious metal and antimony projects in Chile and Australia, has announced that it has completed the purchase agreement of Silver Standard Resources Inc.'s past-producing Challacollo silver property. . .the value of the closing consideration was approximately $16.7M. . .the completion of this transaction executes what is a sensible, value accretive acquisition for Mandalay which meets its established acquisition criteria."

Benjamin Asuncion, Haywood Securities (2/10/14) "Mandalay Resources Corp. completed acquisition of the Challacollo silver-gold project in Chile with Silver Standard. . .with the closing of the transaction, management has outlined a 12-month work program [to include] metallurgical testing and mine and plant design leading up to the tabling of a feasibility study. . .near-term catalysts remain the development of the Cuffley lode at Costerfield, the ramp-up of production to 1,400 tpd at Cerro Bayo by Q1/14, completion of the Challacollo project acquisition and feasibility study in late 2014."

Raymond James (1/31/14) "Mandalay Resources Corp. released relatively in line Q4/13 production results. . .we anticipate a 6% year-over-year production growth (2014-2015). . .a 38% return to target, a healthy balance sheet, near-term organic growth and low-cost structure justify our Outperform rating for the company."

Duncan Hughes, RFC Ambrian (1/17/14) "Mandalay Resources Corp.'s Q4/13 total production was 12,117 oz Au, 805 t Sb and 878,542 oz Ag, representing a total of 33,537 oz Au eq production. . .total 2013 production of 50,240 oz Au, 3,275 t Sb and 3,145,537 oz Ag, representing a total of 126,908 oz Au eq production, exceeded 2013 guidance. . .we continue to rate the company as a Buy."

Andrew Kaip, BMO Capital Markets (1/16/14) "Including Q4/13 results, Mandalay Resources Corp.'s full-year saleable production came in at 3.1 Moz silver, 50.2 Koz gold and 3.3 Kt antimony, exceeding 2013 production guidance. . .the company reiterated 2014 production guidance of 3–3.2 Moz silver, 60–70 Koz gold and 3–3.3 Kt of antimony."

Benjamin Asuncion, Haywood Securities (1/16/14) "Mandalay Resources Corp.'s management reiterated 2014 guidance of 3–3.2 Moz silver plus 23–27 Koz gold at a cash cost of $6–8/oz (net of gold credit) from Cerro Bayo and 37–43 Koz gold plus 3–3.3 Kt antimony or ~62.4–70.9 Koz Au eq at a cash cost of $675–775/oz from Costerfield. The focus at Cerro Bayo will be on the expansion to 1,400 tpd by the end of Q1/14 and the development and production of the Cuffley lode at Costerfield throughout 2014."

Duncan Hughes, RFC Ambrian (1/16/14) "Mandalay Resources Corp., the company with polymetallic projects in Chile and Australia, has provided an update on the results of its first three, widely spaced core holes drilled underground from the Dagny mine. . .all three holes intercepted major veins, tentatively correlated with strike extensions of the Fabiola and Yasna veins. . .these are extremely encouraging results from Cerro Bayo. . .all indications to date support our expectation that the geology continues under the relatively small and shallow Laguna Verde and that mineralization continues."

Benjamin Asuncion, Haywood Securities (1/15/14) "Mandalay Resources Corp. released exploration results from its wholly owned Cerro Bayo mine. . .preliminary results from wide-spaced drilling demonstrate the potential for mineralization to extend beyond the current reserve/resource boundaries up to ~500m to the southeast beneath the lake."

The Mining Report Interview with Chris Thompson (12/31/13) "After seeing Mandalay Resources Corp.'s Q3/13 financial results, and more specifically, the performance of its Costerfield mine in Australia, we realized that we were being a little conservative with our 2014 cash-flow projections, so we lightened the cost somewhat at Costerfield. That was the catalyst for the higher target price. . .I visited Cerro Bayo about three years ago, when production had just re-started. The company was still improving its understanding of the mine and its exploration potential. I saw a lot of potential for both production growth and exploration. The company's main focus at Cerro Bayo is to fill a mill, which is currently rated at 1,600 tpd. Next year, the guidance is for 1,400 tpd. Based on exploration upside, qualified by mine life, Mandalay sees medium- to longer-term potential to fully fill the mill and maximize production at Cerro Bayo." More >

Benjamin Asuncion, Haywood Securities (12/23/13) "Mandalay Resources Corp. announced it has signed a definitive purchase agreement with Silver Standard Resources Inc. to acquire the Challacollo silver project. . .we view the acquisition of the Challacollo project as positive given it bolsters the company's development pipeline (potential for production within ~3 years) and comes at a modest acquisition cost ($15.8M upon closing in Q1/14 comprised of $7.5M in cash plus shares)."

Chris Thompson, Raymond James (12/20/13) "Mandalay Resources Corp. announced the acquisition of the Challacollo development-stage silver project in Chile from Silver Standard Resources Inc. . .we are maintaining our Outperform rating. . .we view today's acquisition favorably as it offers production growth potential beyond that envisaged for Cerro Bayo and Costerfield."

Andrew Kaip, BMO Capital Markets (12/20/13) "Mandalay Resources Corp. announced the purchase of the Challacollo property from Silver Standard Resources Inc. for a total consideration of ~$25M (at spot prices and assuming commercial production) as well as a 2% net smelter return royalty. . .acquisition of the past-producing Challacollo mine represents an important step in Mandalay's growth strategy. The company plans to advance the project to the feasibility stage through 2014."

Ron Struthers, Resource Stock Guide (12/18/13) "Mandalay Resources Corp.'s higher-grade mines put it in a strong position to grow and take advantage of the market to make some distressed acquisitions. Higher gold prices, which I expect, will just be fuel to the fire."

The Gold Report Interview with Jay Taylor (11/25/13) Jay Taylor: I also like Mandalay Resources Corp.

TGR: Mandalay's Costerfield and Cerro Bayo deposits have gold and silver. Oceana has gold and copper. Do you like the multimetal producers?

JT: As a goldbug, I'm concerned about a major collapse in the economy sending the prices of copper and other base metals down. I look at it case by case and project by project. More >

Duncan Hughes, RFC Ambrian (11/22/13) "Mandalay Resources Inc.'s operating gold mines in Chile and Australia show exceptional upside potential. The company has met its ramp-up targets and we are excited by its future growth prospects. The Cerro Bayo silver-gold operation is performing extremely well. . .recent quarterly results from Costerfield were much improved, indicating that management initiatives are starting to reap rewards. . .Mandalay's strategy of acquiring undervalued advanced precious metals assets with blue-sky exploration potential looks set to pay off and we are confident of significant revenue growth going forward."

Jay Taylor, Gold, Energy & Tech Stocks (11/22/13) "Mandalay Resources Corp. has been able to do very well during this quarter despite significantly lower metals prices, thanks to rising production and lower unit costs on both its Costerfield gold-antimony Mine in Australia and its Cerro Bayo silver-gold mine in Chile. . .this management team is in fact doing a fantastic job by generating earnings and cash flow on a par with 2012 by improving the operations at the two existing operations. . .with almost $0.01 of earnings in the most recent quarter, that works out to about $0.04 on an annual basis, which provides a decent yield of around 5%. What's not to like about Mandalay Resources?"

Benjamin Asuncion, Haywood Securities (11/7/13) "For Q3/13, Mandalay Resources Corp. reported operating cash flow of $23.2M ($0.07/share), which came in above our expectations of $17M ($0.05/share) and consensus of $0.035/share. Quarterly performance was positively affected by strong results from Costerfield (improved production and costs), consistent results from Cerro Bayo (including additional shipments) and a positive revenue adjustment ($4.5M from Q2/13 provisional sales)."

Chris Thompson, Raymond James (11/6/13) "Mandalay Resources Corp. released strong Q3/13 operating and financial results; we are increasing our target price to $1.30 (from $1.20) and reiterate our Outperform rating on shares of the company. Mandalay had a strong quarter, with both CFPS and adjusted EPS exceeding our expectations."

Duncan Hughes, RFC Ambrian (11/6/13) "Mandalay Resource Corp. announced financial results for the quarter ending Sept. 30 2013; Mandalay also announced a quarterly dividend of an aggregate amount equal to 6% of the trailing quarter's gross revenue. . .this was a good quarter for Mandalay despite the prevailing commodity prices. . .Mandalay remains debt free while producing significant cash flow from operations, enabling a regular quarterly dividend stream. The continued dividend payment is likely to be well received by the investment community. . .Costerfield was the standout performer for the period, a testament to the mining improvements implemented previously and improved head-grade."

Andrew Kaip, BMO Capital Markets (11/5/13) "Mandalay Resources Corp. reported Q3/13 headline earnings per share of US$0.03. . .the company also reported production, cost and capex guidance for 2014. Mandalay expects to produce 3–3.2 Moz silver and 23–27 Koz gold at Cerro Bayo, and 37–43 Koz gold and 3–3.3 Kt antimony at Costerfield. . .Q3/13 results were in line with BMO Research expectations."

Benjamin Asuncion, Haywood Securities (10/11/13) "Mandalay Resources Corp.'s PEA for Costerfield presents a more economically robust operation than our current estimates. . .it outlines higher grades and lower operating and capital costs. These new data show the potential to deliver modestly higher output at lower costs, protecting future margins and lowering project risk."

Duncan Hughes, RFC Ambrian (10/9/13) "Mandalay Resources Inc. has announced record gold and antimony production figures for Q3/13 and solid silver production. . .this was another fine quarterly production and sales performance from the company, with records continuing to tumble. These results were ahead of our forecasts for shipments of all metals from both mines. . .the continued improvements at both operations demonstrate Mandalay's strong mining credentials as it successfully implements improvements in a challenging mining environment. . .the company is one of a shrinking number of producers that is consistently generating cashflow from operations."

Benjamin Asuncion, Haywood Securities (10/8/13) "For Q3/13, Mandalay Resources Corp. reported consolidated production of 734 Koz of silver, 14.4 Koz of gold, and 966 tonnes of antimony. . .Strong performance from Costerfield was attributed to continued improvements in cemented rock fill stoping resulting in increased mine output with reduced dilution and therefore higher head grades. . .For Cerro Bayo, we see expanding silver production. . .this production growth is combined with a healthy gold byproduct credit."

Chris Thompson, Raymond James (10/7/13) "Mandalay Resources Corp. released Q3/13 production results and sales. . .overall, consolidated metal production was higher than expected; production at Costerfield was higher than anticipated, while at Cerro Bayo, gold production was higher and silver production was in-line with expectations. Cerro Bayo reported stronger than expected metal sales, making up for scheduled mill downtime in Q1/13; management indicates that it expects 2013 production to be at the upper end of guidance (guidance was increased in Q2/13)."

Andrew Kaip, BMO Capital Markets (10/7/13) "Mandalay Resources Corp. released Q3/13 sales of 973 Koz silver and 14.6 Koz gold, ~33% and ~20% above BMO Research's forecasts. . .antimony production came in at 777 tons, ~16% above the BMO estimate. . .Mandalay continues to expect full-year production to be at the upper end of the previously announced guidance. . .Mandalay continues to report strong operational results while undertaking development activities to ramp up production rates to 1.4 ktpd at Cerro Bayo and integrate the Cuffley lode into the mine plan at Costerfield."

Benjamin Asuncion, Haywood Securities (10/1/13) "Mandalay Resources Corp. tabled results from the 2013 exploration program at the 100%-owned Cerro Bayo mine in the Aysen, Chile. . .drilling was focused on the Coyita, Marcela Sur and Delia NW veins. At Coyita, multiple intercepts of potentially economic grade and width have extended the vein ~80m along strike beneath the Laguna Verde lake. . .at Marcela Sur, drilling has extended the vein ~100m along strike to the northwest and up to ~100m beneath the current mine workings. Highlights included 1.4m grading ~890 g/t Ag eq and 6.2m grading ~210 g/t Ag eq. At Delia NW, drilling has extended the mineralization at depth and intersected another vein (Orienta) between Delia NW and Dagny."

Duncan Hughes, RFC Ambrian (10/1/13) "Mandalay Resources Corp. has provided an update on drill results generated by the ongoing exploration program at its 100%-owned Cerro Bayo silver-gold mine in Aysen, Chile. . .the results show promise and indicate that Mandalay should, at a minimum, meet its targets for replacing mineralization depleted through mining this year. The company’s understanding of the geology at Cerro Bayo is proving extremely beneficial for exploration. The drilling shows that the Coyita mineralization continues under Laguna Verde. . .we continue to rate Mandalay as a Buy."

Duncan Hughes, RFC Ambrian (9/11/13) "Mandalay Resources Corp. announced that it has completed a preliminary economic analysis (PEA) of the Cuffley mine life extension. Highlights of the announcement included: Enlarged Costerfield mineral resources; total potential saleable production of approximately 214 Koz of Au eq; the Cuffley Lode is expected to support a significant increase in mine production to 60–65,000oz Au eq pa from the high-grade core of the lode through mid-2015. . .this was positive news for the company and continues the trend of good technical management of the project. . .management has demonstrated its ability to improve production and lower costs at Costerfield."

Andrew Kaip, BMO Capital Markets (9/10/13) "Mandalay Resources Inc.'s Cuffley PEA points toward higher production at Costerfield. . .the results of the PEA are broadly in line with BMO Research expectations and show a low-capital, low-risk approach toward near-term production growth at Costerfield."

Chris Thompson, Raymond James (9/10/13) "Mandalay Resources Inc. provided a PEA assessing the expansion potential of its Costerfield gold-antimony mine in Australia, which was in line with our expectations. We are maintaining our Outperform rating. . .we continue to believe exploration upside and reserve/resource growth remain."

Anthony Wagg, Edison Investment Research (8/12/13) "Mandalay Resources Corp.'s H1/13 figures showed both its mines performing well, with increased full-year guidance for gold, silver and antimony production. This came from greater efficiency and better extraction. . .the company's immediate future looks good."

Benjamin Asuncion, Haywood Securities (8/9/13) "Mandalay Resources Corp. reported a strong operational quarter with record gold production from the Costerfield project and silver production at the Cerro Bayo project. In addition, both operations demonstrated improvements in operating costs on a US$/t milled basis. . .Costerfield delivered another solid quarter across all metrics—throughput, grades, recoveries and costs. . .a strong quarter from Cerro Bayo comes on the back of higher throughput, grades and recoveries."

Chris Thompson, Raymond James (8/9/13) "Operationally Mandalay Resources Corp. performed very well during Q2/13, with costs significantly lower than anticipated at both Costerfield and Cerro Bayo. . .the company ended the quarter with $23.9M in cash and access to a recently revised $30M credit facility."

Duncan Hughes, RFC Ambrian (8/9/13) "Mandalay Resources Corp. remains debt free while producing significant cash flow from operations, enabling a regular quarterly dividend stream. . .the company is a low-cost gold-silver-antimony producer that has impressed us by delivering on its promises."

Craig Stanley, Stifel Nicolaus (8/6/13) "Recapping previously announced Q2/13 production results from Mandalay Resources Corp., at Cerro Bayo, Chile, production was 6,167 oz gold and 921,895 oz silver, both record amounts. . .production from the Costerfield mine in Australia was 6,879 oz gold and 738 tonnes antimony, a record quarter for gold production and the third best quarter for antimony production. . .a PEA on the high-grade Cuffley lode at Costerfield is scheduled to be released in Q3/13 that is expected to involve an expansion of the plant from the current 340 tpd to 500 tpd in 2015 at an estimated cost of US$25M."

The Gold Report Interview with Ralph Aldis (7/24/13) Ralph Aldis: Mandalay Resources Corp. is a producer currently evaluating potential acquisitions. Normally that's a negative, but it has shown it does very smart acquisitions. It found projects with either people or technical issues and fixed the problem. It turned them around and immediately started paying dividends out of its cash.

TGR: Can Mandalay be profitable at $1,200/oz gold and $18/oz silver?

RA: Yes. Our all-in production cost right now is $1,180/oz, and that's converting the gold, silver and even antimony to gold equivalent for cost. It's turning a profit, but margins are thin. Mandalay also has good management; it understands what investors want from a mining company. It's refreshing when you hear Mandalay's management present its accomplishments and vision of management. More >

Benjamin Asuncion, Haywood Securities (7/23/13) "Mandalay Resources Corp. delivered production results that beat our expectations for gold and silver, which we speculate was due to higher grades and recoveries. . .our investment thesis for the company is underpinned by its ability to grow and protect margins by delivering on the exploration upside at its operations. . .for Cerro Bayo, we see expanding production from 1.3 Moz silver and gold in 2011 to 3.1 Moz in 2013."

Andrew Kaip, BMO Capital Markets (7/19/13) "Mandalay Resources Corp. reported that operations have resumed at the Cerro Bayo mine. . .mining operations resumed on July 18 and the mill is expected to restart processing today, July 19. Our 2013 production forecast for Cerro Bayo is 3 Moz silver and 23 Koz gold."

Benjamin Asuncion, Haywood Securities (7/11/13) "Mandalay Resources Corp. delivered consolidated production 922 Koz silver, 13 Koz gold and 738 tonnes of antimony from. . .the Cerro Bayo silver-gold mine in Chile and the Costerfield gold-antimony mine in Australia. Actual results compare with Haywood production estimates of 877 Koz silver, 10.9 Koz gold and 714 tonnes of antimony. . .Mandalay reported Q2/13 production results that exceeded our expectations, notably for silver and gold; as a result of the strong performance in H1/13, Mandalay increased gold production guidance for Costerfield and stated it anticipates delivering on the upper range of previous guidance for silver and gold at Cerro Bayo, and antimony at Costerfield."

Duncan Hughes, RFC Ambrian (7/11/13) "Mandalay Resources Corp. has announced record gold and silver production figures for Q2/13 and near-record antimony production. The company's Q2/13 saleable production totaled 13,046 oz gold, 738 t antimony and 921,895 oz silver, representing a total of 33,558 oz gold equivalent. . .we continue to rate Mandalay as a Buy."

Craig Stanley, Stifel Nicolaus (7/11/13) "Mandalay Resources Corp. announced production and sales results for Q2/13 and an positive update on production guidance. . .production beat at both Costerfield and Cerro Bayo and management reaffirmed confidence that full-year production will be at the upper end of previous production guidance for gold and silver from Cerro Bayo and antimony from Costerfield. In addition, management raised gold production guidance for Costerfield to 20–25 Koz from 18–21 Koz previously."

Duncan Hughes, RFC Ambrian (7/4/13) "Mandalay Resources Corp. announced an amendment to its secured revolving credit facility, effective June 28, 2013. . .the credit limit has been increased from US$20M to US$30M up to and including June 30, 2014, and will reduce back down to US$20M thereafter. . .Mandalay is one of a shrinking number of producers that is consistently generating cash flow from operations; we perceive the increased debt facility as a move by management to allow it to pounce quickly on any potential acquisition opportunities. . .Mandalay is a low-cost gold-silver-antimony producer that has impressed us by delivering on its promises and, consequently, remains our preferred precious metals producer."

Andrew Kaip, BMO Capital Markets (7/3/13) "Mandalay Resources Corp. announced amendments to its secured revolving credit facility; the facility was temporarily increased to $30M from $20M through to June 30, 2014, (falling back to $20M thereafter) and the maturity extended to June 30, 2015. We have a positive view of the amendments, as they increase the company's financial flexibility during a period of depressed precious metal prices."

Benjamin Asuncion, Haywood Securities (7/3/13) "Mandalay Resources Corp. amended its revolving credit facility with BMO Capital Markets, increasing the credit limit to $30M (+$10M) and extending the maturity date. . .the increased credit and longer maturity provide the company with additional degrees of operating flexibility. The revised credit facility supports potential near-term funding requirements of the capital program ($47.3M estimated for exploration and development in 2013) and allows management to be more nimble when potential acquisition opportunities are presented."

The Metals Report Interview with Chris Ecclestone (7/2/13) "There are a couple of options for antimony exposure. One is Toronto-listed Mandalay Resources Corp. It's a gold-antimony mine in Australia. . .gold deposits often are associated with antimony, so it has a double-whammy positive effect because both elements have high value. Given the choice between a gold deposit and a gold-antimony deposit, I would take the latter." More >

BMO Capital Markets (6/28/13) "Mandalay Resources Corp. is an emerging junior silver producer that provides investors internally funded production growth of 46% over the next two years. . .the company is transitioning into a junior silver producer with a credible track record. As investor confidence builds on Mandalay's execution capabilities, BMO Research expects the company's share price to appreciate."

Chris Thompson, Raymond James (6/6/13) "We are impressed that over the last two years Mandalay Resources Corp. has succeeded in turning around its Costerfield operation, underpinned by both improving mine and plant efficiencies, and exploration success. . .success at near-mine site targets has led to expansion potential offered by the N Lode (currently in production) and development potential at the Cuffley Lode (currently being developed for production), both of which provide us comfort for an increased mine life. . .we believe both higher grades (from Cuffley development) and improving operating performance over the past two years offer near-term production growth at reduced operating costs going forward."

The Gold Report Interview with Maria Smirnova (5/22/13) "We own names like Mandalay Resources Corp. . .Cerro Bayo's production dipped a bit in Q1/13, but the reason was to accommodate the installation and commissioning of some new equipment designed to improve metallurgical recoveries, so I do not view the shortfall as negative at all. I expect the company to meet its 2013 overall production guidance despite whatever hiccups it had in Q1. In fact, Mandalay tends to exceed guidance. Management is guiding around 3 Moz silver and 20 Koz gold production in 2013. This year, using $24/oz silver, I estimate about $0.16 cash flow per share, which implies that the stock is at about 5.5 times cash flow right now and has a 3.5% dividend yield. . .[Mandalay compares] very favorably [to its peers]. The majors are trading at 13–15 times cash flow, using a current silver price." More >

Chris Thompson, Raymond James (5/16/13) "Mandalay Resources Corp. reported Q1/13 financial and operating results that were in line with our estimates. We continue to rate shares of the company Outperform. . .we continue to view Mandalay as a compelling growth story and are impressed with management's ability to improve operating efficiencies while maintaining a tight rein on costs and delivering on guidance."

Benjamin Asuncion, Haywood Securities (5/15/13) "Mandalay Resources Corp.'s Costerfield delivered another solid quarter, Q1/13, across all metrics: throughput grades, recoveries and costs. Further value is to be unlocked through the development of the Cuffley lode. . .our $1.70/share target and Buy rating remain unchanged."

Duncan Hughes, RFC Ambrian (5/15/13) "Mandalay Resources Corp. has announced its quarterly financial results. . .we enjoy writing on mining companies that continually meet both their guidance and our expectations. Mandalay is an example of one of those companies. . .the company is continuing to generate healthy cash flow and is returning it to shareholders as a quarterly dividend payment. . .Mandalay is a low-cost gold-silver-antimony producer that has impressed us by delivering on its promises and, consequently, remains our preferred precious metals producer."

Craig Stanley, Stifel Nicolaus (5/8/13) "Recapping Mandalay Resources Corp.'s previously announced Q1/13 production results, [the company reported] production of 611,441 oz of silver and 4,432 oz of gold at Cerro Bayo. . .at Costerfield [there was] production of 6,203 oz of gold and 766 tonnes of antimony—a record quarter for gold production and the second best quarter for antimony production. . .at Costerfield, management recently completed successful mining testing on 10m levels and is now revamping the mine plan for 10m stopes where conditions are favorable."

RFC Ambrian (4/19/13) "Once again, Mandalay Recources Corp.'s strong quarterly results have exceeded our expectations, chiefly due to the performance at Costerfield. . .the improvements at Costerfield continue to increase production significantly, while better-than-anticipated silver grades and tonnes mined/processed at Cerro Bayo boosted production. . .this was a strong start to the financial year, putting the company on a solid footing to achieve annual guidance. It is our expectation that the company will again reach high margins on sales and should be significantly profitable for the financial year despite the recent falls in precious metal prices."

Benjamin Asuncion, Haywood Securities (4/18/13) "Mandalay Resources Corp. reported consolidated production of 611 Koz silver, 10,635 oz gold and 766 t antimony for Q1/13. . .at Costerfield, production results came in above expectations with record gold production and near-record antimony production."

Andrew Kaip, BMO Capital Markets (4/18/13) "Mandalay Resources Corp's Cerro Bayo mill modifications will likely boost production longer term through higher recoveries. . .the company is rated Outperform with a CA$1.40 target price."

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