October 15, 2024
Mandalay Resources Corp. (TSX:MND, BUY, C$6.50 target, Ron Stewart) reported Q3/24 production of 17,844 oz Au and 252t Sb from its 100%-owned Closterfield and Björkdal mines in Australia and Sweden, respectively. Quarterly gold sales totaled 19,111 oz and were 11% lower than our estimate, though the year to date sales figure of 65,729 oz Au is only 2% below our estimates. Q3/24 antimony sales of 248t were nearly half of our 470t estimate. Clearly, they are mining a portion of the deposit that is not aligned with the average reserve grade of >3.0%. Our over-estimate of Sb tonnes sold should be partially offset by our lower price assumption of US$18,000/t Sb versus MND’s realized price of US$24,338/t Sb. Production at Costerfield decreased QoQ as expected in Q3 of each year. Production at Björkdal was slightly less than anticipated in Q3/24 due to inclement weather but is expected to bounce back to normal levels in Q4. The Company reaffirmed its 2024 production guidance of 90-100k oz AuEq at an AISC of US$1,450-US$1,580/oz AuEq. We currently estimate production of 96.2k oz AuEq at an AISC US$1,497/oz AuEq in 2024 to deliver an EPS of US$0.41. Read more
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Mandalay Resources Corp. – TSX:MND
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