Mandalay Resources (MND) AI Stock Analysis

• Market Cap: C$492.24M
• Dividend Yield: N/A
• Average Volume (3M): 180.47K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.48
• Revenue Growth: 41.30%
• EPS Growth: 340.97%
• Country: CA
• Employees: 460
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Gold
• EPS (TTM): 0.29
• Shares Outstanding: 94,662,506
• 10 Day Avg. Volume: 163,990
• 30 Day Avg. Volume: 180,465
• PEG Ratio: -0.15
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.10
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.69
• Enterprise Value/Ebitda: 0.46
• 1Y Price Target: C$7.00
• Price Target Upside: 36.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: C$6.00 ▲(16.96%Upside)

Mandalay Resources scores highly due to its strong financial performance and positive corporate events. The strategic merger and robust financial metrics underline its growth potential. Despite moderate technical indicators, the overall outlook remains optimistic.

Positive Factors

Earnings Performance

Mandalay Resources reported earnings that beat expectations with adjusted EPS of $0.30/sh, versus an estimate of US$0.21/sh.

Index Inclusion and Valuation

The combined company is expected to benefit from a primary ASX listing valuation re-rate driven by GDXJ and potential ASX 300 index inclusion.

Resource and Reserves Update

Mandalay Resources released their updated mineral reserves and resources, highlighted by total mineral reserves of 815koz AuEq, a 9% increase net of depletion.

Negative Factors

Cost Management

Updated unit and capital costs at both Costerfield and Björkdal have increased, impacting the company's financial outlook negatively.

Operational Challenges

The technical reports highlighted higher costs and lower grades at Mandalay Resources' Björkdal operation, negatively impacting the company's NAV.

Production and Costs

The updated mine plan at Björkdal has resulted in lower gold production forecasts and delayed restart of the open pit, negatively affecting the company's NAV.

Mandalay Resources Business Overview & Revenue Model

Company Description

Mandalay Resources Corporation, a natural resource company, engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. It explores for gold, silver, and antimony deposits. The company primarily holds 100% interests in the Costerfield gold-antimony mine located in Central Victoria, Australia; and the Björkdal gold mine located in Västerbotten County in northern Sweden. The company was incorporated in 1997 and is headquartered in Toronto, Canada.

How the Company Makes Money

Mandalay Resources generates revenue through the extraction and sale of precious and base metals, including gold, silver, and antimony. The company's key revenue streams include the sale of these mined metals to various customers in the global market. Revenue is primarily derived from its operational mines: the Costerfield gold-antimony mine in Australia, and the Björkdal gold mine in Sweden. The company benefits from fluctuations in metal prices, which can significantly impact its earnings. Mandalay Resources also engages in ongoing exploration and development to expand its reserves and production capacity, thereby ensuring future revenue generation. Strategic partnerships with local governments and adherence to regulatory standards play a crucial role in its ability to operate efficiently and sustainably.

Mandalay Resources Financial Statement Overview

Summary

Mandalay Resources demonstrates a strong financial profile with robust revenue growth, high net and gross profit margins, low leverage, and effective cash flow management. The stability reflected in these metrics positions the company well for future growth.

Income Statement

Mandalay Resources demonstrates strong financial performance with robust revenue growth of 9.37% in TTM, supported by a healthy net profit margin of 21.54% and a gross profit margin of 43.16%. EBIT and EBITDA margins also reflect solid operational efficiency, indicating effective cost management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.02, suggesting conservative leverage. The equity ratio of 68.89% indicates financial stability and a strong asset base. Return on equity of 22.08% highlights effective utilization of shareholder funds.

Cash Flow

Mandalay Resources exhibits stable cash flow management with an impressive operating cash flow to net income ratio of 1.96 in TTM, indicating strong cash conversion. However, the free cash flow growth rate shows a slight decline, which warrants attention.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
263.21M	240.66M	173.34M	191.70M	229.40M	178.97M
	Gross Profit
113.58M	94.00M	67.42M	62.92M	82.16M	64.34M
	EBIT
97.09M	78.58M	19.32M	45.04M	66.96M	53.91M
	EBITDA
122.50M	107.90M	49.87M	77.08M	113.69M	86.29M
	Net Income Common Stockholders
56.70M	47.76M	7.86M	23.51M	54.88M	9.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
88.26M	76.37M	28.78M	41.13M	34.14M	34.21M
	Total Assets
372.68M	329.58M	295.25M	282.22M	317.84M	301.28M
	Total Debt
5.31M	4.65M	22.96M	24.02M	49.79M	63.95M
	Net Debt
-82.95M	-71.72M	-3.89M	-14.36M	19.05M	29.74M
	Total Liabilities
115.94M	100.31M	98.32M	98.07M	141.16M	165.50M
	Stockholders Equity
256.73M	229.27M	196.93M	184.15M	176.69M	135.78M
Cash Flow		Free Cash Flow
63.07M	67.89M	1.55M	40.37M	13.92M	16.70M
	Operating Cash Flow
111.19M	112.72M	43.29M	80.04M	62.03M	61.66M
	Investing Cash Flow
-48.26M	-44.07M	-44.61M	-36.99M	-43.84M	-34.74M
	Financing Cash Flow
-21.21M	-17.52M	-10.25M	-34.70M	-21.51M	-18.30M

Mandalay Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MND, the sentiment is Positive. The current price of 5.13 is above the 20-day moving average (MA) of 5.03, above the 50-day MA of 5.12, and above the 200-day MA of 4.26, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 64.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MND.

Mandalay Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MND	81 Outperform	C$492.24M	6.07	25.03%	―	41.30%	340.97%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
GAU		$363.68M	64.86	-7.13%	―	―	―
RBX	65 Neutral	C$617.49M	―	-5.78%	―	19.84%	84.50%
ASE	63 Neutral	C$696.59M	―	-2232.66%	―	13.51%	3.80%
RIO	50 Neutral	C$522.74M	―	-0.28%	―	―	83.41%
LUM	48 Neutral	C$522.93M	―	105.38%	―	―	-97.12%

Mandalay Resources Corporate Events

Mandalay Resources Reports Strong Q1 2025 Financial Performance

Mandalay Resources reported a significant financial upturn in Q1 2025, with a 41% increase in revenue to $78.1 million and a 152% rise in net income to $14.8 million compared to the previous year. The company strengthened its balance sheet with $88.3 million in cash and no debt, driven by favorable metal prices and strategic investments in its operations. This financial performance highlights Mandalay’s solid operational capabilities and positions the company for continued growth, with expectations of stronger production and reduced capital expenditure in the latter half of the year.

Mandalay Resources to Announce Q1 2025 Financial Results

Mandalay Resources announced the release of its first quarter 2025 financial results, scheduled for May 7, 2025, followed by a conference call on May 8, 2025. This announcement is part of Mandalay’s ongoing efforts to enhance transparency and communication with investors and analysts, reflecting its commitment to shareholder value through profitable operations and strategic growth initiatives.

Alkane and Mandalay Merge to Form Leading Gold and Antimony Producer

Alkane Resources Limited and Mandalay Resources Corporation have announced a merger of equals to form a larger gold and antimony producer. This strategic merger is expected to enhance production capabilities with a projected increase in gold-equivalent production to over 180,000 ounces by 2026. The combined entity will benefit from improved capital market positioning, increased trading liquidity, and a robust balance sheet, enabling further growth and exploration opportunities. The merger aims to create a diversified platform with a shared vision for continued growth, benefiting shareholders through expanded operations and market presence.

Mandalay Resources Reports Strong Q1 2025 Production, Aligns with Annual Guidance

Mandalay Resources reported solid first-quarter production results for 2025, with a total of 22,342 gold equivalent ounces produced, aligning with their annual guidance. The company anticipates increased production in the latter half of the year, supported by ongoing optimization and capital investment projects aimed at enhancing mining flexibility and operational efficiency at both Costerfield and Björkdal sites.

Mandalay Resources Files Annual Information and Technical Reports for 2024

Mandalay Resources Corporation has filed its Annual Information Form for 2024 and updated NI 43-101 Technical Reports for its Björkdal and Costerfield operations. These filings, prepared by independent consultants, provide detailed insights into the company’s mineral resource and reserve estimates, underscoring Mandalay’s commitment to transparency and operational efficiency. The reports are expected to enhance the company’s industry positioning by optimizing production and profitability at its mines, which could have positive implications for stakeholders.