Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

Mandalay Resources (TSX: MND) is a Canadian-based natural resource Corporation with producing assets in Australia and Sweden, and care and maintenance and development projects in Chile and Canada. The Company focuses on growing its production and reducing costs at its gold-antimony operation in Australia, and its gold mine in Sweden, to generate near-term sustainable positive cash flow. Kalkine’s Gold Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~77.27% of the total shareholding.  Plinian Capital Ltd.  and GMT Capital Corp. hold a maximum stake in the company at ~­­­25.02% and ~19.38%, respectively.

1.4 Key Metrics:

The firm has witnessed an improvement in its Revenue and Profit Margins during the quarter. Further, the group is keeping an eye on its Liquidity Ratios by keeping Quick and Current Ratio in check.  Also, average realized gold prices are improving on a yearly basis, which is a significant positive that displays the company’s strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as the announcement of CFO and fourth quarter production numbers.

2.2 Insights on Q3 2023 Financial Performance:

Section 3: Key Risks and Company Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed a downside of ~16.04% in 1 month and a downside of ~5.42% over the last 3 months. Moreover, the stock is trading below the average of 52-week high price of CAD 2.86 and 52-week low price of CAD 1.30 providing an opportunity to accumulate the stock.

4.2 Fundamental Valuation

Valuation Methodology: EV to EBITDA Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 07, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.