mandalay resources january 2016 investor presentation

Download Mandalay Resources January 2016 Investor Presentation

Post on 15-Apr-2017

5.166 views

Category:

Investor Relations

0 download

Embed Size (px)

TRANSCRIPT

  • JAN2016BUILDING VALUE

    ACROSS THE CYCLE

    TSX // MND

  • This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life of

    mine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially from

    those contemplated by these statements depending on, among other things: exploration results or production results not meeting managements

    expectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market and

    economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A

    description of additional risks that could result in actual results and developments differing from those contemplated by forward looking

    statements in this news release can be found under the heading Risk Factors in Mandalays annual information form dated March 31, 2015 and

    in its final prospectus dated September 2, 2014, copies of which are available under Mandalay's profile at www.sedar.com. Although Mandalay

    has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-

    looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be

    no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those

    anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

    Quality Control and AssuranceQuality control and assurance programs are implemented in line with the standards of National Instrument 43-101.

    The exploration programs at Costerfield and Bjrkdal are supervised by Chris Gregory (Member, Australian Institute of Geoscientists, VP of

    Operational Geology for Mandalay and a Qualified Person as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfield

    and Bjrkdal, and supervises the collection and interpretation of scientific and technical information contained in this presentation.

    The exploration programs at the Cerro Bayo and Challacollo projects are supervised by Scott Manske, Chief Cordilleran Geologist of Mandalay

    Resources, and an Oregon registered Professional Geologist. A Qualified Person as defined by NI 43-101, he has reviewed and approved the

    technical and scientific information on these projects contained in the presentation.

    Dr. Mark Sander (Member: AusIMM), President of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Bjrkdal and has

    supervised the preparation of this presentation.

    All currency references in US$ unless otherwise indicated

    Forward-looking Statements

    2

  • A Values-Based and Value-Focused Company

    We create exceptional shareholder value through the acquisition of undervalued assets that can rapidly

    become cash generative, self-fund exploration, establish and maintain high operating margins and return

    cash to shareholders within a planned period of time. Mandalay is committed to operating safely and in

    an environmentally responsible manner, while developing a high level of community and employee

    engagement

    WE ARE SUCCESSFUL WHEN:

    Our employees live and work safely and experience the personal

    satisfaction that comes with high performance and recognition

    The communities in which we operate value our presence

    Our environmental impact is minimized and causes no permanent harm

    We have a large, diversified set of customers who are delighted with

    and compete for our products

    Our shareholders realize a superior total return on their investment and

    support our corporate values.

    Our values are visibly demonstrated by strong local management, at the

    point of impact with or stakeholders, and co-ordinated across the

    Company for maximum effect

    Profitable and Dividend-Paying (7.2% yield)*

    *Trailing 12 months dividends divided by current market capitalization (Jan. 14, 2016)

    3

  • 2009

    Costerfield, Australia

    Gold & Antimony

    2010

    Cerro Bayo, Chile

    Silver & Gold

    2013

    Challacollo, Chile

    Silver & Gold

    2014

    Bjrkdal, Sweden

    Gold

    Delivering Financial Value at Mandalay

    1. The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA should not be considered by an investor as

    an alternative to net income or cash flow as determined in accordance with IFRS.

    2. Annual cash dividend paid quarterly, based on 6% of the Companys trailing quarters gross revenue and the future cash requirements of the Company

    TIMELINE

    2015 Quarterly

    Financial

    Measures

    Revenue,

    EBITDA(1) &

    Dividends(2)

    Revenue

    EBITDA

    Dividends

    $4.0 $3.4 $3.0 $2.6

    $24.3$18.2

    $11.5

    $56.8$50.2

    $43.3

    0

    50

    100

    Q1- 2015 Q2 -2015 Q3 - 2015 Q4 - 2015

    US

    $ M

    M

    4

  • 50%

    100%

    150%

    200%

    250%

    300%

    Q3

    20

    09

    Q4

    20

    09

    Q1

    20

    10

    Q2

    20

    10

    Q3

    20

    10

    Q4

    20

    10

    Q1

    20

    11

    Q2

    20

    11

    Q3

    20

    11

    Q4

    20

    11

    Q1

    20

    12

    Q2

    20

    12

    Q3

    20

    12

    Q4

    20

    12

    Q1

    20

    13

    Q2

    20

    13

    Q3

    20

    13

    Q4

    20

    13

    Q1

    20

    14

    Q2

    20

    14

    Q3

    20

    14

    Q4

    20

    14

    Q1

    20

    15

    Q2

    20

    15

    Q3

    20

    15

    Q4

    20

    15Cu

    mu

    lati

    ve %

    Val

    ue

    Ch

    ange

    Sin

    ce Q

    3 2

    00

    9

    Mandalay Cumulative Returns 9.5% Annual Compounded Rate of Return Gold Silver

    Delivering Shareholder Value at Mandalay9.5% Compounded Cumulative Total Return to Common Shareholders over past 5-years(1)

    MND LAG MND OUTPERFORM

    CE

    O A

    ppoin

    ted

    Coste

    rfie

    ld A

    cquir

    ed

    Single

    mine

    ramp-up

    Cerr

    o B

    ayo

    Acquir

    ed

    Two mine

    ramp-up

    SIB

    Warr

    ant R

    edem

    ption

    Div

    idend

    Initia

    ted

    Challacollo A

    cquir

    ed

    $60 M

    illion G

    old

    Loan

    Bj

    rkdal A

    cquir

    ed

    West F

    ace S

    econdary

    Off

    eri

    ng

    1. Q3 2010 to Q4 2015, includes all dividends paid

    Source: MetalPrices.com for metal spot prices

    Index: September 30, 2009 = 100. Mandalay share price: $0.64

    Graph updated quarterly, prices as at the last trading day of each respective quarter

    5

  • 6

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    20

    $0

    $10,000

    $20,000

    $30,000

    $40,000

    $50,000

    $60,000

    $70,000

    $80,000

    $90,000

    Se

    p-0

    9

    Dec-0

    9

    Mar-

    10

    Ju

    n-1

    0

    Se

    p-1

    0

    Dec-1

    0

    Mar-

    11

    Ju

    n-1

    1

    Se

    p-1

    1

    Dec-1

    1

    Mar-

    12

    Ju

    n-1

    2

    Se

    p-1

    2

    De

    c-1

    2

    Mar-

    13

    Ju

    n-1

    3

    Se

    p-1

    3

    Dec-1

    3

    Mar-

    14

    Ju

    n-1

    4

    Se

    p-1

    4

    Dec-1

    4

    Mar-

    15

    Ju

    n-1

    5

    Se

    p-1

    5

    Dec-1

    5

    Vo

    lum

    e (

    millio

    ns)

    Inve

    stm

    en

    t V

    alu

    e

    Mandalay(1) Mandalay Volume Peer Index(2) Gold Senior(3)

    1. Adjusted for reinvested dividends. Assumes investment in Mandalay made as part of private placement announced on 24-Sep-09 to fund acquisition of Costerfield and

    accounts for warrant exchange offer of 0.47 shares per warrant. End date as at January 14, 2016.

    2. Peer Index: Argonaut, Dundee PM, Kirkland, Lake Shore, OceanaGold, Perseus, Primero, Timmins.

    3. Gold Seniors: Agnico Eagle, AngloGold, Barrick, Goldcorp, Gold Fields, Kinross, Newcrest, Newmont, Polyus, Yamana.

    A $10,000 investment on September 24, 2009 would be worth: Mandalay: $42,334

    Peer Index: $6,350

    Gold Seniors: $2,810

    Mandalay has Delivered an Outstanding Total ReturnTo Original Equity Investors(1)

  • Trading Volume, Ownership and Coverage

    Major Shareholders(1)

    Holders Shares (Million) Shares (Percentage)

    West Face Capital 61.9

    GMT Capital 48.8

    Sentry Investments 40.4

    Plinian + Management 34.2

    Vertex One Asset Management 15.7

    Large Holders 201.0

    Other Holders 209.4

    TOTAL 410.4

    Analyst Coverage

    Firm Analyst

    BMO Brian Quast

    Desjardins Mike Parkin

    Haywood Ben Asuncion

    Raymond James Chris Thompson

    Volume

    30-day Average Daily Volume 527,764

    100-day Average Daily Volume 271,575

    15.4%

    12.1%10.0%

    8.5%

    3.9%

    50.1%

    Source: Bloomberg for volume data

    1. As at January 14, 2016. Total sha