2016 11 02 MND Investor Presentation NOV - Mandalay Resources · 2016 Quarterly Financial Measures...
Transcript of 2016 11 02 MND Investor Presentation NOV - Mandalay Resources · 2016 Quarterly Financial Measures...
BUILDING VALUEACROSS THE CYCLE
MANDALAY RESOURCES
NOV 2016TSX // MND
This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life ofmine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially fromthose contemplated by these statements depending on, among other things: exploration results or production results not meeting management’sexpectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market andeconomic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. Adescription of additional risks that could result in actual results and developments differing from those contemplated by forward lookingstatements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 30, 2016 andin its final prospectus dated July 18, 2016, copies of which are available under Mandalay's profile at www.sedar.com. Although Mandalay hasattempted 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 beno assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from thoseanticipated 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 Björkdal are supervised by Chris Gregory (Member, Australian Institute of Geoscientists, VP ofOperational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfieldand Björkdal, 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 MandalayResources, and an Oregon registered Professional Geologist. A “Qualified Person” as defined by NI 43-101, he has reviewed and approved thetechnical and scientific information on these projects contained in the presentation.
Dr. Mark Sander (Member: AusIMM), President and CEO of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Björkdal andhas supervised the preparation of this presentation.
All currency references in US$ unless otherwise indicated
Forward-looking Statements
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A Values-Based and Value-Focused Company
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 our stakeholders, and coordinated across the Company for maximum effect
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 our stakeholders, and coordinated across the Company for maximum effect
Profitable and Dividend-Paying: (3.4% yield)*
*Trailing 12 months dividends divided by current market capitalization (Oct. 31, 2016)
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Designed for Value: How We are Different
Acquire only when we see possibility of 3-5X value uplift in 3-5 years
Target cash cost of production: 50% of ‘reversion to mean’ metal price
100% ownership of all operations; no private royalties, no streams
Flat, virtual, low-cost organizational structure; local GM accountability
Direct relationships and sales contracts with customers
Dividend-paying: 6% of trailing quarterly revenue
No hedging of metal prices
Lightly levered with low-interest, gold-convertible bonds
Stingy with equity
Disciplined management processes operated with integrity
Compensation systems based on value-add
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1.7
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79.9 67.7 64.4 68
-0.8
30.661.2 75.9
52.473.4
20.6
92.2
171.8 166.9184.6
194.5
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2010 2011 2012 2013 2014 2015
2009• Costerfield, Australia• Gold & Antimony• Costerfield, Australia• Gold & Antimony
2010
• Cerro Bayo, Chile• Silver & Gold• Cerro Bayo, Chile• Silver & Gold
2014• Challacollo, Chile• Silver & Gold• Challacollo, Chile• Silver & Gold
2014
• Björkdal, Sweden• Gold• Björkdal, Sweden• Gold
Results: Strong performance across the price cycle
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 – EBITDA figures reflect adjusted EBITDA, please see the Company’s Management’s Discussion and Analysis.
TIMELINE
2016 Quarterly Financial Measures
Revenue,EBITDA(1) & Cash from Operations
RevenueEBITDACash from Operations
Record Revenue
2nd best EBITDA & Cash from Operations
• No acquisition • Optimize operations• Pay down debt• Exchange warrants• Begin dividends
2011‐2013
5
50.454.2
48.5
17.322.1
13.87.3
22.315.5
0
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60
Q1 2016 Q2 2016 Q3 2016
US$
MM
US$
MM
1. Assumes full-year 2016 prices: Au $1,258/oz, Ag $17.00/oz, Sb $6,505/t 6
Based on matched production and reserve growth
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With continuing low cash and all-in production costs
$/O
z Au
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(Cos
t) or
Au
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e)
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1,600
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Production Cash Cost AISC Average Au price
Au E
q. O
z/Q
tr
Reducing volatility with growing number of operations
1 mine restart1 mine restart
1 mine transformation1 mine restart
1 mine transformation2 mines producing
1 mine transformation
P&L Margin
EBITDA Margin
2010 2011 2012 2013 2014 2015 Q3 2016
15,854 63,351
107,941 126,908
154,810 166,679 254,000
520,000 633,000
772,000
1,123,000 1,070,000
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Oz
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q. Y
ear-
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q. A
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149,000 –152,000(1)
155,000 –175,000(1)
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Mandalay cost of acquiring and discovering reserves
Cumulative Cost per oz Au Eq. Acquired or DiscoveredCost Per oz Au Eq. Discovered in yrCost Per oz Au Eq. Acquired in yr
And adding reserves cost-effectively
1. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb2. Source: BMO
Exploration adds at cumulative average $50/oz Au Eq.
Acquisition + Exploration adds at cumulative average $78/oz Au Eq. (for developed & producing reserves)
Cerro Bayo
Björkdal
Median for all Au sector acquisitions2012 – 2016 = $254/oz Au Eq.(2)
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50%100%150%200%250%300%350%
Q32009
Q12010
Q32010
Q12011
Q32011
Q12012
Q32012
Q12013
Q32013
Q12014
Q32014
Q12015
Q32015
Q12016
Q32016
Mandalay Cumulative Returns14.6% Annual Compounded Rate of ReturnGoldSilver
(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. (2) Peer Index: Alacer, Argonaut, Dundee PM, Kirkland, Klondex, Newmarket, Perseus, Primero, Richmont. (3) Gold Seniors: Agnico Eagle, AngloGold, Barrick, Goldcorp, Gold Fields, Kinross, Newcrest, Newmont, Polyus, Randgold. (4) End date as at October 17, 2016.
Creating Superior Value for Shareholders
$0$2,000,000$4,000,000$6,000,000$8,000,000
$10,000,000$12,000,000$14,000,000
2010 2011 2012 2013 2014 2015 9M-2016
Dividends Paid (USD)**
6% of revenues (dividend contribution)
14.6% Cumulative Total Return (% Value Change)*
*Q3 2010 to Q3 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $1.00.Graph updated quarterly, prices as at the last trading day of each respective quarter. **Annual cash dividend paid quarterly, based on 6% of the Company’s trailing quarter’s gross revenue and the future cash requirements of the Company
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Volu
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Inve
stm
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alue
Mandalay(1) Peer Index(2) Gold Senior(3)
Total Return vs. Peers and Seniors
A $10,000 investment on September 24, 2009 would be worth today(4):
• Mandalay: $68,425• Peer Index: $12,344• Gold Seniors: $6,932
A $10,000 investment on September 24, 2009 would be worth today(4):
• Mandalay: $68,425• Peer Index: $12,344• Gold Seniors: $6,932
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Record Dividends
Trading Volume, Ownership and Coverage
Major Shareholders(1)
Holders Shares (Million) Shares (Percentage)
GMT Capital 66.1
Rufer LLP 43.5
Sentry Investments 42.0
Plinian + Management + Directors 32.5
FIL 16.3
Large Holders (Top-5) 203.4
Other Holders 247.8
TOTAL 451.2
Analyst Coverage
Firm Analyst
BMO Brian Quast
Desjardins Mike Parkin
Haywood Ben Asuncion
Raymond James Chris Thompson
Scotia Craig Johnston
Volume
30-day Average Daily Volume 1,608,354
100-day Average Daily Volume 1,217,989
14.6%
10.0% 9.6%7.2%
3.6%
54.9%
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Average Daily Volume across all trading platforms (as of Oct. 31, 2016)Known ownership positions are estimates - as at October 24, 2016
Strong Balance Sheet
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As at October 31, 2016 Millions(Except Share Price Info)
Share price (October 31, 2016 - close) (C$) $1.00/shr
Shares Outstanding 451.2
Stock Options(1) 19.2
Fully Diluted Shares Outstanding 470.4
Market Capitalization (C$) $451.2
Cash and Cash Equivalents (US$) + Cash Proceeds of Bought Deal $74.6
Total Interest-Bearing Debt (US$) $59.0
Total Enterprise Value (US$)(2) $322.8
Net Cash (US$) $15.6
1. Exercise Price: C$0.83 – C$0.91 expiry dates ranging from Mar 9, 2017 – Mar 23, 20212. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.75 USD (Oct 31, 2016)
Revised Guidance for Full-Year 2016Revised 2016 Guidance Total Cerro Bayo Costerfield Björkdal Challacollo
Ag oz Saleable Production (millions) 1.7 – 1.9 1.7 – 1.9
Au oz Saleable Production (‘000) 104 – 110 13 – 15 41 – 43 50 – 52
Sb t Saleable Production (‘000) 3.6 – 3.8 3.6 – 3.8
Total Forecast Production Au Eq oz (‘000) (1,2)
149 – 152
Total cash costs per saleable Au Eq oz(3)
$845 – $865 $950 – $1,050 $610 – $650 $850 – $870
Total capex spend (millions) $33 – $38 $15 – $17 $3 – $4 $14 – $16 $1
Total exploration spend (millions) $12 – $14 $3 $4 – $5 $4 – $5 $1
1. Assumes full-year 2016 prices: Au $1,258/oz, Ag $17.00/oz, Sb $6,505/t 2. Actual AuEq production ounces dependent on realized metal prices used for AuEq calculation3. Total cash cost per Au Eq includes corporate overhead spending4. Assumes assumptions: Au $1,202/oz, Ag $16.87/oz, and Sb $6,820/t
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Original 2016 Guidance Total Cerro Bayo Costerfield Björkdal
Ag oz Saleable Production (millions) 2.9 – 3.3 2.9 – 3.3
Au oz Saleable Production (‘000) 100 – 115 24 – 30 26 – 30 50 – 55
Sb t Saleable Production (‘000) 3.0 – 3.5 3.0 – 3.5
Total Forecast Production Au Eq oz (‘000) (2,4)
165 – 180
Total cash costs per saleable AuEq oz(4)
$690 – $810 $600 – $720 $650 – $770 $850 – $970
Total capex spend (millions) $31 – $37 $13 – $15 $2 – $3 $16 – $19
Total exploration spend (millions) $7 $2 $2 $3
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2017 GuidanceTotal Cerro Bayo Costerfield Björkdal Challacollo
Ag oz Saleable Production (millions) 2.2 – 2.5 2.2 – 2.5
Au oz Saleable Production (‘000) 104 – 121 22 – 28 30 – 35 52 – 58
Sb t Saleable Production (‘000) 3.2 – 3.7 3.2 – 3.7
Total Forecast Production Au Eq oz (‘000)(1) 155 – 175
Total cash costs per saleable Au Eq oz(1) $820 – $890 $720 – $780 $710 – $780 $860 – $930
Total capex spend (millions)(2) $58 – $66 $21 – $24 $12 – $14 $24 – $27 $1
Total exploration spend (millions) $7 $2 $3 $2
1. Assumes full-year 2016 prices: Au $1,258/oz, Ag $17.00/oz, Sb $6,505/t2. Actual AuEq production ounces dependent on realized metal prices used for AuEq calculation
Mine DevelopmentCosterfield: • $1.8M for Cuffley Deeps Cerro Bayo:• Marcela vein, $10.5MBjörkdal:• $3.0M capitalised stripping for new open pit mine
plan with anticipated new reserves $1.1M for accelerated underground dev. metres
Plant/EquipmentCosterfield:• Brunswick preparations - Water storage and evap. facilities
$3.0M and power equipment of $1.3M; and • Tailings facility $1.0M to finish current LOMBjörkdal:• Ore sorting and screening – $8.0M ($4M 2018)• Flotation circuit upgrade - $2.6M in 2017; and• Upgrade of current tailings $1.1MCerro Bayo:• Tailings Dam $2.5M – delayed from 2016; and• Electrical installation at Coyita $0.5M
$30M in New Capital
Costerfield Gold-Antimony Mine: Turnaround CompleteLand package 1,293 hectares
Ownership 100%
Number of Employees(1) 172 direct, 4 contractors: 176 total
Current throughput (Q3-2016) 391 tpd
Plant recoveries (Q3-2016) Au: 90.13%, Sb: 95.69%
1. As at year-end 2015, filed in Company’s Annual Information Form13
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Costerfield: Continuous Improvement
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Costerfield Operational Improvements:Record High Rate Record Low Cost
Improved mine output/mill throughput from 170 tpd to 450 tpd (capped by grid power and site grinding capacity)
Changed mining method from cut-and-fill to blast-hole stoping with cemented rock fill (greater production, lower unit costs)
Introduced contract capital development for faster and lower cost results
Increased sub-level spacing from 5 – 10 m
Replaced mechanized mining fleet
Introduced mobile crusher to decrease particle size of mill feed (better recoveries, higher throughput)
Grew mine life from zero reserves to roughly 4 years while mining continuously for 6 years
Operations continue setting records and new targets being tested
Costerfield Operational Improvements:Record High Rate Record Low Cost
Improved mine output/mill throughput from 170 tpd to 450 tpd (capped by grid power and site grinding capacity)
Changed mining method from cut-and-fill to blast-hole stoping with cemented rock fill (greater production, lower unit costs)
Introduced contract capital development for faster and lower cost results
Increased sub-level spacing from 5 – 10 m
Replaced mechanized mining fleet
Introduced mobile crusher to decrease particle size of mill feed (better recoveries, higher throughput)
Grew mine life from zero reserves to roughly 4 years while mining continuously for 6 years
Operations continue setting records and new targets being tested
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Start-up
Transformation
Cont. Impr.
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Expansion of existing lodes
Entirely “new” lodes
N-Lode North
Brunswick Lode
Björkdal Gold Mine: Emerging from Intensive Care
Land package 12,949 hectares
Ownership 100%
Number of Employees(1) 169 direct, 58 contractors: 227 total
Current throughput (Q3-2016) 3,581 tpd
Plant recoveries (Q3-2016) Au: 88.1%
1. As at year-end 2015, filed in Company’s Annual Information Form16
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Björkdal Operating Performance and Improvements
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Björkdal 2015 Operational Improvements:
Record High Rate Record Low Cost
Introduced best practice mapping, drilling, sampling, and modelling of high nugget-effect gold deposits
Produced a more refined resource model to support more selective underground & open pit mining techniques
Establishing a local assay lab for faster grade control turnaround
2016 Planned Improvements:
Increasing grade of mill feed through more selective underground and open pit mining at an increasing rate (making up for discarding waste) DONE
Pilot optical ore sorting – DONE
Pilot coarse and ultra-fine gold float – DONE
Björkdal 2015 Operational Improvements:
Record High Rate Record Low Cost
Introduced best practice mapping, drilling, sampling, and modelling of high nugget-effect gold deposits
Produced a more refined resource model to support more selective underground & open pit mining techniques
Establishing a local assay lab for faster grade control turnaround
2016 Planned Improvements:
Increasing grade of mill feed through more selective underground and open pit mining at an increasing rate (making up for discarding waste) DONE
Pilot optical ore sorting – DONE
Pilot coarse and ultra-fine gold float – DONE
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Transitioning to Proper Longitudinal Grade Control
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Sampling every round results in discarding 30-40% of materialSampling every round results in discarding 30-40% of material
Ore sorting: Encouraging visual results backed up by preliminary processing results
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“Ore” – Abundant vein fragments, presumed increased grade
“Waste” – No vein fragments, presumed very low-grade
Bulk TestStart
GradeEnd
GradeTimes
Upgraded Waste
RejectionGold
Retained g/t Au g/t Au (%) (%)
Underground Ore
1.93 2.97 1.54 43.0 87.0
Stockpile Ore
0.80 1.19 1.48 39.0 90.0
Result includes fines (-20mm) that are too fine to sort
Björkdal Processing Improvements
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Completed: Sampling survey on milling and gravity gold circuits to identify
improvement opportunities
Laboratory flotation recovery study on effect of fineness of grind, % solids, and residence time – key for decision-making on possible future flotation circuit expansion
Pilot on-site testing of coarse and ultra fine gold flotation
Flotation circuit and ancillary equipment expansion study to determine OPEX and CAPEX for a planned flotation circuit expansion. Goal: improve flotation recovery and concentrate grade
2016 Planned Improvements: Milling/Flotation material flow stability survey to identify areas
where automation can be implemented to improve recovery
Introduction of high chrome grinding media for increased wear resistance, grinding media cost saving and improved pulp chemistry for improved flotation recovery
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Björkdal H1 2016 Drill Results
Filling in gap between Open Pit and Nylunds
Expanding underground footprint
5 km top-of bedrock gold anomaly extends from open pit to Au prospect at Ronnberget
DDE2015-006 (assays received in 2016) about halfway along; intersected 1.05 m @3.91 g/t Au
1-2 km
Cerro Bayo Silver-Gold MineLand package 23,106 hectares
Ownership 100%
Number of Employees(1) 398 direct, 133 contractors: 531 total
Current throughput (Q3-2016) 920 tpd
Plant recoveries (Q3-2016) Ag: 82.32%, Au: 82.93%
1. As at year-end 2015, filed in Company’s Annual Information Form22
BRANCAKASIA
RAMONA ETC.
Emerging Vein
Cerro Bayo Operating Performance and Improvements
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Cerro Bayo Operational Improvements:
Shifted the mining method from shrinkage stoping to completely mechanized blast hole open stoping;
Ramped up throughput from 0 tpd –1,400 tpd from three mines
Installed flotation automation system to maximize silver and gold recoveries
Extended mine life from 3 years at 1,200 tpd to 5 years at 1,400 tpd while mining continuously for 4 years
Ongoing improvements to increase pace of development mining
Cerro Bayo Operational Improvements:
Shifted the mining method from shrinkage stoping to completely mechanized blast hole open stoping;
Ramped up throughput from 0 tpd –1,400 tpd from three mines
Installed flotation automation system to maximize silver and gold recoveries
Extended mine life from 3 years at 1,200 tpd to 5 years at 1,400 tpd while mining continuously for 4 years
Ongoing improvements to increase pace of development mining
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Record High Rate Record Low Cost
Challacollo Silver-Gold Project 2016
Land package 20,378 hectares
Ownership 100%
Location 130 km SE of Iquique, Chile
Mineralization Epithermal, oxidized Ag-Au
Number of Employees(1) 6 direct: 6 total
Elevation Approx. 1,500 ASL
1. As at year-end 2014, filed in Company’s Annual Information Form24
Water exploration and water rights transfer Exploration and optimization
Large self-potential anomalies north and south of Lolon vein
Lolon vein
Invest with us: How we will deploy your capital1. Acquire new assets counter-cyclically – only at deep discount to value• Deliver base case returns at least 2x the investment• Upside case 3-5x over 3-5 years based on specific testable hypotheses• Keep portfolio evergreen – exit assets that do not fit
2. Execute focused operational improvement projects at each site
3. Apply relentless, disciplined financial management
• Exploration – project portfolio targeted on discovery of near-term reserves• Mining – projects focused on safer, more mechanised mining with higher extraction, lower dilution
and reduced cost• Metallurgical – projects focused on higher recovery, higher availability, higher quality products with
higher payables and reduced costs• Commercial – more diverse customers paying better terms
• Low cash cost and overheads for high EBITDA margins• Low DD&A for high P&L margins – low acquisition cost, focused CAPEX & exploration • Prudent, low-cost leverage to fund growth when needed• Minimize shareholder dilution• Return cash to shareholders: dividend = 6% trailing qtr. revenues
4. Engage all stakeholders in a values-based and value-focused organization
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BUILDING VALUEACROSS THE CYCLE
MANDALAY RESOURCES
For more information, please contact:
Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: [email protected] Website: www.mandalayresources.comTwitter: @MandalayAuAg
For more information, please contact:
Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: [email protected] Website: www.mandalayresources.comTwitter: @MandalayAuAg
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APPENDICES
Management and Board of DirectorsSenior ManagementSenior Management
Board of DirectorsBoard of Directors
Sanjay Swarup, CFOFormer Lonmin plc, over 20 years of industry experience
Belinda Labatte, Head of Stakeholder Engagement & Corporate AffairsOver 15 years of industry experience
Braam Jonker, Independent Director
Peter R. Jones,Independent Director
Robert Doyle,Independent Director
Dominic Duffy, COOMining Engineer with extensive technical and operational management experience
Mark Sander, President and CEO29 years of experience in exploration, strategy and operating improvements
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Mark Sander,Director
Brad Mills, Executive Chairman
Amy Freedman,Independent Director
Numbers may differ slightly from source documents due to rounding
Mandalay ReservesCerro Bayo Reserves(1) Ore (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz)
Proven Reserves 133,000 195 835,000 1.98 9,000Probable Reserves 1,903,000 230 14,041,000 2.18 133,000P&P Reserves 2,036,000 227 14,876,000 2.16 142,000
Costerfield Reserves (2) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz)
Proven Reserves 125,000 4.4 5,500 12.0 48,000Probable Reserves 366,000 3.7 13,400 8.2 97,000P&P Reserves 491,000 3.9 18,900 9.2 145,000
1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed March 30, 20162 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2015, documented in an independent NI 43-101 Technical Report to filed March 30, 20163 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2015, please refer to Mandalay Resources’ press release dated Feb. 29, 2016
TOTAL RESERVES31-December-2015 Ag (cont. oz) Au (cont. oz) Sb (cont. t)
Mandalay Proven Reserves 835,000 57,000 5.5Mandalay Probable Reserves 14,041,000 648,000 13.4Total Mandalay P&P Reserves 14,876,000 705,000 18.9
Björkdal Reserves (3) Ore (t) Au Grade (g/t) Au (cont. oz)
Proven - - -Probable 7,012,000 1.85 418,000
Total 7,012,000 1.85 418,000
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Mandalay ResourcesCerro Bayo Resources (1) Resource (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz)Measured Resources 132,000 250 1,065,000 2.46 10,000Indicated Resources 1,699,000 315 17,211,000 3.16 173,000M&I Resources 1,832,000 310 18,276,000 3.11 183,000Inferred Resources 511,000 181 2,984,000 2.32 38,000
Costerfield Resources (2) Resource (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz)Measured Resources 247,000 4.6 11,000 12.1 96,000Indicated Resources 798,000 3.4 27,000 7.6 194,000M&I Resources 1,045,000 3.7 38,500 8.6 290,000Inferred Resources 491,000 2.0 9,700 4.3 68,000
TOTAL RESOURCES Ag (cont. oz) Au (cont. oz) Sb (cont. t)Measured Resources 1,065,000 106,000 11,000Indicated Resources 47,411,000 1,013,000 27,000Total M&I Resources 48,476,000 1,119,000 38,000Total Inferred Resources 9,884,000 215,000 9,700
1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed March 30, 20162 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2015, documented in an independent NI 43-101 Technical Report Filed March 30, 2016
Challacollo Resources (3) Resource (t) Au Grade (g/t) Ag Grade (g/t) Au (cont. oz) Ag (cont. oz)Measured Resources - - - - -Indicated Resources 4,700,000 0.32 200 48,000 30,200,000 M&I Resources 4,700,000 0.32 200 48,000 30,200,000 Inferred Resources 1,600,000 0.31 134 16,000 6,900,000
3 Source: Challacollo – Mining Plus, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed Mar. 31, 20154 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2015, please refer to Mandalay Resources’ press release dated Feb. 29, 2016
Björkdal Resources (4) Resource (t) Au Grade (g/t) Au (cont. oz)Measured Resources - - - Indicated Resources 7,524,000 2.47 598,000M&I Resources 7,524,000 2.47 598,000Inferred Resources 1,552,000 1.86 93,000
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