AI
Tuesday, June 20, 2017 1:49:56 PM
MND.TO - old fave in the dumps.
I bought a fair bit of MND.TO at $.60 and it has since dropped to $.40 due to an unfortunate mine catastrophe where one of three veins adjacent to the lake collapsed and sounds fully submerged with two workers unfortunately lost.
The future of the Cerro Bayo Silver mine is in question now, but the Delia NW vein is only one of three veins that is being mined and MND disclosed this today:
Approximately 12,000 tonnes of ore remained on the bottom of the level at the time of the event, or approximately 12 days of mill throughput at the current 1,000 tonnes per day rate. Therefore, the immediate impact on reserves and ultimate total production at the property is expected to be small.
The remaining two producing mines at the current time are Coyita and Delia SE, both located close to and under Laguna Verde. These mines are planned to supply a significant portion of the remaining life of mine plan and are entirely unflooded and intact. The Company confirms that the reopening of any mine at Cerro Bayo is dependent on the results of detailed investigations into the root causes of the Delia NW event, resulting risk analysis of the possibility of reopening and government
permits to reopen. This work is likely to take several months.
http://www.mandalayresources.com/wp-content/uploads/2017/01/MND_June_20_2017.pdf
Chile not likely to take this collapse likely after the undergound saga of the 33 miners in recent memory but if Cerry Bayo starts up again MND will be one the cheapest 100k+ oz/year au-equivalent producers out there (except for Orvana, but I trust MND's management). At $.40 MND has a $CAD 173M MC.
Cerro Bayo actually hasn't been generating a significant amount of cash flow in 2016 per the segmented disclosure notes below. I know the Cerry Bayo mill ran up to and around 1400 TPD in 2015, but perhaps was running at 1000 TPD in 2016 (this is what is alluded to in statement I copied above)
I'm contemplating buying more. I would buy right now if I didn't already ante-up at $.60. You need to read the press releases before considering here. Mandalay could be in the dumps for months until market understands if Cerry Bayo has a future.
I bought a fair bit of MND.TO at $.60 and it has since dropped to $.40 due to an unfortunate mine catastrophe where one of three veins adjacent to the lake collapsed and sounds fully submerged with two workers unfortunately lost.
The future of the Cerro Bayo Silver mine is in question now, but the Delia NW vein is only one of three veins that is being mined and MND disclosed this today:
Approximately 12,000 tonnes of ore remained on the bottom of the level at the time of the event, or approximately 12 days of mill throughput at the current 1,000 tonnes per day rate. Therefore, the immediate impact on reserves and ultimate total production at the property is expected to be small.
The remaining two producing mines at the current time are Coyita and Delia SE, both located close to and under Laguna Verde. These mines are planned to supply a significant portion of the remaining life of mine plan and are entirely unflooded and intact. The Company confirms that the reopening of any mine at Cerro Bayo is dependent on the results of detailed investigations into the root causes of the Delia NW event, resulting risk analysis of the possibility of reopening and government
permits to reopen. This work is likely to take several months.
http://www.mandalayresources.com/wp-content/uploads/2017/01/MND_June_20_2017.pdf
Chile not likely to take this collapse likely after the undergound saga of the 33 miners in recent memory but if Cerry Bayo starts up again MND will be one the cheapest 100k+ oz/year au-equivalent producers out there (except for Orvana, but I trust MND's management). At $.40 MND has a $CAD 173M MC.
Cerro Bayo actually hasn't been generating a significant amount of cash flow in 2016 per the segmented disclosure notes below. I know the Cerry Bayo mill ran up to and around 1400 TPD in 2015, but perhaps was running at 1000 TPD in 2016 (this is what is alluded to in statement I copied above)
I'm contemplating buying more. I would buy right now if I didn't already ante-up at $.60. You need to read the press releases before considering here. Mandalay could be in the dumps for months until market understands if Cerry Bayo has a future.
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