Mandalay Resources January 2016 Investor Presentation

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Information about Mandalay Resources January 2016 Investor Presentation

Published on January 29, 2016

Author: MandalayResourcesCorp

Source: slideshare.net

1. JAN 2016BUILDING VALUE ACROSS THE CYCLE TSX // MND

2. 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 management’s 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 Mandalay’s 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 Assurance Quality 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 of Operational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfield and 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 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 Björkdal and has supervised the preparation of this presentation. All currency references in US$ unless otherwise indicated Forward-looking Statements 2

3. 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

4. 2009 • Costerfield, Australia • Gold & Antimony 2010 • Cerro Bayo, Chile • Silver & Gold 2013 • Challacollo, Chile • Silver & Gold 2014 • Björkdal, 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 Company’s trailing quarter’s 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 $43.3 0 50 100 Q1- 2015 Q2 -2015 Q3 - 2015 Q4 - 2015 US$MM 4

5. 50% 100% 150% 200% 250% 300% Q32009 Q42009 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012 Q12013 Q22013 Q32013 Q42013 Q12014 Q22014 Q32014 Q42014 Q12015 Q22015 Q32015 Q42015 Cumulative%ValueChangeSinceQ32009 Mandalay Cumulative Returns 9.5% Annual Compounded Rate of Return Gold Silver Delivering Shareholder Value at Mandalay 9.5% Compounded Cumulative Total Return to Common Shareholders over past 5-years(1) MND LAG MND OUTPERFORM CEOAppointed CosterfieldAcquired Single mine ramp-up CerroBayoAcquired Two mine ramp-up SIBWarrantRedemption DividendInitiated ChallacolloAcquired $60MillionGoldLoan BjörkdalAcquired WestFaceSecondaryOffering 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. 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 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Volume(millions) InvestmentValue 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 Return To Original Equity Investors(1)

7. 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 shares owned by directors directly = 11.7M (2.86%) 7

8. Growing Value – Reserves Increasing Faster Than Production Adding Reserves Cost Effectively • Acquiring built-out assets for about $160/oz Au Eq. in Proven & Probable • Discovering mine-site reserves for $10-$50/oz Au Eq. in Proven & Probable 15,854 63,351 107,941 126,908 154,810 166,679 253,796 520,175 633,000 771,500 1,123,367 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 0 50,000 100,000 150,000 200,000 250,000 300,000 2010 2011 2012 2013 2014 2015 2016E OzAuEq.Year-EndReserves OzAuEq.AnnualProduction 8 - 20 40 60 80 100 120 140 160 180 2010 2011 2012 2013 2014 USD/ozP&PAdded MANDALAY COST OF ACQUIRING AND EXPLORING FOR RESERVES Cumulative Cost per oz Au Eq. Acquired or Discovered Cost Per oz Au Eq. Discovered in yr Cost Per oz Au Eq. Acquired in yr 165,000 – 180,000(1) 1. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb

9. As at Jan 14, 2016 Millions (Except Share Price Information) Share price (Jan 14, 2016 - close) (C$) 0.63/shr Shares Outstanding 410.4 Options(1) 19.4 Fully Diluted Shares Outstanding 429.8 Market Capitalization (C$) $258.5 Cash and Cash Equivalents (US$) $49.7 Total Interest-Bearing Debt (US$) $57.3 Total Enterprise Value (US$)(2) $187.6 LTM EBITDA $75.5 Net debt to EBITDA (LTM) 0.76x Q4, 2015 Q4, 2014 2015YE 2014YE Saleable Ag oz produced 725,243 1,021,189 2,545,984 3,329,519 Saleable Au oz produced 28,948 31,636 109,102 77,900 Saleable Sb t produced 937 926 3,712 3,639 Q3, 2015 Q3, 2014 9M 2015 9M 2014 Net Cash/All-in cost/oz Au Eq. at Costerfield, $ 553 / 763 747 / 1,047 566 / 777 838 / 1,119 Net Cash/All-in cost/oz Ag at Cerro Bayo, $ 8.31 / 15.18 6.26 / 12.23 8.66 / 15.85 5.87 / 11.81 Net Cash/All-in cost/oz Au Eq. at Björkdal, $(3) 934 / 1,100 706 / 852(3) 866 / 1,022 -(3) EBITDA, $ million 11.5 10.5 54.0 43.0 Net Income, $ million 2.2 (0.7) 19.7 10.0 Cash and cash equiv., $ million 49.7 45.2 49.7 45.2 Operational Performance Financial Performance Balance Sheet and Current Results 1. Exercise Price: C$0.33 – C$1.13 expiry dates ranging from Mar 11, 2016 - Mar 24, 2020 2. Using exchange rate of 1 CAD = 0.6965 USD (Jan 14, 2016) 3. Björkdal Acquired September 10, 2014. Site all-in costs include total cash operating costs, royalty expense, depletion, depreciation, accretion and write-off of exploration and evaluation. 9

10. Operational Locations: Mining-friendly Jurisdictions Metal Gold Ownership 100% 2015 Production 44,039 oz P&P Reserves(1) 6.5 Mt @ 2.05 g/t Au (432,000 oz Au) Metal Silver, Gold Ownership 100% 2015 Production 2,545,984 oz Ag 22,572 oz Au P&P Reserves(1) 2.4 Mt @ 220 g/t Ag; 2.13 g/t Au Metal Gold, Antimony Ownership 100% 2015 Production 42,491 oz Au 3,712 t Sb P&P Reserves(1) 430,000 tonnes @ 8.1 g/t Au; 3.6% Sb 2016E Au oz Saleable Production 100,000 – 115,000 Ag oz Saleable Production 2.9m – 3.3m Sb oz Saleable Production 3,000 – 3,500 Total Forecast Production Au Eq oz 165,000 – 180,000(2) Total cash costs per saleable Au Eq oz $778 Total capex spend $31m – $37m Total exploration spend $7m 2016E Guidance – Production, Investment and Costs 1. Refer to notes in the Appendix 2. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb 10

11. Björkdal Gold Mine: Overview Land package 6,862 hectares Ownership 100% Number of Employees(1) 145 direct, 65 contractors: 210 total Current throughput 3,500 tpd Plant recoveries (YTD 2015) Au: 88% 2016 Planned Exploration Budget $3 million 1. As at year-end 2014, filed in Company’s Annual Information Form 11

12. Björkdal Operating Performance and Improvements $14 $16 $18 $20 $22 280,000 300,000 320,000 340,000 360,000 Q4-14 Q1-15 Q2-15 Q3-15 $/Tonne TonnesPerQuarter Mining Rate and Unit Cost t Mined Cost/ t Mined $0 $10 $20 310,000 320,000 330,000 340,000 Q4-14 Q1-15 Q2-15 Q3-15 $/Tonne TonnesPerQuarter Processing Rate and Unit Cost t Processed Cost/ t Processed $700 $750 $800 $850 $900 $950 0 5,000 10,000 15,000 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $/ozAu OuncesGoldPerQuarter Saleable Gold Produced and Unit Cost Au oz Cost/ oz Au Björkdal 2015 Operational Improvements:  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  Pilot ore sorting  Pilot ultra-fine float 12

13. Underground Grade Improvement #1 – Currently Being Implemented 13 In first 3 weeks of on-vein selectivity, entire sample set totals 12,890 t @ 2.37 g/t Au and historic practice would send the entire tonnage to plant. With new selectivity,  9,154 t above >0.7 @ 3.18 g/t Au, will be sent to the mill  2,239 t @ 0.49 g/t Au, will be stockpiled  1,497 t @ 0.23 g/t, will be sent to waste Next step is to implement same selective mining for stoping ore

14. ? Improvement #2 – Move to 3.5m Drifts on 15m Levels (Currently 5m Drifts on 20m Levels) 5 X 5 3.5 X 3.5 15 m levels 20 m levels  Now that Au hosted in vein walls disproved, smaller drifts on the right mineralized veins clearly will reduce dilution  Closer levels (15 m vs old 20 m) will reduce exits of subvertical veins out of stopes  Will take time to clear 18 mo of inventory at old geometry 14

15. Improvement #3 – Ore sorting 15 Stockpiled Mixed Low-Grade Material Sorted Waste – no veins Sorted Ore – with veins Bulk Test Start Grade End Grade Times Upgraded Waste Rejection Gold Retained g/t Au g/t Au (%) (%) Underground Ore 1.93 2.97 1.54 43.0 87.0 Stockpile Ore 0.81 1.11 1.37 30.0 96.0  Pilot studies confirm that  Au is contained in fragments of white quartz vein material, not in black wallrock material  Can optically sort out 40+% of black rock and only lose a few % of gold recovery  Potential to upgrade low-grade material or even high grade material to increase mill head grade, producing more gold from existing mill capacity  Onsite pilot plant scheduled for Q2, 2016

16. Cerro Bayo Silver-Gold Mine Land package 23,106 hectares Ownership 100% Number of Employees(1) 429 direct, 120 contractors: 549 total Current throughput 1,400 tpd Plant recoveries (YTD 2015) Ag: 90.4%, Au: 86.5% 2016 Planned Exploration Budget $2 million 1. As at year-end 2014, filed in Company’s Annual Information Form 16

17. Cerro Bayo Operating Performance and Improvements 17 $0 $50 $100 0 50,000 100,000 150,000 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 q2-13 Q4-13 Q2-14 Q4-14 Q2-15 $/Tonne TonnesPerQuarter Mining Rate and Unit Cost t Mined Cost/ t Mined $0 $50 0 50,000 100,000 150,000 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 $/Tonne TonnesPerQuarter Processing Rate and Unit Cost t Processed Cost/ t Processed $0 $5 $10 $15 $20 0 500,000 1,000,000 1,500,000 Q4-10Q2-11Q4-11Q2-12Q4-12Q2-13Q4-13Q2-14Q4-14Q2-15 Q4-15 $/ozAgNetByproduct OzAg/Quarter Saleable Silver Produced & Unit Cost Ag oz Cost/ oz Ag net Au 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

18. Emerging Extensions and New Veins Under Laguna Verde 18 COYITA YASNA Indicated  Slow drilling of long holes under lake  Coyita and Yasna only partially infilled/extended in 2014 – 3.4 Moz added in reserves  We expect at least as much again as we complete drilling COYITA YASNA

19. Target Generation 2016 19 1a 1b 1c 1d 1e

20. Costerfield Gold-Antimony Mine: Overview Land package 1,293 hectares Ownership 100% Number of Employees(1) 163 direct, 64 contractors: 227 total Current throughput 420 tpd Plant recoveries (YTD 2015) Au: 89.6%, Sb: 95.11% 2016 Planned Exploration Budget $2 million 1. As at year-end 2014, filed in Company’s Annual Information Form 20

21. Costerfield Operating Performance and Improvements $0 $100 $200 $300 $400 0 10,000 20,000 30,000 40,000 50,000 Q4-09 (Dec. only) Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 USD/Tonne TonnesPerQuarter Mining Rate and Unit Cost t Mined Cost/ t Mined $0 $50 $100 $150 0 10,000 20,000 30,000 40,000 50,000 Q4-09 (Dec. only) Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 USD/Tonne TonnesPerQuarter Processing Rate and Unit Cost t Processed Cost/ t Processed $0 $1,000 $2,000 $3,000 0 5,000 10,000 15,000 20,000 Q4-09 (Dec. only) Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15 USD/OzAuEq. OuncesPerQuarter Au Equivalent Production and Cost Oz Au Eq. Cost/ Au Eq. Oz Costerfield Operational Improvements:  Improved mill throughput from 170 tpd (end-2009) to 420 tpd (mid-2015)  Changed mining method from cut-and-fill to blast-hole stoping with cemented rock fill (greater production, lower unit costs)  Switched mining development team with contractors  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  Continue target testing 21

22. Challacollo Silver-Gold Project: Overview 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 Form 22

23. Current status  Initial Mineral resource estimate – complete  Initial Mine plan – complete  Metallurgy – complete – 92-93% Ag recovery, 70% Au recovery  Site layout, plant design – complete  Capital and operating cost estimates being refined  Water well drilling – currently identifying water source  Environmental and cultural baselines ongoing  Community consultations ongoing Challacollo Development Timeline 2015 2016 2017 2018 2019 Initial Resource Complete  Resource Expansion Testing Water Source Development CAPEX / OPEX Optimization Permitting Mine Construction 23

24. 24 Invest with Us: How We Will Deploy Your Capital  Acquire new assets counter-cyclically – only at a deep discount to value that we can 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  Execute focused operational improvement projects at each site • 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 – create more diverse customers paying better terms  Apply relentless, disciplined financial management • 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  Engage all stakeholders in a values-based and value-focused organization 24

25. JAN 2016BUILDING VALUE ACROSS THE CYCLE TSX // MND For more information, please contact: Greg DiTomaso Director, Investor Relations Tel: 647.260.1566 Email: g.ditomaso@mandalayresources.com Company Website: www.mandalayresources.com Twitter: @MandalayAuAg

26. Management and Board of Directors Senior Management Board of Directors Brad Mills, CEO and Executive Director Former CEO Lonmin plc, over 30 years of experience in Copper, Gold, PGMs Mark Sander, President 29 years of experience in exploration, strategy and operating improvements Sanjay Swarup, CFO and Executive Director Former Lonmin plc, over 20 years of industry experience Belinda Labatte, Head of Stakeholder Engagement & Corporate Affairs Over 10 years of experience in capital markets Braam Jonker, Chairman Peter R. Jones, Independent Director Tony Griffin, Independent Director Robert Doyle, Independent Director Dominic Duffy, COO Mining Engineer with extensive technical and operational management experience 26

27. Numbers may differ slightly from source documents due to rounding 27 Mandalay Reserves Cerro Bayo Reserves(1) Ore (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz) Proven Reserves 374,000 209 2,513,000 1.7 21,000 Probable Reserves 2,035,000 222 14,549,000 2.2 144,000 P&P Reserves 2,409,000 220 17,062,000 2.13 165,000 Costerfield Reserves (2) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Proven Reserves 98,000 4.5 4,400 10.4 32,000 Probable Reserves 333,000 3.3 11,200 7.4 80,000 P&P Reserves 431,000 3.6 15,600 8.1 112,000 1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2014, documented in an independent NI 43-101 Technical Report, Filed on March 31, 2015 2 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2014, documented in an independent NI 43-101 Technical Report Filed on March 31, 2015 3 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2014, documented in an independent NI 43-101 Technical Report Filed on March 31, 2015 TOTAL RESERVES 31-December-2014 Ag (cont. oz) Au (cont. oz) Sb (cont. t) Mandalay Proven Reserves 2,513,000 53,000 4,400 Mandalay Probable Reserves 14,549,000 656,000 11,200 Total Mandalay P&P Reserves 17,062,000 709,000 15,600 Björkdal Reserves (3) Ore (t) Au Grade (g/t) Au (cont. oz) Proven - - - Probable 6,544,000 2.05 432,000 Total 6,544,000 2.05 432,000

28. 28 Mandalay Resources Cerro Bayo Resources (1) Resource (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz) Measured Resources 310,000 316 3,143,000 2.6 26,000 Indicated Resources 1,685,000 323 17,525,000 3.2 178,000 M&I Resources 1,995,000 322 20,668,000 3.2 204,000 Inferred Resources 585,000 218 4,112,000 2.2 43,000 Costerfield Resources(2) Resource (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Measured Resources 213,000 4.5% 9,600 10.2 70,000 Indicated Resources 786,000 3.3% 26,300 6.9 175,000 M&I Resources 999,000 3.6% 35,900 7.5 245,000 Inferred Resources 519,000 2.6% 13,700 5.3 89,000 TOTAL RESOURCES Ag (cont. oz) Au (cont. oz) Sb (cont. t) Measured Resources 3,143,000 96,000 9,600 Indicated Resources 47,725,000 1,039,000 26,300 Total M&I Resources 50,868,000 1,135,000 35,900 Total Inferred Resources 11,003,000 221,000 13,700 1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2014, documented in an independent NI 43-101 Technical Report Filed on March 31, 2015 2 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2014, documented in an independent NI 43-101 Technical Report Filed on March 31, 2015 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 0.3 200 48,000 30,200,000 M&I Resources 4,700,000 0.3 200 48,000 30,200,000 Inferred Resources 1,600,000 0.3 134 16,000 6,900,000 3 Source: Challacollo – Mining Plus, Effective December 31, 2014, documented in an independent NI 43-101 Technical Report Filed on March 31, 2015 4 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2014, documented in an independent NI 43-101 Technical Report Filed on March 31, 2015 Björkdal Resources (4) Resource (t) Au Grade (g/t) Au (cont. oz) Measured Resources - - - Indicated Resources 7,135,000 2.78 638,000 M&I Resources 7,135,000 2.78 638,000 Inferred Resources 1,200,000 1.89 73,000

29. 29 MND (180% value change) outperformed through the entire 2009 - 2015 bottom-to-bottom price cycle: 1. All 6 Currencies (AUD, CAD, GBP, CLP, EU, CNY): 74 – 105% 2. All 3 Precious Metals – (Au, Ag, Pt): 68 – 106% 3. All 4 Base Metals (Pb, Zn, Cu, Ni): 50 – 84% 4. All 7 Gold Mutual Funds: 54 – 71% 5. All 6 Resource/Basic Material Mutual Funds: 66 – 171% 6. All 6 “Big Diversified” Miners: 29 – 97% 7. All 6 “Prospect Generator” Companies: 4 – 180% 8. All 4 “Royalty/Streaming” Companies: 65 – 185% 9. All 3 “Mega Gold” Miners (>$US10 B market cap): 27 – 51% 10. All 9 “Big Gold” Miners (USD1-10B market cap): 10 – 182% 11. 5 of 9 “Mid-Tier Gold” Miners USD0.5-1B market cap): 18 – 7,468% 12. 14 of 18 “Junior Gold” Miners (<USD500M market cap): 16 – 430% 13. 13 of 16 “Gold Developers”: 8 – 467% 14. 7 of 8 “Big Silver” Miners (>USD400M market cap): 14 – 207% 15. All 2 “Mid Tier Silver” Miners (USD200-400M market cap: 21 – 66% 16. All 5 “Junior Silver” Miners (<USD200M market cap): 11 – 75% 17. All 5 “Silver Developers”: 3 – 157% 18. 5 of 6 “Big Copper” Miners (>USD7B market cap): 35 – 214% 19. All 10 “Base Metals Developers”: 8 – 65% 20. 5 of 6 “Mid-Tier Base Metals” (USD0.25-1B market cap): 31 – 270% 21. All 6 “Junior Base Metals” (<USD250M market cap): 2 – 64% 22. All 9 “PGM Mineral and Developers”: 1 – 128% 23. All 1 “Junior Aluminum Company”: (26%) 29 Mandalay versus: • 155 alternative investments • In 23 different strategy categories • Over the 25 quarters from Q3 2009 to Q4 2015 (period that Plinian has led Mandalay) Value metric is: • For currencies, change in exchange rate with USD as listed in www.bankofcanada.com • For metal prices, change in USD metal price per lb., oz., or t as listed in www.metalprices.com • For mutual funds, change in share price plus dividends paid as listed in www.finance.yahoo.com • For companies, common shareholder equity value assuming market purchase of shares, excluding warrants and special dividends but including ordinary dividends and stock splits as listed in www.finance.yahoo.com

30. Strong Annual Production Growth 109,337 1,318,655 2,911,595 3,145,537 3,329,519 2,545,984 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 2010 2011 2012 2013 2014 2015 2016E Silver (oz) 334 12,244 17,089 21,482 27,600 22,572 0 5,000 10,000 15,000 20,000 25,000 30,000 2010 2011 2012 2013 2014 2015 2016E Gold (oz) 7,661 6,678 18,036 28,758 35,751 42,491 0 10,000 20,000 30,000 40,000 50,000 2010 2011 2012 2013 2014 2015 2016E Gold (oz) Costerfield Production (2016E) Cerro Bayo Production (2016E) 1,106 1,571 2,481 3,275 3,639 3,712 0 1,000 2,000 3,000 4,000 2010 2011 2012 2013 2014 2015 2016E Antimony (Sb) Björkdal Production (2016E) 14,549 44,039 0 10,000 20,000 30,000 40,000 50,000 60,000 2010 2011 2012 2013 2014 2015 2016E Gold (oz) 15,854 63,351 107,941 126,908 154,810 166,679 0 40,000 80,000 120,000 160,000 200,000 2010 2011 2012 2013 2014 2015 2016E Total MND Production (AuEq oz)(1) 1. Refer to notes on gold equivalent ounces in the Appendix 165,000 - 180,000 26,000 – 30,000 24,000 – 30,000 50,000 - 55,000 3,000 – 3,500 2,900,000 – 3,300,000 30

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