On Friday, BMO Capital Markets adjusted its outlook on Mandalay Resources (MND:CN) (OTC: MNDJF), increasing the price target to C$3.00 from the previous C$2.50. The firm sustained its Outperform rating for the mining company following a robust first-quarter financial report.
Mandalay Resources outperformed expectations with an adjusted earnings per share (EPS) of C$0.13, surpassing BMO Capital's estimate of C$0.10. The company had already disclosed its first-quarter production figures, totaling 24.9 thousand ounces of gold equivalent (koz AuEq).
The company's cash costs for the quarter stood at $1,039 per ounce, which was not only better than BMO Capital's forecast of $1,176 per ounce but also below the yearly guidance range of $1,050 to $1,170 per ounce. In addition, Mandalay Resources reported all-in sustaining costs (AISC) of $1,430 per ounce, coming in under both the analyst's expectation of $1,691 per ounce and the annual guidance range of $1,450 to $1,580 per ounce.
Management at Mandalay Resources has indicated that the company is on track to meet its annual production and cost guidance. This positive performance in the first quarter underpins BMO Capital's decision to maintain the Outperform rating and raise the price target to C$3.00.
InvestingPro Insights
Following the upbeat analysis by BMO Capital Markets, Mandalay Resources (MND:CN) (OTC: MNDJF) continues to showcase promising financial health and market performance. According to real-time data from InvestingPro, the company's Market Cap stands at 158.53 million USD, with a P/E Ratio of 12, reflecting a reasonable valuation compared to earnings. Notably, the company's revenue growth for the last twelve months as of Q1 2024 is 3.87%, with a significant quarterly surge of 31.61%, highlighting its robust financial growth trajectory.
InvestingPro Tips suggest that Mandalay Resources is expected to have a strong year ahead, with net income projected to grow and a valuation that implies a compelling free cash flow yield. The company's liquid assets also surpass its short-term obligations, indicating a solid financial position. For investors seeking more detailed analysis, InvestingPro offers additional tips, including insights into the company's moderate level of debt and trading patterns. In fact, there are 8 more InvestingPro Tips available, which could provide a deeper understanding of Mandalay Resources' market potential. Interested readers can unlock these valuable insights and enjoy an extra 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
With the company's stock trading near its 52-week high and a strong return over the last three months, as evidenced by a 58.33% price total return, investors may find Mandalay Resources an attractive option. The InvestingPro Fair Value estimation of 2.07 USD suggests there might be room for growth, aligning with the positive outlook presented by BMO Capital Markets.
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