mandalay resources corporation - august 2015 investor presentation
TRANSCRIPT
AUG2015BUILDING 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 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 AssuranceQuality control and assurance programs are implemented in line with the standards of National Instrument 43-101.
The exploration program at Costerfield is supervised by Chris Gregory (Member, Australian Institute of Geoscientists accredited Chartered
Professional (Mining)), General Manager of Australasian Business Development for Mandalay and a Qualified Person as defined under National
Instrument 43-101. Mr. Gregory regularly visits Costerfield, supervises the collection and interpretation of scientific and technical information
contained in this presentation.
The exploration programs on the Cerro Bayo project is supervised by Ronald Luethe (Member: American Institute of Professional Geologists and
an Idaho Registered Professional Geologist), General Manager of Mandalay Chile Ltda. and a Qualified Person as defined under National
Instrument 43-101. Mr. Luethe visits the Cerro Bayo project often, supervises the collection and interpretation of scientific and technical
information contained in this 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
2009
• Costerfield, Australia
• Gold & Antimony
2010• Cerro Bayo, Chile
• Silver & Gold
2013
• Challacollo, Chile
• Silver & Gold
2014
• Björkdal, Sweden
• Gold
$3.2 $11.1 $9.5$20.6
$92.2
$171.8 $166.9$184.6
$1.7
$32.0
$79.9$67.7 $64.4
0
50
100
150
200
2010 2011 2012 2013 2014
US
$ M
M
A Profitable, Dividend-Paying Company (4.9% Yield*)
3
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.
(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
* Current annualized dividend yield after announcement
TIMELINE
2015 Quarterly
Financial
Measures
Revenue,
EBITDA(1) &
Dividends(2)
Revenue
EBITDA
Dividends$4.0 $3.4 $3.0
$24.3$18.2
$56.7$50.8
0
50
100
Q1- 2015 Q2 -2015 Q3 - 2015 Q4 - 2015
US
$ M
M
4
15,854 63,351
107,941 126,908
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 2015E
Oz A
u E
q. Y
ear-
En
d
Reserv
es
Oz A
u E
q. A
nn
ual
Pro
du
cti
on
4
Reserves
Production
154,810
167,000 –
185,000 EGrowing Production and Reserves
Costerfield M&I Resource Additions & Depletion (Au Eq oz)
Bjorkdal M&I Resource Additions & Depletion (Au oz) Cerro Bayo M&I Resource Additions & Depletion (Ag oz)
Challacollo M&I Resource Additions & Depletion (Ag oz)
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
15Cu
mu
lati
ve %
Val
ue
Ch
ange
Sin
ce Q
3 2
00
9
Mandalay Cumulative Returns 16.4% Annual Compounded Rate of Return Gold Silver
5
16.4% Compounded Cumulative Total Shareholder Return through Entire Bottom-to-Bottom Price Cycle
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
Bjö
rkdal A
cquir
ed
West F
ace S
econdary
Off
eri
ng
Source: MetalPrices.com for metal spot prices
Index: September 30, 2009 = 100. Mandalay share price: $0.42
Graph updated quarterly, prices as at the last trading day of each respective quarter
(1) Exercise price: C$0.26 - C$1.13; Expiry date: Aug 26, 2015 - Mar 24, 2020
(2) As of May 11, 2015, the directors and executive officers of the Corporation, as a group, beneficially owned, or controlled or directed, directly or indirectly, approximately
125,750,876 Common Shares, representing approximately 30.7% of the outstanding Common Shares.
(3) Using exchange rate of 1 CAD = 0.76 USD 6
Capital Structure and Ownership
Major Shareholders(2)
Holders % Shares (Million)
West Face Capital 17.3 71.0
GMT Capital 13.9 57.0
Sentry Investments 10.6 43.4
Sprott Asset Management 10.2 41.9
Plinian + Management 8.3 34.2
Vertex One Asset Management 3.8 15.7
Resolute Funds 3.7 15.2
Shares, options, and warrants as at Aug 5, 2015Millions
(Except Share Price Information)
Share price (Aug 5, 2015 - close) (C$) 0.80/shr
Shares Outstanding 409.3
Options(1) 21.5
Fully Diluted Shares Outstanding 431.3
Market Capitalization (C$) 328.3
Cash and Cash Equivalents (US$) 52.3
Total Debt (US$) 60.0
Total Enterprise Value (US$) 257.2
Operational Locations
7
Mining friendly operational jurisdictions
Financial Performance
8
Operational Performance
Q2, 2015 2014YE Q2, 2014 2013YE
Saleable Silver oz produced 597,489 3,329,519 741,382 3,145,537
Saleable Gold oz produced 26,418 77,900 14,079 50,240
Saleable Antimony t produced 842 3,639 855 3,275
Q2, 2015 2014YE Q2, 2014 2013YE
Net Cash/All-in cost/oz Ag at Cerro Bayo, $ 7.61 / 14.84 5.30 / 11.36 5.83 /12.08 6.84 / 12.07
Net Cash/All-in cost/oz Au Eq. at
Costerfield, $
578 / 795 771 / 1,035 989 / 1,278 819 / 1,062
Net Cash/All-in cost/oz Au Eq. at
Björkdal, $(1)
884 / 1,035 870 / 1,023 -(1) -(1)
EBITDA, $ million 18.2 64.4 16.4 67.7
Net Income, $ million 5.1 17.2 5.0 29.4
Cash and cash equiv., $ million 52.3 49.0 69.0 33.5
Mandalay Performance
(1) 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
Total Cerro Bayo Costerfield Björkdal
Saleable gold
production (oz)
101,000 – 116,000 23,000 – 27,000 32,000 – 37,000 46,000 – 52,000
Saleable silver
production (million oz)
2.7 – 3.1 2.7 – 3.1 -- --
Saleable antimony
production (t)
3,200 – 3,500 -- 3,200 – 3,500 --
Gold equivalent
production (oz)
167,000 – 185,000 -- -- --
Cash cost $/oz silver
net by-product
-- 6.00 – 8.00 -- --
Cash cost $/oz gold or
gold equivalent
-- -- 625 – 750 850 – 950
Capital expenditures
($ million)
38 – 44 12 – 14 16 – 18 10 – 12
Exploration ($ million) 7 3 1 3
Mandalay 2015 Full Year Production and Cost Guidance
Björkdal Gold Mine: Overview
10
Land package 6,862 hectares
Ownership 100%
2014 gold production 14,549 oz (attributed to Mandalay)
2015E gold production 46,000 – 52,000 oz
P&P Reserves(1) 6.5 Mt @ 2.05 g/t Au (432,000 oz Au)
Current throughput 3,500 tpd
Plant recoveries (YTD 2015) Au: 89%
2015E cash costs Au / 2014A(2) $850 - $950 / $870
1 Refer to notes on reserves in the Appendix2 Bjorkdal acquired Sept. 10, 2014
2015 Planned Exploration
Budget $3 million
Björkdal Operating Performance
11
$15
$16
$17
$18
$19
$20
$21
280,000
300,000
320,000
340,000
360,000
Q4-14 Q1-15 Q2-15
$/ T
on
ne
Ton
nes
Per
Qu
arte
r
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$5
$10
$15
$20
310,000
315,000
320,000
325,000
330,000
335,000
340,000
Q4-14 Q1-15 Q2-15
$/
Ton
ne
Ton
ne
s P
er Q
uar
ter
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$700
$750
$800
$850
$900
$950
11,000
11,200
11,400
11,600
11,800
12,000
12,200
12,400
Q4-14 Q1-15 Q2-11
$/
oz
Au
Ou
nce
s G
old
Pe
r Q
uar
ter
Saleable Gold Produced and Unit Cost
Au oz Cost/ oz Au
Björkdal Value Creation Plan
12
Goal: Allow for a
revised mine plan
that improves
planned delivered
grades from mine to
mill, so more gold will
be produced from the
current capacities,
resulting in an
expected decrease in
cost per ounce
Produce a more
refined resource
model to support
more selective
underground &
open pit mining
techniques
Goal: Margin
expansion by
producing more gold
at reduced cost per
ounce from the same,
largely fixed-cost
operation. Optimized
mill feed grade
expected to improve
recoveries
Increase grade of
mill feed through
selective mining
and “ore sorting”
technologies
Goal: Extend
mineralization along
strike and down dip
by increasing the rate
of infill drilling on
currently defined
Inferred Mineral
Resources
Increase ore
reserves
Introduce best
practice mapping,
drilling, sampling,
and modelling of
high nugget-effect
gold deposits
Goal: Provide factual
basis for more
selective mining to
increase mill grades;
will also reduce total
exploration cost by
accelerating wide-
spaced and infill drilling
while reducing
exploration by large-
scale drifting across
and on veins
Timeline
Q1 2015 - COMPLETE Q2 2015 - COMPLETE 2016 2016
Björkdal – Emerging new thinking – Au “skarn”
N
5 km
Björkdal
mine
Granodiorite
instrusion
‘Marble’
Volcaniclastic
Rocks
Mafic intrusion
Volcanic Rocks
Sedimentary
succession
(mudstones and
sandstones)
B
B’A
A’
13
Rönnberget
Prospect
Cerro Bayo Silver-Gold Mine
14
Land package 23,106 hectares
Ownership 100%
2014 silver production 3,329,519 oz
2014 gold production 27,600 oz
2015E silver production 2.7 – 3.1 Moz
2015E gold production 23,000 – 27,000 oz
P&P Reserves(1) 2.4 Mt @ 220 g/t Ag; 2.13 g/t Au
Current throughput 1,400 tpd
Plant recoveries (YTD 2015) Ag: 90%, Au: 86.21%
2015E cash costs/oz Ag net Au credits / 2014A $6.00 - $8.00 / $5.30
2015 Planned Exploration
Budget $3 million
(1) Refer to notes on reserves in the Appendix
Cerro Bayo Operating Performance
15
$0
$20
$40
$60
$80
0
50,000
100,000
150,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-2013
Q4-2013
Q2-2014
Q4-2014
Q2-2015
$/ T
on
ne
Ton
nes
Per
Qu
arte
rMining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$20
$40
$60
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
$/
Ton
ne
Ton
nes
Per
Qu
arte
r
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
$5
$10
$15
$20
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15
$/ o
z A
g N
et B
ypro
du
ct
Ou
nce
s Si
lver
Per
Qu
arte
r
Saleable Silver Produced & Unit Cost
Ag oz Cost/ oz Ag net Au
Emerging Extensions and New Veins Under Laguna Verde
16
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
Costerfield Gold-Antimony Mine: Overview
17
2015 Planned Exploration
Budget $1 million
Land package 1,293 hectares
Ownership 100%
2014 gold production 35,751 oz
2014 antimony production 3,639 t
2015E gold production 32,000 – 37,000 oz
2015E antimony production 3,200 – 3,500 t
P&P Reserves(1) 430,000 tonnes @ 8.1 g/t Au; 3.6% Sb
Current throughput 400 tpd
Plant recoveries (YTD 2015) Au: 89.47%, Sb: 95.0%
2015E Cash cost/oz Au Eq. / 2014A $625 - $750 / $771
(1) Refer to notes on reserves in the Appendix
Costerfield Operating Performance
18
$0
$100
$200
$300
$400
05,000
10,00015,00020,00025,00030,00035,00040,00045,00050,000
Q4-09
(Dec.only)
Q2-10
Q4-10
Q2-11
Q4-11
Q2-12
Q4-12
Q2-13
Q4-13
Q2-14
Q4-14
Q2-15
USD
/ To
nn
e
Ton
ne
s P
er
Qu
arte
r
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$20
$40
$60
$80
$100
$120
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Q4-09
(Dec.only)
Q2-10
Q4-10
Q2-11
Q4-11
Q2-12
Q4-12
Q2-13
Q4-13
Q2-14
Q4-14
Q2-15
USD
/ T
on
ne
Ton
nes
Per
Qu
arte
r
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
02,0004,0006,0008,000
10,00012,00014,00016,00018,00020,000
USD
/ O
z A
u E
q.
Ou
nce
s P
er
Qu
arte
r
Au Equivalent Production and Cost
Oz Au Eq. Cost/ Au Eq. Oz
Near-mine Expansion – “Western Corridor”
Untested potential to the west of current mining operations between major
regional faults and below the King Cobra Fault.
Untested potential in
King Cobra-Adder
Corridor
Potential below King Cobra
(one intercept so far)
Approx.
Intended
Drill
Holes
Approx.
Intended
Drill
Holes
19
Challacollo Silver-Gold Project: Overview
20
Land package 20,378 hectares
Ownership 100%
Location 130 km SE of Iquique, Chile
Mineralization Epithermal, oxidized Ag-Au
Elevation approx. 1,500 metres ASL
Resource Indicated: 4.7 mt @ 200 g/t Ag;
Inferred: 1.6 mt @134 g/t Ag
21
Current status
• Mineral resource estimate – complete
• 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
Next milestones
• Identify water source
• Submission of EIA (after identification of water source)
Challacollo Development Activities
22
Lolon Vein – Inferred Potential Remaining to Infill + Open on Strike and at Depth
Short Hole
200 m
Fault Gap
OPEN
OPEN
OPEN
Challacollo Emerging Extensions and New Vein Targets
Mill site
Vein
Lucy
Vein
Detailed
Mapping
23
0
10
20
30
40
50
60
Nu
mb
er
of
Alt
ern
ativ
es
Cumulative Total Value Q3 2009 – Q2 2015
24
Long-Term performance – Mandalay at About the 95th
Percentile of Value Generators of all Categories of Mining Investment Over Five-Year Period
95th percentile: 254%
88 of 126 LOST value
Median: 73% (lost value)
Mean: 151% (gained value)
Mandalay return: 252%
25
How We Will Deploy Your Capital When You Invest With Us 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: dividends = 6% of trailing qtr. revenues
AUG2015BUILDING VALUE
ACROSS THE CYCLE
TSX // MND
For more information, please contact:
Greg DiTomaso
Director, Investor Relations
Tel: 647.260.1566
Email: [email protected]
Company Website: www.mandalayresources.com
Twitter: @MandalayAuAg
27
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
28 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
Numbers may differ slightly from source documents due to rounding 28
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, 20152 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2014, documented in an independent NI 43-101 Technical Report Filed on March 31, 20153 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-2014Ag (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
29
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, 20152 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 – Roscoe Postle Associates, 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
MND (252% value change) outperformed through the entire 2009 - 2014 bottom-to-bottom price cycle:
1. All 6 Currencies (AUD, CAD, GBP, CLP, EU, CNY): 76 – 110%
2. All 3 Precious Metals– (Au, Ag, Pt): 84 – 117%
3. All 4 Base Metals (Pb, Zn, Cu, Ni): 67 – 104%
4. All 6 Gold Mutual Funds: 62 – 77%
5. All 6 Resource/Basic Material Mutual Funds: 93 – 186%
6. All 6 “Big Diversified” Miners: 49 – 119%
7. All 5 “Prospect Generator” Companies: 32 – 165%
8. All 4 “Royalty/Streaming” Companies: 73 – 192%
9. All 3 “Mega Gold” Miners (>$US10 B market cap): 35 – 63%
10. All 9 “Big Gold” Miners (USD1-10B market cap): 15 – 248%
11. 4 of 7 “Mid-Tier Gold” Miners USD0.5-1B market cap): 21 – 5,846%
12. 9 of 10 “Junior Gold” Miners (<USD500M market cap): 33 – 256%
13. 8 of 10 “Gold Developers”: 1 – 557%
14. 7 of 8 “Big Silver” Miners (>USD400M market cap): 28 – 260%
15. All 2 “Mid Tier Silver” Miners (USD200-400M market cap: 36 – 84%
16. All 5 “Junior Silver” Miners (<USD200M market cap): 20 – 64%
17. All 4 “Silver Developers”: 3 – 157%
18. All 5 “Big Copper” Miners (>USD7B market cap): 68 – 223%
19. All 8 “Mid-Tier Base Metals” Co. (USD0.25-1B market cap): 7 – 225%
20. All 5 “Base Metals Developers”: 10 – 81%
21. All 9 “PGM Minera and Developers”: 1 – 172%
30
Mandalay versus:
• 125 alternative investments
• In 21 different strategy categories
• Over the 23 quarters from Q3 2009 to
Q2 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
Strong Annual Production Growth
31
109,337
1,318,655
2,911,595 3,145,537
3,329,519
0500,000
1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000
2010 2011 2012 2013 2014 2015E
Silver (oz)
334
12,244
17,089
21,482
27,600
0
5,000
10,000
15,000
20,000
25,000
30,000
2010 2011 2012 2013 2014 2015E
Gold (oz)
7,661 6,678
18,036
28,758
35,751
0
10,000
20,000
30,000
40,000
2010 2011 2012 2013 2014 2015E
Gold (oz)Costerfield Production(2015E)
Cerro Bayo Production(2015E)
1,106
1,571
2,481
3,275
3,639
0
1,000
2,000
3,000
4,000
2010 2011 2012 2013 2014 2015E
Antimony (Sb)
Björkdal Production(2015E)
14,549
0
10,000
20,000
30,000
40,000
50,000
60,000
2010 2011 2012 2013 2014 2015E
Gold (oz)
15,854
63,351
107,941126,908
154,810
0
40,000
80,000
120,000
160,000
200,000
2010 2011 2012 2013 2014 2015E
Total MND Production (AuEq oz)(1)
(1) Refer to notes on gold equivalent ounces in the Appendix
167,000 - 185,000
32,000 –
37,000
23,000 –
27,000
46,000 -
52,000
3,200 –
3,500
2,700,000 –
3,100,000