MND Investor Presentation Oct/Nov 2015
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Transcript of MND Investor Presentation Oct/Nov 2015
NOV2015BUILDING VALUE
ACROSS THE CYCLE
TSX // 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 31, 2015 andin its final prospectus dated September 2, 2014, copies of which are available under Mandalay's profile at www.sedar.com. Although Mandalayhas 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 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 Bjorkdal 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 Bjorkdal, 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 of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Björkdal and hassupervised the preparation of this presentation.
All currency references in US$ unless otherwise indicated
Forward-looking Statements
2
A Values-Based and Value-Focused Company
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
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 (5.1% yield)*
* Current annualized dividend yield based on $0.80 share price (Oct. 19, 2015)
2009 2010 2013 2014• Costerfield, Australia• Gold & Antimony
• Cerro Bayo, Chile• Silver & Gold
• Challacollo, Chile• Silver & Gold
• Björkdal, Sweden• Gold
Delivering Value at Mandalay
4
(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)
RevenueEBITDADividends
$4.0 $3.4 $3.0
$24.3$18.2
$56.8 $50.2
0
50
100
Q1- 2015 Q2 -2015 Q3 - 2015 Q4 - 2015
US$
MM
5
Source: Yahoo Finance1. Index start date: September 30, 2009 share price at $0.42. Index end date: October 29, 2015 at $0.80. Includes share price appreciation and all dividends paid.2. Total shares owned by directors directly = 11.6M (2.83%)
0
5
10
15
20
$0$5,000
$10,000$15,000$20,000$25,000$30,000$35,000
30-Sep-09 30-Sep-10 30-Sep-11 30-Sep-12 30-Sep-13 30-Sep-14 30-Sep-15
Volu
me
(milli
ons)
Inve
stm
ent V
alue Volume Total Return
A $10,000 investment made in Mandalay on September 30, 2009 would be worth $21,600(1) today
$21,600
Investing in Mandalay Shareholder Return, Trading Volume, Ownership and Coverage
Major Shareholders(2)
Holders % Shares (Million)
West Face Capital 16.9 69.3
GMT Capital 11.5 47.0
Sentry Investments 9.9 40.4
Plinian + Management 8.3 33.9
Vertex One Asset Management 3.8 15.7
Large Holders 50.4 206.3
Other Holders 49.6 203.5
TOTAL 100 409.8
Analyst Coverage
Firm Analyst
BMO Brian Quast
Desjardins Mike Parkin
GMP (London) Brock Salier
Haywood Ben Asuncion
Raymond James Chris Thompson
Volume
30-day Average Daily Volume 216,767
60-day Average Daily Volume 244,975
6
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
Au E
q. Y
ear-
End
Res
erve
s
Oz
Au E
q. A
nnua
l Pr
oduc
tion
6
ReservesProduction
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)
Exercise Price: C$0.33 – C$1.13 Mar 11, 2016 - Mar 24, 2020(1) Using exchange rate of 1 CAD = 0.7538 USD
7
Capital Structure
As at Oct 29, 2015 Millions (Except Share Price Information)
Share price (Oct 29, 2015 - close) (C$) 0.80/shr
Shares Outstanding 410.4
Options(1) 19.5
Fully Diluted Shares Outstanding 429.9
Market Capitalization (C$) 328.3
Cash and Cash Equivalents (US$) 52.3
Gold Loan Debt (US$) 54.3
Other Debt (US$) 3.1
Total Enterprise Value (US$) 254.5
Current Assets (US$) 111.6
Current Liabilities (US$) 82.4
Financials (as at end-Q2, 2015) Millions (Except Ratios)
Working Capital (US$) 29.2
Current Ratio 1.35
Debt to Equity Ratio 1:4
EBITDA (last 12 months)/ Net Debt (LT Debt and borrowings) 1.30:1
Operational Locations: Mining-friendly Jurisdictions
8
Metal Gold
Ownership 100%
YTDProduction
33,574 oz
P&P Reserves(1)
6.5 Mt @ 2.05 g/t Au (432,000 oz Au)
Metal Silver, Gold
Ownership 100%
YTDProduction
1,820,741 oz Ag15,671 oz Au
P&P Reserves(1)
2.4 Mt @ 220 g/t Ag; 2.13 g/t Au
Metal Gold, Antimony
Ownership 100%
YTDProduction
30,909 oz Au2,775 t Sb
P&P Reserves(1)
430,000 tonnes @ 8.1 g/t Au; 3.6% Sb
s in the Appendix(1) Cash costs are silver net of gold credits(2) Cash costs are in gold equivalent
Björkdal (Au) Production 46,000 – 52,000 oz
Cerro Bayo (Au + Ag) Production 2.7 - 3.1 Moz Ag + 23,000 – 27,000 oz Au
Costerfield (Au + Sb) Production 32,000 – 37,000 oz Au + 3,200 – 3,500 t Sb
Total Forecast Production (Au Eq) 167,000 – 185,000
Björkdal 2015E cash cost/oz Au $850 - $950
Björkdal 2015E Capex $10 - $12 million
Cerro Bayo 2015E cash cost/oz Ag (net Au credits) $6.00 - $8.00
Cerro Bayo 2015E Capex $12 – $14 million
Costerfield 2015E cash cost/oz Au Eq $625 - $750
Costerfield 2015E Capex $16 - $18
2015E Guidance – Production and Costs
Financial Performance
9
Operational Performance
Q3, 2015 Q3, 2014 9M 2015 9M 2014Saleable Silver oz produced 632,498 823,379 1,820,741 2,308,330
Saleable Gold oz produced 25,996 18,990 80,154 46,264
Saleable Antimony t produced 964 1,000 2,775 2,713
Q2, 2015 Q2, 2014 HY 2015 HY 2014
Net Cash/All-in cost/oz Ag at Cerro Bayo, $ 7.61 / 14.84 5.83 /12.08 8.63 / 16.00 5.82 / 11.69
Net Cash/All-in cost/oz Au Eq. at Costerfield, $
578 / 795 989 / 1,278 572 / 784 892 / 1,162
Net Cash/All-in cost/oz Au Eq. at Björkdal, $(1)
884 / 1,035 -(1) 840 / 987 -(1)
EBITDA, $ million 18.2 16.4 42.5 32.4
Net Income, $ million 5.1 5.0 17.5 10.7
Cash and cash equiv., $ million 52.3 69.0 52.3 69.0
Mandalay Performance
(1) Björkdal Acquired September 10, 2014Site all-in costs include total cash operating costs, royalty expense, depletion, depreciation, accretion and write-off of exploration and evaluation.
Björkdal Gold Mine: Overview
10
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: 89%
2015 Planned Exploration Budget $3 million
1 As at year-end 2014, filed in Company’s Annual Information Form
Björkdal Operating Performance and Improvements
11
$14
$16
$18
$20
$22
280,000
300,000
320,000
340,000
360,000
Q4‐14 Q1‐15 Q2‐15
$/ Ton
ne
Tonn
es Per Qua
rter
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
$/ Ton
ne
Tonn
es Per Qua
rter
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$700
$750
$800
$850
$900
$950
11,000
11,500
12,000
12,500
Q4‐14 Q1‐15 Q2‐15
$/ oz Au
Oun
ces Gold Pe
r Qua
rter
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
12
Exploration 2016 – Regional Program
Rönnberget
Nylunds
Storheden
Björkdal Open Pit
Björkdal Underground
Cerro Bayo Silver-Gold Mine
13
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%, Au: 86.21%
2015 Planned Exploration Budget $3 million
1 As at year-end 2014, filed in Company’s Annual Information Form
Cerro Bayo Operating Performance and Improvements
14
$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
$/ Ton
ne
Tonn
es Per Qua
rter
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
$/ Ton
ne
Tonn
es Per Qua
rter
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
$5
$10
$15
$20
0
500,000
1,000,000
1,500,000
Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 Q4‐14 Q2‐15 $/ oz Ag Net Byp
rodu
ct
Oz Ag/Qua
rter
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
Emerging Extensions and New Veins Under Laguna Verde
15
COYITA
YASNAIndicated
Slow drilling of long holes under lakeCoyita 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
Target Generation 2016
16
1a
1b
1c
1d 1e
Costerfield Gold-Antimony Mine: Overview
17
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: 89.47%, Sb: 95.0%
2015 Planned Exploration Budget $1 million
1 As at year-end 2014, filed in Company’s Annual Information Form
Costerfield Operating Performance and Improvements
18
$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
/ To
nne
Tonn
es Per Qua
rter
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
/ To
nne
Tonn
es Per Qua
rter
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 USD
/ Oz Au Eq
.
Oun
ces Pe
r Qua
rter
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
Challacollo Silver-Gold Project: Overview
19
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
20
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 2019Initial Resource Complete
Resource Expansion Testing
Water Source Development
CAPEX / OPEX Optimization
Permitting
Mine Construction
Challacollo Emerging Extensions and New Vein Targets
Mill siteVein
LucyVein
Detailed Mapping
21
50%
100%
150%
200%
250%
300%
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015Cu
mulative % Value
Cha
nge Since Q3 2009
Mandalay Cumulative Returns 11 % Annual Compounded Rate of Return Gold Silver
22
11% Compounded Cumulative Total Shareholder Return through Entire Bottom-to-Bottom Price Cycle
MND LAG MND OUTPERFORM
CE
O A
ppoi
nted
Cos
terfi
eld
Acqu
ired
Single mine
ramp-upC
erro
Bay
oA
cqui
red
Two mineramp-up
SIB
War
rant
Red
empt
ion
Div
iden
dIn
itiat
ed
Cha
llaco
llo A
cqui
red
$60
Mill
ion
Gol
dLo
anB
jörk
dal A
cqui
red
Wes
t Fac
e Se
cond
ary
Offe
ring
Source: MetalPrices.com for metal spot pricesIndex: September 30, 2009 = 100. Mandalay share price: $0.42Graph updated quarterly, prices as at the last trading day of each respective quarter
23
Invest with Us: How We Will Deploy Your CapitalAcquire 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 fitExecute 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 termsApply 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. revenuesEngage all stakeholders in a values-based and value-focused organization
NOV2015BUILDING VALUE
ACROSS THE CYCLE
TSX // MND
For more information, please contact:
Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: [email protected] Website: www.mandalayresources.comTwitter: @MandalayAuAg
25
Management and Board of DirectorsSenior Management
Board of Directors
Brad Mills, CEO and Executive DirectorFormer CEO Lonmin plc, over 30 years of experience in Copper, Gold, PGMs
Mark Sander, President28 years of experience in exploration, strategy and operating improvements
Sanjay Swarup, CFO and Executive DirectorFormer Lonmin plc, over 20 years of industry experience
Belinda Labatte, Head of Stakeholder Engagement & Corporate AffairsOver 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, COOMining Engineer with extensive technical and operational management experience
Numbers may differ slightly from source documents due to rounding 26
Mandalay ReservesCerro 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 21,000Probable Reserves 2,035,000 222 14,549,000 2.2 144,000P&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 32,000Probable Reserves 333,000 3.3 11,200 7.4 80,000P&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 RESERVES31-December-2014 Ag (cont. oz) Au (cont. oz) Sb (cont. t)
Mandalay Proven Reserves 2,513,000 53,000 4,400Mandalay Probable Reserves 14,549,000 656,000 11,200Total 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 2.05 432,000Total 6,544,000 2.05 432,000
27
Mandalay ResourcesCerro 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 26,000Indicated Resources 1,685,000 323 17,525,000 3.2 178,000M&I Resources 1,995,000 322 20,668,000 3.2 204,000Inferred 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 70,000Indicated Resources 786,000 3.3% 26,300 6.9 175,000M&I Resources 999,000 3.6% 35,900 7.5 245,000Inferred 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 9,600Indicated Resources 47,725,000 1,039,000 26,300Total M&I Resources 50,868,000 1,135,000 35,900Total 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 30,200,000M&I Resources 4,700,000 0.3 200 48,000 30,200,000Inferred 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, 20154 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 2.78 638,000M&I Resources 7,135,000 2.78 638,000Inferred Resources 1,200,000 1.89 73,000
28
MND (192% value change) outperformed through the entire 2009 - 2014 bottom-to-bottom price cycle:
1. All 6 Currencies (AUD, CAD, GBP, CLP, EU, CNY): 76 – 107%2. All 3 Precious Metals– (Au, Ag, Pt): 65 – 112%3. All 4 Base Metals (Pb, Zn, Cu, Ni): 57 – 85%4. All 6 Gold Mutual Funds: 55 – 71%5. All 6 Resource/Basic Material Mutual Funds: 74 – 162%6. All 6 “Big Diversified” Miners: 33 – 106%7. All 6 “Prospect Generator” Companies: 4 – 169%8. All 4 “Royalty/Streaming” Companies: 66 – 179%9. All 3 “Mega Gold” Miners (>$US10 B market cap): 24 – 47%10. All 9 “Big Gold” Miners (USD1-10B market cap): 10 – 183%11. 5 of 9 “Mid-Tier Gold” Miners USD0.5-1B market cap): 19 – 7,143%12. 15 of 18 “Junior Gold” Miners (<USD500M market cap): 16 – 463%13. 12 of 15 “Gold Developers”: 7 – 410%14. 7 of 8 “Big Silver” Miners (>USD400M market cap): 14 – 195%15. All 2 “Mid Tier Silver” Miners (USD200-400M market cap: 28 – 69%16. All 5 “Junior Silver” Miners (<USD200M market cap): 14 – 58%17. All 5 “Silver Developers”: 4 – 148%18. 4 of 5 “Big Copper” Miners (>USD7B market cap): 35 – 193%19. 9 of 10 “Mid-Tier Base Metals” (USD0.25-1B market cap): 1 – 198%20. All 7 “Base Metals Developers”: 10 – 65%21. All 9 “PGM Mineral and Developers”: 1 – 154%
28
Mandalay versus:• 146 alternative investments• In 21 different strategy categories• Over the 24 quarters from Q3 2009 to
Q3 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
29
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
12,24417,089
21,48227,600
05,000
10,00015,00020,00025,00030,000
2010 2011 2012 2013 2014 2015E
Gold (oz)
7,661 6,678
18,036
28,75835,751
0
10,000
20,000
30,000
40,000
2010 2011 2012 2013 2014 2015E
Gold (oz)Costerfield Production(2015E)
Cerro Bayo Production(2015E)
1,1061,571
2,4813,275
3,639
0
1,000
2,000
3,000
4,000
2010 2011 2012 2013 2014 2015E
Antimony (Sb)
Björkdal Production(2015E)
14,549
010,00020,00030,00040,00050,00060,000
2010 2011 2012 2013 2014 2015E
Gold (oz)
15,854
63,351
107,941126,908
154,810
040,00080,000
120,000160,000200,000
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