Mandalay Resources: Buy Rating Affirmed Amid Promising Merger with Alkane Resources and Strategic Growth Catalysts

In a report released yesterday, Brian Quast from BMO Capital maintained a Buy rating on Mandalay Resources (MND – Research Report), with a price target of C$7.00.

Brian Quast has given his Buy rating due to a combination of factors that suggest a promising outlook for Mandalay Resources. The proposed merger with Alkane Resources Limited is expected to create a more robust entity with improved trading metrics. The combined company is projected to trade at a favorable valuation compared to its peers, which indicates potential for re-rating and enhanced market perception.
Additionally, the merger is anticipated to unlock further value through increased trading liquidity, a larger free-float, and a more diverse shareholder base. The primary ASX listing and potential inclusion in major indices like GDXJ and ASX 300 are likely to elevate the company’s market profile. Furthermore, ongoing projects such as the optimization at Björkdal and the development of the Youle lode at Costerfield are expected to act as catalysts, contributing positively to the stock’s performance.

Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MND in relation to earlier this year.