Analyst Brian Quast of BMO Capital maintained a Buy rating on Mandalay Resources (MND – Research Report), boosting the price target to C$7.00.
Brian Quast has given his Buy rating due to a combination of factors impacting Mandalay Resources. Despite the recent technical reports indicating increased costs and lower grades at the Björkdal operation, Quast maintains an optimistic outlook. The updated mine plan at Björkdal, although showing reduced gold production and delayed open pit restart, is expected to eventually enhance production with higher grade ore.
Additionally, the analyst sees potential for short-term earnings growth, driven by favorable antimony prices, which have risen significantly since the end of 2024. Furthermore, Quast anticipates that ongoing grade optimization at Björkdal and the development of the Youle lode at Costerfield will serve as positive catalysts for the company’s stock. These factors collectively underpin his Outperform rating and target price of $7.00.