Cost IncreasesUpdated unit and capital costs at both Costerfield and Björkdal have increased, impacting the company's financial outlook negatively.
Production ForecastThe updated mine plan at Björkdal has resulted in lower gold production forecasts and delayed restart of the open pit, negatively affecting the company's NAV.
ValuationMandalay Shareholders will receive 7.875 ordinary shares of Alkane for each ordinary share of MND, implying a C$5.56 value for each share of MND, which is well below the target price of C$7.00.