Mandalay Resources: A Hidden Gem Amidst the Antimony Shortage
Mandalay Resources (MND.TO), a mining company based in Canada, is poised to benefit significantly from the ongoing antimony supply-demand imbalance. With my valuation for the company’s shares at CA$17, which is almost four times the current market price of CA$4.25, Mandalay Resources presents an intriguing investment opportunity.
Antimony Market: Supply-Demand Imbalance and Soaring Prices
The antimony market is currently experiencing a supply-demand imbalance, with demand outpacing supply. This situation is primarily driven by China’s export ban on antimony concentrate, which began in January 2019, and the increasing demand for solar panels. Antimony is a crucial component in the production of solar panels, making this trend particularly significant.
Impact on Mandalay Resources: Doubled Free Cash Flow
Mandalay Resources’ Costerfield mine in Australia is the only Western mine producing antimony. With the anticipated rise in antimony prices to $100,000 per ton, Mandalay Resources could see its free cash flow double, as the mine’s operating costs are estimated to be around $50,000 per ton.
Personal Impact: Potential Investment Opportunity
For individual investors, the antimony shortage and the subsequent price increase could result in substantial gains if Mandalay Resources’ shares are purchased at the current market price. However, investors should conduct thorough research and consider their risk tolerance before making any investment decisions.
Global Impact: Solar Panel Production and Other Industries
The antimony shortage is not only affecting the solar panel industry but also other sectors that rely on antimony, such as flame retardants, batteries, and electronics. This could lead to increased prices and potential shortages in these industries as well, highlighting the far-reaching implications of the antimony shortage.
Conclusion: A Bright Future for Mandalay Resources
In summary, Mandalay Resources is well-positioned to capitalize on the antimony shortage, with the potential for doubled free cash flow at its Costerfield mine. For individual investors, this presents a potential investment opportunity. On a global scale, the antimony shortage could lead to significant price increases and potential shortages in various industries, underscoring the importance of this mineral in our modern world.
- Mandalay Resources is set to benefit from the antimony supply-demand imbalance
- Antimony prices are projected to reach $100,000 per ton due to China’s export ban and solar panel demand
- Mandalay Resources’ Costerfield mine could see double free cash flow if antimony prices reach expected levels
- Individual investors may benefit from purchasing Mandalay Resources shares at the current market price
- The antimony shortage could lead to price increases and potential shortages in various industries
