Quarterly report - $17.2M in cash

This morning, our junior exploration investment Mandrake Resources (ASX: MAN) put out its June quarterly report.

MAN clarified its cash position at $17.2M as at 26 July and reiterated that “All technical and legal due diligence completed” for the acquisition of the “Delfin” copper project in Chile.

With the due diligence date extended to 24 August 2022 MAN confirmed that the company’s focus was now on obtaining “full support of the community to ensure a clear path to immediate exploration activities ahead of acquisition completion”.

This should mean that as soon as the due diligence process is completed, MAN will have already gone through a lot of pre drilling permitting hurdles, and can instead focus on exploration as soon as the acquisitions done.

MAN is currently trading with a market cap of $19.2M which gives it an enterprise value (EV) of only $2M when its current cash balance is taken into account.

With an enterprise value this low and cash balance so high we think the company is perfectly positioned to re-rate off the back of any exploration success after it completes the acquisition of its copper project.

We covered the acquisition in detail in our last MAN note which you can read here: Cashed up MAN picks up high grade Chilean copper asset