merrill lynch recommends as a buy, page-11

bennyblanco,

Conference calls are when the management explains the quarterly results to analysts and investors. Ordinary investors like you can ring into the call, listen in, and ask questions of the what the management is doing with YOUR company.

I rang in on the last conference call but missed the one today. Did anybody listen in, or can anyone confirm if they paid the circa $20 Million in stamp duty to the QLD Government yet?

Here are the notes i scribbled down from the last conference call - proceed with caution as i'm not the best or quickest note-checker and there's bound to be an error or two, but its always useful to revisit notes which are one quarter old to see whether the company lived up to it's previous projections.


NOTES FROM CONFERENCE CALL (2012-04-26)

• Claims to be building momentum and gaining focus
• More ounces in the next quarter
• Will make the upper end of guidance
• Mt Rawdon on target for start of commissioning by the end of the year
• Exciting exploration activity (especially Cracow & pajingo)
• 80,000 oz/ per anuum at pajingo could be sustainable into the future


CRACOW
• Higher production next quarter as better grades about to be mined
• 94% recoveries was 2% above mine plan
• Good progress on development
• 4th jumbo to be used next quarter

PAJINGO
• Ore comes froms an open pit and an underground mine
• 400 mtr ventiliation shaft completed
• Can produce 650,000 tonnes per year
• Expect more ounces from pajingo next quarter
• New pits can support another 3 year life

EDNA MAY
• Low crusher and mill availability (only 65% utilisied)
• 72,000 ounces forecast for the full year (a 10% improvement on last year)
• Need to replace substandard equipment and get new maintenance personnel
• Crap really

MOUNT RAWDON
• Performance continues to improve
• Redesigned mining plan
• Now reaching higher grade ore so ounces next quarter will improve
• 92,000 ounces forecast here for the full year
• Pit optoimisations to be completed in late April

MT CARLTON
• 38% complete at the end of March
• Recruitment now commenced for all personnel


EXPLORATION
• Great results at Cracow and Pajingo
• Cracow is easy to access via underground as its only 250 metres away’
• Moonlight from Pajingo is only 6000 metres away
• Starlight B at Pajingo got gold intercepts shallower than expected (good)
• Much more activity to come in the exploration front next quarter, especially since the wet season in North Queensland is now over

FINANCIALS
• $55 million in free operating cash flow; (cash price realised – cash costs – royalties) x ounces produced less corporate costs. Therefore this $55 Million is before ALL Capital expenditure
• Cracow & Mt Rawdon the best profitable mines
• Lots of the free cash flow was reinvested into capital at Mt Crawdon etc
• Debt – forecast to pay down around 2 million in debt next quarter
• Stamp duty not paid yet – to be paid in the June quarter


NOTES FROM QUESTIONS
• Next quarter capex – depends how quick they spend money at next quarter (planned to be $60 million at Mt Carlton), so $80-95 million with all the others mines included
• Next quarter stamp duty – around $20 Million
• Mt Carlton – commissioning 4th quarter, first metal production from concentrate in march quarter 2013 if it meets schedule. Ramp up to at least June quarter 2013 because it’s a flotation plant and it takes it a while to bed down
• Mt Carlton capital cost is $145 million, $41 million has been spent to date