Ann: Co-O Mill & Mine Expansion Update April 2013, page-30

re: Ann: Co-O Mill & Mine Expansion Update Ap... Agreed HT, saw another report today regarding MML which estimated its cash costs at approximately $400 per ounce.

Yesterday I posted figures based on a very prudent scenario however the following is a bit more realistic to what I think could play out. Not the gold price minimum i've used is based on the fact that if it goes too far below this point a LOT of produces are no longer profitable or have minor margins and supply would dry up.

Cash Costs Total - $500
Gold Price Minimum - $1,200
Calendar Year Production - 150,000
Shares on issue - 190m

150,000 x (1,200 - 500) = $105m
EPS = $0.55
P/E on $3.00 SP = 5.45
Medium Term Price Target = $3.85 - $4.95
Longer Term Price Target = $5.50 - $6.60

Purely based on PE ratios. Definitely think its oversold at this point but as HT has said would be nice to see them actually hitting or beating guidance rather than underperforming as per the last 12-18 months.