Ann: September Quarter 2014 Gold Production, page-8

Varuka,

There are different ways of looking at the situation!

On 30th June (end of FY14) the share price was A$1.84. The earnings per share for FY14 was US$0.15. That translates to a market multiple of 10.7 x earnings - so not unreasonable for a gold producer, if a bit on the low side!

Average realised price of gold for sales over FY14 was US$1,299/oz. Gold sold over FY14 was 65,943 oz.

Well, here we are at 9th October with the share price at A$0.76. MML has produced 21koz at an average realised price of US$1,276/oz. On an annualised basis that translates to an EPS of US$0.21/share which is a P/E multiple of just 3.2 x earnings.

Hence, in my view, on a comparative basis, it is the share price that is residing down in Fantasy Land!

Clearly the negative sentiment in this stock is now at very extreme levels if people cannot see this degree of undervaluation.
CPDLC