fundamentally oversold, page-15

I have not posted for awhile on MLI . I just shake my head in amazement looking at the share price at a time when gold is at a record high. Does this say something or is MLI just under the radar?

We need to consider that the commissioning of Gold 2 is not going to plan and that is why the share price is drifting lower.

There have been a few hints.

1. The WWI agreement extended.
2. The need to obtain a short term bridging loan of $1.4m pending receipt of the sale proceeds from Ergo. Management did previously indicate that following the recent placements that they were fully funded.

This means that a proportion of the proceeds of the sale of Ergo which was earmarked for Gold 3 has already been invested into Gold 2. How much more will be used?

The company is heavily reliant on Gold 2 to take it forward and prove that MLI can profitably operate a tailings operation like its peer DRD Gold . Gold 1 has to this day never really been profitable. Until Gold 2 has the runs on the board the market will continue to ignore MLI (at least whilst listed on the ASX).

DRD have had one go at trying to takeover MLI- if MLI cannot prove that it can operate a tailings operation - well DRD does have the runs on the board in this area so maybe management will have no other choice?

As Theon pointed out news is due, lets hope that there are finally some good signs and that the market has in fact ineffeciently priced MLI.

Cheers