Ann: Annual Gross Profit of $9 million, $42 milli, page-4

re: Ann: Annual Gross Profit of $9 million, $... If you look at the Goldstone annual report (link posted yesterday) you will see UML has an option to buy another 20 million shares - they are probably keep cash for that which in my view is better than declaring a dividend as Goldstone has the potential to elevate UML into a mid tier producer if not a large producer in the longer term.

If you had been following UML in the long term last years loss was no surprise - the shares got smashed last year when they messed around with BCD - also in the directors report on PDF page 7 of the annual report 10 million was spend on exploration and 10 million on mine development. Arguably the 10 million on mine development was a one off now that henty is up and running.

Further upside for this year is:

1) higher gold price
2) higher grades
3) lower op costs as only one mine is operating and the low margin Kangaroo Flats is closed down - As per the activity statement Henty is forecast to have lower operating costs of around $820 - alot less than the greater than $1,000 which was the case last year.
4) exploration upside in both Tasmania, Africa (3 different countries - Ghana, Gabon and Senegal - each with promising leads) and Victoria (marginal in my view but free carried so any finds will be a positive)

UML has heaps of cash, is producing the hottest commodity around - gold - (in my view even if it stops climbing it will still hold value while the US Fed keeps interest rates so low and the Western world's debt problems remain unresolved) and has good management - any dips below 15 cents (i.e. MC of $75 million or EV around $25 million) is excellent value.