market capital, page-3

Buckland,

I agree that the value of the company per share should have been 22 times $0.018 on consolidation which was $0.396.

Now, Millenium announces high-grade drilling results to complement its maiden first half gross profit of $12.9m(mine EBITDA $22.6m).

Multiply these figures by two (to annualise) and the company is trading below 2 x mine EBITDA and that is excluding the one-off unrealised derivative gain of $21.2m, which should translate into some decent profit when derivatives are settled.

For the first 6 months, Millenium has achieved $826 per announce poured (gold has recently been rising and is AUD $1,450 per ounce with a cash cost of $794 per ounce).
With hedging, margins of around $200 or higher per ounce have been preserved and are currently sitting as unrealised gains.

The following drilling results should increase the 1.3m ounce resource and more importantly should increase the overall grade:

AU81:
- 22m at 12.0 g/t Au from 14m, including 5m at 32g/t Au from 21m in hole ARC0189
- 37m at 6.15 g/t Au from 17m, including 7m at 12g/t Au from 18m in hole ARC0186
- 16m at 4.91 g/t Au from 22m, including 2m at 17g/t Au from 31m in hole ARC0187

GOLDEN EAGLE:
- 10m @ 2.40 g/t Au from 116m in hole GEX159 and 8m @ 2.53 g/t Au from 129m in hole GEX159
- 9m @ 2.48 g/t Au from 93m in hole GEX134
- 9m @ 2.38 g/t Au from 121m in hole GEX151
- 7m @ 2.98 g/t Au from 106m, including 3m @ 5.07 g/t Au from 108m in hole GEX139

These drill results are spectacular and still nobody is interested. A re-rate can't be too far.