medusa to hit $3 today, page-14

Peppie,

Bit of a belated response to your query on the 27th - namely:

I've noticed a few of the other gold miners have gone back to shareholders rattling the tin (SLR), MML has borrowed $13m through a line of credit, what do you think the chances are that they come to us?

Very unlikely in my opinion. They have spent the cash required for the mine/mill expansion and will therefore have less requirement for further demands on operational cash flow.

Their low costs provide an extremely good cushion, even at these lower gold prices, so they are very cash generative.

Incidentally, they have an overdraft facility for US$14m of which they have only needed to draw down US$4m - so they have not 'borrowed $13m' as you have stated.

Given the orchestrated crash in gold in April and the subsequent lemming rush by the market it is hardly surprising that MML took the prudent decision to supplement working capital over the short term by arranging an overdraft. As sales rise over this and subsequent quarters and inward investment requirements diminish they can close their overdraft and rebuild their cash.
CPDLC