time to be holding...?, page-3

Profit outlook...

From MLI's recent presentation, they notated expected annual profit margins for various US$gold prices...

Current configuration (45,000 ounces per year)

500/oz = $9m profit
550/oz = $12m profit
600/oz = $15.1m profit
700/oz = $21.1m profit
800/oz = $27.2m profit

Expanded configuration - Stage 2 (120,000 ounces per year)

500/oz = $32.6m profit
550/oz = $38.4m profit
600/oz = $46.5m profit
700/oz = $62.9m profit
800/oz = $78.6m profit

The expanded sceanrio (stage 2) is expected to be actioned within the next 6-12 months...depending on the production outcomes from the current configuration. As such, success in this initial phase will virtually guarantee a move to the next phase.

Interestingly, even after the sage 2 upgrade, the project will remain fully scalable for increased production if deemed beneficial.

To this end, they have also listed proposed annual profit margins for various US$gold prices for a 240,000 ounce operation...

Expanded configuration - Stage 3 (240,000 ounces per year)

500/oz = $65.2m profit
550/oz = $76.8m profit
600/oz = $93m profit
700/oz = $125.8m profit
800/oz = $157.3m profit

As I said...plenty of upside here.

Cheers!