MML is suffering from lack of investor confidence.
It has so far a very bad reputation as a generational wealth destroyer.
Biggest problem is the Phillipines risk.
After all that has happened large investors are afraid to put money in Phillipines. The Phillipines mining policy has never affected MML's business(as MML is an underground mining) but investors are just scared about the haphazard behaviour of Phillipines goverment.
No doubt, the company is severely undervalued.
A 100k producer
LOM around 4 years and counting.
They have always manage to replace depletion and add a few more ounces every year.
AISC around USD 1000. (This should be coming down as the long awaited shaft is fully operating)
With USD 12.4 Million= Aud 17.60 million cash on hand( after debt reduction)
Above everything the company needs a good market promotion.
I think maybe management realise that and have come up with this presentation.
Also the company now is looking in a great shape, share price is very attractive, production looks good, profit margin is okay. I have cautiously build up a position after a great deal of due diligence. I am not expecting fireworks but think the risk to the downside is very minimal ,bar any drama from the Philipines Government. I had conversation with Patrick Chang couple of months ago, and he was very frank and honest about the situation.
From memory the company last raised capital in 2013 at $1.85-1.90, and since then it has weathered the bloodbath in the gold price, Hurricane Gina, Typhoon Duterte and a whole lot of kitchen sink sh......ttt.
Still going good.
There are very few shares on issue. So if it ever runs it will be very swift. This stock could rise 40-50% in handful of days.
Morning Star has it as undervalued and Fair Value at 0.52c
I personally think if they can perform like the last few quarters 70-80c could come into play.
Management need to sit down with influencing brokers & analyst and Fund managers.
Us retail holders cannot move the share price.
My suspicion is they could be working on it and now would be the best time. If that is right then we could expect a Capital Raise soon. The company doesn't necessarily needs the money but any large investor who would decide to take a position will not buy in the market as the share price will jump 20-30% in a hurry.
MML shares are tightly held....most people who had to sell have sold already. If there is capital raise that will spark a new life into MML share price. But MML has seen terrible days and didn't pull out the begging bowl.....why would they do now. Then what do I know.....not much.
All is just my thoughts & speculation.
I could be terribly wrong.
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