Its a solid result, but I suppose it could have been better....

Its a solid result, but I suppose it could have been better.

Using their AISC figure (based on all their expenditure for the year), price at which the gold was sold, and production achieved during the year, it seems to me they made a gross profit of around USD22m.

The reported net profit of USD23.5m is what they had to report in accordance with the accounting rules, after taking into account depreciation/amortisation and company tax.

Nice to see that the cash on hand has risen from USD11.2m to USD18.1 while the accounts payable fell by USD10.4m to USD14.4m.

During FY2020 MML is expected to be produce 95-105k ozs at AISC of USD1025-1125/oz, which implies to me a gross profit of around USD30.9m to USD44.6m at a USD POG of 1450/oz.

I think they should have declared a 2 cent/share dividend. That is only an outlay of $4,2m. That would still leave them with plenty of funds to meet the future needs of developing a new major shaft and funds for exploration.

I think the amount paid to the Chairman and the current CEO is not excessive. My beef with the BOD is that things could have been done things better and faster. Teo does a good job looking after the interests of the local population which keeps MML on the right side of the Philippines govt. - something that is important given what has happened there to OGC (and other miners).

In addition to country risk and some management issues, the thing that is keeping MML's share price contained is the low LOM based on existing reserves despite the resource base indicating the prospect of a longer LOM. Perhaps they can do something about that.

I expect that MML will remain a 95-105k oz pa producer unless they build an additional major shaft to haul a lot ore from underground to feed the under-utilized mill.

GLA.

loki