Ann: Quarterly Activities Report December 2012 , page-6

re: Ann: Quarterly Activities Report December... Hi Guys,

I've held MML for quite some time, haven't posted here for a while but given the recent price decline I thought i'd re-check some back of the envelope number given the situation shown in today's announcement.

Firstly, current FY:

Q1 - 14,403 ounces @ $328 p/ounce costs sold at average price of $1,636 per ounce
Q1 Revenue - $18,840,000

Q2 - 18,117 ounces @ $279 p/ounce costs sold at average price of $1,731 per ounce
Q2 Revenue - $26,305,000

Q3Est - 22,000 ounces @ $280 p/ounce costs sold at average price of $1,650 per ounce
Q3Est Revenue - $30,140,000

Q4Est - 23,000 ounces @ $280 p/ounce costs sold at average price of $1,650 per ounce
Q4Est Revenue - $31,510,000

Total Estimated Revenue of $106,795,000 against approx 190 mill shares is EPS of $0.56 per share. Note this is based on production of 77,520 ounces which is under the company's guidance.

Based on current share price, company woud be on a P/E of 8.85. Previously the company's P/E has hovered anywhere between 10 and 20 which based on my EPS estimate is a share price between $5.60 or $11.20 (obviously the smaller figure is more realistic) which on $5.60 would already provide a 13% return.

Also note that the last time EPS was above $0.50 the market pre-empted it based again on the quarterly figures and reached a peak of $8.70 per share. Also note when this occurred they were merely making the investment decision and making small starts to the construction process, we're now much closer to ramping up to the 200,000 ounces per year stage as evidenced by this year's calendar year estimate of 140-150,000 ounces.

Lets assume for a second that they achieve 130,000 ounces for the calendar year with cash costs of say $300 per ounce and avg gold price of 1,600 which equates to EPS for the CALENDAR YEAR of $0.89. I find it hard to imagine the market doesn't react in some positive way to these kind of figures.

Note the only things that can stop the scenarios above coming to fruition is weather/natural disaster, gold price slump or teething problems with the expansion.

I think i've just convinced myself to grab some more.