I am also totally interested in the years ahead. But historical values have clear merit when it comes to informing us as to the future.
Over the last 6 years the average gold price received was US$1,306/oz.
They sold 410,484 oz from 1,725,396 tonnes milled - so average head grade to the mill was 7.4g/t.
MML still managed a 59% operational profit margin over FY14 at an average head grade of just 4.76g/t and at an average realised gold price of US$1,299/oz.
Since 1/7/14 gold has averaged US$1,267/oz (ie -2.5% relative to FY14).
For 1Q15 grade was up +5.4% relative to FY14.
Without any improvement over Sep quarter figures, annualised gold sales will be c. 90koz for FY15 (ie + 36%).
EPS for FY14 was US 15c, annualised forward EPS for FY15 is already at US 22c (ie +46%).
If 'the market' currently fails to factor this in, then so be it. There would be little point in equity investment if such value opportunities did not occur. I am certainly no believer in the 'Efficient Market Hypothesis', in fact, the opposite, as the herd is usually wrong in my opinion.
Good luck with all your trades.
CPDLC
MML Price at posting:
68.5¢ Sentiment: Buy Disclosure: Held
(20min delay)