Ann: Quarterly Activities Report, page-17

One mine about to close, costs far too high at AUD1621.

Cash balance down by $30m to $63m. If their cash drawdowns continue at this rate they will be needing a handout from shareholders in 6 months time. Do they owe the bank/s something for forward selling ounces in return for cash, which would mean that that their net debt position may not look too good? Worth a check - is this why Cookie is after the ABY cookie jar?

Murch project claimed to be cashflow positive at a cost per ounce of $1299. Obviously they think we come down with the last shower. How can that thing be profitable processing 1.06 gram/t ore when the feasibility study was for average grade of 3 g/t? I have not read all the detail so I do not know if they have yet started mining the higher grade stuff from underground mines, but if they have not then expect this to be a flop just like SLR's project in that region with costs over $2000/ounce.

Where are all the smart young (or not so young analysts) to do an analysis on this sick puppy?

I have a feeling the MLX story is coming undone due to the Cook's maladjusted outlook on life (and TAM/NST).

I am too chicken to buy back any of these shares at the current price until I have a clearer picture of the situation, but my quick review suggests things are not looking flash. Yeah I know that Blackrock is a major holder - but I think their choices often stink. MLX should do a presentation like SBM/PRU etc do to explain themselves to broker analysts - will be interesting to see what they say to their clients (if anyone knows).

I assume they are capitalising a lot of their outlays so as not to include them in their cost/ounce at the Murch, as partly reflected in the drop in cash balance. As for the EBITDA figure - who cares if it is positive when their cash balance is dropping like a stone? You can always fake that number.

I was really hoping MLX would be one of my Oz goldies - but not so sure now.

Best of luck to all gold punters.

loki (just saying my tuppence half-pennies worth, which is actually not worth even that much.)