Hi all
I hope you all realise that the court hearing for IMC to acquire our shares at no cost has been postponed. There is still time to object. Please see my objection below:
MILLENNIUM MINERALS LIMITED (SUBJECT TO DEED OF COMPANY ARRANGEMENT) (RECEIVERS AND MANAGERS APPOINTED)Hi SamPlease present the following information to the courts regarding the proposed acquisition of Millennium Minerals Ltd (Moy) shares by foreign company IMC Resources Ltd for no consideration to minor shareholders.Valuing a gold mine by analysing it’s balance sheet at a historical date, without due consideration for the current price of gold and subsequent improved operating cashflow is both flawed and an opportunistic way to undervalue the company in the eyes of the Court.In September 2019 (Moy’s last qtr of production) Moy produced 16,300 oz at an all in sustaining cost (AISC) of $2,068.At current prices of $2730 this would allow a margin of $662 per oz and a positive operating cash flow of over $10.8 million per quarter or $43 million per year. If we multiply $662 by the company’s estimated reserves of 315,000 oz (as at 30/9/2019) this equates to $208 million minus Moy’s listed liabilities of $87 million (30/6/2019) equaling a company valuation of $121 million.Furthermore the company indicated it was capable of a production rate at 80,000 oz per annum and that a lack of water was largely responsible for the low production rate and high AISC. When Moy and the Pilbara’s water shortage evaporated with the above average Jan/Feb 2020 rains and production rose to 80k oz pa with a 15% decline in AISC the current gold price would see the company currently producing at a positive operating cash flow of around $77 million per year. This scenario could see the company’s value as high as $300 million.Please consider the current gold price in your decision and help protect everyday Australian’s wealth from foreign companies.Regards
