cdchiEven Blacrock wore rose tinted glasses when they bought...

cdchi

Even Blacrock wore rose tinted glasses when they bought shares around the $3 level not so long ago.

I have to agree that the selling was partly due to some insiders knowing a lot better than us what was going on. It was not all just fundies needing their money out - I think some of them could have got wind of some of the issues that would keep production levels down and probably make costs a lot higher than what has been reported in the past.

It leaves a sour taste in ones mouth being caught out here. I sold for a lose on the day the previous announcement about the contractor came out because I did not fully understand the implications of what was announced and thought that they had already ceased operations in preparation for the finalisation of the upgrade. That would have meant no money coming in for 4-5 weeks. Later on I rang the company and was told they had not ceased production, but that the mill upgrade would be delayed.

I can not get my head around why production for the June quarter is so low even though they did not stop production to allow for the upgrade. Something smells - could it just be caused by very low mill grade, or could it? Not a good sign going forward.

My optimistic broker has reduced their valuation of MML to $3.47, but that is on the assumption that the second project gets delayed by only one year. In the current POG environment and govnut take there is a likelihood the project will not go ahead so their valuation is probably too high.

I agree its best to wait to see how production and costs turn out in around 6 months time. Things could be even worse if the POG tanks to USD1000/ounce and stays down for an extended period.

MML has gone from rooster to feather duster in 6-7 months.

I wonder what the spin will be by MML's UK supportive broker? Still glowing or seeing things as they are?

loki (sentiment - wtf is going on)