eps, taxes and valuation, page-2

lordolean,

They have a 4-year tax holiday that started with FY2010.

I believe it can be extended by a further 3 years if certain conditions are met.

Regarding dividends: MML have US$64m which at current gold price should increase by c. US$14m per quarter until rising further as the mill is filled over FY2011/12. So cash does not appear to be an immediate concern.

As regards developments: Anoling is quoted as c. US$1m to put the pilot plant back into operation. Then there is the potential new mine and plant at Bananghilig which could come in at around US$200m starting construction from early 2012 if the FS looks good.

So on these developments alone there would appear to be ample cashflow from Co-O to fully fund within expected timescales. However, there has also been muted the possibility of a new mill at Co-O with the existing mill providing processing for the regional projects. If this was to be sanctioned then it is quite likely that considerable cash would be needed in the shorter term and that might well over-ride any consideration of short-term dividend payments.

On the subject of tax: I guess we all have different situations! In my case I hold MML in a tax free wrapper so I would benefit fully from dividends.
CPDLC