Quite simply - I think it will earn more (relative to its current share price) than any other company I've analysed in the last 12 months.
An Australian property bought today would have an EBITDA yield of about 4%...
I don't know what "price" you paid for your MML shares, but by annualising the half yearly report at today's share price I get an EBITDA/MarketCap yield of 63% and an EBITDA/EnterpriseValue of 92.3%.
Of course there is more depreciation and amortisation with a gold mine, but I'm expect MML 3Q result this week will show that its producing a free cash flow yield of at least 25%.
At these current prices it is harder for me not to invest and every time they hit their guidance I buy more.
That said, I also keep an eye on all of the gold miners in the ASX300, and I do own a couple others, but by my numbers most other ASX 300 gold miners have free cash flow to EV yields in the 4% to 12% range (which is still really good, just not as good as MML).
MML also has the benefit of having no debt and a growing cash pile (which lowers their Enterprise Value) making their EV ratio to EBITDA, NPAT, Revenue, Oz Produced the best of the gold miners I analyse, and they also are in the top third of their peers for EV to Oz Resources, Oz Reserves and NTA.
They also have increasing production, expectation of costs reductions and a couple of expansion opportunities. So rather than just being a yield play there is a genuine growth story behind it as well.
That said, a stock doesn't get this cheap for no reason, it did have production issues for awhile there, it's still a single mine operation, it's arguably in a politically unstable area of the Philippines, they don't pay a dividend, and they've only just appointed a replacement MD...
So there are "concerns", but I think the price MORE than justifies those risks.
So unless you bought MML back in 2011, I think in time it will become apparent that you haven't paid "pretty high" price at all, but I suspect the 3Q report will be insightful.
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