re: News: Millennium ramping up profitable go...
I'm reluctantly with Beardy on this one.
Yes MOY built a mine on time and budget and seems to operate within its guidance. An excellent start.
However its NEVER enough in the market's eyes.
Where is the growth? Anyone can NPV the future cash flows net the debt and account for the hedge and factor in sustaining capital and shutdown costs to arrive at a theoretical share price range…..
IMC dominate the register so there's no takeover premium in the absence of their assent. Their intent other as a than large supporting investor is unknown by most.
With its early stage debt profile theres little cash for growth either.
In the absence of growth you're actually worse-off than a funded explorer - mining and selling your reserve at low prices to repay yesterday's debt. As each day passes you have less reserve in the ground.
Yes its undervalued despite its efforts (as are most at present) but Where is the compelling upside? Organic exploration is a slow path.
Why is Regis valued so highly by comparison? Because large institutional investors trust management to do what it says and to grow the business. MOY isn't in that class yet…..
This needs a cash injection from institutions willing to back management with a credible growth story; otherwise the only punt is the gold price.
MOY Price at posting:
27.0¢ Sentiment: None Disclosure: Not Held
