Still under valued, page-40

The production outlook wasn't that positive...

Yes production was going to increase, but the cost of extracting those ounces was also going to increase much more - ie profit was going to fall which was exacerbated by the PoG falls...

Then their Q4 result came out, their AISC was like $1075 and production was less than 27,000oz which made you wonder if they could even achieve 125,000oz @ $1010/oz the following year...

On top of that they had negative free cash flow, which many were expecting to be positive in Q4 which called into question if they would have to find additional funds to continue the capex required to hit those production targets when the gold price was falling rapidly...

And their reported reserves dropped.

So there was AMPLE reason for MML to sell off.

Just as recent developments make it attractive at sub $0.60, including a rising PoG, falling PHP, falling oil, falling AUD.

The big development for me is the falling PHP...

I think this can help get their costs below $1000 which I think is essential in this gold mining environment.

I get concerned that gold bears will see $1000 gold as a target and if the PoG got pushed to that price miners with AISC north of $1000 would get slaughtered in the next sell off especially given that the US junk bond market is looking shaky and it would appear that the market is losing its appetite for high risk ventures and many marginal mining companies requiring funding to service debts and continue operations...

So MML needs to get back below to the bottom half of producers to ensure it survives and potential future shakeout.

But at sub $0.60 I think an investment in MML is worth the risk.