I agree with what you are saying and also can see potential going forward.
In addition to what you have outlined it would seem that management are focussed on improving efficiency eg. the implementation of larger trucks at Engenho which will hopefully support the production targets at a lower cost per tonne of ore moved.
Provided they can maintain the recoveries through the mill (which I recall was running a couple of % better than expected)and increase volumes mined the cost per ounce should decrease (The optimal combination of volume grade and recovery will contribute to a unit cost reduction).
On the flip side however the Brazilian real has appreciated against the US$ at a higher rate than the A$ as such the result will be negatively impacted even though the gold price is going gang busters, another risk I see is the strength of local management and how much input it requires from OZ hence taking senior management focus and time.
On balance I still see this as a long term buy but not without its risks.
Just my thoughts only
MUN Price at posting:
26.7¢ Sentiment: LT Buy Disclosure: Held
